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Reagan repaid Mulroney's hospitality in another way by offering the Prime Minister a sop on acid-rain pollution, which has long been a sore spot in U.S.-Canadian relations. Canadians charge that at least half the acid rain currently damaging their forests and destroying aquatic life in their lakes is caused by sulfur and nitrogen oxides released into the atmosphere by fossil- fuel-burning plants and smelters in the U.S. The Reagan Administration has maintained that the evidence against U.S. industry is incomplete...

Author: /time Magazine | Title: Canada At the Shamrock Summit | 4/1/1985 | See Source »

Knowing that Mulroney could not go back to Ottawa without at least some concession on acid rain, Administration officials came up with a plan to appoint a joint U.S.-Canadian team to examine the issue. The President and the Prime Minister announced that former Transportation Secretary Drew Lewis and former Ontario Premier William Davis would be named special envoys to seek ways of combating the problem. Said Mulroney: "We have broken a three-year deadlock by agreeing to our common and shared responsibility to preserve our common environment." Added Reagan: "I couldn't be happier about getting this under...

Author: /time Magazine | Title: Canada At the Shamrock Summit | 4/1/1985 | See Source »

Broadbent capped his question with a call for a vote of confidence, which the government easily survived by a vote of 157 to 56. The call for such a vote, however, was a reminder to Mulroney that he faces a formidable task in delivering on his campaign promises and turning around the Canadian economy, currently saddled with a $26.5 billion budget deficit. This year's gross national product is expected to increase by 3%, a decrease from last year's growth of 4.7%. Mulroney must also protect the value of the Canadian dollar, which has held its own against other...

Author: /time Magazine | Title: Canada At the Shamrock Summit | 4/1/1985 | See Source »

...deal with these problems, Mulroney has made it clear that Canada must improve political and economic relations with its neighbor to the south. He and other members of his government see it as an inescapable fact of Canadian life that while the U.S., which sends the country 20% of its exports, needs Canada, Canada, which ships to the U.S. 76% of its exports, needs the U.S. even more. Canada must have assured access to U.S. markets and U.S. investment capital. "Canada," Mulroney has said, "simply does not have the capital to create the jobs it needs...

Author: /time Magazine | Title: Canada At the Shamrock Summit | 4/1/1985 | See Source »

...Mulroney is aware that improved relations with the U.S. carry political risk. Canadians are ambivalent about U.S. power: they complain that when America is not pushing them around, it is ignoring them. But the Prime Minister has indicated that the risk is one he is willing to take. In economic terms, certainly, improved relations could pay off handsomely for both countries...

Author: /time Magazine | Title: Canada At the Shamrock Summit | 4/1/1985 | See Source »

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