190 APPENDIX II.

Empire became necessary or desirable. I do not
think that Mr. Chamberlain's scheme will force the
Dominion towards either destiny.

(F.)—(a) No present danger, except in the North-West.

(by No present danger anywhere.
The North-West is the great danger-point. Conditions
 there are extraordinary even now, and five
years may see great developments. Anything that
tends to bring in an overwhelming American population
 greatly increases dangers. The natural market of
the Territories is the country to the south of them,
which will soon be demanding food supplies.
(F 1.)—None, so long as principle of full local
autonomy maintained.
(G.)—For the present there is no annexation feeling
in the country, and no agitation for independence.
We are to all intents and purposes independent.
The policy of non-interference with local government
has created a silken tie between the two countries.
There is more to be feared from mistaken attempts to
legislate the Empire closer than from allowing each
member of the Empire to carry on business for himself
in his own way.

(G 1.)—So far as public opinion is concerned there
is not the slightest inclination to annexation.
We are perfectly satisfied with our present relations
with Great Britain, and do not entertain the idea of
independence, although that idea may spring up at
some distant date when the country will have become
more populous and prosperous. It may then be very
difficult to prevent this country from becoming the
arbiter of its own destinies, whether we have a
reciprocity treaty or not.
Mr. Chamberlain's scheme might certainly tend to
either course, specially the latter, if any coercion was
used, and if it 1s inspired or carried out on conditions