CANADA: DOESN'T OPPOSE DECLARATION ON INNOVATIVE

C O N F I D E N T I A L OTTAWA 002708 SIPDIS STATE FOR EB/IFD AND WHA/CAN E.O. 12958: DECL: 09/09/2010 TAGS: ECIN EAIR EAID EFIN CA UNGA SUBJECT: CANADA: DOESN'T OPPOSE DECLARATION ON INNOVATIVE SOURCES OF FINANCING FOR DEVELOPMENT REF: A. OTTAWA 2691 ¶B. OTTAWA 2649 ¶C. STATE 162146 ¶1. (C) As reported refs A and B, the GOC shares many of our goals at the upcoming High level event, although priorities differ and there remain areas of disagreement. With regard to the declaration being circulated by Algeria, Brazil, Chile, France, Germany and Spain, the GOC has not yet taken an official position but working level expectation is that Canada will not oppose it. Canada does want to focus on working with the US on the fight for an acceptable outcome document on development (ref B). Foreign Affairs Canada coordinates UN strategy -------------- - ¶2. (C) As of mid-day September 9, the Privy Council Office (PCO, Canada's NSC-equivalent) and key officers at Foreign Affairs (FAC),Finance and the Canadian International Development Agency (CIDA) had not yet met to decide on the GOC position regarding the declaration on innovative sources of financing for development. ¶3. (C) Thinking at working levels of FAC is that the GOC is inclined to quietly support the declaration, believing it has come an awfully long way from the version the US and Canada opposed last year. It has come closer to Monterrey and does a better job of locating a role for innovative financing proposals, with language that is soft enough not to set a universal course for all countries. Canada's view tends to be "we don't like the financing proposals, but if you want to pursue them, go ahead." Given Canada's influence in these debates, the GOC assumes the declaration is a take it or leave it proposal for them and trying to renegotiate would detract from the outcome document on which the US and Canada want to focus. They hope that by not opposing it, but not actively supporting it, the declaration will disappear with a ripple and not too much fuss. ¶4. (SBU) The language on remittances, for example, is helpful. They oppose proposals such as IFF and airline taxes, but feel the declaration is vague enough that Canada can live with the language. They don't mind a goal of "striving" for ODA of 0.7% of GDP, as long as there is no time frame specified. Canada has sensitive relations with Brazil and some of the other countries, and does not see this as a battle worth fighting. They would prefer to join the US in working for a successful outcome document, and don't want this to jeopardize those efforts. ¶5. (SBU) FAC wondered if we know how the declaration will be worked through the system, in terms of timing and venue? They said the working level negotiating experts at CANUN are Kumar Gupta and his supervisor Hugh Adsett, although PCO in Ottawa will control policy. Visit Canada's Classified Web Site at http://www.state.sgov.gov/p/wha/ottawa WILKINS