US embassy cable - 05OTTAWA2708

C O N F I D E N T I A L OTTAWA 002708 
 
SIPDIS 
 
STATE FOR EB/IFD AND WHA/CAN 
 
E.O. 12958: DECL: 09/09/2010 
TAGS: ECIN, EAIR, EAID, EFIN, CA, UNGA 
SUBJECT: CANADA:  DOESN'T OPPOSE DECLARATION ON INNOVATIVE 
SOURCES OF FINANCING FOR DEVELOPMENT 
 
REF: A. OTTAWA 2691 
 
     B. OTTAWA 2649 
     C. STATE 162146 
 
1. (C) As reported refs A and B, the GOC shares many of our 
goals at the upcoming High level event, although priorities 
differ and there remain areas of disagreement.  With regard 
to the declaration being circulated by Algeria, Brazil, 
Chile, France, Germany and Spain, the GOC has not yet taken 
an official position but working level expectation is that 
Canada will not oppose it.  Canada does want to focus on 
working with the US on the fight for an acceptable outcome 
document on development (ref B). 
 
Foreign Affairs Canada coordinates UN strategy 
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2. (C) As of mid-day September 9, the Privy Council Office 
(PCO, Canada's NSC-equivalent) and key officers at Foreign 
Affairs (FAC), Finance and the Canadian International 
Development Agency (CIDA) had not yet met to decide on the 
GOC position regarding the declaration on innovative sources 
of financing for development. 
 
3. (C) Thinking at working levels of FAC is that the GOC is 
inclined to quietly support the declaration, believing it has 
come an awfully long way from the version the US and Canada 
opposed last year.  It has come closer to Monterrey and does 
a better job of locating a role for innovative financing 
proposals, with language that is soft enough not to set a 
universal course for all countries.  Canada's view tends to 
be "we don't like the financing proposals, but if you want to 
pursue them, go ahead."  Given Canada's influence in these 
debates, the GOC assumes the declaration is a take it or 
leave it proposal for them and trying to renegotiate would 
detract from the outcome document on which the US and Canada 
want to focus.  They hope that by not opposing it, but not 
actively supporting it, the declaration will disappear with a 
ripple and not too much fuss. 
 
4. (SBU) The language on remittances, for example, is 
helpful.  They oppose proposals such as IFF and airline 
taxes, but feel the declaration is vague enough that Canada 
can live with the language.  They don't mind a goal of 
"striving" for ODA of 0.7% of GDP, as long as there is no 
time frame specified.  Canada has sensitive relations with 
Brazil and some of the other countries, and does not see this 
as a battle worth fighting.  They would prefer to join the US 
in working for a successful outcome document, and don't want 
this to jeopardize those efforts. 
 
5. (SBU) FAC wondered if we know how the declaration will be 
worked through the system, in terms of timing and venue? They 
said the working level negotiating experts at CANUN are Kumar 
Gupta and his supervisor Hugh Adsett, although PCO in Ottawa 
will control policy. 
 
 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS