In consideration of public lands, works, and property vested as aforesaid in the United States, the United States will assume and discharge the funded debt and contingent liabilities of the late Provinces at rates of interest not exceeding five per centum, to the amount of $85,700,000, apportioned as follows: To Canada West, $36,500,000; to Canada East, $29,000,000; to Nova Scotia, $8,000,000; to New Brunswick, $7,000,000; to Newfoundland, $3,200,000; and to Prince Edward Island, $2,000,000; and in further consideration of the transfer by said Provinces to the United States of the power to levy import and export duties, the United States will make an annual grant of $1,646,000 in aid of local expenditures, to be apportioned as follows: To Canada West, $700,000; to Canada East, $550,000; to Nova Scotia.

$165,000; to Newfoundland, $65,000; to Prince Edward Island, $40,000.
Article III.

For all purposes of State organization and representation in the Congress of the United States.

Newfoundland shall be a part of Canada East, and Prince Edward Island shall be a part of Nova Scotia, except that each shall always be a separate representative district, and entitled to elect at least one member of the House of Representatives, and except also that the municipal authorities of Newfoundland and Prince Edward Island shall receive the indemnities agreed to be paid by the United States in Article II.
Article IV.

Territorial divisions are established as follows: (1) New Brunswick, with its present limits; (2) Nova Scotia, with the addition of Prince Edward Island; (3) Canada East, with the addition of Newfoundland and all territory east of longitude 80 deg, and south of Hudson Straits; (4) Canada West, with the addition of territory south of Hudson's Bay, and between longitude 80 and 90 deg.; (5) Selkirk Territory, bounded east by longitude 90 deg., south by the late boundary of the United States, west by longitude 105 deg., and north by the Arctic Circle; (6) Saskatchewan Territory, bounded east by longitude 105 deg., south by latitude 49 deg., west by the Rocky Mountains, and north by latitude 70 deg.; (7) Columbia Territory, including Vancouver's Island and Queen Charlotte's Island, and bounded east and north by the Rocky Mountains, south by latitude 40 deg., and west by the Pacific Ocean and Russian America.