US embassy cable - 04QUEBEC178

UNCLAS E F T O SECTION 01 OF 02 QUEBEC 000178 
 
SIPDIS 
 
NOFORN 
SENSITIVE 
WHA/CAN FOR TERRY BREESE 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, CA 
SUBJECT: ASYMMETRIC FEDERALISM - A VIEW FROM QUEBEC 
 
REF: OTTAWA 2560 
 
(SBU) 1. Summary:  "Asymmetric Federalism" - the notion that not 
all Canadian provinces need be treated equally by the federal 
government  -- has received attention in the press following the 
federal-provincial summit on health (reftel), at which Quebec 
obtained special language in an agreement signed by all 
provinces.  In a conversation with the Consul-General, Quebec's 
minister responsible for its relations with the federal 
government, Benoit Pelletier, claimed to be surprised at the 
attention, and sought to downplay its significance.  But the 
concept offers a less-confrontational framework in which Quebec 
leaders can pursue Quebec goals, as well as hopes for improved 
standing with Quebec voters for federal and provincial Liberals. 
 End Summary. 
 
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FINDING A FORMULA 
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(SBU)  2. CG spoke with Quebec Minister for Canadian 
Intergovernmental and Aboriginal Affairs Benoit Pelletier on 
September 28.  Pelletier is Charest's minister responsible for 
Quebec's relations with the federal government and was at the 
health summit.  Pelletier said he was frankly surprised by all 
of the attention "asymmetric federalism" is now getting.  It is 
not a new idea, he said, although it is a Quebec Liberal Party 
(PLQ) idea which Premier Charest has been pushing.  Pelletier, a 
constitutional lawyer, told us that in 2000 he chaired a PLQ 
special committee on the political and constitutional future of 
Quebec.  The final report of that committee (a slick, 147 page 
report entitled "A Project for Quebec: Affirmation, Autonomy and 
Leadership") addressed the concept of asymmetric federalism head 
on: "Asymmetry is desirable within Canada. . .The federal 
formula does not rule out asymmetry in relations between the 
partners in the federation." 
 
(SBU) 3. Pelletier was clearly pleased that asymmetric 
federalism had found its place in the health summit and had 
received the backing of all of the Premiers. But he now seemed 
to want to dampen its significance.  Pelletier cautioned against 
trying to apply the concept at every turn and told CG that he 
saw "absolutely no relevance for the term in the October 26 
Council of the Federation discussions with the federal 
government on equalization payments."  Quebec has proposed that 
this money be divided on the basis of provincial population. 
Until now, Atlantic Canada has been receiving more money from 
Ottawa because their residents are the poorest.  The battle over 
how to divide up federal money could disrupt the unity of the 
new Council of the Federation. 
 
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FOREIGN POLICY IMPLICATIONS 
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(SBU)  4. For decades, Quebec's approach to federal-provincial 
separation of powers is that the federal constitution denotes 
which areas fall within the purview of the provinces.  And if an 
area is within the purview of the province - be it health, 
education, or cultural issues - Quebec believes it should have 
full power, including at the international level, to treat these 
issues.  This logic, which has found favor with both PQ and PLQ 
governments, has emboldened Quebec to push much further than 
other provinces in seeking an international profile.  Pelletier 
said that the Council of the Federation has two committees 
engaged in working-level discussions with the federal government 
committees: one to consider the role of the provinces in 
international relations and another on the role of the provinces 
in Canada-US relations.  But Pelletier was dismissive of these 
committees because Quebec, in his view, is "way ahead of other 
provinces in both areas."  He said that Quebec is far more 
interested in bilateral (Quebec-Ottawa) discussions on similar 
topics, and that conversations are already underway regarding 
Quebec's role in international fora such as UNESCO.  Federal 
Heritage Minister Liza Frulla, declared recently at a UNESCO 
meeting in Paris that her Quebec counterpart Lise Beauchamp 
could speak on behalf of both Quebec and Canada at international 
gatherings on cultural diversity when she is unable to attend 
meetings.  Frulla's remarks produced a commotion within Liberal 
ranks, and Martin's Quebec lieutenant Jean Lapierre and federal 
Intergovernmental Affairs Minister Lucienne Robillard firmly 
called her to order.  "Canada," they said, "must speak in one 
voice." 
 
(SBU) 5. Pelletier told me that if Quebec can get the federal 
government to agree to a special role for Quebec in 
international fora, "then this really would be asymmetric 
federalism in action!"  He said his priorities have been the 
health summit and the equalization payments summit.  But he 
expects that once these are out of the way (in November or 
December), he will be pushing much harder on the role of Quebec 
in international fora, especially at UNESCO.  Pelletier expects 
press attention to the matter at that time. 
 
(SBU) 6. The Quebec government, said Pelletier, also would love 
to have bilateral (not provincial multilateral) discussions with 
Ottawa on U.S.-Canada relations.  But he indicated that this is 
a long-way off. 
 
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COMMENT: 
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(SBU)  7. Most of the press buzz about the potential risks of 
"asymmetric federalism" appears to have been among the 
English-language media.  For these observers, this notion that 
emerged as Quebec's side deal took off (and was written as an 
option for all provinces), is no more than "a la carte 
provincialism" and is a huge blow to the federal structure of 
Canada.  But in Quebec itself, the health deal was generally 
framed in terms of Quebec's "distinct" identity and the Canadian 
constitutional framework that defines which areas fall within 
the purview of the provinces.  In a speech given at the 
University of Quebec-Montreal, and published last weekend in Le 
Devoir, Pelletier presented the concept, in effect, as an 
acceptable way of pursuing Quebec goals without the 
constitutional crises which hitherto resulted when its leaders 
invoked the province's 'exceptionalism.' 
 
 (SBU)  8. Quebec Premier Jean Charest has chalked up points in 
Ottawa and at home, succeeding where others have failed, by 
convincing the other provincial premiers that the future of the 
country lies in asymmetrical federalism.  A majority of Quebec 
respondents (52%) polled after the health meeting felt the 
agreement represented "an historic step for Quebec."  This is 
good news for the Charest government whose approval rating still 
stands at only 36%, just 2 points over its August numbers.  PM 
Martin is also apparently hopeful of improving his political 
footing in Quebec, where the federal Liberals lost 16 seats in 
the June election.   End Comment. 
 
 
 
 
FRIEDMAN