John Manley VERBATIM Memo to Martin — engage Canada-US relations as one of PM’s “overriding responsibilities”

In a major address to the Canadian Institute of International Affairs in Calgary on March 23, former deputy prime minister and finance minister John Manley had some forthright advice for Paul Martin on re-engaging Canada-US relations at the highest level and as a top priority. “I know that George W. Bush is not an easy sell in Canada — it doesn’t matter,” Manley said. “He is the elected leader of our neighbour, the country that is our biggest customer by far, and millions of Canadian jobs are affected by his decisions.” Other advice to Martin: join with the US in continental missile defence, since they will build it whether Canada joins or not, and name an ambassador to the US who has the ear and the confidence of the prime minister, and who sits at the table of the new Canada-US cabinet committee. Ironically, Manley declined Martin’s offer to name him ambassador to Washington, and is not running in this election.

À l’occasion d’un important discours prononcé à l’Institut canadien des affaires internationales, le 23 mars dernier à Calgary, l’ancien vice-premier ministre et ministre des Finances John Manley a vivement conseillé à Paul Martin de rétablir en priorité les relations canado-américaines au plus haut niveau. « Peu importe que George W. Bush soit impopulaire au Canada. Il est le chef élu de notre voisin du Sud, un pays qui est de loin notre principal client et dont les décisions influent sur des millions d’emplois canadiens. » Autres conseils à Paul Martin : collaborer au programme américain de défense antimissile, puisqu’il sera mené à bien avec ou sans la participation du Canada, et nommer aux États-Unis un ambassadeur qui a l’oreille du premier ministre et qui siégera au nouveau comité interministériel Canada–É.-U. Non sans ironie, rappelons que John Manley a décliné la proposition de Paul Martin d’être ambassadeur à Washington, et qu’il ne briguera aucun siège à la prochaine élection.

would like to structure my remarks security” agenda, and advocacy of should not forget that it is an econom- as advice to the prime minister, but “soft power” were appealing to many ic portfolio and that Canada must pur- I let me first offer some context from Canadians. sue its economic interests in tandem my own experiences. What was an industry minister to with its other foreign policy goals. I became foreign minister October make of this? Well, I am sure it was dis- Despite Lloyd’s frequent criticisms 17, 2000, after seven years as industry couraging to many of my officials of US policy, the importance of the minister, and followed a very activist when, after paying due respect to Canada-US relationship was, of course, foreign minister, Lloyd Axworthy, who Lloyd Axworthy and his accomplish- no revelation. However I defy you to truly moved world institutions and ments (which I truly admired and find any minister either of Foreign established a dominant presence for could not seek to duplicate), I pro- Affairs or Trade, or even any deputy himself as an advocate for multilateral- nounced that, whatever else, Canada’s minister who invests time and effort in ism and disarmament, especially predominant foreign policy concern the Canada-US relationship to a degree bringing to conclusion the Ottawa should be its relationship with the US. that is at all commensurate with its treaty on landmines. His “human And secondly, that Foreign Affairs importance to the economy.

POLICY OPTIONS 5 MAY 2004 John Manley VERBATIM

The Gazette, Montreal A call for “mature sovereignty” in the conduct of Canada's relations with the United States. “It is not just about money, trade and profit,” says former deputy PM John Manley, “it is also about principle.”

We Canadians think we know and the prime minister. Sometimes That being said, I can offer per- the United States. We are inundated this has been a particularly warm sonal testimony to the fact that good by their media. We give little relationship as it was between St- interpersonal relations at a senior level thought to our trade relationship, Laurent and Eisenhower, Trudeau can make a positive difference. except when a specific problem aris- and Carter, Mulroney and Reagan, Thus let me offer my advice to es. We feel vaguely morally superior and Bush Sr., Chrétien and Clinton. Paul Martin. No more dilly-dallying. I to our neighbours who have higher Sometimes it has been less cordial — know that George W. Bush is not an crime rates, and many more global think of Diefenbaker and Kennedy, easy sell in Canada, it doesn’t matter. enemies than we do. Pearson and Johnson, Trudeau and He is the elected leader of our neigh- But my thesis is this: The impor- Nixon, and any others that may bour, the country that is our biggest tance to Canadian jobs and prosperity come to mind. Rather, Canada-US customer by far, and millions of of the United States must make it a top relations are far broader and deeper Canadian jobs are affected by his deci- preoccupation of the prime minister, than relations between heads of sions. Furthermore, little in interna- one of the two matters of crucial government. tional affairs moves without US national importance for which he (or concurrence, so if you ever hope for an she) must take the greatest responsi- he recent fixation on the perceived international legacy, you will need US bility (the other being national unity). T relations between Prime Minister co-operation. This cannot be delegated, even to the Chrétien and President Bush (which I You don’t need to visit the ranch foreign minister. It is simply too suspect gives rise to the title of this ses- or even Camp David. Have a business- important. sion) fails to recognize the importance like working meeting. Raise our issues That is not to say that the entire of the vast web of personal, business and tell him how concerned you are US-Canada relationship is defined and family ties that are the fabric of the that softwood lumber, beef and other by relations between the president daily interaction between us. trade matters, left unresolved, are poi-

6 OPTIONS POLITIQUES MAI 2004 Memo to Martin — engage Canada-US relations as one of PM’s “overriding responsibilities” VERBATIM soning the well of good will that nor- ourselves. And we must play our part Because it is an aspect of continental mally exists between our countries. in continental defence. security that will be deployed and You won’t resolve these issues, of therefore we should be part of it. course, any more than prime ministers know that the priority items for I see this as an exercise of before you could solve the softwood I Canadians are health care and mature sovereignty. Canada must lumber case. But perhaps some move- education, but if we want to have recognize that the US is deadly seri- ment could be achieved as a gesture of influence in the world, and particu- ous about homeland security: it has good faith that will get more of our larly with our southern neighbour, mobilized enormous resources and mills back to work. then we must be prepared to political will behind it, and is deter- mined to prevent further The importance to Canadian jobs and prosperity of the attacks on US territory. United States must make it a top preoccupation of the prime For many reasons, we minister — one of the two matters of crucial national should cooperate in this effort. But a principal one importance for which he (or she) must take the greatest is that we share the conti- responsibility (the other being national unity). This cannot be nent. We therefore must delegated, even to the foreign minister. It is simply too share the responsibilities important. as a sovereign partner. We must lift our share of the Then, be prepared for George W. expend money on the three Ds — burden or face being minimalized, or Bush’s preoccupation — the security defence, diplomacy and develop- occasionally patronized, by our of the US. You might say something ment assistance. neighbour. like this: “We, Canadians, have our Spending on defence and security obligations as a good friendly neigh- do not rate very highly in opinion crucial consideration is that bour, and one of them is that, at our polls (and development aid even less A NORAD is a vital element of the own instance, our country is made as so). The results of such spending are Canadian defence architecture. We immune from attack or possible inva- not very visible to most Canadians. have an important and clearly defined sion as we can reasonably be expect- But we love to talk about sovereignty, role in continental security as a result ed to make it, and that should the about how we punch above our weight of the NORAD command structure. To occasion ever arise, enemy forces in the world. Well, it’s time to pay. As decline to have BMD in NORAD is to should not be able to pursue their I’ve said before, we can’t sit at the G8 determine that NORAD will become way either by land, sea or air to the table and when the waiter arrives with irrelevant, and our voice in continen- United States across Canadian territory.” Let me offer my advice to Paul Martin. No more dilly-dallying. his is a clear state- I know that George W. Bush is not an easy sell in Canada, it T ment of what the doesn’t matter. He is the elected leader of our neighbour, the US wants from us, and country that is our biggest customer by far, and millions of it is the quid-pro-quo for an open border that Canadian jobs are affected by his decisions. we want for our goods and services. It also happens to be the bill, excuse ourselves to go to the tal security will be a meek one indeed. the precise commitment that Prime washroom. We’ve been doing just that, And don’t wait until after an elec- Minister King offered to FDR in and trading in our Pearsonian reputa- tion to do this. It’s the right decision. 1938. I submit that it bears repeating tion rather than fulfilling the You’ve already said you’re in favour. frequently today, in light of 9/11. Pearsonian vision. Do it and defend it. Very few We Canadians continue to look Furthermore, the priority for our Canadians will buy Jack Layton’s “star at the border through an economic defence spending must be continental wars” hallucination. They will howev- lens, while increasingly, when they defence. We must secure our coastlines er wonder about it if you begin now to think of it at all, Americans and espe- and our airspace. And to be truly sov- hedge on something you previously cially the government, look at it ereign, this is not an option, it is a said you would support. through a security lens. We must necessity. In any event, the longer you wait, continue to actively support meas- And by the way, the US is com- the more you risk marginalizing ures that seek to identify and prevent mitted to ballistic missile defence. We NORAD, and the less good will you get threats to the United States and to should also commit to it. Why? for agreeing to something which is no

POLICY OPTIONS 7 MAY 2004 John Manley VERBATIM longer the subject of any serious reser- mountcy over interprovincial and munications activities of the vation by NATO allies, or even the international trade. It’s time we consulates across the US. He or Russians and Chinese. faced our responsibility. she should be media-savvy, a Then, set some Canadian objec- I have not said anything about the good speaker and politically tives for the future of this relation- mechanics of the approach to Canada- astute. ship. US relations. So, a few suggestions of a Ensure that all of your ministers more tactical nature: engage their US counterparts. ise above the back-and-forth Appoint an ambassador that is The fact that Tom Ridge and I R squabbling about narrow trade going to be seen in Washington, became friends certainly helped us to achieve some progress, but We Canadians continue to look at the border through an even if our relationship were only business, we would have economic lens, while increasingly, when they think of it been able to build on trust and at all, Americans and especially the government, look at accountability. The Canada-US it through a security lens. relationship is so intertwined that it truly is an “inter-mestic” relationship with characteristics issues and talk to the president, mano- DC as having your ear and the that are both international and a-mano, about a stronger economic ability to be heard to be speaking domestic. relationship — a jobs and economic on your behalf. Give him or her That being said, it is the for- growth partnership — beyond Smart real clout, including the ability eign minister and the US secre- Borders. to tell your ministers to smarten tary of state who must tend to It’s time to embark on a new and up when they decide to tee off the relationship horizontally at more ambitious project in economic on the US without being able to the cabinet level. Make the for- partnership. I would like to see us pur- see the big picture. eign minister accountable for this sue all, or at least some, of the follow- The ambassador is the high- and ensure that other ministers ing objectives: est-ranking person in your gov- remember and respect his para- a common external tariff, there- ernment who wakes up in the mount role, whatever the issue by vastly simplifying the move- morning every day thinking may be. You and the president ment of goods between Canada about the relationship with the could help if you would ask the and the US; US. He or she should sit at the minister and the secretary to increased harmonization of reg- table (not merely in the room) meet bilaterally, four times a year, ulatory policies regarding health when your cabinet committee on as did Allan MacEachan and and safety standards; and US relations meets. George Schulz. removal of barriers to trade in The embassy should co- Work closely with provinces to legal, financial and communica- ordinate a focused communica- assist them on issues of impor- tion services. tions strategy to be executed tance, but remind them that if And, if we could be really ambi- across the United States. Make it is difficult for Canada to be tious, we should pursue uniform the ambassador accountable, on a decision-maker’s agenda in policies with respect to federal and provincial or state subsidies, while As I’ve said before, we can’t sit at the G8 table and also seeking an end to the applica- when the waiter arrives with the bill, excuse ourselves tion of trade remedies in North America. to go to the washroom. We’ve been doing just that, and trading in our Pearsonian reputation rather than hile we’re at it, we need to fulfilling the Pearsonian vision. W smash interprovincial trade barriers in Canada! It’s been 10 years having first provided the DC, it is impossible for a since I negotiated the Internal Trade resources, for promoting province to do so. Point out to Agreement. We were nice guys. But Canada’s messages to decision- the provinces that we welcome there hasn’t been enough progress. makers, the media and the them sending, if they wish, rep- Now it’s time to get tough. Including broad population in the US, resentatives to DC, but they the contentious field of securities especially in the increasingly should be housed in the regulation. The Constitution does influential south. Enable him embassy, where they will be give the federal government para- or her to co-ordinate the com- part of “Team Canada.”

8 OPTIONS POLITIQUES MAI 2004 Memo to Martin — engage Canada-US relations as one of PM’s “overriding responsibilities” VERBATIM Further advice: lumber. our different world view, our “north- Do not hesitate to disagree with And most important, mature ern-ness,” if you like, while respecting the US on matters of important sovereignty is not just about money, the rich history and powerful institu- policy or principle. However, trade and profit. It is also about tions of our neighbour. We can vigor- always be courteous in doing principle. If we cannot disagree with ously demonstrate our independence so. We can disagree without the United States government from while recognizing our interdepend- being disagreeable. Canadians time to time, then we should seek to ence; and we can thank Providence that if we were to be neighbour to a rich and dominant superpower, it is The US is committed to ballistic missile defence. We the United States and not any other should also commit to it. Why? Because it is an aspect past or present possibility. of continental security that will be deployed and therefore we should be part of it...For many reasons, conclude with this thought: Paul I Martin should seize the initiative we should cooperate in this effort. But a principal one to build on our historic relations is that we share the continent. We therefore must with a good friend and neighbour, share the responsibilities as a sovereign partner. and do so with vision and self- assurance. Meet them half way on expect the PM to stand up to accede to the Union, so that at least issues of true concern to them. Do Uncle Sam when appropriate. we can have some say in who gov- not shrink from being the strongest They applauded Lester Pearson erns us. possible advocate for our national when he disagreed with LBJ interests. The US is and will always over Vietnam, and a generation s Jean Chrétien said to George be our paramount international later, they welcomed Jean A W. Bush at their first meeting, relationship — our political, eco- Chrétien’s decision to stay out and the president agreed, we cannot nomic and security realities dictate of Iraq. be of assistance to the US if the that it will be so. Proximity and the But when we disagree with world perceives us to be their 51st sheer volume of our dealings imply US foreign policy, we should also state. We do have a different world that there will always be problems keep in mind the commonality of view from that of the US, and it is but, equally, that managing them is our objectives. For example, most natural that on some matters that essential to our common progress Canadians believe that Saddam would be the case. It is in the pur- and prosperity. Hussein was a genocidal maniac suit of common objectives, recog- It will not always be easy; in fact who deserved to be removed, and nizing that room for divergence it will require great skill and earnestly hope for a stable, demo- exists, that we exercise our own patience to manage domestic expec- cratic Iraq. mature sovereignty. tations while achieving realistic suc-

his reminds me of one T crazy allegation we heard Mature sovereignty is not just about money, trade and in the past year — that we profit. It is also about principle. If we cannot disagree with should not disagree with the US because it will hurt our the United States government from time to time, then we economic relations. Absolute should seek to accede to the Union, so that at least we can hogwash. First the US is too have some say in who governs us. concerned about its own eco- nomic interest to trade off powerful domestic lobbies just I have several times used the cess. But it is one of the two because we agree with them on an expression “mature sovereignty.” It overriding responsibilities of the unrelated political matter. Second sometimes seems to me that we can prime minister of Canada. It is your there is no demonstrated cause and be immature in our attitude to the US job. Good luck. effect relationship. The excellent — like a rebellious teenager who seeks relations that existed between to deny his commonality with mem- John Manley, former deputy prime minis- Presidents Reagan and Bush Sr. and bers of his family in order to assert an ter, minister of finance, foreign affairs PM Mulroney, or between President independence that is based in insecu- and industry in the Chrétien government, Clinton and Prime Minister rity. I believe that we can be proud of spoke to the Canadian Institute for Chrétien did not resolve softwood our distinct history and traditions, International Affairs.

POLICY OPTIONS 9 MAY 2004