APPENDIX II.

185

unconditional, rather than conditional, preferences.
The Conservatives, on the contrary, have always held
that Canada should offer nothing until Britain is
prepared to make a bargain.

(F.)—With a general election in front, both parties
have their eyes glued to the constituencies. The fiscal
question will not be a “ live” issue here. Borden
will run a High Protection campaign—a ghost of the
N.P., and the Liberals will stand by the Grand Trunk
and the status quo in everything else. The Opposition
merely take up the Chamberlain scheme at times
when they want to attack the Government, and suggest
 its lukewarmness to the Empire. Their protective
 policy is really quite inconsistent with it. The
foundation stone of the Liberal party—solid Quebec —
will have nothing to do with Joseph Chamberlain, so
the Liberals will continue to be indefinite in Ontario
and the other English provinces, while in Quebec
they will preach against it.
N.P. = National Policy. Grand Trunk = Grand Trunk
Railway Bill.
(F 1.)—Liberal leaders have maintained it is a
question which concerns Great Britain primarily, and
should be settled there, independent of attitude of
Canadians. Both parties have favoured the preferential
 tariff introduced by Canada. The wheat preference
 furthering the development of the West is a
strong factor. “Imperial unity” and * Imperial
trade alliance” not sufficiently distinguished in public
discussion; belief in preference as furthering the
former also an important factor.
(G.)—The Liberal party are anxious to promote
trade between the Mother Country and the different
sections of the Empire, and look forward toa time
when there will be a preferential trade policy throughout
 the Empire. I think the motives of the Conservative
 party are similar. The latter want a retaliatory
tariff against Germany and the United States, because