VZCZCXRO3744
PP RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #0267 0402023
ZNR UUUUU ZZH
P 092023Z FEB 07
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC PRIORITY 4975
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS OTTAWA 000267 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/BTA/EWH (RECHT); WHA/CAN 
PLS PASS TO USTR (MELLE AND SULLIVAN) 
COMMERCE FOR JAMES TERPSTRA 
 
E.O. 12958: N/A 
TAGS: CA EAGR ECON EIND ETRD
SUBJECT: CANADA ANNOUNCES FORESTRY SUPPORT; SAYS IT DOES 
NOT VIOLATE SOFTWOOD AGREEMENT 
 
 
SENSITIVE BUT UNCLASSIFIED 
 
¶1. (u) On February 8, Natural Resources Minister Gary Lunn 
announced a C$127.5 million aid package for Canada,s 
struggling forestry sector.  The GOC believes that a strong 
forestry sector "is vital to a strong Canadian economy." 
Under the aid package, C$122.5 million will go toward three 
initiatives: 
 
- Promoting innovation and investement in the forest sector; 
- Expanding market opportunities; and 
- Developing a national forest pest strategy. 
 
Human Resources and Social Development Canada (HRSDC) will 
use the remaining C$5 million to form a Human Resource Forest 
Sector Council that will look at job skills and adjustment 
issues in the industry. 
 
¶2. (u) The GOC says yesterday,s aid package is part of C$400 
million allocated in the 2006 federal budget to support 
Canada,s forest industry.  Last month, the government 
provided C$200 million to the Federal Mountain Pine Beetle 
Program.  Last October, the HRSDC announced that it would use 
C$72.5 million in federal funds on the Targeted Initiative 
for Older Workers. 
 
¶3. (sbu) International Trade Deputy Director for Softwood 
Lumber Karen Kennedy told Econcouns that yesterday,s aid 
package should come as no surprise since it is part of the 
2006 budget assistance for Canada,s forestry sector. 
Kennedy said the aid "absolutely does not violate" the 
Softwood Lumber Agreement, adding that no monies are being 
given to Canadian forestry sector companies. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS