MISSION CANADA 1ST QUARTER 2006 90-DAY GOALS

UNCLAS SECTION 01 OF 03 OTTAWA 003121

SIPDIS

SENSITIVE

STATE FOR WHA/CAN

E.O. 12958: N/A
TAGS: KSPR KPAO AMGT PREL PGOV CA
SUBJECT: MISSION CANADA 1ST QUARTER 2006 90-DAY GOALS

REF: STATE 183776


1. (SBU) Summary - Two issues will dominate our relationship
with Canada over the next 90 days -- softwood lumber and
climate change. The frustration and anger over softwood,
whipped up in the current political climate, is palpable and
continues to push out all else on our agenda. Our
contribution here will be mostly one of trying to minimize
the fallout by working hard behind the scenes to lower the
rhetoric and try to get the two sides back to the table. On
climate change we have a positive story to tell which is
increasingly recognized: even though we did not sign Kyoto,
we have been making progress, better than even Canada, on
reducing greenhouse gas emissions. This should help create a
public climate more conducive to a productive outcome at the
international meeting on climate change in Montreal in early
December. In addition, we will develop an action plan to
improve law enforcement information sharing, stand up our
readiness on potential avian flu outbreak and engage Foreign
Affairs Canada on several administrative reciprocity issues.
And to top it all off, we look forward to the visit to Ottawa
by the Secretary of State. End summary.

Review of last quarter
--------------


2. (SBU) Managing the public dimension over Devil's Lake
became easier once CEQ Chairman Connaughton was able to
broker an approach with the Canadian, North Dakota and
Manitoba governments on how to resolve the issue over the
outlet. This helped relieve the political and public
pressure here and has since allowed officials at CEQ and in
the Privy Council to continue to hammer out an agreement.
Ambassador's high-profile praise for the process helped
reduce level of rhetoric. In addition, post supported the
successful pilot shiprider exercise which should pave the way
for longer term law enforcement interoperability measures.
Internally, we completed our first newsletter for American
citizens designed to encourage registration, improved
interagency electronic communication within the Mission and
stepped up our emergency preparedness.


3. (SBU) Hurricane Katrina unexpectedly drew Mission
resources to coordinate offers of assistance and gave us an
opportunity to express appreciation for Canadian support in a
public climate soured by softwood lumber. In addition, the
Toronto Consulate was able to draw on its crisis management
training in its response to the Air France crash. Finally,
post organized a 9/11 commemoration ceremony which Prime
Minister Martin attended to unveil a plaque outside the
Embassy.

1st Quarter 2006 Goals
--------------


4. (SBU) Goal 1 - Softwood lumber. To lower the rhetoric
in Canada over this trade dispute and minimize the
possibility that this spills out into other areas.

Background - Softwood lumber disputes between Canada and the
U.S. go back to the 1700s. The current one began after an
agreement lapsed in 2001, and has remained in the background
while Canadians focused their attention on beef and water
disputes in the last year. As those were cleared up, a NAFTA
extraordinary panel ruled against us in August, and we
responded with a technical, legalistic argument which
prompted the current wave of indignation that we are
disregarding dispute mechanisms and undermining NAFTA. In a
political climate approaching elections, this becomes an easy
issue to stand up tough to the U.S.

Activities:

--Straightforward traditional diplomacy of engaging Canadians
in government and business circles privately, emphasizing the
danger of raising this issue too high. Already, publicly
there are calls from reputable opinion leaders to withdraw
from NAFTA.

-- Publicly stress the benefits of NAFTA and U.S. commitment
to NAFTA and the global free trading system and a successful
conclusion to the WTO meetings in Hong Kong.

--Pass information back to Washington elements regarding
evolving Canadian positions.


5. (SBU) Goal 2 - Climate change. To have the backdrop in
Canada/Montreal for the COP-11 meeting receptive to U.S.
perspectives on climate change by highlighting U.S. efforts,
concentrate actions, projects to address climate change and
engaging Canadian leadership, special interest groups and the
broad public on this issue.
Background - Canada is proudly hosting the first climate
change summit of the Conference of the Parties (COP-11) since
the Kyoto protocol was ratified and put in place. Canada has
told us they would like a constructive conference which
begins to look at post-Kyoto arrangements. We want to draw
attention to a positive record on climate change action and
results despite our not signing Kyoto. U/S Dobriansky will
be leading the U.S. delegation to this conference, and we
will provide public affairs and administrative support for
the delegation.

Activities:

--Organize public affairs opportunities for U/S Dobriansky,
OES climate change envoy Watson and other USG officials.

--Pursue an aggressive outreach strategy with Ambassador and
Mission officers through media and speaking opportunities for
expert and non-expert audiences.

--Identify and visit U.S.-Canada collaborative research
centers, projects and initiatives which reduce greenhouse gas
emissions.

--Design and support a public affairs strategy for actual
conference.


6. (SBU) Goal 3 - Information sharing. To develop and
begin implementing a Mission-wide plan to improve law
enforcement information sharing in a post-Arar atmosphere.

Background - Our Mission Performance Plan highlights the
critical importance of a fluid information flow with Canada,
at a time when the impact of the Arar Commission has become
noticeably counterproductive to effective and efficient law
enforcement cooperation. The final report from the
Commission is not due out until early next year, but we will
seek to advance several initiatives over the next few months
to improve information sharing.

Activities:

--Embassy law enforcement group will convene and develop an
action plan over the next 90 days to prepare for Arar
Commission report release and to advance several
long-standing initiatives which would enhance our ability to
share information with the Canadians more fluidly, such as
(a) promoting the amendment to the Proceeds of Crime
investigation which would facilitate sharing financial
seizure info at the boarder, (b) completing next steps
towards permanent shiprider agreement, and (c) promoting
exchange of officers in DHS and PSECP operations centers.


7. (SBU) Goal 4 - Emergency preparedness - Avian flu. To
identify and implement appropriate steps and measures to
enhance our preparedness to respond to possible avian flu
outbreak.

Background - State 183776 provides guidance for posts about
preparing for possibility of outbreak of avian flu pandemic.
Embassy and Consulates in Canada present a unique challenge
in that none of our posts have medical officers, and we rely
heavily on local medical services available.

Activities:

--Embassy and all Consulates convene EACs to develop action
plans for implementation reftel recommendations.

--Arrange video conference with State Med to discuss options.

--Reach out to Canadian medical and public health authorities
to monitor situation, identify points of contact and discuss
strategies in the event of outbreak.


8. (SBU) Goal 5 - Reciprocity on management issues. To get
Canada to appreciate imbalance in reciprocity issues for
taxes and spouse employment and then to loosen restrictions.

Background - Post will engage Foreign Affairs Canada to point
out issues of tax relief and spouse employment where this
Embassy receives less favorable treatment than Canada's
Embassy and diplomats in the U.S.

Mission issues include the fact that Canada doesn't grant the
Mission itself exemption from all taxes, only diplomats, so
we submit our official tax returns in an employee's name.
We'll also want to get the other consulates to try for an
exemption from municipal property taxes on our rented
properties.
The main individual tax goal would be point of sale relief
for GST as well as PST. A second could be a simpler system
for refunding taxes other than the cut and paste we now do.
These issues have been addressed many times without success.

Activities:

--Review and create inventory of existing tax issues; consult
with State Department OFM.

--Engage Foreign Affairs Protocol and U.S. Divisions, working
also through Consular Corps and Deans.

--Prepare inventory of spousal employment issues and share
with Foreign Affairs Canada and State Department to raise
awareness in both capitals of difficulties spouses face here.





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