6 7 o CANADA 



of Ways and Means: " But, before resuming the discussion of the terms of the agree- 

 ment concluded between the government of Canada and the President of the United 

 States, and with a view to dispel the feeling of unrest created in Canada by comments 

 made in both countries as to the political consequence of the agreement, the House 

 wishes to affirm emphatically its determination to preserve intact the bonds which unite 

 Canada to the British Empire and the full liberty of Canada to control her fiscal policy 

 and internal autonomy." 



A Bill to give effect to this Reciprocity Agreement on the part of the United States 

 was introduced in the American Congress on January 2gth, and in due course passed the 

 Senate on July 22nd, it being enacted that its provisions should become operative as soon 

 as the necessary counterpart legislation had been passed by the Canadian parliament. 

 Discussion continued in the Canadian House of Commons, but no progress was made 

 towards the adoption of the proposals, and on July 29, 1911 the government decided to 

 recommend the dissolution of parliament and to submit the matter to the judgment of 

 the people at a general election. The defeat of the government followed, the result 

 being greatly influenced by the strong opposition to Reciprocity which was shown by 

 such well-known Liberals as Mr. Clifford Sifton (b. 1861; formerly Minister of the In- 

 terior in the Laurier cabinet), Mr. Lloyd Harris, and Mr. Wm. German, and by the steps 

 taken by a body of prominent Liberals of Toronto, assisted by Sir Edmund Walker, 

 President of the Canadian Bank of Commerce. 



Sir W. Laurier' s Naval Policy. An outcome of the Imperial Conference of 1909 had 

 been the determination of the Canadian government to establish a naval service; and on 

 January 12, 1910 a Bill for this purpose was introduced into the House of Commons, and 

 became law on May 4, 1910. It provided for the creation of a Naval Department, and 

 transferred to it from the Department of Marine and Fisheries the wireless telegraph, 

 fisheries protection, hydrographic, and tidal survey branches. It empowered the gov- 

 ernment to appoint a Naval Board to advise the minister, and to organise and maintain 

 permanent, reserve and volunteer forces, and to place at the disposal of His Majesty, 

 for general service in the Royal Navy, ships or men of the Canadian naval service. 

 Provision was also made for a naval college. During the debate on the Bill, Sir Wilfrid 

 Laurier announced that it was the intention of the government to construct, in Canada 

 if possible, four cruisers of the improved " Bristol " dass, and six destroyers of the 

 improved " River " class. At conferences with the British Admiralty it was agreed 

 that the naval stations for Canada should be two one on the Atlantic to include the 

 waters north of 30 N. lat. and west of the meridian of 40 W.; and one on the Pacific to 

 include the waters north of 30 N. lat. and east of the meridian of 180. Halifax Dock- 

 yard was taken over from the Imperial authorities on January i, 1906, and the dockyard 

 at Esquimalt on November 9, 1910. On August 28, 1911 it was announced that the 

 King had approved of the naval forces of Canada receiving the style of " The Royal 

 Canadian Navy," and of the ships of war of that navy being designated as " His Ma- 

 jesty's Canadian Ships." On December i6th the following regulations were published 

 with regard to the flag and pennants to be flown by the Royal Canadian navy: ; " All 

 ships and vessels of the Royal Canadian Navy shall fly at the stern the white ensign 

 as the symbol of the authority of the Crown, and at the jack-staff the distinctive flag of 

 the Dominion of Canada, such distinctive flag being the blue ensign with the Arms of the 

 Dominion inset in the fly. The white pennant will be flown at the masthead." 



In pursuance of Sir Wilfrid Laurier's naval policy, H.M.'s cruisers " Nibbe " and 

 " Rainbow " were purchased and taken over in the autumn of 1910. On July 29, 1911, 

 however, H.M.C.S. " Niobe " sustained damage by grounding on the coast off Cape 

 Sable; her repairs were undertaken at Halifax and took fifteen months to complete. 

 The building of the proposed new cruisers and destroyers had, however, not been com- 

 menced at the time of the resignation of Sir Wilfrid Laurier's government. 



Mr. Borden's Naval Policy. The naval policy of Sir Wilfrid Laurier's government 

 was that of a Canadian-built and Canadian-controlled navy, but this was criticised by the 

 Opposition as involving a large expenditure, a disunited Imperial navy, and the construe- 



