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 7. At a cost of heavy subsidies, Canada has provided, in the Canadian Pacific Railway, a transcontinental road that will be available, when necessary, for the transport of British troops and munitions to the East. Moreover, in the construction of the Grand Trunk Pacific she will have completed before very long a parallel road sufficiently remote from the American frontier to render relatively small the risk of its being cut. And as these roads may become specially valuable in time of war, so also in time of peace they will be increasingly used by travellers from the outskirts of the Empire, who will gladly avail themselves of improved means of intercommunication to travel by an 'all-British route.'

8. In providing five-eighteenths of the cost of the Transpacific cable—a line constructed primarily in the strategic and commercial interests of Great Britain—Canada paid even more than her share. Australia pays six-eighteenths, and New Zealand two-eighteenths.

9. Canada has shown her willingness to strengthen trade relations by granting a rebate of one-third of the Customs duties not only to Great Britain and Ireland, but also to New Zealand, Cape Colony, Natal, the Transvaal, and the Orange River Colony and the West Indies. Under this preference British imports into Canada have greatly increased of recent years, though it must be remembered that other nations have by no means stood still. Perhaps the best way of realizing the extent of the boon would be to inquire where—in the face of their competition—British trade would have been without the preference. It may be stated here that Canadian opinion seems to be almost solid in favour of the expediency of a preferential tariff.

10. Last comes the question of a contribution to Imperial revenues, in return for the services rendered to Canada by the army, the navy, the consular service, and the diplomatic corps. This is not so easy a matter as might appear on the surface. It is generally discussed in connection with the navy only, and here it will be as well to begin with the facts.