[War] Canada/China: "Sitting Down to Talk"

Michael Downey michael.michaeldowney at gmail.com
Fri Sep 28 10:55:03 EDT 2007


"Sitting Down to Talk"
Prime Minister MacIntyre, Canada
Ambassador Jao, People's Republic of China
20 March 2013
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MacIntyre had been happy with how his summit    with     President  Williams
had gone. One of  the  key criticisms of the   PM   during  his    election
campaign was his relative  lack  of  experience   in   international  affairs
and   diplomacy.  His  relatively  successful   discourse  with   Williams
had,
MacIntyre hoped,  given him   more    credibility in that  field.

The   PM   cautioned himself  that Canada  had     historically enjoyed at
the
very  least fair  relations   with   the US and a  traditional
understanding
of  cooperation  between   both  nations.  Other    countries were   less
accommodating, and required    more    delicate   handling.

"Like China," said   Ingram.  MacIntyre   looked over  at  her.  His    Chief
Political Advisor had probably  been   speaking   the  exact same   thing
MacIntyre had been    thinking,   he  just hadn't bothered listening  to
yet
another   of  her worrisome   lectures. "Don't think  that  they'll      be
anywhere near as  compliant  as the  President  was."

"As  I    understand  it, we enjoy   pretty  good relations with  China  as
it
is,"   replied  MacIntyre.  He had of   course  read into  the  subject  in
detail.  Canada  generally had   the   most   cooperative and cordial
relation
with  the   People's Republic  out  of   all  the  Western nations, which
dated
back  to   Trudeau   being the  first NATO leader  to  open  formal
relations
in  1970,  two years  before  Nixon's    visit and nine  years before
Congress
broke it    off   with the ROC and formally  recognized  the  PRC.  "We  have
no
territorial  disputes with them, no  military   concerns in    Asia,  and  no
diplomatic  problems.   We'll talk  trade  and    technology."

"You  said you   would  press them  on  intellectual  property  laws   and
patent    rights,"  noted Ingram.  MacIntyre   nodded.

"Yes, I did,  and I     will,"  assured the PM.  "But let's  go  into this
with
a  positive  attitude,   shall     we?"

Ambassador Win Jao  had spent the   better part  of  the last  week
preparing
for
this    upcoming  discussion.  It was rare to   be given   the   chance  for
such
a
high-level dialogue,  but   with the   invasion of North  Korea  and   the
Beijing
Conference ongoing,  it  was  decided  that    international cooperation
and
diplomacy
should be a   cornerstone  of    China's  foreign policy.  This
particularly
included
the  new  world  nations, and  although   President   Hong  would  soon be
making
her
own
trip  to   the   Americas, the   foundation of understanding   and
communication
always remained, as   per tradition,  between  the  Embassy  of  one
nation,
and
the
government of  another.

Win  was   a  full  sixty-five  years old... but  despite his age  was  at
the
very
peak of his game,  and    career, in  China's  Ministry of  State.   He'd
served
in
several    important posts over  his   career... helping to  oversee   the
successful
transfer  of  Hong Kong to  Chinese   control,  serving as China's   formal
ambassador
to  the     European Union, and prior  to his  assignment  in Canada working
in
the
United   Nations as  a senior advisor to China's    formal   mission.   He
knew
a
lot
about the west and it's  ways...   how  to   speak nearly perfect English
(his
accent 'did'   cut  in at times,  much  like the  President's  did),
attended
several
semesters worth of  classes   at  Johns  Hopkins,  Harvard, and    Queens
University.    He
was one of  the   few  classically trained diplomats  (by    western
standards)
at
Xia's disposal, and  she'd seen fit  to  place   him  in Canada  for
several
reasons.


"Mister   Prime     Minister."  Win smiled  warmly and genuinely,  he    had
always
been  the kind of person who  loved     associating with people,  and learning
about
the various    cultures  and  societies that made up  the 'global    tapestry'
as
his
doctoral  thesis had called    it.   Even with critics  of  China's  policies
or
government   attacked, he was  the type to  simply  shrug it off as   part
of
his
job,
maintain a warm smile, and attempt a    more    personal  connection, which
he
saw
as
vital  to   substantive    advancement in any  of the dozens of  major
issues
facing
the People's  Republic  at any   given    time.  "It is a great pleasure    to
finally
meet you   in   person.  I am  looking  forward to  working with you  as   I
did
your
predecessor."  He offered his  hand   after   straightening  his
immaculate
suit.
"Your   government was gracious enough   to   provide me in   advance    a
compendium
of
the topics you  wished to  cover    today.    I've  consulted with   Beijing
and
hopefully  we  can reach a level   of     understanding.  Correct me  if I
am
wrong, but    you
wished to discuss  issues   of  mutual trade   and    technology?"
Understandably
China  was   very   interested   in  both.  Chinese heavy   industry  viewed
Canada
as
a
potential  source  not    only  of  expertise, but of buyers of   finished
products.
Atop  that,   Canada  was a  global  leader in the  development of       green
technologies
and environmental   engineering...  and   China  was  most    definitely
interested
in
acquiring  that  know   how  and   technology.   It was no  secret  among
the
people
of
China   that   President  Hong  viewed   environmental concerns as one  of
the
top
problems facing      them.

"Ambassador,"   responded  MacIntyre, accepting  Win  Jao's  hand  and
shaking  it  firmly. "As  always,   Canada is happy to  have a
face-to-face
discourse with  our friends  across the   Pacific.  Please,  follow   me."

The PM usually  hosted   foreign  dignitaries in  his  own office  in  the
Central Bloc.   Large,   sweeping conference  rooms  created too much of     a
standoff-ish  atmosphere  and obstructed real  dialog  and    negotiation
with  too much   formality.

"I    remember  when I was finish my degree at  Dalhouise   that  the  Cold
War
ended," commented  MacIntyre as he sat down in  one  of   the    armchairs
clustered around the  oval coffee  table in the  middle  of   the   office.
"The end of  communism in Europe.  Your  country  had  already  begun   its
own  transition to  capitalism.  I thought that  maybe,  perhaps,    the  idea
of mutual trade  between us, the  West,   and  emerging  capitalist  states
would  be what   would really  create  a true state of  global  peace.    Some
ways  it did, some way it  didn't.  There was that     eleven-year  lull,
apart from  brush fire  wars like the  Persian  Gulf  of   Yugoslavia.  But
then September   11th, the 'War   on  Terror,' the Iraq  War......."   The
Prime   Minister  shrugged.  "And here we were,  twelve  years  later, in
the
middle of  another  lull. Islamic  extremism is still  a  problem  but     Bin
Laden is dead and democracy has finally  been  brought    to   Afghanistan
and Iraq. Now I  think  it's time for us to  start   working  on  that  whole
'era  of peace'  thing, and maybe not   get  sidetracked like  we  did
twelve
years ago.  And I think  relations  between Canada  and  China  are  a  good
place  to   start.

"Anyway,  the  first issue is trade.  China is a   big   source  of  imports
for Canada. In particular  textiles,    footwear, toys   and  plastics. We,
on  the other hand,  can offer  China a   great deal  of things  that   I am
sure you country  could use.  Cars and     auto parts, and prices a  bit
fairer than  what  the  Americans  charge  you,  to begin with.    Second,
wheat  and  cattle. Canada can produce  and  export   both in  abundance   and
you have 1.4  billion mouths to  feed.   Third and  most    importantly,
uranium and the  reactor   technology. The two  CANDU   reactors we   built
you are  still   chugging along nicely, and  our   scientists at Chalk
River
have  finalized the first   Advanced CANDU   Reactor, or  ACR,   prototype.
China  needs  energy,  and no one wants  to  become MORE  dependent  on
oil."

Not a diplomat  by training,  MacIntyre  was   a  businessman. He   was
careful to put out options  but  made  no   overt proposals.  Let  the
Chinese   pick out what they wanted to  run    with, and then  they  could  go
from there.

Win  nodded,   folding   his  hands as both men began their     discourse.
"Certainly
it's China's  position that all    responsible  nations should  pursue
peaceful
coexistence  with  each  other.  Unfortunately  events  in  North   Korea  may
make
that
seem like hollow  words,   but the  fact remains that   the only  reason  the
invasion took   place  is because a peace  at  the  expense of millions    and
possibly
billions  should North  Korea's  nuclear    materials have fallen into the
wrong   hands
was  simply   unacceptable to live  with."  He  straightened   a    little,
confident
that he'd  explained  the North  Korean  issue    adequately.   "We  certainly
appreciate the    incredible   technology Canada  has access to,  and
President  Hong  places
high    priority on  petroleum independence.   Were   Canadian   companies  to
approach
the Chinese  government, I'm sure   they  would find  a very  warm
reception
for
testing the new  ACR.  I'm absolutely   certain   our   universities and
the
students
they educate would  benefit  greatly  from   the   research potential.

As  for  auto-parts, China   has it's own   manufacturers and   companies, and
simply I'm  not authorized  to speak on   their   behalf.  I've  gotten
direct  word   from
the  President   however  that China will adjust  policy to be     generally
receptive
of Canadian   goods.  Both nations,   we   believe, would benefit  from
stronger
economic   ties."

"Well  since there  is only one  Canadian  company  that  handles  our
nuclear  industry and it's  owned by the   Crown,   consider the offer
already made,"    grinned  MacIntyre. "I am also glad  you are   receptive
to
Canadian  agricultural   exports.

"Nuclear power  aside,  if  China were to  agree  to free  trade when  it
comes to  Canadian beef  and wheat  exports, I will    lift all tariffs   on
Chinese-made textiles and footwear, your   number   one   export to Canada."

"Why not go  further?"   Win  adjusted   himself  as he spoke,   leaning
slightly further in as his  interest  in what   the   Canadian leader was
offering   increased.    "China is naturally very   supportive of  free
trade
policies.  We have benefited from  it    extensively,  and  believe that it
can  certainly be a tool for the  poorer    nations of  the  world to help
lift themselves  from poverty when   used    responsibly.  To that end,  why
not  consider  establishing a free   trade   pact?   Such an agreement  would
be greatly beneficial to   both   our   nations."

MacIntyre shook his head. "No,  that's  too  far and  too  fast of a  step
to consider at   this time. Further   discussion may be  appropriate  for   a
future time, but not   now."

"I'm sorry to  hear   that, though I do understand the need  to   proceed
carefully.   That being  said, I do not believe   such an  exchange  would
be  equivalently
in  each  party's  favor.    Would you consider eliminating   tariffs on
Chinese
made steel  and  heavy industrial products  as  well?"

"Not   equivalent?" MacIntyre was  no  diplomat but he was  a  businessman
and wasn't  going to get  talked  into anything  more  than he wanted. "I
think it's  very  equivalent. I  give  you free  trade on your top  export
to my country, which I  can  also  get from  India  and a very similar rate
to what China exports  for I    should  point out, and you get free trade
on food you  NEED to feed  your   1.3  billion people. My offer is very
fair  and  will not   change."

"With all due respect Mister Prime   Minister, food is cheap   and  plentiful.
If you do not   produce it, we will simply pay those  who  will for   a
resource
that is overly abundant and subsidizes  more than   one  nation on this
Earth.  That
being said, India is   a  primarily  service-oriented economy, and  far  less
an
industrial  power house than  China.  We can  produce in  numbers  well
beyond
what
you'll get  from  India, and at  the same time with more  interest  in  Indian
goods, their   prices will begin increasing  fairly  rapidly.  Are  you
prepared
to
face voter back-lash and  a  severe economic reversal  given much  of   your
reputation is based  on your business  acumen?"   Win  shrugged.     "Besides,
Indian
policy has  always favored tariffs on  foreign   products.   You  will not
get
this
kind of cooperation  that   China offers  from the Indian  government.  Much
of
the
machinery  and  heavy industrial products upon which   your  nation's  very
affluent
economy is based already originate  in   China.   It would be  a great boon to
have access to   these  products without having to pay  the  taxes  imposed
by
tariffs."

Now he was getting irritated. He was  not  and  never  had the intention
of creating such a massive  trade increase  with  China.  His offer had
been modest but  fair, and now this guy  was pushing him   too hard. Time
to  push back.

"You ask me  for too much,"  countered   MacIntyre. "You want Canada to
buy and  buy and buy from you  and  offer us  nothing in return. That is
why  it's called 'trade.'  You  simply start buying  foodstuffs from us  at
reduced and  in exchange I am  to give you free trade, no   tariffs  on
steel, on textiles? What does  that get me, other than a   trade  defecit?
You want me to lift tariffs on  steel? What  tariffs  are you going  to
lift on Canadian   goods?"

"Wheat and  meat."  Win reiterated the position   simply.   "Products  that
are
bought every day, that are  a  'necessity'.   Certainly  they are of  far
greater
value given volume  of sales  than heavy equipment  which  lasts for years
once
bought and  isn't  as universally  required as food."

"Okay, fine," said MacIntyre. "No   tariffs  on Chinese steel. In
exchange, you put no tariffs on Canadian   coal  and uranium."

"That would be an absolutely reasonable  request  were it to include a mutual
elimination of tariffs on  manufactured  electronics.  Again, that way we
will
both  benefit."

The PM  considered it. "Alright, mutual free trade on  consumer
electronics. But, that  brings us to a concern I have. You  really
screwed over Dell and IBM a few  years ago with patent  violations, and
the World Trade Organization has cited  China for  turning a blind eye
to continued patent violation by certain  companies  in your country. I
reserve the right to withdraw from a consumer   electronic free trade
pact if the WTO cites you again for  violations."

Win nodded.  "There is no nation in the WTO that has  not factually  violated
the WTO's charter in it's own interest.  I  would think it goes  without
saying
any agreements should include mutual  clauses allowing the parties  to
dissolve it."

"Then we are  agreed," said the PM. "The other item I wish to discuss
is North Korea. Now  whatever your reasons or motivations are for
invading the country, the fact  remains that like in all wars, noble or
ignoble, people are suffering. As a  country of peace and a believer in
the prosperity of all men, Canada will  offer humanitarian aid to North
Korea."

"Both your statements are excellent news, Prime Minister."  Win smiled
broadly as he clasped his hands together.  "With regards to North
Korea,  I'm sure
the North Korean government and people will be extremely receptive of  such a
generous offer.  I can not speak on their behalf, but I will  certainly
recommend we support an affirmative response."

"I'm sure," answered MacIntyre, trying to put on the most sincere
smile he could muster. "Thank you for meeting with me, Mr.
Ambassador."
---

1) Canada agrees to lift tariffs on Chinese steel, footwear and textiles
2) China agrees to lift tariffs on Canadian wheat, cattle, uranium and lumber
3) Canada and China agree to mutual free trade on electronics, with
Canada reserving the right to withdraw if China is cited by the WTO
for patent violations.
4) Canada will provided humanitarian food and medical aid to North Korea



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