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Relations between Washington and Ottawa have actually been improving since 1982, when Secretary of State George Shultz started holding bilateral talks with Foreign Minister Allan MacEachen every three months. Colleagues at the Massachusetts Institute of Technology in the early 1950s, the two men enjoyed an excellent rapport that quickly trickled down through their respective bureaucracies. "We got energized knowing that our bosses were looking over our shoulders," says a U.S. diplomat. The meetings focused primarily on trade and economic issues; though Mulroney has not yet named MacEachen's successor, both U.S. and Canadian officials expect trade barriers to fall...

Author: /time Magazine | Title: Canada Changes Course | 9/17/1984 | See Source »

...Secretary of State George Shultz's first formal visit abroad, and also a chance for a college reunion. For six hours Shultz closeted himself in Ottawa's Lester B. Pearson Building with a fellow student from the Massachusetts Institute of Technology, Canadian External Affairs Minister Allan MacEachen. When they emerged from their meeting, the atmosphere was almost chummy. The two men agreed that they would henceforth consult four times a year, and they tried to make some progress in resolving the deadlocked cross-border dispute over "acid rain," industrial pollution that destroys life in lakes and forests across...

Author: /time Magazine | Title: Canada: Facing a Winter of Discontent | 11/8/1982 | See Source »

...Secretary of State's meeting with MacEachen and a subsequent talk with Canadian Prime Minister Pierre Elliott Trudeau were signs of a small thaw in a U.S.-Canadian relationship that has grown increasingly frosty. Washington is concerned by what it sees as the nationalistic and discriminatory investment policies of Trudeau's Liberal government. Those worries have been expressed vocally in the U.S. Congress. Last week Congressman John Dingell, chairman of the House Subcommittee on Oversight and Investigations, attacked Canada for "unfair and confiscatory policies in the energy and investment areas." According to a report issued by the subcommittee...

Author: /time Magazine | Title: Canada: Facing a Winter of Discontent | 11/8/1982 | See Source »

Canada's difficulties stem partly from living next door to the U.S. In his address to Parliament, MacEachen singled out the prolonged U.S. recession and high interest rates (the prime last week: 16.5%) as "the foremost international obstacles" to Canada's economic recovery." The impact of U.S. policy on Canada is indisputable, but many businessmen on both sides of the border also think that Prime Minister Pierre Elliott Trudeau's "Canadianization" program deserves some of the blame. Measures to increase Canadian ownership of the U.S.-dominated oil and gas industries to 50% by 1990 and to ensure...

Author: /time Magazine | Title: Canada: Shock Therapy | 7/12/1982 | See Source »

...obvious overture to disgruntled American investors, MacEachen promised that the Trudeau government would not "press the pace" of nationalization in the energy industry. He also pledged to relax the screening of foreign investors. But MacEachen had little good news for Canadians. He asked workers in public service jobs to accept a cut in wage increases, from 12.2% last year to 6% in this year's new contracts, and in effect raised taxes by limiting a provision that protected taxpayers from inflation-induced "bracket creep." The new budget did offer lower-interest loans to small businessmen and farmers and proposed...

Author: /time Magazine | Title: Canada: Shock Therapy | 7/12/1982 | See Source »

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