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...stroke to free Canada's $40 billion oil and gas industry from foreign domination. In fact, seldom has a single governmental action more thoroughly disrupted a country's economy than has the National Energy Program put forth last October by the government of Canadian Prime Minister Pierre Trudeau...

Author: /time Magazine | Title: Canada's Barrel of Troubles | 8/24/1981 | See Source »

...Trudeau had hoped that his National Energy Program would tip the economic balance away from the provinces by sharply raising federal taxes on existing oil and gas production. Some of the resulting revenues would then be used by the federal government to help finance generous tax breaks for Canadian-controlled energy companies so that they could explore for oil on federally owned frontier lands such as the Northwest Territories and the Yukon. The plan would put foreign companies operating in those regions at a severe disadvantage, but it would help shore up a sense of Canadian national identity throughout...

Author: /time Magazine | Title: Canada's Barrel of Troubles | 8/24/1981 | See Source »

...apply more pressure on Israel to halt its air strikes into Lebanon. Reagan's top advisers met in Haig's suite and decided to urge the President to order the indefinite suspension of delivery of ten F-16 fighters that Israel had been promised. Trudeau also publicly criticized "the scale of destruction, particularly in Lebanon." Reagan agreed to delay the airplane deliveries while the fighting continued, and Haig stepped before TV cameras at Montebello to announce the decision. After the conference ended, a shaky cease-fire agreement was reached that could end the latest outbreak of violence between...

Author: /time Magazine | Title: Summit of a Strong Seven | 8/3/1981 | See Source »

...lecturing the U.S. President about his "overreliance" on monetary policy to check inflation. Schmidt openly charged that Reagan's advocacy of stiff trade restrictions with the Soviet Union conflicted with the U.S. decision to lift its embargo on grain sales to Moscow. Still, Schmidt had worked carefully with Trudeau before the conference began to seek "a middle ground" in which...

Author: /time Magazine | Title: Summit of a Strong Seven | 8/3/1981 | See Source »

Making the most of his moment in the international spotlight, Trudeau played his moderating role effectively. Distracted perhaps by her problems back home, the normally abrasive Thatcher was unusually restrained and at one session was tactfully helpful. After Schmidt had attacked Reagan's policies, Thatcher looked at the President, her ideological ally, and said soothingly: "Oh, that's all right. Helmut's just being provocative." The laughter, joined in by Schmidt, ended a tense moment...

Author: /time Magazine | Title: Summit of a Strong Seven | 8/3/1981 | See Source »

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