CANADIAN PRIME MINISTER LAYS OUT G8, G20 PRIORITIES

UNCLAS OTTAWA 000106 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PREL ECON ETRD CA SUBJECT: CANADIAN PRIME MINISTER LAYS OUT G8, G20 PRIORITIES REF: OTTAWA 100 ¶1. (SBU) Summary: In Davos, Canadian Prime Minister Harper set out his agenda as host of the June 2010 G8 and G20 summits, focusing primarily on financial sector reform, stimulus programs, and global trade and growth. He also underscored a continued important role for the G8 and its "close cooperation of friends and like-minded allies" in promoting democracy, development, peace, and security, and reiterated his intention to launch a major initiative to improve maternal and child health in the developing world (reftel). At home, his party's poll numbers continue to slide. End summary. "REAL RESULTS" OVER "LOFTY PROMISES" ¶2. (U) Prime Minister Stephen Harper outlined his priorities as host of G8 and G20 summits in Muskoka (Huntsville) and Toronto, Ontario in June in a keynote address to the World Economic Forum in Davos on January 28. He identified financial sector reform, stimulus programs, and global trade and growth as priority areas for the G20 under the theme "Recovery and New Beginnings." The PM pledged that Canada would use its leadership role at both the G8 and G20 summits to focus on global challenges, push for "real results" over "lofty promises." The following is a link to the full speech: http://www.pm.gc.ca/eng/media.asp?id=3096 G8 LEADERSHIP IN DEMOCRACY, DEVELOPMENT AND SECURITY ¶3. (U) In his keynote address, PM Harper underscored a continued important global role for the G8 in promoting democracy, development, and peace and security. He argued that the G8 should show leadership in combating the "daunting threats" of terrorism, piracy, climate change, and nuclear proliferation, which required "the close cooperation of friends and like-minded allies." He pressed the G8 to live up to commitments on foreign aid, noting that Canada had already doubled its aid to Africa and was "on track" to double foreign aid in 2010. He called for a new G8 focus on maternal and child health in the world's poorest regions, a plan he had first outlined at home on January 26 (reftel). He stated that Canada had "indications" that "some" other G8 partners "share and are receptive" to this proposal. Underscoring that it was "time to mobilize," he called on G8 partners to demonstrate a "unity of purpose" and to "replace grand good intentions with substantive acts of human good will." He insisted that "accountability...is the prerequisite for progress." FINANCIAL REFORM, STIMULUS AND TRADE ¶4. (U) For the G20, PM Harper highlighted financial sector reform, the continued need for stimulus programs, and enhancing global trade and growth. He praised the "Canada Advantage" of a stable national financial sector, and supported the need to strengthen financial regulation, while warning against "punitive" and "arbitrary" bank regulation. He advocated national standards subject to international peer review. Arguing that the global economic recovery remained "a mile wide and an inch thick," he counseled the need to stay the course on stimulus programs, while cautioning that it was not too early to start thinking of an "exit strategy." PM Harper underscored the importance of avoiding protectionism as central to economic growth and eliminating poverty. He called for states to exercise "enlightened sovereignty" -- "the "natural extension of enlightened self-interest" - and for "practical, durable solutions." He noted that the G20 meeting in Toronto should be "less about new agreements than accountability for existing ones." POLITICAL CHALLENGES AT HOME ¶5. (U) PM Harper's focus on the global economy coincided with the release of three national polls that pegged the ruling Conservative Party in a virtual tie with the Official Opposition Liberal Party, at between 31 and 33 percent of voters. Throughout the early fall, the Conservatives had enjoyed as much as a ten-point lead over the Liberals. However, Conservative support began to slip in November over allegations that the government knew of possible mistreatment of Afghan detainees turned over by Canadian Forces to Afghan authorities, and fell sharply after PM Harper convinced the Governor General to prorogue (suspend) Parliament in late December (for the second time in a year) until March 3. All three opposition parties have alleged that the government acted primarily to shut down parliamentary hearings on the detainee issue. COMMENT ¶6. (SBU) PMr Harper has set down some markers for his broad economic agenda, looking ahead to the federal budget in March and to key G8 and G20 objectives. He is using Canada's relative financial sector health to stake out a position of economic leadership globally. He may try to use this to reinforce Canada's position in the G8, even as others look increasingly to the G20 for coordination on global issues. End comment. JACOBSON