RECIPROCITY AND ANNEXATION.

Wanganui Herald, Volume XXXXVI, Issue 13331, 21 March 1911, Page 5

RECIPROCITY AND ANNEXATION.

SIR W. LYNE’S VIEWS. J Press Association.—Telegraph.—Copyright. SYDNEY, March 20. Sir Wm. Lyne, after discussing the Can-adiap-Afnerican reciprocity arrangement with business men in Canada, has returned with the conviction that if the agreement is ratified by the Dominion House, Canada will i e annexed to the United States -in eight or ten years, and the Empire begin to disintegrate. He attributes the reciprocity negotiations to the failure of the British Government in 1907 to make a preferential treaty with tlie self-governing Dominions. Americans whom Sir Mm. Lyn© met at San, Francisco, did not cloak the fact that the idea in their minds was the absorption of Canada. Reciprocal trade would allow American trusts and combines to spread through Canada. Sir Wm. said he was glad to .seethe growing feeling in Canada against the treaty, and he thinks the people will have more sense than to ratify it. CANADIAN TRADE. As a young and growing country Canada has large exports and still larger imports. Most of her exports go to Great Britain; mostof. her imports come from the United States. With a population of less- than .8,000,000, she ranks next to Great Britain and Germany in the list of United States customers. For, the year ending March, 1910, the figures are; EXPORTS. Great Britain. United States ■, • Dol. Dol. Value 149,600,000 • 113,100,000 Percentage .... 4-8 52 IMPORTS. Value (free) ... 23,500,000 133,000,000 Do. (dutiable) 72,200,000 104,700,000 Percentage 30 70 Canada and the United States are geographically interdependent to an important degree. The ' United States look to Canada for nickel, copper, asbestos, spruce, pulp, timber, fish, and, in certain contingencies, agricultural produce. ; Canada looks to the United States tor raw cotton, tobacco, hard coal, hardwoods, Indian corn, and a loner list of manufactured wares, especially those subject to quick, and, t.djceh singly, rather small Apders. JEor, the year ending March, 1910, apart from settlers’ effects and bullion, what may be classed as raw material made up 33 percent. of the impots, as against 7 per cent. from Great Britain. In both cases this raw material is made up of remarkably few items. Five-sixths of that coming from the United States is represented by the following (in million dollars) Coal, 27.3; Ihdian corn, 5.1; lumber, 42; green undressed furs, hides, and skins, 4.8; raw tobacco, 2.9; guttapercha, 3.3; metal ores, 2.7; bar iron, iron sheets, and scrap, iron, 2.6. Apart from the last item, these purchases, one may admit, are more dr less fixed. Of the British 7 per cent, none of the items can be regarded as fixed:—Bar iron, iron sheets, and scrap iron 2.45; undressed hides, skins, £nd furs, 2.1; washed wool, .79; breadstuff's, including seed, .55 ; diamonds, .54; breeding animals, .53; salt .25; coaj, .22; fruits, .17; raw tobacco, .06.

Sir William Mackenzie, the president of the Canadian Northern Railway, when in England last month, expressed himself to a Standard of Empire representative as being on the whole opposed to the reciprocity agreement. “I am convinced,” he said, “that this arrangement with the United. States is antagonistic to the best interests of the Dominion, and that the majority of business men throughout Canada share the same opinion. I base my reasons on general grounds. Canada has been getting along well enough up to now, and Ido not believe that anyone was really clamouring for any such change in our fiscal policy. My own view is that it would have been better to have left Canada entirely free, and that her hands ought not to be tied in any way. . . While, perhaps the free entry of fish into the United States inay act beneficially to an extent, I regard the removal of the duty on Canadian wheat as a serious mistake. This will mean that Canadian wheat will be .sent to the United States to be turned into flour there, and then exported to the English markets, whereas Canada's surplus wheat should be shipped direct from our seaports to the Mother Country. On the whole, I think this will be a loss to. Canada.” 'Asked whether he considered that (he reciprocity agreement would in any way affect the relations between Canada and Great Britain, Sir William, Mackenzie replied:—“l do not that it will greatly affect the Britisch preference, although it may have the tendency, to divert trade withm this country\to the United States, particularly as regards dairy produce, rlt is anticipated that the farmers of Eastern Canada will now be able to find 1 - a better market for their produce in the United States than in their own country. If this is the case, the consequent depletion of the Canadian markets is certain to re-act upon the cost of living in the Dominion, and higher prices for dairy, produce, - bacon, ham, and _ such like commodities will be the natural result.