$                  Reaction: The Solution did not satisfy anyone: Imperialists felt that Canada had let Britain down.  French Canadians had felt Laurier had done to much  

The Naval Crises:

$                  In the early 1900's Germany and Britain were involved in a naval race to have the largest navy in the world.  Britains power was based on it=s navy thus it=s policy was to ensure that it had and maintained the largest navy in the world.  Germany was challenging this status.  

$                  Britain wanted Canada and other colonies to contribute funds to help build more ships  

$                  The question in Canada was should we help Britain build its Navy or build our own?  This issue threatened to divide Canada as the Boer War had.  

$                  Again Laurier offered a compromise, The Naval Service Bill ( an act to create a Canadian Navy under Canadian central) 

$                  Solution:Canada would have a navy of it=s own under the control of the Canadian Government

$                  In an emergency the Canadian navy would be placed under British control

$                  Service in the navy would be voluntary

$                  Reaction: French Canadian Nationalists such as Henri Bourassa complained that this policy that    Canadians could be sent anywhere at anytime to fight Britains imperialists wars.

$                  They feared the wars would result in conscription- forced military service in wartime.

$                  English Canadians felt we should make an outright contribution to the British Navy. 

2.9 Canada and the United States 

$                 Disputes over fishing and seal-hunting limits had taken place in the 1880's and had not been resolved by the 20^th c.

$                  Canada feared that growing U.S. might view Canada as a target for U.S. imperialism.

$                  Canada if targeted would offer little military resistance. (Poorly equipped and trained.)

 

The Alaska Boundary Dispute, 1903:  

$                  Canada came into conflict with the U.S. over the border between Alaska and Canada  

$                  The Alaska Boundary Dispute between Canada and the U. S. dealt with territory and parts in the Alaska Panhandle.(p.54)  

$                  When gold was discovered, in the Yukon, this territory became important as thousands of prospectors flooded into the territory.  Both Canadian and American merchants wanted to take advantage of this new business.  

$                  Canada and the U.S. argued that they controlled parts in this region; government control of parts was important as taxes could be levied on all goods and gold going in and out of the territory.

$                  Eventually the dispute was submitted to a court of 6 judges:

- 3 American

- 2 Canadian

- 1 British  

$                  After one month of discussion the Tribunal decided 4-2 against Canada; the British judge had sided with the Americans against Canada.  Britain was facing growing problems with Germany and knew it would need U.S. support if a war broke out with Germany, therefore it would not risk American friendship in this dispute.  

$                  Canadians felt outraged; that the U.S. had bullied them and that Britain had sold them out.  

$                  Canadians, as result, felt more determined that it must make its own decisions in the future. 

                        Signs of Improved Relations 

$                  In 1909 the International Joint Commission, a commission set up to deal with disagreements between the United States and Canada, was established to deal with disagreements over boundary waters along the Canadian-American border.

$                  The IJC is still in place today. It monitors developments like the Great Lakes. It is responsible for gathering public feedback and reporting on air quality issues.  

                        Reciprocity and the 1911 Election

$                  Farmers in western Canada demanded lower tariffs on goods traded between Canada and the U.S. when they learned that farm machinery in the U.S. sold for half the price in Canada.  The high costs were blamed on Ontario and Quebec who grew rich because of the tariffs which kept competition out of Canada   

$                  Laurier dealt with the issue by working out the Reciprocity Agreement, an agreement to trade certain products without taxes.  It was a deal every Canadian government had tried to make with the U.S. since Confederation.  

$                  At first this agreement seemed to ensure Laurier would win the next election. 

                        However things began to go wrong:  

1. Clifford Sifton a liberal cabinet opposed reciprocity.  He and other Liberals opposed the idea. 

2. Business people fearing competition from cheap American products fought the idea.  

3. Canadian Nationalists did not want to see Canadian resources leave Canada. 

4. An American==s journalist declared he looked forward to the day the American flag would fly over all of North America.