The Sun.
London, England, 1860-07-14 00:00:00

THE 'SUN,'!'I4ONDON, SA.IntDAY EVENINO,- JULY 14, 1866.

entirely change the contract. By the original contract
between the Government and the Galway Company it was
agreed that if the contemplated improvements in Galway
harbour were not made, or turned out ill, it was in the
power of the parties either to insist on the improvements
being carried out, or to remove the packets to some other
Irish port ; but a private stipulation was now made between
the two contracting parties that to Galway in any case the
ships should go. He believed that a bill was now before
Parliament enabling certain local parties to make improve-
ments in Galway harbour. These parties, it might be as-
sumed, would carry out the improvements if in the event of
their failure to do so the packets might be removed, but as
soon as this stipulation came into force these parties might
say, "You are bound to run your ships to Galway under
any circumstances, and we would rather that some one else
should pay for any improvements in the harbour." He
wished to press the Government so far to respect the recom-
mendation of the select committee as to wait until they had
given the house an opportunity of discussing the circum-
stances of the contract.

Mr. LAING was glad to have an opportunity of explain-
ing the precise state of the negotiations with the representa-
tives of the Canadian Government relative to this transfer.
It was quite true, as the hon. baronet (Sir S. Northcote) had
stated, that the general idea of the fusion of the Galway
with the Canadian line was by no means new. It was can-
vassed last session in the committee. Many members felt
that a hardship had beea done to Canada by the arrange-
ment originally come to, and that it was very desirable the
hardship should be remedied. The matter was repeatedly
under discussion, and a division took place in the committee
on the subject. His own opinion as an individual member
was that there would be a propriety and advantage in such
an arrangement if it could be settled on fair terms. It was
however, incorrect to suppose that the precise arrangement
by which the fusion would be carried out was under the
consideration of the Government. In fact, the arrangement
in question came upon the Government by surprise on Wed-
nesday last. The original arrangement having fallen to the
ground, and two Canadian Ministers, Mr. Galt and Mr.
Smythe, having arrived in this country, the negotiations
were renewed. The matter had to go through several stages
before it was ripe for the decision of the Government. It
was first necessary for the parties to come to terms, and
then a convention was necessary with Canada to regulate
the terms of the service. Without a convention of that
kind the purchase of the Galway contract by the Canadian
Company was useless, because the British Government had
to give its sanction to the substitution of the ports of Que-
bec and Portland for the ports of New York and Boston,
originally named in the contract. The whole question of
the arrangements to be entered into between the Canadian
Company and the British Government having keen in the
first instance only casually broached in conversation, it was
deemed necessary that the proposal which was made on
behalf of the former should, in order to give effect to any
assignment of the Galway contract, be reduced to writing.
Under these circumstances he had had a conference with
Mr. Galt and Mr. Smythe, the two gentlemen who repre-
sented Canada in this country, and had stated to them that,
while individually favourable to the principle of the con-
templated transfer, if it could be carried into effect, he had
no sort of authority to bind the Government in the matter,
and that he could not undertake to procure their decision
until the terms of the transfer had in writing been duly
submitted to theft:. consideration. He had added that he
would render all the assistance in his power in getting rid
of mere matters of detail, and in the endeavour to frame a
definite proposition on the subject. Such was the state of
things on Tuesday last, and on Wednesday the terms of the
transfer were to have been reduced to writing; but, to his
great surprise, he had on that day received a letter, stating
that Mr. Galt and Mr. Smythe were obliged to take their de-
parture for Canada that very night or the following morning;
that they were not in a position to leave anybody behind
them with power to represent them in the transaction in
question; and that, under the circumstances, unless theyhad