APPENDIX II, 163

(G1.)—Whilst a reciprocal tariff between the two
~ountries would naturally be beneficial, nevertheless
I do not think its non-fulfilment would be injurious to
the Dominion, seeing that we are very prosperous
without it, but it would cause, no doubt, a political
agitation which would ultimately lead us to the withdrawal
 of the present preference in favour of Great
Britain. Personally, I am not in a position to pronounce
 myself as to how Mr. Chamberlain’s scheme
will affect the Empire as a whole, but I do not think
that the Empire will be much benefited by its change
of policy.

3. Ave Canadians prepaved for a faiv adjustment of
preferential duties between the colonies, which may entail a
small tax on Canadian expovts as against Australian, Ss. ?

(A.)—My view is that Canadian Protectionists are,
and will continue to be, opposed to any reduction of
the tariff for any purpose, their inclinations, in fact,
being quite in the opposition direction.
Canadian Free Traders would oppose any intercolonial
 preferential management cut and dried by
any central authority, on the ground of jealousy for
the rights of self-government.
Reciprocal trade favours might be effected with
other colonies, but only as the result of negotiations
carried on by our own Government, subject, of course,
to the approval of the general electorate.

(B.)—If by this you mean that there might be
discrimination against one part of the Empire which
geographically is nearer to another part of the Empire
than a still other part of the Empire, and in favour of
this third part, I am sure that we would not consent ta
such a proposal. I can understand that in some matters
Canada in supplying Great Britain will have an advantage
 over Australia. In other situations it will be at
a disadvantage. But in any event I fail to see where
the attempt to regulate such situations would end.
M2