MEDIA REACTION - FREE TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R000700050009-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: December 27, 2016
• Document Release Date: October 31, 2012
• Sequence Number: 9
• Publication Date: May 18, 1988
• Content Type: CABLE

Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP90M00005R000700050009-6
UNCLASSIFIED
OCA
I NCOM I NSTAT
DO RUEAIIB
ZNR UUUUU ZOC STATE ZZH
T002495
00 RUEHC
DE RUEHOT #4197 1392057
ZNR UUUUU ZZH
0 182056Z MAY 88
FM AMEMBASSY OTTAWA
TO RUEHFO/USINFO WASHDC IMMEDIATE
INFO RUEHC/SECSTATE WASHDC IMMEDIATE 3349
RUEADWW/THE WHITE HOUSE
RUEHHA/AMCONSUL HALIFAX 2360
RUEHOU/AMCONSUL QUEBEC 3698
RUEHMT/AMCONSUL MONTREAL 4819
RUEHON/AMCONSUL TORONTO 117.1
RUEHGA/AMCONSUL CALGARY 5789
RUEHVC/AMCONSUL VANCOUVER 7405
BT
UNCLAS OTTAWA 04197
USIA
AGENCY FORP/M (INFO P/R); P/GF; P/FW; P/FN; VOA/BXN;
P/PFE; EU
STATE FOR EUR/CAN; EUR/PA
WHITE HOUSE PASS NSC/WEUROPE
E.O. 12356 N/A
TAGS: ECPS, PREL, CA, ETRD
SUBJECT: MEDIA REACTION - FREE TRADE
1. THREE CANADIAN NEWSPAPERS MAY 18 REACTED TO U.S.
kSENATE'FINANCE-COMMITTEE-HEARINGS ON THE FREE TRADE
DEAL. PARTIAL TEXT FOLLOWS:
2. THE TORONTO STAR CARRIED 2 COLUMNS. THE FIRST,
TITLED "TUGGING THS WAY AND THAT OVER TRADE DEAL" WAS
BY COMMENTATOR DAVID CRANE. "....THE MULRONEY
GOVERNMENT IS CLEARLY CAUGHT BETWEEN THE DEMANDS OF THE
U.S. CONGRESS ON ONE SIDE AND THE PROVINCES ON THE
OTHER...THE PROPOSED FREE TRADE DEAL RAISES SEVERAL
OTHER QUESTIONS. WHAT EVIDENCE OF PROVINCIAL COMPLIANCE
WILL SATISFY THE U.S.? WILL THE AMERICANS WANT A
RESOLUTION OR OTHER LEGISLATIVE MEASURE ADOPTED BY EACH
PROVINCIAL LEGISLATURE?...WILL THE LEGISLATION ALTER
CANADA'S FEDERAL SYSTEM, MAKING IT MORE LIKE THE U.S.
SYSTEM IN WHICH THE FEDERAL GOVERNMENT HAS BROADER
POWERS? UNDER THE SOFTWOOD LUMBER PROVIS
ONS, FOR
EXAMPLE, CHANGES IN PROVINCIAL FORESTRY POLICIES SUCH AS
ROYALTY OR STUMPAGE FEES ON TREES CUT ON PROVINCIAL
LANDS CAN ONLY BE MADE WITH U.S. APPROVAL..."
2. ROSEMARY SPEIRS, IN "WHO HOLDS TRUMP IN THE FREE
TRADE GAME?" OPINED : "...LATER MONDAY, SENATOR LLOYD
BENTSEN SAID THE U.S. SENATE FINANCE COMMITTEE HAD VOTED
TO BLOCK FREE TRADE UNLESS THE CANADIAN GOVERNMENT CAN
GIVE ASSURANCES THAT THE PROVINCES ARE BOUND TO THE
TERMS OF THE DEAL. COMBINED WITH (ONTARIO PREMIER)
PETERSON'S NAY, CROSBIE HAS NO CHOICE -- HE HAS TO
UNCLASSIFIED
Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP90M00005R000700050009-6
Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP90M00005R000700050009-6
UNCLASSIFIED
88 8964431 SUO
PAGE 002 NC 8964431
TOR: 182137Z MAY 88 OTTAWA 04197
LEGISLATE COMPLIANCE...DIRECT DEFIANCE HAS ITS DOWNSIDE
FOR PETERSON, HOWEVER. OUTSIDE ONTARIO, THE MOVE WOULD
NO DOUBT ANGER WESTERNERS, WHO WANT TO SELL MORE OIL TO
THE AMERICANS, AND QUEBECERS, WHO ENVISION RICHES FROM
BIG HYDRO DEALS..."
3. AN EDITORIAL IN THE OTTAWA CITIZEN WAS TITLED
"PETERSON HANDED FREE-TRADE GRENADE:" "....THE ONTARIO
GOVERNMENT BELIEVES THERE ARE STRONG LEGAL GROUNDS TO
OPPOSE SUCH IMPLEMENTING LEGISLATION; IT WOULD CHANGE
THE FORMAL DIVISON OF POWERS BETWEEN THE FEDERAL
GOVERNMENT AND THE PROVINCES MORE THAN THE COURTS HAVE
BEEN WILLING TO ALLOW IN PAST CASES. FORTUNATELY,
THOUGH, PETERSON DOES NOT WANT TO BE KNOWN AS THE LEADER
WHO DESTROYED AN HISTORIC DEAL, SUPPORTED BY ALL THE
OTHER PROVINCES, SIMPLY TO PROTECT A SMALL DOMESTIC
MONOPOLY. AS A RESULT, HE HAS SUGGESTED HE WOULD NOT
CHALLENGE THE PACT IN COURT IF HE COULD NOT ENLIST SOME
OTHER PROVINCES TO SUPPORT HIS CASE.
4. "THAT STANCE WAS CHOSEN TO KEEP THE OPTION OF
QUIETLY ACQUIESCING TO THE WISHES OF THE REST OF THE
COUNTRY. THE RATIONALE WOULD BE THAT ONTARIO COULDN'T,
OR SHOULD'T, STOP FREE TRADE ALL BY ITSELF. NOW,
HOWEVER, THE U.S. SENATE HAS GIVEN PETERSON THE UNWANTED
OPTION OF BEING ABLE TO TORPEDO THE DEAL SIMPLY BY
REFUSING TO GIVE AN ASSURANCE OF COMPLIANCE. CANADA'S
FUTURE MAY WELL DEPEND OF PETERSON'S ABILITY TO RESIST
THE REACTIONARY FORCES OF PAROCHIAL POLITICS."
5. THE MONTREAL GAZETTE CARRIED THE EDITORIAL "LET'S
ASK THE JUDGES." "....MR. PETERSON ISNOT CONCERNED
ONLY ABOUT PROTECTING ONTARIO'S. WINE INDUSTRY. HE
DISLIKES THE WHOLE TRADE DEAL BECAUSE HE THINKS IT IS.
FUNDAMENTALLY FLAWED. IN THAT, HE IS ABSOLUTELY RIGHT.
THIS DEAL WOULD DRASTICALLY ERODE CANADA'S SOVEREIGNTY,
CURTAILING OUR ABILITY TO SET POLICY ON ENERGY, REGIONAL
AND INDUSTRIAL DEVELOPMENT, FOREIGN INVESTMENT", PROBABLY
CULTURE AND EVENTUALLY SOCIAL POLICY,.."
THURBER
END OF MESSAGE UNCLASSIFIED
UNCLASSIFIED
Declassified in Part - Sanitized Copy Approved for Release 2012/11/01: CIA-RDP90M00005R000700050009-6