The Liberal party had long championed the cause of freer trade and declared itself the enemy of Protection; it was therefore commit ted to some modification of the existing pro system. But, once in power, it found that, since important industries had grown up under the tariff, this could not be changed in any radical manner without ruin to those con cerned. While doing something to reduce Pro tection the government took a further remark able step. The year 1897 saw the completion of 60 years under Queen Victoria's sovereignty, and there was a• general desire to draw more closely together the different sections of the empire, and thus to assert British unity. In pursuit of this idea Mr. Laurier's government announced that a preference of 25 per cent (later increased to 33Y3 per cent) would hence forth be allowed to countries whose tariff gave a favorable opening to Canadian products. Since Britain alone gave such treatment the preference was confined to her, though other countries might share in it on the terms laid down. Both in England and in Canada the preferential tariff aroused great enthusiasm and no doubt it aided in bringing to a head Mr. Chamberlain's scheme, announced a few years later, for a preferential tariff in the mother country for colonial products.
In 1898 the Liberal government had a re newed opportunity to proclaim its devotion to British connection. When war broke out in South Africa and soon proved more serious than had been thought possible, Canada promptly volunteered to send military contin gents in reinforcement of the British troops. The contingents saw some service and a good many Canadian soldiers lost their lives. Nat urally the French Canadian showed less en thusiasm for what was in large degree a racial war than did the British element. Only a few French Canadians served in the contingents, and some voices protested against Canada's par ticipating in British wars. But the overwhelm ing opinion of the country supported the rally to Britain's aid; when the government appealed to the country in 1900 it gained an easy victory, partly upon this issue.
A little earlier the discovery of gold in re markable quantities in the Yukon territory, arousing as it did world-wide interest, naturally attracted attention to a part of Canada hitherto thought of little value. The possession by the
United States of the adjacent coast of Alaska (q.v.) through which lay the best route to the new gold country seriously impaired the value to Canada of the territory. The boundary be tween Alaska and Canada had long been the subject of dispute, the Canadians contending that since, under the terms of the determining treaty, the line should run from headland to headland, the land at the head of the inlets which furnished the most ready access to the Yukon were in reality British territory. Can ada's cause was prejudiced by the fact that (though not without occasional protest) she had acquiesced in the American contention that the boundary line followed the sinuosities of the shore. A disputed boundary is always dan gerous. Besides this question there were other matters requiring settlement between the Uni ted States and Canada, and at last, in 1898, a Joint High Commission, including prominent representatives of both the American and British side, was appointed and sat for some weeks at Quebec and then at Washington. In addition to the Alaska boundary the commis sion was, if possible, to agree upon a settle ment of the differences in regard to the seal fishery in Behring Sea and the Atlantic fish eries; and besides minor matters was to con sider the general trade relations between the two countries. Points of variance proving too great, the commission effected nothing; but in the end the two governments agreed that six jurists of repute, three to represent each side, should be appointed with authority finally to settle the Alaska boundary. In the end a ma jority of the commissioners gave, in 1903, a decision favorable to the claims of the United States. Lord Alverstone, the British commis sioner who supported the American conten tions, was severely censured in Canada for an attitude that seemed more diplomatic than ju dicial, but in spite of a passing irritation there was general satisfaction that a troublesome issue had at last been settled. See ALA.SKAN