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The Pref-   In 1897, in making its first budget (or plan

erential   for providing money for governing the

Tariff. country), the new ministry took a step that greatly pleased the British people and led to increased trade between the Motherland and Canada. It was provided that the duties on many kinds of goods coming from Great Britain should be lower than those on similar goods from foreign countries. This gives the British merchant an advantage over foreign merchants when doing business in Canada, and is known as " The British Preferential Tariff."

Anger of   There was a difficulty, however. Years

Germany. before, Great Britain had made treaties with Germany and other countries which it was claimed bound Canada to admit their goods on the same terms as those from the Motherland. Great Britain accordingly gave notice that after July, 1898, these treaties should no longer be in force. This made Germany very angry, and she raised the duties on Canadian goods sent to Germany. Canadian statesmen tried to make her see reason, explaining that they were willing to give her all the trade advantages they gave to France or any other foreign country if she would lower her duties to the old rates again. This she refused to do, and at last, in-1903, the Canadian government put a specially high duty—called a surtax—on goods from Germany. This so reduced the trade between the two countries that, in i91o, Germany gave way and Canada took off the surtax,

A Commercial One result of Canada's action in the tariff Treaty with changes was that the British government France. recognized more fully than ever before the right of the Dominion to decide for herself concerning her trade relations. In 1907 two Canadian ministers, Messrs. Fielding and Brodeur, went to France, as the accredited

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