CANADA SEES LIMITED OPTIONS ON NEVSUN MINING

C O N F I D E N T I A L OTTAWA 000298 SIPDIS SIPDIS DEPT FOR AF/E SARAH SKORUPSKI E.O. 12958: DECL: 02/27/2013 TAGS: PREL PHUM ER CA SUBJECT: CANADA SEES LIMITED OPTIONS ON NEVSUN MINING PROJECT REF: STATE 17731 Classified By: PolMinCouns Scott Bellard, reasons 1.4 (b) and (d) ¶1. (C) According to Department of Foreign Affairs and International Trade (DFAIT) Eastern and Southern Africa Division Director Lisa Stadelbauer, DFAIT will further consider the Nevsun mining venture in Eritrea, but the Canadian government is very limited in what action it could take. Stadelbauer explained that the major constraint was that Canadian law makes it very difficult for the government to impose sanctions. (Note: In accordance with the Special Economic Measures Act, absent a UNSC resolution, the Canadian government can only impose sanctions only if: it is implementing a resolution by an international organization of which Canada is a member, whose resolution calls on its members to take economic measures against a foreign state; or, the Canadian Governor General takes the position on advice of the federal Cabinet that a grave breach of international peace and security has occurred, which has resulted or is likely to result in a serious international crisis. End note.) ¶2. (C) Stadelbauer noted that Canada had been able to impose sanctions on Burma through the Governor General's determination that the situation there constituted a "grave breach of international peace and security." She stressed, however, that Burma was a "unique situation," and emphasized that the sanctions legislation set a very high bar. She reiterated, however, that the Canadian government remained very committed to promoting corporate social responsibility. She confirmed that the Canadian government fully shared U.S. concerns about the human rights situation in Eritrea and would support a more robust U.S. strategy towards the country. She stated that, specifically, Canada was concerned about Eritrea's decision to withhold fuel from the United Nations Mission in Ethiopia and Eritrea (UNMEE). Stadelbauer stressed that Canada was attempting to pressure both Eritrea and Ethiopia on border issues. She added that Eritrean officials had complained to her that the United States was unfairly placing more pressure on Eritrea than on Ethiopia. Visit Canada,s Economy and Environment Forum at http://www.intelink.gov/communities/state/can ada WILKINS