Corporate Interest and Missile Defence
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Corporate Interest and Missile Defence

The Hill Times

http://www.thehilltimes.ca/2003/june/2/staples/

Martin's endorsement of national missile defence was a major victory for
Canada's corporate lobbyists

By Steven Staples

Last week, the Chretien government decided to take Canada one step closer to joining the Bush administration's national missile defence system.
But strangely, no one has explained what missile threat Canada faces ­
leaving Canadians to wonder if national missile defence is more about
defending the country from rogue U.S. trade policies than from rogue
nations.

The current debate, which was sparked by Paul Martin's endorsement of
missile defence, has revealed how business interests are influencing
Canada's foreign and defence policies.

Business groups have been campaigning for months to push the Liberals closer
to the Bush administration on a range of issues ­ especially national
missile defence. In the back rooms of the missile defence debate one might
find many of the players who were behind the Canada-U.S. Free Trade
Agreement and NAFTA .

The old Business Council on National Issues is back, but it has rebranded
itself as the Canadian Council of Chief Executives (CCCE). It's still run by
long-time free trader Tom D'Aquino, but today it has broadened its attention
from liberalizing investment and cutting deficits to boosting the military
as well.

In a recent policy paper the CCCE argued that Canada must "enhance the
interoperability of Canadian and U.S. armed forces... including Canadian
participation in a continental anti-ballistic missile system." It has
organized an action group of 30 CEOs to promote its plan for "North American Security and Prosperity."

Last month CCCE corporate members went to Washington, D.C., to meet with Bush administration officials, including defence adviser Richard Perle.

According to one shaken participant, the hawkish Perle gave the Canadian
corporate leaders a stern dressing-down and told them that "Canada had
better realize in future where its best interests lie."

The corporate lobby got the message.

The Aerospace Industries Association of Canada (AIAC), which includes
heavyweight members such as Bombardier, has joined the CCCE in urging the
government to get on board with the Americans.

Ron Kane, an AIAC vice-president, told The Globe and Mail that he fears that if Canada does not join the missile defence plan, member corporations will
be shut out of the multi-billion dollar defence contracts. Perhaps not
surprisingly, Kane said his fears were based on a personal conversation with
U.S. Ambassador Paul Cellucci.

But Canadians should know that the debate is unfolding just as the Bush
administration had hoped it would.

The Bush administration has been manipulating the missile defence program in
order to activate domestic corporate lobbies in countries around the world,
especially those countries that have been reluctant to endorse the United
States' pursuit of the controversial program.

The respected U.S. defence industry magazine Defense News revealed last
summer that the U.S. Missile Defense Agency wanted to "lure foreign firms
with U.S. defense dollars and hope the contractors sway their governments to
get on board."

Boeing is the lead contractor on national missile defence, and in July it
penned an agreement with Britain's BAE Systems in a deal that the The Daily
Telegraph described as "an attempt by President George W. Bush to persuade
Tony Blair that national missile defence is worthwhile." Within months the
once skeptical Tony Blair had dropped his objections and even invited the
Americans to use a U.K. radar station for the system.

By October, Boeing had gotten around to Canada. It signed a vague agreement with CAE Inc. for modelling and simulation services, but there was no dollar figure attached to the contract.

CAE's technological contribution is insignificant compared to its political
contribution. Its president is Derek H. Burney, former chief of staff to
Prime Minister Brian Mulroney, former ambassador to the United States, and
along with Tom D'Aquino one of the chief architects of the Canada-U.S. Free
Trade Agreement. Today, Burney is an influential executive member of both
the CCCE and the Aerospace Industries Association of Canada.

But the truth is that there will be little benefit to Canada in joining
missile defence, despite what the CEOs may argue.

Canadians need only look at the reconstruction of Iraq, where even Britain,
a close ally in the war, is being shut out of lucrative contracts. Moreover,
most of the major missile defence contracts will remain in the hands of U.S.
corporations, and Congress will insist on "Buy American" policies.

In the end, the government could be bilked out of billions of dollars to pay
for Canada's contribution to missile defence over the life of the program,
while still facing protectionist trade policies from Washington.

Paul Martin's endorsement of national missile defence was a major victory
for Canada's corporate lobbyists. It resulted in his ranks of caucus
supporters falling into line on the issue, and even made a true believer out
of the dovish Foreign Affairs Minister Bill Graham.

But Canada's foreign and defence policies should never be driven by
financial interests; they should instead be an expression of Canadians'
values by promoting diplomacy and disarmament. Paul Martin seems to need
reminding that our traditional peacekeeping role is not for sale.

Steven Staples is a defence analyst with the Polaris Institute, a public
interest research group based in Ottawa.

______________
Steven Staples
Director,
Project on the Corporate-Security State
Polaris Institute
312 Cooper Street
Ottawa, Ontario K2P 0G7
CANADA
t. 613 237-1717 x107
c. 613 290-2695
f. 613 237-3359
e. steven_staples@on.aibn.com
www.polarisinstitute.org


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