BRINGING ORDER TO THE BORDER: ONTARIO'S BORDER

C O N F I D E N T I A L SECTION 01 OF 03 TORONTO 003209

SIPDIS

E.O. 12958: DECL: 12/08/2015
TAGS: PREL PBTS CA
SUBJECT: BRINGING ORDER TO THE BORDER: ONTARIO'S BORDER
CZAR MICHAEL KERGIN

REF: A. TORONTO 2778

B. TORONTO 3042

Classified By: Consul General Jessica LeCroy for reasons 1.4 (b) and (d
).


1. (C) SUMMARY: Michael Kergin, Ontario,s Special Advisor
on Border Issues, told the Consul General on December 6 that
he is working to facilitate trade while maintaining high
security standards at the border as mutually reinforcing
objectives. He said the Detroit River International Crossing
(DRIC) study was proceeding well but could benefit from the
attention and leadership of senior political-level U.S. and
Canadian officials. Kergin expressed concern about the
Ambassador Bridge proposal to assume the operating lease on
the Detroit-Windsor tunnel, and observed that Canada Border
Services Agency (CBSA) officers continue to be concerned for
their safety since they are not allowed to carry weapons.
END SUMMARY.

Ontario,s New Border Czar Outlines His Mandate
-------------- -


2. (C) In a December 6 courtesy call on the Consul General,
Ontario,s Special Advisor on Border Issues (and former
Canadian Ambassador to the U.S.) Michael Kergin defined his
new job to her and Pol/Econ Chief as having two halves: the
first, he described as &the hardware,8 includes the
physical border crossings and infrastructure leading to the
border; the second, &the software,8 is focused on
processing people and goods at the border. Security and
trade are mutually reinforcing. Ontario is a stakeholder in
border traffic processing, he said, but the federal
government has the lead in resolving these issues, this
included the ongoing preclearance discussions for the
Buffalo/Niagara and the Thousand Island border crossings.
Unfortunately, he observed, progress in concluding the
negotiations will be extremely slow until after the January
23 Canadian federal election allows the political level in
Ottawa to refocus on the remaining difficult issues such as
detention procedures.


3. (C) Kergin advised that Premier McGuinty fears that, if
the actual transactional cost or opportunity cost of crossing
the border increases significantly, Canada will lose its
competitive advantage (a relatively cheap Canadian dollar and
lower health care costs),and will have great difficulty
attracting cross-border investments. This would further
damage the North American auto sector, he observed. The
Western Hemisphere Travel Initiative (WHTI) was already
having an affect on convention planners, who were selecting
venues for international events to be held in 2008.

Detroit-Windsor Border a Major Focus
--------------


4. (C) The Detroit River International Crossing (DRIC) study
process is working pretty well, according to Kergin. All
involved jurisdictions (Canadian federal and provincial and
U.S. federal and state) must stay united or the other
stakeholders will drive wedges into the process. He noted
local politics would trump the big picture in Windsor and
Detroit. The Canadian provincial and federal governments are
relatively happy with the central corridor that is the focal
point for the two remaining possible bridge sites. Canadian
citizens, groups are beginning to organize around two
different sites in the vicinity of the proposed area ) the
village of Sandwich, an historic loyalist outpost on the
northern side of the sites, and the Ojibway Prarie Provincial
Nature Reserve on the southern side of the proposed sites.
Kergin suggested that the DRIC study process would benefit
from attention and leadership by the senior political level
on both sides of the border.


5. (C) Kergin expressed concern that the proposed takeover
of the Detroit-Windsor tunnel operating lease by the
Ambassador bridge company raises serious governance issues.
Public oversight of this near monopoly would be needed. He
also expressed concerns about a possible twining of the
existing Ambassador Bridge span, but suggested Canada,s
major way to influence a possible twining of the bridge is by
not providing the improved road infrastructure needed to feed
the additional traffic onto the bridge.

Canadian Border Agents Want to Bear Arms
--------------


6. (C) Kergin advised that Alain Jolicoeur, President of the
Canadian Border Services Agency (CBSA),had told him in late
November that the CBSA officers at the border would like to
gain permission to carry weapons. Jolicoeur had said the
CBSA officers were concerned they would be unable to cope
with armed Americans crossing the border from the U.S. If
they were given permission to carry weapons, Kergin said he
had heard, the CBSA officers would have to receive additional
training and would receive a higher salary. Deputy Prime
Minister and Minister for Safety and Emergency Preparedness
Anne McClelland told Kergin in a separate meeting in November
that CBSA officers would not be allowed to carry guns. The
Consul General advised that the Consulate had received mixed
signals on this issue over the past year ) we have heard
that the older officers viewed themselves as civil servants
and the newer officers viewed themselves more as law
enforcement officers. Kergin agreed that the CBSA culture
was built around collecting duties and that Canada itself had
to improve its efforts at inspecting cross-border traffic,
particularly to prevent smuggling of illicit items such as
guns. The Consul General suggested that Canada needed, at
the least, some sort of quick reaction police force to
support the unarmed CBSA officers in the event of an
emergency. Kergin observed that the recent CBSA walk-outs at
the Detroit-Windsor border wreak havoc with the auto
sector,s &just in time8 production method.

Future Plans
--------------


7. (C) The CG briefed Kergin on the Consulate,s Border
Liaison Program, which facilitates establishment of working
and policy-level coordination at each of the border crossings
between Ontario and the U.S. She shared with Kergin recent
traffic summary statistics prepared by the Bridge and Tunnel
Operators Association and discussed possible future joint
visits to the major crossings Kergin had not yet seen )
Saarnia and Thousand Islands. She also advised on fora the
Consulate had found helpful to influence the process.
Frequent consultation with Canadian Consuls General in
Detroit and Buffalo - who often have better information about
the U.S. side of the border, but often lack information about
the Canadian side of the border - had proven beneficial for
all, she said. Kergin and the Consul General agreed
joint/shared management of the border was a long-term
objective.


8. (C) Kergin said he will meet former U.S. Ambassador to
Canada James Blanchard in early January at the University of
Michigan in Ann Arbor, to open a table-top exercise on the
Detroit-Windsor border crossing at the Gerald Ford School of
Public Policy. The Consul General advised that she had
suggested that the Harvard Business School make a case study
about the DRIC study process. Kergin said he would also
travel to Lansing for consultations with Michigan state
officials. He noted that, in addition to his border czar
portfolio, he is forming a consulting company, called
Intermestic Consulting, which will focus mostly on
U.S.-Canada relations.


9. (C) Comment: Kergin is approachable and easy to work
with. He will be a useful interlocutor for the U.S. on
cross-border issues. We have heard that his appointment was
not Premier McGuinty,s idea ) rather that his appointment
was suggested by the federal government - though McGuinty
reportedly quickly endorsed the idea. Kergin, who resides in
Ottawa said he has had really good access to Canadian federal
officials, though he is not close to the Martin government,
having previously served as foreign policy advisor to former
PM Chretien. We believe he will be able to cut through some
of the complexity that can characterizes issues that cross
federal and provincial lines. Kergin oversees Ray Mantha,
former Chief Engineer of Ontario, who has built a Border
Implementation Group within the Ontario Ministry of
Transportation (MOT) to implement the DRIC. Mantha, who
advises Kergin, has also proven to be a valuable interlocutor
to the Cnosulate. Mantha divides his time between MOT
offices in Windsor, London and Toronto, as well as his home
in northern Ontario. End Comment.

Kergin Biography
--------------


10. (U) Biography of Michael Kergin follows:

Michael F. Kergin was appointed by Premier Dalton McGuinty in
September 2005 to act as the Premier,s Special Advisor on
Border Issues.

Mr. Kergin served as Canada,s Ambassador to the United
States for five years, from 2000 until 2005.
His career in the public service began when he joined the
Department of External Affairs (Foreign Affairs Canada) in
1967 as a Foreign Service Officer. His postings include New
York as a member of the Canadian Mission to the United
Nations, as well as Cameroon and Chile. Mr. Kergin also
served as Ambassador to Cuba from 1986 to 1989. He was
posted to Washington twice prior to his appointment as
Ambassador.

End Kergin biography.
LECROY