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
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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.



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