Capital Movements and Government Control

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Abstract
Canadian anxiety about increasing involvement with the American economy is partly based on a deeply rooted conviction that economic dependence necessarily brings political dependence in its wake. That conviction was at the bottom of the Canadian rejection of proposals of reciprocity with the United States in the general elections of 1891 and 1911. It has also been explicitly recognized as an underlying rationale of Canadian policy toward the United States in the Department of External Affairs's recent paper on Canadian-American relations.

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