VZCZCXYZ0000
RR RUEHWEB

DE RUEHMT #0001/01 0071916
ZNY CCCCC ZZH
R 071915Z JAN 10
FM AMCONSUL MONTREAL
TO RUEHC/SECSTATE WASHDC 0036
INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEHMT/AMCONSUL MONTREAL

C O N F I D E N T I A L MONTREAL 000001 
 
NOFORN 
SIPDIS 
DEPARTMENT OF ENERGY FOR  OFFICE OF POLICY AND INTERNATIONAL 
DEPARTMENT OF STATE FOR  EEB/EPC 
 
E.O. 12958: DECL: DECLASSIFY UPON ARRIVAL 
TAGS: ENRG CA PREL PGOV
SUBJECT: COPENHAGEN CONFERENCE REVEALS QUEBEC OIL SANDS INTERESTS 
 
DERIVED FROM: DSCG 05-1 (B), (D) 
 
¶1. (U/NF) Summary. Controversy over Quebec's aggressive position at 
the Copenhagen environmental conference shed some surprising light 
into the connections of powerful provincial interests in the 
Alberta oil sands. Montreal's two major newspaper chains battled 
back and forth over Quebec-based Power Corporation's (Power Corp) 
financial ties and the corporation's alleged impact on Premier 
Charest's actions in Copenhagen. Whether Charest was influenced by 
Power Corp to tone down his criticism of the federal government is 
unclear, but the corporation's provincial and federal influence is 
undeniable. End Summary. 
 
 
 
Charest's Strategy Under Scrutiny 
 
--------------------------------- 
 
 
 
¶2. (U/NF) Arriving at the COP15 Conference in Copenhagen, Quebec 
Premier Jean Charest, a strong federalist, openly and actively 
pushed Canada to do more to reduce its greenhouse gas emissions and 
signed a pact with 20 sub-national representatives who were 
similarly unsatisfied with their national governments' positions. 
Charest's public lobbying of his own federal government sparked 
strong reaction across Canada, sometimes very critical of Quebec 
for "undermining" federal environmental policy. Quebec won the 
Globe and Mail's "Denigrate Your Own Country Award", along with 
Ontario, for its performance in Copenhagen. The controversy 
continues to simmer in the Montreal news this week. 
 
 
 
¶3. (U/NF) In Quebec, most observers praised what they saw as 
progressive, green policy by Charest.  But Montreal's influential 
La Presse excoriated Charest's "arrogant" strategy, branding him 
"irresponsible" and disloyal to Ottawa.  On December 17th, the 
paper defended Prime Minister Harper's Copenhagen position, 
insisting that the oil sands industry was vital for the economy of 
Canada and Quebec.  La Presse's stance raised eyebrows in Quebec; 
the paper is federalist, but rarely so quick to jump to the federal 
government's defense due to an alleged slight from Quebec. Further, 
the paper's commentary is usually pro-environment. 
 
 
 
¶4. (U/NF) Top circulation tabloid Journal de Montreal led several 
commentators in charging that La Presse's stance had been dictated 
by its ownership -- Power Corporation, a holding company with 
substantial financial interests in the oil sands.  [Comment: The 
Ambassador met with Power Corporation officials on a recent visit 
to Montreal discussing the general business and political climate 
in Quebec in the period just before the controversy broke.  The 
diversified management and holding company based in Montreal ($37 
billion USD revenue last year) is owned by the powerful Desmarais 
family. Paul Sr. and his two sons are among the most influential of 
Canadians and have strong political and family ties - primarily 
with the federal Liberals in Canada and the French President 
Sarkozy. End Comment] 
 
 
 
Power Corporation and Oil Sands 
 
------------------------------- 
 
 
 
¶5. (U/NF) Although La Presse defended its impartiality, it was hard 
to refute Power Corporation's fQancial interests in the oil sands. 
Power Corp is the largest individual shareholder (4.5%) in the 
French company Total S.A., and wields further influence with Paul 
Desmarais, Jr. on Total's board of directors. Total S.A. has 
invested $6 billion USD in Alberta's oil sands to date, and plans 
to invest $20 billion USD more over the next two decades.  It is 
the fifth largest publicly-traded integrated international oil and 
gas company in the world, operating in more than 130 countries, 
with 96,950 employees. 
 
 
 
Comment: Charest Tones Down Criticism 
 
------------------------------------- 
 
¶5. (U/NF)   It's difficult to say whether Charest was reacting to 
La Presse, pressure from the Desmarais family, or another factor 
entirely, but by the end of the conference he lay low, passing on 
further media opportunities to criticize Harper. Since then, he has 
avoided speaking about Canada's environmental policies, focusing 
instead on his own plan to reduce automobile emissions in Quebec. 
The province is the first in Canada to adopt stricter fuel 
efficiency standards than the federal government. This legislation 
takes effect Jan. 14, 2010.  Meanwhile, the oil sands controversy 
continues to play itself out in the media here, with the Desmarais 
angle as a backdrop. 
MCCLENNY