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Canada Pacific Railway—The Guarantee—Question

Volume 218: debated on Monday 27 April 1874

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asked the Under Secretary of State for the Colonies, Whether the Canada Pacific Railway Guarantee of last Session is avoided by the refusal of Canada to carry out some of the provisions of her contract?

Sir, the facts of the case are, that negotiations are now in progress between the Government of the Dominion of Canada and the Province of British Columbia, arising out of the proposal by the Dominion Government of certain modifications of the provisions of the contract as to the construction of the Pacific Railway. No decision has yet been arrived at, and it would, therefore, be incorrect to speak of the refusal of Canada to carry out any of the provisions of her contract. Any question as to the validity of the guarantee would only arise in the event of alterations or modifications in the contract being adopted by the Dominion Government.