Cable Viewer

Currently released so far... 16035 / 251,287

### Articles

Brazil Sri Lanka United Kingdom Sweden 00. Editorial United States Latin America Egypt Jordan Yemen Thailand

### Browse latest releases

2010/11 2010/12 2011/01 2011/02 2011/03 2011/04 2011/05 2011/06 2011/07
2010/11/28 2010/11/29 2010/11/30
2010/12/01 2010/12/02 2010/12/03 2010/12/04 2010/12/05 2010/12/06 2010/12/07 2010/12/08 2010/12/09 2010/12/10 2010/12/11 2010/12/12 2010/12/13 2010/12/14 2010/12/15 2010/12/16 2010/12/17 2010/12/18 2010/12/19 2010/12/20 2010/12/21 2010/12/22 2010/12/23 2010/12/24 2010/12/25 2010/12/26 2010/12/27 2010/12/28 2010/12/29 2010/12/30
2011/01/01 2011/01/02 2011/01/04 2011/01/05 2011/01/07 2011/01/09 2011/01/10 2011/01/11 2011/01/12 2011/01/13 2011/01/14 2011/01/15 2011/01/16 2011/01/17 2011/01/18 2011/01/19 2011/01/20 2011/01/21 2011/01/22 2011/01/23 2011/01/24 2011/01/25 2011/01/26 2011/01/27 2011/01/28 2011/01/29 2011/01/30 2011/01/31
2011/02/01 2011/02/02 2011/02/03 2011/02/04 2011/02/05 2011/02/06 2011/02/07 2011/02/08 2011/02/09 2011/02/10 2011/02/11 2011/02/12 2011/02/13 2011/02/14 2011/02/15 2011/02/16 2011/02/17 2011/02/18 2011/02/19 2011/02/20 2011/02/21 2011/02/22 2011/02/23 2011/02/24 2011/02/25 2011/02/26 2011/02/27 2011/02/28
2011/03/01 2011/03/02 2011/03/03 2011/03/04 2011/03/05 2011/03/06 2011/03/07 2011/03/08 2011/03/09 2011/03/10 2011/03/11 2011/03/13 2011/03/14 2011/03/15 2011/03/16 2011/03/17 2011/03/18 2011/03/19 2011/03/20 2011/03/21 2011/03/22 2011/03/23 2011/03/24 2011/03/25 2011/03/26 2011/03/27 2011/03/28 2011/03/29 2011/03/30 2011/03/31
2011/04/01 2011/04/02 2011/04/03 2011/04/04 2011/04/05 2011/04/06 2011/04/07 2011/04/08 2011/04/09 2011/04/10 2011/04/11 2011/04/12 2011/04/13 2011/04/14 2011/04/15 2011/04/16 2011/04/17 2011/04/18 2011/04/19 2011/04/20 2011/04/21 2011/04/22 2011/04/23 2011/04/24 2011/04/25 2011/04/26 2011/04/27 2011/04/28 2011/04/29 2011/04/30
2011/05/01 2011/05/02 2011/05/03 2011/05/04 2011/05/05 2011/05/06 2011/05/07 2011/05/08 2011/05/09 2011/05/10 2011/05/11 2011/05/12 2011/05/13 2011/05/14 2011/05/15 2011/05/16 2011/05/17 2011/05/18 2011/05/19 2011/05/20 2011/05/21 2011/05/22 2011/05/23 2011/05/24 2011/05/25 2011/05/26 2011/05/27 2011/05/28 2011/05/29 2011/05/30 2011/05/31
2011/06/01 2011/06/02 2011/06/03 2011/06/04 2011/06/05 2011/06/06 2011/06/07 2011/06/08 2011/06/09 2011/06/10 2011/06/11 2011/06/12 2011/06/13 2011/06/14 2011/06/15 2011/06/16 2011/06/17 2011/06/18 2011/06/19 2011/06/20 2011/06/21 2011/06/22 2011/06/23 2011/06/24 2011/06/25 2011/06/26 2011/06/27 2011/06/28 2011/06/29 2011/06/30
2011/07/01 2011/07/02 2011/07/04 2011/07/05 2011/07/06 2011/07/07

### Browse by creation date

66 72 73 75 79 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
1966/12
1972/02 1972/08
1973/04
1975/03
1979/08
1985/03 1985/05 1985/06
1986/05 1986/08 1986/12
1987/06
1988/01 1988/03 1988/04 1988/07 1988/08 1988/12
1989/12
1990/01 1990/07 1990/08 1990/10
1991/05 1991/07 1991/11
1992/01 1992/03 1992/06 1992/09 1992/12
1993/01 1993/10
1994/11 1994/12
1995/01 1995/04
1996/07 1996/09 1996/11
1997/02 1997/03 1997/05 1997/06 1997/08 1997/10 1997/12
1998/05
1999/01 1999/09
2000/05 2000/06 2000/09 2000/11
2001/02 2001/03 2001/04 2001/05 2001/06 2001/07 2001/09 2001/10 2001/11 2001/12
2002/01 2002/02 2002/03 2002/04 2002/07 2002/08 2002/09 2002/11 2002/12
2003/01 2003/02 2003/03 2003/04 2003/05 2003/06 2003/07 2003/08 2003/09 2003/10 2003/11 2003/12
2004/01 2004/02 2004/03 2004/04 2004/05 2004/06 2004/07 2004/08 2004/09 2004/10 2004/11 2004/12
2005/01 2005/02 2005/03 2005/04 2005/05 2005/06 2005/07 2005/08 2005/09 2005/10 2005/11 2005/12
2006/01 2006/02 2006/03 2006/04 2006/05 2006/06 2006/07 2006/08 2006/09 2006/10 2006/11 2006/12
2007/01 2007/02 2007/03 2007/04 2007/05 2007/06 2007/07 2007/08 2007/09 2007/10 2007/11 2007/12
2008/01 2008/02 2008/03 2008/04 2008/05 2008/06 2008/07 2008/08 2008/09 2008/10 2008/11 2008/12
2009/01 2009/02 2009/03 2009/04 2009/05 2009/06 2009/07 2009/08 2009/09 2009/10 2009/11 2009/12
2010/01 2010/02

### Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z
Embassy Athens Embassy Asuncion Embassy Astana Embassy Asmara Embassy Ashgabat Embassy Apia Embassy Ankara Embassy Amman Embassy Algiers Embassy Addis Ababa Embassy Accra Embassy Abuja Embassy Abu Dhabi Embassy Abidjan Consulate Auckland Consulate Amsterdam Consulate Adana American Institute Taiwan, Taipei
Embassy Bujumbura Embassy Buenos Aires Embassy Budapest Embassy Bucharest Embassy Brussels Embassy Bridgetown Embassy Bratislava Embassy Brasilia Embassy Bogota Embassy Bishkek Embassy Bern Embassy Berlin Embassy Belmopan Embassy Belgrade Embassy Beirut Embassy Beijing Embassy Banjul Embassy Bangkok Embassy Bandar Seri Begawan Embassy Bamako Embassy Baku Embassy Baghdad Consulate Belfast Consulate Barcelona
Embassy Copenhagen Embassy Conakry Embassy Colombo Embassy Chisinau Embassy Caracas Embassy Canberra Embassy Cairo Consulate Curacao Consulate Ciudad Juarez Consulate Chiang Mai Consulate Chennai Consulate Casablanca Consulate Cape Town Consulate Calgary
Embassy Dushanbe Embassy Dublin Embassy Doha Embassy Djibouti Embassy Dili Embassy Dhaka Embassy Dar Es Salaam Embassy Damascus Embassy Dakar Consulate Dubai Consulate Dhahran
Embassy Freetown Consulate Fukuoka
Embassy Guatemala Embassy Gaborone Consulate Guayaquil Consulate Guangzhou Consulate Guadalajara
Embassy Helsinki Embassy Harare Embassy Hanoi Consulate Hong Kong Consulate Ho Chi Minh City Consulate Hermosillo Consulate Hamilton Consulate Hamburg Consulate Halifax
Iran RPO Dubai Embassy Islamabad Consulate Istanbul
Embassy Jakarta Consulate Jerusalem Consulate Jeddah
Embassy Kyiv Embassy Kuwait Embassy Kuala Lumpur Embassy Kinshasa Embassy Kingston Embassy Kigali Embassy Khartoum Embassy Kathmandu Embassy Kampala Embassy Kabul Consulate Kolkata Consulate Karachi
Embassy Luxembourg Embassy Luanda Embassy London Embassy Ljubljana Embassy Lisbon Embassy Lima Embassy Lilongwe Embassy La Paz Consulate Lahore Consulate Lagos
Mission USOSCE Mission USNATO Mission UNESCO Mission Geneva Embassy Muscat Embassy Moscow Embassy Montevideo Embassy Monrovia Embassy Minsk Embassy Mexico Embassy Mbabane Embassy Maputo Embassy Manila Embassy Manama Embassy Managua Embassy Malabo Embassy Madrid Consulate Munich Consulate Mumbai Consulate Montreal Consulate Monterrey Consulate Milan Consulate Melbourne Consulate Matamoros
Embassy Nicosia Embassy Niamey Embassy New Delhi Embassy Ndjamena Embassy Nassau Embassy Nairobi Consulate Nuevo Laredo Consulate Naples Consulate Naha
Embassy Ouagadougou Embassy Ottawa Embassy Oslo
Embassy Pristina Embassy Pretoria Embassy Prague Embassy Port Of Spain Embassy Port Louis Embassy Port Au Prince Embassy Phnom Penh Embassy Paris Embassy Paramaribo Embassy Panama Consulate Peshawar
Embassy Quito Consulate Quebec
REO Basrah Embassy Rome Embassy Riyadh Embassy Riga Embassy Reykjavik Embassy Rangoon Embassy Rabat Consulate Rio De Janeiro Consulate Recife
Secretary of State Embassy Suva Embassy Stockholm Embassy Sofia Embassy Skopje Embassy Singapore Embassy Seoul Embassy Sarajevo Embassy Santo Domingo Embassy Santiago Embassy Sanaa Embassy San Salvador Embassy San Jose Consulate Strasbourg Consulate St Petersburg Consulate Shenyang Consulate Shanghai Consulate Sapporo Consulate Sao Paulo
Embassy Tunis Embassy Tripoli Embassy Tokyo Embassy The Hague Embassy Tel Aviv Embassy Tehran Embassy Tegucigalpa Embassy Tbilisi Embassy Tashkent Embassy Tallinn Consulate Toronto Consulate Tijuana Consulate Thessaloniki
USUN New York USEU Brussels US Office Almaty US Mission Geneva US Interests Section Havana US Delegation, Secretary UNVIE UN Rome Embassy Ulaanbaatar
Embassy Vilnius Embassy Vientiane Embassy Vienna Embassy Vatican Embassy Valletta Consulate Vladivostok Consulate Vancouver
Embassy Windhoek Embassy Wellington Embassy Warsaw
Embassy Yerevan Embassy Yaounde
Embassy Zagreb

### Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ASEC AEMR AMGT AR APECO AU AORC AJ AF AFIN AS AM ABLD AFFAIRS AMB APER AA AG AE ADM ALOW ACOA AID ATRN ADCO AND ABUD ADANA APEC ARABL ADPM AL ANARCHISTS AADP AO ANET AMED AGRICULTURE AROC AGAO AY AORG ASEAN ACABQ AINF APCS AODE ARF AX AMEX AZ ASUP ARM AQ ATFN AMBASSADOR ACBAQ AFSI AFSN AC AOPR AREP ASIG ASEX AER AVERY ASCH AFU AMG ATPDEA ASECKFRDCVISKIRFPHUMSMIGEG AORL AN AIT AGMT ACS AGR AMCHAMS AECL AUC AFGHANISTAN ACAO
BR BB BG BEXP BY BA BRUSSELS BU BD BK BL BM BO BE BH BTIO BX BILAT BMGT BP BIDEN BC BBG BF BBSR BT BWC BEXPC BN BTIU
CPAS CA CASC CS CBW CIDA CO CODEL CI CROS CU CH CWC CMGT CVIS CDG CG CF CHIEF CJAN CBSA CE CY CD CT CW CM CONS CDC CR CN COUNTRY CONDOLEEZZA CAPC CZ CICTE CYPRUS CARICOM CTR CBE CACS COM COE COUNTER CFED CIVS CARSON COPUOS CV CKGR CHR CVR CLINTON COUNTERTERRORISM CITEL CLEARANCE CB CSW CIC CITT CARIB CAFTA CACM CDB CJUS CTM CAN CONSULAR CLMT CBC CIA CNARC CIS CEUDA CHINA CAC CL
DR DJ DHS DAO DCM DO DEFENSE DA DE DOMESTIC DISENGAGEMENT DK DOD DOT DPRK DEPT DEA DOE DTRA DS DEAX
ECON ETTC EFIS ETRD EC EMIN EAGR EAID EU EFIN EUN ECIN EG EWWT EINV ENRG ELAB EPET EN EAIR EUMEM ECPS ELTN EIND EZ EI ER ET EINT ECONOMIC ENIV EFTA ES ECONOMY ENGR ELECTIONS ERNG ECIP EXIM ENERG EREL EK EDEV ETRAD ETRC EPA EUREM ENVI EXTERNAL ELN ECOSOC EAIDS ENGY EINVEFIN EPREL ETRDEINVECINPGOVCS ECA EDU EFINECONCS ETC ENVR EAP EINN EXBS ECONOMICS EIAR EINDETRD ECONEFIN EURN ETRDEINVTINTCS EFIM EINVETC ECONCS EBRD ETRA ESA EAIG EUR EUC ERD ETRN EINVECONSENVCSJA EEPET EUNCH ESENV ENNP ECINECONCS ETRO ETRDECONWTOCS ECUN
FR FI FAS FOREIGN FTAA FREEDOM FBI FINANCE FAO FAA FJ FTA FARC FAC FDA FM FINR FOR FOI FO FMLN FISO
GM GG GERARD GT GA GR GTIP GY GLOBAL GCC GC GAZA GL GOV GOI GF GH GV GE GANGS GTMO GAERC GZ GUILLERMO GASPAR
HR HO HA HYMPSK HK HUMAN HN HU HURI HILLARY HI HUM HSTC HEBRON HUMOR
IZ IN IAEA IS IMO ILO IR IC IT ITU IV IMF IBRD IWC IRAQI IDB ISRAELI ITALY IADB ITPGOV ITALIAN ID ICRC INR ICAO IFAD IQ IPR IRAQ INMARSAT INRA IO INTERNAL ITRA ICJ INDO IRS IIP ILC IEFIN ICTY ISCON IA INTERPOL IEA INRB IAHRC ISRAEL IZPREL IRAJ IF ITPHUM IL IACI IDA ISLAMISTS IGAD ITF INRO IBET INTELSAT IDP ICTR IRC
JA JO JM JP JOHN JUS JAMES JOHNNIE JOSEPH JML JIMENEZ
KNNP KFLO KDEM KOMC KSUM KIPR KFLU KPAO KE KCRM KJUS KAWC KZ KSCA KDRG KCOR KGHG KPAL KTIP KMCA KCRS KPKO KOLY KRVC KVPR KG KWBG KMDR KTER KSPR KV KTFN KWMN KFRD KSTH KS KN KISL KGIC KSEP KFIN KTEX KTIA KUNR KCMR KMOC KCIP KTDB KBIO KU KSAF KSTC KIRF KICC KIRC KIDE KNUP KNUC KSEO KCFE KPWR KBCT KR KMPI KREC KCSY KHLS KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KOCI KREL KX KPRP KPRV KAUST KPAOPREL KCRIM KVIR KCRCM KPAONZ KNAR KHDP KMCC KHIV KTRD KTAO KWAC KPAOY KHSA KJUST KFSC KINR KENV KTBT KGIT KMRS KSCI KNPP KPOA KACT KVRP KBTS KPIR KAWK KCOM KAID KMFO KO KERG KNDP KTLA KNNPMNUC KRCM KCFC KNEI KCHG KPLS KFTFN KTFM KLIG KDEMAF KRAD KBTR KGCC KICA KHUM KSEC KPIN KESS KDEV KWWMN KOM KWNM KRFD KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KRGY KIFR KSAC KWMNCS KPAK KOMS KFPC KRIM KDDG KCGC KPAI KID KMIG KNSD KWMM
LY LE LABOR LO LH LAB LTTE LU LA LI LG LT LOG
MARR MX MASS MOPS MNUC MCAP MTCRE MRCRE MTRE MASC MY MK MAS MO MCC MCA MU ML MIL MTCR MEPP MAR MG MINUSTAH MD MP MAPP MZ MR MA MOPPS MTS MLS MILI MEPN MEPI MEETINGS MERCOSUR MW MT MIK MN MAPS MV MILITARY MARAD MDC MACEDONIA MASSMNUC MUCN MEDIA MI MQADHAFI MPOS MPS MC
NZ NATO NI NO NU NG NL NPT NS NP NA NATIONAL NC NSF NDP NIPP NSSP NATOIRAQ NR NAS NGO NE NZUS NARC NH NSG NAFTA NEW NRR NT NASA NAR NK NOVO NATOPREL NEA NSC NV NPA NSFO NW NORAD NPG
OTRA OECD OVIP OREP OPRC ODC OIIP OPDC OAS OSCE OPIC OMS OEXC OPCW OSCI OPAD ODIP OFDP OPEC OFFICIALS OIE ODPC OSHA OVIPPRELUNGANU OHUM OTR OMIG OSAC OBSP OFDA OVP ON OCII OES OCS OIC
PGOV PREL PARM PINR PHUM PM PREF PTER PK PINS PBIO PHSA PE PBTS PL POL PAK POV POLITICS POLICY PERL PA PNAT PCI PAS PALESTINIAN PPA PROP PERM PETR PREZ POLITICAL PO PRELPK PAIGH PROG PJUS PMIL PDOV PAO PBTSRU PGOR PARMS PSI PRAM PTE PINO PREO PTERE PGOF PG PRGOV PORG PP PS PKFK PSOE PEPR PDEM PINT PMAR PRELP PREFA PNG PTBS PFOR PUNE PGOVLO PHUMBA POLINT PGOVE PHALANAGE PARTY PECON PY PLN PHUH PEDRO PF PHUS PETER PU PARTIES PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PHUMPREL POGOV PEL PINL PBT PINF PRL PSEPC POSTS PAHO PHUMPGOV PGOC PNR PROV
QA
RS RP RU RW RFE RCMP RIGHTSPOLMIL RO ROBERT RM RICE REGION ROOD RELAM RSP RF RELATIONS RIGHTS RUPREL REMON RPEL REACTION REPORT RSO
SZ SENV SOCI SNAR SY SO SP SU SI SMIG SYR SA SCUL SW SR SYRIA SNARM SPECIALIST SENS SEN SN SC SF SARS SMIL SCRM SENVSXE SL SAARC STEINBERG SNARIZ SWE SCRS SG SAN ST SIPDIS SSA SPCVIS SOFA SENVKGHG SANC SHI SEVN SHUM SK SH SNARCS SPCE SNARN SIPRS
TRGY TBIO TSPA TU TPHY TI TX TH TIP TSPL TNGD TS TW TRSY TP TZ TN TC TR TF TINT TD TK TRAD TT TWI TERRORISM TL TV TO TURKEY TSPAM TRT TFIN TAGS TBID THPY
UNSC UK UNGA UN US UZ USEU UG UP UNAUS UNMIK USTR UR UY UNHRC USPS UNSCR UNESCO UNFICYP USAID UV USOAS UNMIC UNCHR USUN UNDP UNEP USGS UNHCR USNC UA UE UNVIE UAE UNO UNODC UNCHS UNDESCO UNC UNPUOS UNDC UNICEF UNCHC UNCSD UNFCYP UNIDROIT UNCND
VE VM VT VZ VEPREL VTEG VTIZ VTPREL VISIT VENZ VAT VC VI VN
WHTI WIPO WTRO WTO WHO WFP WS WA WZ WI WBG WMD WWARD WHA WITH WTRQ WEU WMO WB
XA XR XW XX XK XL XM XS XF XG XT XC XH XD XE XV XB XU XZ XY XQ XI XTAG
YI YM YL YE YMCS
ZU ZI ZP ZR ZOELLICK ZF ZK ZO ZL ZB ZH ZT ZJ ZEALAND ZN ZA ZANU

### Browse by classification

CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

### Community resources

Follow us on Twitter Check our Reddit Twitter this Digg this page Contact us on IRC

courage is contagious

### Viewing cable 07OTTAWA524, Canada's federal budget provides lots of cash to

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:

- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07OTTAWA524.

Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07OTTAWA524 | 2007-03-21 17:54 | 2011-04-28 00:00 | UNCLASSIFIED | Embassy Ottawa

`

    VZCZCXRO1625
    RR RUEHGA RUEHHA RUEHQU RUEHVC
    DE RUEHOT #0524/01 0801754
    ZNR UUUUU ZZH
    R 211754Z MAR 07
    FM AMEMBASSY OTTAWA
    TO RUEHC/SECSTATE WASHDC 5239
    INFO RUEATRS/DEPT OF TREASURY WASH DC
    RUCPDOC/USDOC WASHDC
    RUCNCAN/ALL CANADIAN POSTS COLLECTIVE

` `

    UNCLAS SECTION 01 OF 02 OTTAWA 000524

    SIPDIS

    SIPDIS

    STATE FOR WHA/CAN
    TREASURY FOR INTERNATIONAL AFFAIRS (FAIBISHENKO)
    COMMERCE FOR 4320/ITA/MAC/WH/ONIA (WORD)

    E.O. 12958: N/A
    TAGS: ECON EFIN PGOV CA
    SUBJECT:  Canada's federal budget provides lots of cash to
    provinces, includes benefits for American interests.

    REF: Ottawa 505

    ¶1. (U) Summary: Canadian Finance Minister Jim Flaherty laid out the
    government's budget on March 19 with the lion's share of new
    spending, C$39 billion, directed toward the provinces in the effort
    to create 'Fiscal Balance' in the federation.  As expected, it is an
    "election" budget crafted to provide benefits to many segments of
    the Canadian public in order to help the Tories win a majority in
    the next election.  The budget also included several measures of
    specific interest and benefit to the United States, including
    elimination of withholding tax on interest paid to all
    non-residents; doubling to C$400 the value of goods that may be
    imported duty- and tax-free by returning Canadian residents after a
    48-hour absence; and providing C$11 million over the next two years
    to clean up contaminated sediment in eight areas of concern
    identified under the Canada-United States Great Lakes Water Quality
    Agreement.  The budget also confirms funding for Windsor-Detroit
    highways and bridge infrastructure. Opposed by the Liberals and the
    NDP, the budget nevertheless should have enough support from the
    Tories and the Bloc Quebecois to allow its passage through
    Parliament; the government will not fall on a budget no-confidence
    vote. Budget documents are available on-line at
    www.budget.gc.ca/2007/index_e.html  End Summary

    ¶2. (U) The Tory budget, characterized by one media pundit as a
    "motherhood and apple pie document" will be supported by the Bloc
    Quebecois and therefore will have enough support to pass through
    Parliament despite the announced opposition of the Liberals and the
    NDP.  Thus, the Tory government is not expected to fall next week on
    a no-confidence vote triggered by this budget.

    Major Fiscal Elements of the Budget

    ¶3. (U) The Harper Government's budget announcement of March 19 noted
    that the overall fiscal situation is stronger than projected at the
    time of the November 2006 Economic and Fiscal Update, due to a
    combination of higher revenues and lower expenses.  Partly as a
    result, Federal revenues as a share of GDP are projected to decline
    from 16.2 per cent in 2005-06 to 15.5 per cent in 2008-09.

    ¶4. (U) For FY 2006-07 (which ends on March 31), the Government is
    planning to reduce the federal debt by $C9.2 billion.  Combined with
    last year's $C13.2-billion surplus, federal debt will have been
    reduced by $C22.4 billion over two years.  The Government is
    planning on annual debt reduction of at least $C3 billion in 2007-08
    and 2008-09, and remains on target to lower the federal debt-to-GDP
    ratio to 25 per cent by 2012-13.  The government, with this budget
    plan, will direct over $C1 billion per year in debt interest savings
    to ongoing personal income tax reductions. And the Government will
    limit growth in program spending, on average, to below the rate of
    growth in the economy.

    ¶5. (U) Detailed analysis of economic developments and prospects can
    be found at:  http://www.budget.gc.ca/2007/bp/bpc2e.html

    Lots of Money to the Provinces, but not everyone is pleased

    ¶6. (U) A cornerstone element of the budget is the transfer of C$39
    billion over the next seven years by the federal government to the
    provinces and territories.  A key objective of this fiscal transfer
    is 'long-term, predictable funding for infrastructure' which will
    see federal support grow from C$3.2 billion per year when the Tories
    came to power last year, to nearly C$5.7 billion per year by
    Qcame to power last year, to nearly C$5.7 billion per year by
    2013-14.  The Tories point out that this will add up to more than
    C$16 billion in new funding for infrastructure (roads, mass transit,
    water works, sewers and so on) over the next seven years.  Indeed,
    according to the budget plan, cash funding to provinces and
    territories, which stood at C$43 billion per year when the
    Conservatives took office in 2006, will be at least C$18 billion
    higher in 2013-14.  Combined with the money, however, is a promise
    by the Tories to meddle less in the policy affairs of provinces by
    focusing its spending in core areas of federal responsibility
    (presumably such as defense and national security) rather than in
    provincial matters such as health and education.  That is, the
    provinces will still get cash transfers, from equalization and the
    'Canada Social Transfer', infrastructure grants and other mechanisms
    but with fewer federal dictates on how the money it is to be spent.

    ¶7. (U) Despite this seeming magnificent largesse, however, not all
    provinces are greeting the budget with pleasure.  By all accounts
    Quebec and Ontario are pleased, indeed many observers see the new
    funding as an attempt to influence the Quebec provincial election on
    March 26 (see reftel) but the premiers of Saskatchewan and
    Newfoundland and Labrador have both characterized the budget's plan

    OTTAWA 00000524  002 OF 002

    for provincial transfers as a 'betrayal'.  This is due to the fact
    that both provinces have growing revenue streams from natural
    resource royalties and in recognition of those monies the federal
    government plans to reduce equalization payments to the provinces.

    ¶8. (U) Comment: The Conservative government's stated approach is to
    have clearly delimited provincial and federal areas of
    responsibility and limit federal spending activity to within its
    agreed upon purview.  Given the relative weakness of the central
    government in Canada, past federal governments tried to implement
    national policies by using the federal purse to co-opt, coerce, or
    downright buy provincial acquiescence on federal policy initiatives
    in what is known broadly as 'fiscal federalism'.  Upon taking power
    in 2006 the Tories identified concerns about how this approach
    blurred accountability to taxpayers and reduced clarity with respect
    to roles and responsibilities of each order of government which in
    turn helped create tension in the federation.  This budget is a
    fairly comprehensive attempt to address that concern. End comment.

    ¶9. (U) The fiscal balance component of the budget is available at:
    http://www.budget.gc.ca/2007/themes/bkrfbse.h tml

    ¶10. (U) Other aspects of the budget such as funding for environment
    and energy programs, science and technology, defense and national
    security and other sectors will be addressed septel.

    Good News for U.S. Priorities

    ¶11. (U) The budget also included several elements that will yield
    benefits to American interests.  The government announced its intent
    to conclude negotiations on the Canada-US Tax Treaty soon and the
    related elimination of withholding tax on interest paid to all
    non-residents, to be phased in over three years following the
    signing of the new treaty.  The budget doubles the value of goods
    that may be imported duty- and tax-free by returning Canadian
    residents after a 48-hour absence, to C$400, effective March 20,
    ¶2007.  And it reaffirms the federal government's commitment to
    construct a new border crossing at Windsor-Detroit including plans
    to cover 50 per cent of the cost of the access road from the new
    crossing to link up with Highway 401 (the major east-west artery of
    Ontario).

    ¶12. (U) Other budget items which will have a near-term impact on
    American private interests include a "Cabinet Directive on
    Streamlining Regulation" that will come into effect on April 1, 2007
    and serve to focus resources on larger, more significant regulatory
    proposals, hold the government to account by establishing service
    standards, and create pressure for continual improvement through
    periodic reviews of the regulatory process.  And the budget
    allocates C$11 million over the next two years to clean up
    contaminated sediment in eight areas of concern identified under the
    Canada-U.S. Great Lakes Water Quality Agreement: Hamilton Harbor,
    Niagara River, Detroit River, St. Mary's River, Thunder Bay,
    Peninsula Harbor, St. Clair River and Bay of Quinte, as well as
    providing C$5 million over the next two years to the International
    Joint Commission (IJC) to carry out a study with the U.S. on the
    flow of water out of Lake Superior.

    Wilkins

`