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15 Nov 2003 19:05:43 GMT

New Canada leader rules out U.S. immigration pact

By David Ljunggren

TORONTO, Nov 15 (Reuters) - The man who will soon become Canada's new prime minister said on Saturday he wanted to improve strained relations with the United States but ruled out the idea of a joint immigration pact to help allay U.S. security concerns.

Paul Martin, elected leader of Canada's ruling Liberals Party on Friday, also declined to give a firm answer when asked whether Ottawa would sign up to a controversial proposed U.S. missile defense system.

Within the next few weeks Martin will take over as prime minister from Jean Chretien, whose ties with U.S. President George W. Bush were cool from the start and deteriorated over Canada's decision not to take part in the war on Iraq.

Martin said he wanted to establish "a strong understanding" with Bush and acknowledged past strains, some of which he said had been caused by poor communication. Last year Chretien's press chief was forced to quit after calling Bush a moron.

"We have to be much more sophisticated in our dealings with the US," Martin told a news conference, saying he wanted Canada to liaise more with U.S. senators and members of Congress.

The United States is by far Canada's greatest export market and some in the business community fear that defying Washington could have devastating economic consequences. Martin said Canada would ultimately act in its own interests.

Some right-wing observers in Canada and the United States say Ottawa could help alleviate U.S. security concerns by coordinating its immigration policies with Washington.

Canada aims to accept around 300,000 immigrants a year -- some from nations where people have expressed hostility to the United States -- and critics say the country could become a staging ground for anti-U.S. militants.

NATIONAL SECURITY

"There is no doubt about the importance of national security. It's not simply an American issue, it's a Canadian issue as well, and we will exercise our responsibilities in that area," said Martin.

"I do not believe this extends to coordinating or harmonizing immigration policies. Immigration is incredibly important to this country ... It's a very rich part of our nation and it will remain fully within a Canadian decision-making capacity."

The idea of a coordinated immigration policy has been complicated by the fate of Maher Arar, a Syrian-born immigrant to Canada who was deported to Damascus last year by U.S. agents. Ottawa is under pressure to reveal what role if any Canadian police played in the decision.

Another major U.S. concern is the possibility of so-called rogue nations attacking it with ballistic nuclear missiles. To counter this possibility Washington aims to put in place a defensive shield and is keen for Canada to take part.

The system would be run from the joint U.S.-Canadian air defense network headquarters in Colorado and Canada's military is keen for Ottawa to sign on. Canadian and U.S. officials are currently discussing what role if any Canada might play.

"Whether you agree with missile defense (or not)...the fact is, when you're talking about the defense of North America, Canada has to be at the table," said Martin when asked whether Canada would take part.

"We are responsible for protecting the northern half of North America and we will fulfill that responsibility."

Critics say missile defense could trigger a new arms race with China and Russia.

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