The following are the exports of Canada to Germany in the same

It is now rumoured that a new German tariff is in course of preparation, and that the effect of it will be to raise the duties on certain articles of Canadian export, notably dried and green fruits, wood and timber, leather and agricultural machinery. | If this report is true, the assumption is unless Germany alters her policy, that the duties against Canadian imports will be raised, and that she will still have to pay the higher duty, instead of the duty given to the most-favoured nation. || It is hoped that His Majesty's Government will endeavour to procure mostfavoured-nation treatment for Canada in any further negotiations that may take place, and in other ways protect the commercial interests of Canada if there is any intention disclosed of increasing the duties on articles in the export of which the Dominion of Canada is interested. [ The matter is already attracting considerable attention in Canada, and the feeling is growing that if Germany continues to place Canada at a disadvantage compared with other parts of the British Empire and with foreign nations, the whole question of the imports into Canada from Germany, which are far greater in value that Canadian exports to Germany, will have to be reconsidered. || Attached is a statement showing the principal articles of import into Canada from Germany, and of export from Canada to Germany, during the years 1899 and 1900.

Nr. 13363. GROSSBRITANNIEN. - Der Kolonialminister an die Regierung Kanadas. Teilt die Verlängerung des Handelsprovisoriums durch Deutschland bis

31. Dezember 1903 mit.

Downing Street, September 12, 1901.

Sir, || In continuation of my circular despatches of August 4, 1899, and August 4, 1900, I have the honour to transmit to you, for the information of your Government, a translation of a further law passed in Germany authorising the Bundesrath to prolong most-favoured-nation treatment to the British Empire until December 31, 1903, together with

a translation of an official notification issued under that law, according the most-favoured-nation treatment to British and Colonial products, with the exception of those of Canada, until further notice.

J. Chamberlain.

Nr. 13364. DEUTSCHES REICH. Der Generalkonsul für Kanada an den kanadischen Premierminister. Unter

redung über die Zollfrage und einen neuen Han

delsvertrag.

Montreal, November 13, 1901.

My Dear Sir Wilfrid, || Our interesting conversation of yesterday came to an end just when the question of reciprocity" or "most-favourednation treatment" had been approached. As there was not time to discuss it thoroughly, allow me to point out my personal views by letter. || I fully understand and appreciate a reciprocity policy, however, I think if there is to be reciprocity between two nations, it must not be one-sided this would be a contradictio in adjecto and it must be reciprocity from the start. However, you claim the German most-favoured-nation treatment, i. e., reductions on the aggregate value of $850 000 of Canadian goods; for such is the value of the Canadian goods that entered Germany under the reduced rates of our conventional tariff in 1897-8, before the denunciation of the treaty. In return you offer us reductions the present reductions of the French treaty - on goods to the aggregate value of about $12000 (in fact only wines). And still you insist that, should you allow to France or some other country more reductions, (France too, by Article 2 of your treaty, „enjoys fully and unconditionally“ any commercial advantage granted by Canada to any third power, &c.) Germany would not share them, if she is not willing to allow you what those other nations give you in return, f.i., as you pointed out yourself, eventually even free admission of certain grains, if you should obtain that from another nation; you are not willing to allow us your eventual further reductions as a second instalment, so to say, on the $850 000 that you want us to give you about for nothing from the beginning, but you want us to pay again „pay, pay, pay," as your friend Rudyard Kipling says. To such a demand it would correspond that also Germany should ask from the beginning from you, for the extension of its conventional tariff to Canadian goods, all the reductions that we receive in return from Russia, Austria, Italy, &c., &c., i. e., reductions of the Canadian tariff going in many cases below the rates even of your preferential tariff. || Have the

kindness to take this into consideration before sending me your memorandum, as I hardly dare to submit to my government suggestions as those made by you at the end of our interview.

Kanada an den deutschen Generalkonsul. Antwort auf das vorige.

Ottawa, November 20, 1901.

Dear Mr. Bopp, || There is no necessity at all, of going into the discussion of your letter, at present. If you were prepared to negotiate a commercial treaty now, we would be happy to meet you, but as you are not in a position until 1903 so to do, the only thing for us is to proceed on the lines which we have suggested. By so doing, we will avoid the necessity of protecting ourselves against what would be deemed discrimination against your government. || Let me assure you, however, that as soon as your government is ready to discuss a commercial treaty, we will be happy to meet you in the most friendly way.

Wilfrid Laurier.

Nr. 13366. GROSSBRITANNIEN. - Denkschrift des kanadischen Finanzministers über den Handel zwischen Kanada und Deutschland.

Memorandum on Trade between Canada and Germany.

18. November 1901*).

The undersigned Minister of Finance, having in conjunction with the Right Honourable the Prime Minister and the Honourable the Minister of Customs, had an interview at Ottawa with Herr Franz Bopp, His Imperial German Majesty's Consul at Montreal, on the subject of the trade relations between the German Empire and the Dominion of Canada, submits for the consideration of council the following observations thereon.|] Prior to July 31, 1898, Canada, as a portion of the British Empire, received the most favourable tariff treatment in Germany, under the terms of the treaty which had long existed between that country and Great Britain. On the date named that treaty, having been denounced by the British Government, ceased to have effect. Provisional agreements have since

*) Dem deutschen Generalkonsul am 21. November 1901 mitgeteilt. Red.

been entered into from time to time between Great Britain and Germany. Canada, however, has been excluded from the benefit of such agreements. The products of Canada are no longer admitted into Germany on the favoured terms known in the German tariff as ,,conventional duties", but are specially excluded therefrom and made subject to the higher duties of the general tariff. The reason assigned by the German Government for this discrimination against Canada is the enactment by the Dominion of legislation granting preferential tariff rates to the products of Great Britain. The undersigned desires to point out that the policy of the Canadian Government was not designed to give to any foreign nation more favoured treatment than was to be allowed to Germany. The Canadian policy has been confined to a readjustment of the commercial relations of the Dominion with the British Empire of which it is a part, a domestic affair which could hardly be open to reasonable objection by any foreign government. It would therefore seem that the action of Canada afforded no just ground for complaint by Germany. The undersigned is of opinion that there has been some misconception of the Canadian policy in this respect, and hopes that upon further consideration the German Government will see that Canada, in taking the step referred to, did not forfeit her claim to the advantages accorded by Germany to the most-favoured nations. || Apart, however, from the purpose of the Canadian policy in question, the undersigned invited attention to the fact that the trade between the two countries, which was largely in favour of Germany under the treaty, has continued to be equally favourable since the treaty ceased to exist. Canada was and still is a large purchaser of German goods, while Germany was and still is but a small purchaser of the products of Canada. The following statistics will clearly show how largely the balance of trade is in favour of Germany:

Imports from Germany into Canada for home consumption for the Fiscal Years ending June 30.

These imports it is believed have been substantially all of German

origin.

Total Exports of Canada to Germany during the Fiscal Years

A portion of these exports was not Canadian, but merely passed through Canada in transit. The following statement shows more accurately to what extent Germany is a buyer of Canadian goods:- || Exports of the Products of Canada to Germany during the Fiscal Years ending June 30.

In view of this evidence that the trade between the two countries continues to be very largely in favour of Germany, the purchases from that country being more than five times greater than Germany's purchases from Canada, the undersigned thinks that the German Government may be fairly asked to give the products of the Dominion the most-favoured treatment in the German markets. || The fact that Canada, while so largely a purchaser of the goods of Germany, is treated unfavourably by the tariff laws of that country, is regarded by many in the Dominion as evidence of unfriendliness and has led to demands for retaliatory tariff legislation. The Canadian Government has not yielded to such demands, deeming it better to place the facts before the German Government in the hope that the present discrimination against the products of Canada may be removed. || The Canadian Government would at a convenient moment be prepared to consider the general question of trade relations between Germany and the Dominion. The undersigned understands, however, that it is not the policy of the German Government at present to make any commercial treaties extending beyond the year 1903, it being desired that at that time all commercial arrangements with foreign nations shall be subject to revision. It would, therefore, be inexpedient for the Canadian Government to enter into negotiations at this moment with a