At first the prospect in Canada of speedy and harmonious action was of the brightest. Mr Foster gave notice in the House of Commons of a resolution in favour of Canadian naval preparations, and the leaders of both parties met in private conference and agreed upon the general course to be followed. Late in March 1909 Mr Foster moved his resolution and supported it with powerful and kindling eloquence. He dwelt on the burden which Britain bore alone and the urgent need that Canada should take a more adequate part in naval defence. He opposed strongly the policy of a fixed annual contribution. The certainty of constant friction over the amount, the smack of tribute, the radical defect that it meant hiring somebody else to do what Canadians themselves ought to do, the failure of such a plan to strike any roots, were fatal objections. A Canadian Naval Service was the only possible solution, though for himself he would agree to vote a Dreadnought as a preliminary step. Mr Borden emphasized the need of action, and advocated 'a Canadian naval force of our own.' Sir Wilfrid Laurier declared that Canada must realize to the full both the rights and the obligations of a daughter nation by rising to any sacrifice that might be needed to maintain unimpaired the power of the British Empire, essential as it was not only for Canada's safety but for the civilization of the world. As to the form of action, he opposed being stampeded into any spectacular policy inconsistent with the principle of self-government, and closed by moving a series of resolutions, which, with some changes suggested by Mr Borden, were unanimously accepted by the House. The resolutions recognized the duty of Canada to assume larger responsibilities with growth in strength, declared that under existing constitutional relations money payments to the British Treasury would not be the most satisfactory solution, and expressed cordial approval of any expenditure necessary to promote a Canadian Naval Service to co-operate in close relation with the British Navy.

During the summer a special Conference was held in London, attended by ministers from all the Dominions. Mr M'Kenna, while repeating the orthodox Admiralty view that considerations of strategy favoured a single navy, now recognized that other considerations had to be taken into account, and that 'room must be found for the expression of national sentiment.... While laying the foundation of future Dominion navies to be maintained in different parts of the Empire, these forces would contribute immediately and materially to the requirements of Imperial defence.' No wonder that the London Times congratulated Australia and Canada 'on their achievement in having at last educated the Admiralty up to their own point of view.' Unfortunately the convert was soon to backslide, but for the present hearty and ready aid was given in establishing the Dominion naval policy. Australia agreed to form a distinct fleet unit, consisting of a large armoured cruiser, three unarmoured cruisers, six destroyers and three submarines, with auxiliary ships. Canada, not an island like Australia or Great Britain, had two seaboards to protect, ten thousand miles apart. The Canadian representatives, therefore, while agreeing that a second fleet unit in the Pacific would be desirable in the future, requested suggestions, which were given, for the expenditure, first, of an equivalent and, second, of a lesser amount on two squadrons.

When the Canadian parliament met in January 1910 Sir Wilfrid Laurier submitted the Naval Service Bill, which provided for the establishment of fleets according to the plan finally approved by the Admiralty. The ships were to be under the control of the Dominion Government, which might, in case of emergency, place them at the disposal of the Admiralty, summoning parliament to ratify such action. The bill was passed in March. In the autumn the cruiser Niobe (11,000 tons) and the Rainbow (3600 tons), purchased from the Admiralty, reached Canadian waters, where they were to serve as training-ships. Recruiting for these ships was begun and, while not speedy, was reported by the department as satisfactory. The Halifax and Esquimalt dockyards were taken over. Early in 1911 a Naval College was opened at Halifax; and in May tenders were received, ranging from eleven to thirteen millions, from six British and Canadian firms, for the construction, in Canada, of four Bristol cruisers, one Boadicea cruiser, and six destroyers. In June (1911), at the Imperial Conference in London, agreement was reached as to the boundaries of the Australian and Canadian stations. The naval services of the two Dominions were to be 'exclusively under control of their respective governments'; but in time of war any fleet or ships placed at the disposal of the British Government by the Dominion authorities would 'form an integral part of the British fleet and remain under the control of the Admiralty during the continuance of the war.' Training and discipline were to be generally uniform. Dominion ships were to fly the white ensign at the stern as the symbol of the Crown's authority and the distinctive flag of the Dominion at the jack-staff. Then came the reciprocity fight, the blocking of supplies by the Conservatives, and the general elections of September, all intervening before any tender had been finally accepted.

Long before this time, however, the issue had given rise to bitter party controversy. The unanimity of parliament in 1909 had not truly reflected the diversity of public opinion. Mr Borden was not able to carry his party with him. In the English-speaking provinces many Conservatives denounced a Canadian fleet as 'a tinpot navy,' useless, expensive, and separatist, and called for a gift of Dreadnoughts. Mr Borden's lieutenant from Quebec, Mr F. D. Monk, came out strongly against either Canadian navy or contribution, unless approved by popular vote. So, after a loyal attempt to defend the agreement of 1909, Mr Borden found it necessary to change his position. By attacking the Laurier navy as inadequate, and at the same time declaring that no permanent policy should be adopted without an appeal to the people, he endeavoured to keep both wings of his party in line. The opposition in Quebec was strengthened by Mr Henri Bourassa and his following—'Nationalists' in some respects perhaps, but more rightly labelled Colonialists or Provincialists. They dealt a shrewd blow in defeating the Government candidate at a by-election held in November 1910 for Drummond-Arthabaska, Sir Wilfrid's old seat. And, though in all the other provinces the general elections of 1911 were fought on the issue of reciprocity, the navy was made the chief issue in Quebec. Conservatives formed a close working alliance with the Nationalists, who attacked the prime minister as a tool of the English imperialists, and pictured to the habitants the horrors of the marine, of conscription and the press-gang.

A little over a year after his accession to power in 1911, Sir Robert Borden brought down his naval proposals, providing for a gift or loan to Great Britain of three Dreadnoughts to meet the current emergency, and promised to submit later on his permanent policy to the electorate. What that permanent policy would be he did not reveal. It was stated that the Government had not definitely decided against a Canadian navy, but the insistence upon the difficulty of building up a naval organization in Canada, and other remarks, made it appear that some plan of permanent contribution, with a share in the central controlling body, was under contemplation. Sir Wilfrid Laurier vigorously opposed the proposals and adhered to the policy of a Canadian navy. And, not to be outdone in bigness, he now advocated two fleet units. After a prolonged discussion and determined obstruction by the Opposition, the Government introduced the closure and forced the bill through the Commons, only to see it rejected by the Senate on the motion of Sir George Ross, 'that this House is not justified in giving its assent to this bill until it is submitted to the judgment of the country.'

The Government's abrupt change of policy was in part due to the activity of the first lord of the Admiralty, Mr Winston Churchill. Whether moved by his own impetuous temperament or by the advice of others, Mr Churchill threw overboard the M'Kenna memorandum, and endeavoured once more to revive the contribution policy. He was not content with laying before the Canadian prime minister the opinion of experts on the strategic questions involved, and advising on means to reach the desired end, but sought to influence public opinion in the Dominions by word and act. The memoranda sent at Sir Robert Borden's request in January 1913, emphasizing the difficulty of building battleships in Canada—which was not proposed by the Opposition—and the difficulty of helping to man the two Canadian fleet units—though at the same time men were declared to be available for as many as five Dreadnoughts, if contributed—were preceded by pressure on the Malay States to contribute a battleship, and were followed by Mr Churchill's announcement of his intention to establish at Gibraltar an Imperial Squadron composed of Dominion ships, under the Admiralty's control. When Australia suggested that a special Dominion Conference to discuss the matter should be held in Canada, New Zealand, or Australia, the United Kingdom would not consent. It was made emphatically clear that Mr Churchill was in favour of contribution, not as an emergency but as a permanent policy. It was his doubtless well-meant—and invited—intervention in the dispute, ignoring the principles by which imperial harmony had been secured in the past, which more than anything else stirred up resentment in Canada.

The dispute in Canada turned partly on constitutional, and partly on technical, naval considerations. A Canadian navy was opposed by some as tending to separation from the Empire, and by others as involving Canada in a share in war without any corresponding share in foreign policy. It was defended as the logical extension of the policy of self-government, which, in actual practice as opposed to pessimistic prophecy, had proved the enduring basis of imperial union. The considerations involved have been briefly reviewed in an earlier section. It need only be noted here that the constitutional problem was no more acute in December 1912 than in March 1909. Whatever the difficulties, they had been faced and accepted by all the other Dominions. Australia was irretrievably and proudly committed to her own navy—'His Majesty's Royal Australian Navy'; New Zealand announced her dissatisfaction with the original contribution policy; General Botha declared that South Africa would prefer 'a navy of our own.' Not contribution therefore, but local navies, afforded the only basis of uniformity throughout the Empire. Given this attitude on the part of all the Dominions, there was little question that forms would soon follow facts, and each of the Five Nations be given its due place and weight in settling common issues of policy.

On the more technical issues there was equally wide divergence. A Canadian navy was attacked by some as useless even in the long run. Canada could not build up an adequate naval administration in half a century. Inefficiency and jobbery would mark the navy's management. The sea was one and the navy should be one; concentration at the supreme danger point, defence by attack, were the latest maxims of naval strategy. On the other hand, it was urged that what Australia had done Canada could do, and that the German navy itself had been built up in twenty years. The sea was one, but it was tens of thousands of miles in width; the trade routes required protection, and the coasts must be guarded against sudden raids.

Greater stress, however, was laid on the 'short-run' arguments. That there was only one possible enemy, Germany; that war with her in a few years was inevitable; that when it came Great Britain's fleet would be overmatched, or perilously equalled, were the insistent contentions of one party. That the Pacific required watching as well as the North Sea; that relations with Germany, on Sir Edward Grey's testimony, were improving and war unlikely; that if war came in a few years the naval power of Britain, to say nothing of that of France and Russia, would be overwhelming, was the other party's oft-reiterated answer. It was urged, also, that the Canadian Government's belief in the seriousness of the emergency must be judged by its acts, not its words. Had it believed war imminent and the naval situation so dangerous that its three Dreadnoughts were required, it would unquestionably have been too patriotic to think for a moment of any other course but to bring on a general election in 1913 to override the Senate.

That is now ancient history. The outbreak of the Great War threw the Canadian naval question, along with so many greater questions, into the melting pot. The temporary easing of the international situation after 1912 was followed by acute tension again, and this time the restraining forces gave way. The rivalry of Teuton and Slav in the Balkans, where of late the balance had tilted against the Central Powers because of the defeat of their quasi-ally, Turkey, provided the setting. The murder of an Austrian prince by a Servian subject gave the occasion, and Germany set the fatal drama in motion. What part was played in her decision by dreams of world conquest or dread of being hemmed in by ever-stronger foes, what part by the desire of a challenged autocracy to turn the people from internal reform to external policy, will not be certain until the chancelleries of Europe have given up their secrets, if certain then; but, whatever the motive, all the world outside Germany has agreed that had she willed she could have averted the fatal ending of those tense days of July 1914.