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APPENDIX II.

stirring up the United States agitation for reciprocity
with Canada. (6) He is a bonny fighter. It is fun
to see a man running such a tremendous circus on
wind,
(D1.)—It cannot be said that the political parties
have as yet taken up any attitude towards the scheme.
Our Parliament rose the other day without having
dealt in any way with the subject.

(D2.)—The Conservative party for twenty years
has been a Protectionist party and a ¢ British * party;
the Liberals a Tariff Reform party. Most Conservatives
 believe in Protection for Great Britain as well
as for Canada, and therefore sympathise with Mr.
Chamberlain’s agitation. Liberals gave a preference
to Great Britain in order to carry out in some degree
their tariff reform pledges, and regard Mr. Chamberlain’s
 proposals as a natural return for the trade
preference which we now give to Great Britain.
(D3.)—Liberals are for low tariff at home, and
have so far used pro-British sentiment to help them.
Conservatives want to raise the tariff on iron and
steel, cottons and woollens, and rely on Mr, Chamberlain’s
 conversion to Protectionism to help them. They
hope that by identifying their cause with his, in
appearance but not in reality, events may bring a
wave of sentiment against Laurier's resistance to
Imperialist projects. Once they are in power, up will
go the tariff to where it was from 1880 to 18g6—or
bevond.

(D4.)—I think both political parties in Canada
would like to see the scheme tried because they think
it would be advantageous to Canada,
Both parties would be glad to see our products
admitted into British markets on exceptionally favourable
 terms. The Liberals were the originators of the
present preference, a voluntary gift, and they, speaking
 generally, hold that the best policy is to sit tight,
and leave the next move to England. They favour