CANADA 669 



The .case presented for the adoption of this agreement was that reciprocal trade rela- 

 tions had been the policy of all parties in Canada for generations, that many efforts had 

 been made to secure a treaty without success, and that Sir John Macdonald's National 

 Policy Tariff (1879) contained a standing offer of reciprocity with the United States 

 covering a large portion of the products included in the present agreement. The United 

 States having approached Canada with fair offers, it was claimed that they should be 

 fairly met, and that in making the arrangement the government .were realising the de- 

 sires which the Canadian people had expressed for half a century, and also that in pro- 

 moting friendly relations with the neighbouring republic the best possible service to the 

 empire was being done. As Canada was seeking markets everywhere for her surplus 

 products, subsidising steamship lines, and sending out commercial agents, it would be 

 absurd to refuse to avail herself of increased facilities in the markets at her doors. 



A denial was given to the expressed fear that the imports from Great Britain would 

 be seriously affected. It was pointed out that the greater part of the agreement dealt 

 with natural products which did not come from Great Britain, and that the range of 

 manufactures affected was small. It was further denied that there was any foundation 

 for the assumption that the tariff rates agreed upon discriminated in favour of the 

 United States and against Great Britain. The promoters of the agreement promised 

 that in every case Great Britain would have the same rate or a lower one, and held that 

 Canada's right to deal with the British preference as she pleased remained untouched. 



The opposition to the agreement took the ground that the arrangement had been 

 entered into hastily without its effects being fully appreciated, and that the question 

 should be referred to the people. Attention was drawn to the success which had 

 attended the efforts to build up a nation and bind the country together from east to 

 west, and it was contended that, as the arrangements proposed would primarily affect 

 the question of transportation by promoting a tendency to make trade move north and 

 south, the immense efforts which had been made would be sacrificed, and the markets 

 which had been secured in Great Britain abandoned. The action of the United States 

 in approaching Canada with a desire to make such an agreement, after declining on so 

 many occasions to consider the question when asked to do so by Canada, was looked 

 upon with suspicion, and it was suggested that the balance of advantage would remain 

 with the United States, the speeches of some of her most prominent public men being 

 freely quoted in support of this view, notably one by Mr. Champ Clark in Congress, 

 and another by President Taft himself. It was held that the impelling cause was the 

 desire of the United States to have access to the abundant natural resources of Canada, 

 her own reserves of wood, coal and other minerals, and much of her farm land, having 

 shown signs of exhaustion. It was thought the better plan was to conserve Canadian 

 resources for Canadian use. A further objection to the proposals was that while they 

 would change the whole current of Canadian industries, and be likely to dislocate the 

 national development, the new markets proposed would be so entirely unstable and 

 insecure that, after having had the benefit of them for a few years, they might be with- 

 drawn, causing a reversion to the position of 25 years ago, and necessitating the re- 

 building of home industries and re-making their reputation in markets which in the mean- 

 time had been entirely occupied by old competitors. Great importance was attached to 

 the restriction on legislation which it was alleged this agreement would cause, as no 

 trade aggrieved under it could obtain redress without the arrangement as a whole being 

 upset. It was also urged that under it concessions in the tariff would have to be made, 

 in accordance with existing treaties, to countries from which no equivalent advantages 

 could be obtained; and it was declared that if this Reciprocity policy was pursued the 

 ties of empire would eventually be cut, for it would lead to complete commercial union 

 and hi the end the political domination of the United States, to which Canada would 

 simply be an annexe. 



The debates in connection with the matter lasted for almost the remainder of the 

 session; but on February 22, 19.11, on the motion of Mr. F. D. Monk, the House adopted 

 unanimously the following as an amendment to the motion for going into Committee 



