Is Canada doing an end run past its southern neighbour by restricting crude oil to the United States in favour of sales to China in a political one upmanship maneuver over the ongoing soft lumber dispute?
Retaliation was undercurrent in a speech Canadian Prime Minister Paul Martin delivered to the Economic Club of New York on Oct. 6.
Canadian politicians have been seething since May 2002 when the U.S. imposed 27 percent duties on Canadian softwood lumber.
a string of anti-american tirades by Canadian elected politicians and officials soon followed, the latest coming from Canadian ambassador to the U.S. Frank McKenna, who called the american administration “dysfunctional”.
The World Trade Organization recently upheld the american contention that Canadian exports were subsidized and could damage U.S. industry. But WTO ruled that the american anti-dumping fees were not legal. To date, the U.S. has collected some $5-billion and distributed to american producers,
Ostensibly, Martin, McKenna and other Canadian leaders have been careful not to directly link the softwood conflict to any retaliation in oil.
But when Bush was mopping up in the aftermath of Hurricane Katrina, Martin was entertaining Chinese President Hu Jintao during a four-day, red carpet visit.
Was it only coincidence that the Hu visit came on the heels of U.S. Treasury Secretary John Snow's survey of alberta's oil production?
“Beijing has been working to transfer control of Husky Oil from its favourite Hong Kong billionaire, Li Ka Shing, to one of its government oil companies. and last year, China announced it was willing to invest heavily in oil sand reserves, which makes Canada, now the world's No, 7 producer, potentially one of the world's largest and most stable energy sources.” (East-asia-Intel.com, Oct. 19, 2005).
Within days of Martin's New York speech, Canada's acting Natural Resources Minister John McCallum conferred in Beijing with the presidents of two of China's largest state-owned oil companies. McCallum said China could be importing 400,000 barrels a day from Canada within seven years. He called for speedy implementation of the barely-noticed declaration of a Canada-China “strategic partnership” announced during the September Hu visit.
“This is not a threat, and there is no linkage,” McCallum claimed. “I am saying that Canada is pursuing its natural interest to sell our energy resources and our other resources all around the world to get the best price and the most secure markets that we can…The government is saying that if the U.S. doesn't respect NaFTa (North american Free Trade agreement) rules on wood, then what does that mean for NaFTa rules in other areas, including energy?”
The man charged with making China the most secure global market and the emerging next world superpower just happens to be Paul Martin mentor Maurice Strong.
Four years ago, Canadian Steamship Lines International, a subsidiary of the Prime Minister Paul Martin blind-trust Canada Steamship Lines, entered a deal with Shanghai-based Jiangnan Shipyard to build two bulk cargo vessels—at $45 million per ship.
The Sheila ann, a bulk carrier named after Martin's wife was also built in China in 1999.
Both Martin and Strong are strongly influenced by the Desmarais family of the Montreal-based Power Corp., as was immediate Martin predecessor Prime Minister Jean Chr™tien.
The China International Trust and Investment Group Corp, (CITIC), with its estimated $48-billion asset base, is the China communist regimes most politically connected financial and industrial conglomerate.
Co-founded by Li Ka Shing, who owns most of the prime real estate on the Toronto waterfront, CITIC counts among its top advisors, Chr™tien's son in law andre Desmarais.
It should be no surprise to Uncle Sam that Canada is threatening to divert U.S. oil imports to China.
Canada Free Press founding editor Most recent by Judi McLeod is an award-winning journalist with 30 years experience in the print media. Her work has appeared on Newsmax.com, Drudge Report, Foxnews.com, Glenn Beck. Judi can be reached at: judi@canadafreepress.com
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