164.

APPENDIX II.

(C.)—1I do not think any details of the new propositions
 have been laid before the Canadian people.
Those Canadians who have most loudly welcomed
Imperial preferential trade, do not, I think, at all
realise what it would mean. They are basing their
actions and voices wholly upon a sentiment.
(C1.)—We do not see any necessity for any discrimination
 between Canadian and Australian exports.
(D.)—Canadians would consider that matter also in
a sane, businesslike way. They are not a lot of
petulant children, liable to be jealous and fret because
other children get something unlike what is given to
them. It is perfectly conceivable that Canadians
might cheerfully see Australians get nominally more
preference, if it were not enough more to damage
Canadian sales in any item.
(D1.)—To this I can only reply that no proposal of
the kind is before the Canadians. Until it is before
them in a definite form I cannot undertake tosay what
their answer will be.
(D2.)—1 should doubt if Canada is prepared for a
preferential system which would entail a tax on
Canadian exports as against Australia.
(D3.)—Not a dozen Canadians have ever thought
of such a thing.
(D4.)—In any general arrangement Canada would,
I am satisfied, consent to any reasonable requirement
of the other colonies.
(D5.)—This subject, I think, has never been discussed.
 If Britain gives a voluntary preference, it
will not be for us to criticise. If its preference is a
matter of bargain, Canada will have to make her own
terms,
(F.)—Such a thing was never dreamt of in their
philosophy.
(F 1.)—Canadians have never considered this phase,
and would probably object to what they might regard
as ¢ discrimination” in favour of other colonies.