The following year (1897) the Liberal Government revised the tariff, retaining the protective features, and enlarging the system of bounties for the encouragement of industry which had been commenced in 1883. The tariff was modified, however, by the establishment of a preference for Great Britain, which, beginning at a reduction of one-eighth from the general tariff, was increased to one-fourth, and finally in 1900 to one-third. This reduction remained in force until 1906-7, when the tariff was again revised and arranged in three lists--general, intermediate, and British preference. The intermediate tariff was intended as a basis of negotiation whereby Canada might obtain concessions from foreign countries. After the concession of the British preference in 1897, Great Britain, at the request of Canada, denounced her commercial treaties with several foreign countries, under the terms of which concessions granted by the colonies to the mother country would have had to be extended to the treaty countries. Germany was one of these countries, and on the expiration of the treaty Germany showed her resentment by applying her maximum tariff to Canada. Canada retaliated by the imposition of a surtax on German goods, and a tariff war ensued, which resulted in a much higher degree of {416} protection for Canadian manufacturers whose products came into competition with imports from Germany. The British preference was extended by Canada to other British colonies, which in return granted advantages to Canada, and in 1908, with the consent of Great Britain, Canada negotiated a commercial treaty with France on the basis of the intermediate tariff, though with numerous further concessions.