Canada, still leading the way in the matter of commercial relations, secured the passing of a resolution favouring cheap postage rates on newspapers and periodicals between different parts of the Empire. Already in 1898, Canada had lowered the rates on letters to any part of the Empire from five to two cents per half-ounce, and her example had been widely followed.
For the much cry there was little wool. Neither in trade nor in political relations had Mr Chamberlain's proposals received any encouragement, and in defence matters only small and precarious advance had been made towards centralization. Mr Chamberlain did not conceal his disappointment. In Sir Wilfrid Laurier he had met a man of equally strong purposes and beliefs, equally adroit in argument, and much better informed than himself in the lessons of the Empire's past and in the public opinion overseas on questions of the day. He was plainly inclined to attribute the policy of the Canadian prime minister to his French descent. Divining this, Sir Wilfrid suggested that he should invite the other Canadian ministers to a private conference. Mr Chamberlain accepted the suggestion with alacrity; a dinner was arranged; and hours of discussion followed. To his surprise Mr Chamberlain soon found that the four responsible Canadian ministers of the Crown, all of British stock, two of Nova Scotia and two of Ontario, took precisely the same stand that their French-Canadian leader had maintained. They were as loyal to the king as any son of England, and were all determined to retain Canada's connection with the Empire. But, as Canadians first, they believed, as did Mr Chamberlain himself, that the Empire, like charity, began at home. The outcome was that the colonial secretary perceived the hopelessness of endeavour along the lines of political or military centralization, and henceforth concentrated upon commerce. The Chamberlain policy of imperial preferential trade, which eventually took shape as a campaign for protection, was a direct result of the Conference of 1902.
It is not without interest to note that the policy of the Canadian prime minister as to political and defence relations was not once called in question by the leader of the Opposition when parliament next met. Sir Wilfrid Laurier had faithfully voiced the prevailing will of the people of Canada, whether they willed aright or erringly.
We must now turn to see what relations existed during these years between Canada and the neighbouring land which Canadians knew so well. In 1896, when the Liberal Government took office, there still remained the disputes which had long made difficult friendly intercourse with this neighbour; and as yet there seemed few grounds for hope that they could be discussed in an amicable temper. In the same year the Republicans came again to power, and presently their new tariff out-M'Kinleyed the M'Kinley Act of 1890, raising the duties, which the Democrats had lowered, to a higher level than formerly. Little had yet occurred to change the provincial bumptiousness of the American attitude towards other nations—though there had been a reaction in the country from President Cleveland's fulminations of 1895 on the Venezuelan question—or to arouse towards Great Britain or Canada the deeper feelings of friendship which common tongue and common blood should have inspired. Moreover, the special difficulty that faces all negotiations with the United States, the division of power between President and Congress, remained in full intensity, for President M'Kinley made the scrupulous observance of the constitutional limits of his authority the first article in his political creed. In Canada a still rankling antagonism bred of the Venezuelan episode made the situation all the worse. Yet the many issues outstanding between the two countries made negotiation imperative.
A Joint High Commission was appointed, which opened its sessions at Quebec in August 1898. Lord Herschell, representing the United Kingdom, acted as chairman. Sir Wilfrid Laurier, Sir Richard Cartwright, Sir Louis Davies, and John Charlton represented Canada. Sir James Winter sat for Newfoundland and Senator Fairbanks, Senator Gray, Congressman Dingley, General Foster, Mr Kasson, and Mr Coolidge for the United States. The Commission sat at Quebec until October and adjourned to meet at Washington in November. There it continued its sessions and approached a solution of most of the difficulties. It seemed possible to give permanence to the existing unstable arrangements for shipping goods through in bond, to abolish the unneighbourly alien labour laws, to provide that Canadian sealers should give up their rights in Bering Sea for a money payment, and to arrange for a measure of reciprocity in natural products and in a limited list of manufactures. But the question of the Alaskan boundary proved insoluble, and the Commission broke up in February 1899.
Step by step the long and often uncertain border between Canada and the United States proper had been defined and accepted. Only the boundary between Canada and Alaska remained in dispute. There was a difference of opinion as to the meaning of certain words in the treaty of 1825 which defined, or purported to define, the boundary between British and Russian America on the Pacific. That treaty gave Russia a panhandle strip of coast half-way down what is now British Columbia; and, when the United States bought Alaska in 1867, the purchase of course included this strip of coast. As British Columbia grew, the disadvantage of this barrier became seriously felt, and repeated attempts were made to have the boundary defined and, if possible, a port awarded to Canada. The discovery of gold in the Klondike in 1896 made this all the more urgent. The treaty of 1825 provided that north of Portland Channel the boundary should follow the summit of the mountains parallel to the coast, and where these mountains proved to be more than ten marine leagues from the coast, the line was to be drawn parallel to the windings of the coast at ten leagues' distance. Canada contended for an interpretation of this wording which would give her a harbour at the head of one of the fiords which ran far inland, while the United States, following the usual international doctrine that a disadvantage to your neighbour must be an advantage to yourself, insisted that its spite fence should be as high and as gateless as possible.
The main point of difference between the two countries was as to the way of settling the dispute. The United States proposed a commission of three representatives from each side. Given a desire for fair dealing, such a commission is perhaps most satisfactory, at least for a permanent body, as the experience of the Waterways Commission has since shown. But for a temporary purpose, and in the spirit which then existed, the Canadian negotiators knew too well that such a board could reach a decision only by the weakening of one of the British members. They urged, therefore, that a board of three arbitrators should be appointed, one of them an international jurist of repute who should act as umpire. This was the course which the United States had insisted upon in the case of Venezuela, but what was sauce for the Venezuelan goose was not sauce for the Alaskan gander. The United States asserted that the Canadian case had been trumped up in view of the Klondike discoveries, and would not accept any medium of settlement which did not make it certain beforehand that, right or wrong, the claim of Canada would be rejected.
The deadlock in this issue proved hopeless, and the Commission's labours ended without definite result upon any point for the time. Yet the months of conference had done good in giving the statesmen of each country a better idea of the views and problems of the other, and had contributed not a little to the final solution or the final forgetting that the problems existed. Later, during Mr, now Lord, Bryce's term of office as ambassador at Washington, most of the provisional arrangements agreed upon were taken up and embodied in separate agreements, accepted by both countries. When the new era of neighbourliness dawned, a few years later, some of the difficulties which had long loomed large and boding ceased to have any more importance than the yard or two of land once in dispute between farmers who have since realized the folly of line-fence lawsuits.
After the adjournment of the Joint High Commission in 1899 the two countries agreed upon a temporary Alaskan boundary-line for purposes of administration, and it was not until early in 1903 that a treaty for the settlement of the dispute was arranged between Great Britain and the United States and accepted by Canada.
By this treaty the American proposal of a commission of three members from each side was adopted. The Canadian Government agreed to this plan with the greatest reluctance, urging to the last that arbitration with an outside umpire was preferable. Seemingly, however, fairness was secured by a clause in the treaty which provided that the members should be 'impartial jurists of repute, who shall consider judicially the questions submitted to them, and each of whom shall first subscribe an oath that he will impartially consider the arguments and evidence submitted to the tribunal and will decide thereupon according to his true judgment.' Further, the United States now agreed to abandon its former position, that in any case territory then settled by Americans should not be given up. That the United States risked nothing by withdrawing this safeguard became clear when the American commissioners were named—Elihu Root, a member of President Roosevelt's Cabinet, which had declined to make any concession, Senator Lodge, who had only a few months before declared the Canadian contention a manufactured and baseless claim, and Senator Turner from Washington, the state which was eager to retain a monopoly of the Klondike trade. Undoubtedly these were able men, but not impartial jurists. In the words of an American newspaper, 'the chances of convincing them of the rightfulness of Canada's claim are about the same as the prospect of a thaw in Hades.'