Canada & the World CREC 6436 Pt IV Rev 2019

Canada & the WorldCREC 6436 Rev 2019A brief overview of the functions and operations of Canada’sDepartment of Global AffairsBob HillierPART IVThe CurrentSituation© CREC Bob Hillier 2019

We are going to look at some recent diplomatic issues involving Canada .1. Why did we close the embassy in Tehran Iran2. Why are we holding the CFO of Huawai under house arrest in Vancouver3. What caused the Saudi Arabian diplomatic gaff and the consequences4. Why is our Foreign Minister“persona non grata” in Russia© CREC Bob Hillier 2019

http://online.pubhtml5.com/hhtj/jibj/1. The Teheran DebacleHere is a link to my discussion on the closing of our Embassy in Iran© CREC Bob Hillier 2019

https://en.m.wikipedia.org/wiki/Meng_WanzhouHuawei has deployed its products and services in more than 170 countries, and as of 2011 it served 45 of the 50 largesttelecomoperators. Its networks, numbering over 1,500, reach one third of the world's population.Huawei overtookEricssonin 2012 as the largest telecommunications-equipment manufacturer in the world, and overtookApplein 2018 as the second-largest manufacturer ofsmartphonesin the world, behindSamsung Electronics. It ranks 72nd on theFortuneGlobal 500list. In December 2018, Huawei reported that its annual revenue had risen to US$108.5 billion in 2018 (a 21% increase over 2017).It would appear that Huawai is now the biggest global supplier of data communications systems. A position that Nortel along with cisco held up to 2000. Huawei is the leader and holds the most patents for 5G (explain 5G)2. Meng Wanzhou arrest© CREC Bob Hillier 2019

A bit of HistoryBefore US invaded IRAQ in 2003 Saddam Hussein began pricing oil exports in Euros, not US dollarsUS sanctions against Iranian banks haver resulted in Iran selling its oil for any currency other than US Dollars. China for instance pays in Renminbi/Yuan Russia now quotes oil in Russian roubles. Iran sells oil to Vietnam in barter for Rice (which it can on sell in the world market in US Dollars)US sanctions against Iran are mostly in support of its ally in the region Saudi Arabia and ostensibly to stop nuclear proliferation hence the Iran Nuclear Deal –This was working until US revoked it’s support. So the U.S has enacted a law that says any corporate entity trading with IRAN will be banned from doingbusiness with the US government and/or US corporate entities. © CREC Bob Hillier 2019

SectorsU.S.(1995 )–E.U.(2007 )–U.N.(2006–16)Missile/arms industryRestrictedRestrictedRemovedIslamic Revolutionary Guard CorpsRestrictedRestrictedRemovedNuclear industryRestrictedRestrictedRemovedEnergy/petroleum industryRestrictedRestrictedRemovedBankingRestrictedRestrictedRemovedCentral Bank of IranRestrictedRestrictedRemovedShipping industryRestrictedRestrictedRemovedInternational tradeRestrictedRestrictedRemovedInsuranceRestrictedRestrictedRemovedForeign firms dealing with IranRestrictedChina has repeatedly criticized the unilateral U.S. sanctions on Iran and opposed Washington’s “long arm” jurisdictions.-The oil is traded in US dollars primarily as a handshake and security contract between Saudi Arabia and USA since the 1970's. World Trade of oil in US dollars keeps US dollar strong and inflation low in USA, what Americans can buy for a US dollar. The countries holding most of the gas in the world are thinly populated countries like Qatar and Saud Arabia, their rulers need US blessings to survive. Since the petrol producers demand payments in US dollars ( In reality they do not have that much need for US dollars), all other countries from Africa to Asia have need for US dollars to pay for oil. So US issues trillions of dollars of debt in US treasuries which results in lot of currency in the market that should drive inflation in USA. But these oil producers suck up US treasury debt keeping US dollar the king. Other countries chase US dollar again keeping demand for US dollar high. Imagine if world oil trade moved away from US dollar, you will have trillions of dollars who nobody suddenly needs. USA has a policy to keep demand for US dollar high in the world. This helps Americans live in low inflation and almost zero interest environment. It's been this monetary system for a long time. Only one that can fix it is not even USA. It will take long time for another currency to take place of USD.© CREC Bob Hillier 2019

DiscussIoT (Internet of Things) MAC Address, IP (Internet Protocol) addresses V4 4 billion + V6 34 undecillionIn your home Computer, phone, TV, Smoke alarm, Chrome cast doorbell camera, security cameras, motion detectors etc. Fridge, stove, microwave Wider world, Self driving cars, train control, robots, traffic control Discuss Train Control North America versus Europe and ChinaCommunication must be in “ eal Time” thus 5G (5RthGeneration Internet Protocol)Goodale on 5G telecoms Discuss “Back Doors” - Cisco routers, Taclane etc. CSEIn the first week of May 2019, CanadianPublic Safety Minister Ralph Goodalecommitted to decide before the2019 Canadian federal electionwhat the Liberal government would do with respect to construction of Canada's5G telecommunications infrastructure. Critics likeH. R. McMaster argued forcefullythat a Chinese law that obligates corporations likeHuaweito co-operate with theChicomstate makes rubbish of Chinese protestations of virtue. On 30 July 2019 Goodale abandoned his commitment due to consultations with the US and theFive Eyespartners about their concerns. The US and Australia have rejected Huawei because they think it is too connected with the intelligence services of China.© CREC Bob Hillier 2019

Summary of extradition treaty Canada U.S.–The long-standingU.S. Canada treaty-requires the offence for whichextraditionis sought to be a crime in both countries. ... Once a request is received, aCanadiancourt must determine if there is sufficient evidence to supportextraditionandCanada'sMinister of Justice must give a formal orderAfter arraignment, the US authorities have 60 days to make a case to the Canadian judgeQuestion What Canadian crime has Meng committed–Question – she has been “in custody” for more than 60 daysQuestion In law corporations are considered differently to individuals–Could politics have played a role in Ms. Meng’s arrest? The timing of her arrest, coinciding with trade negotiations between U.S. President Donald Trump and Chinese President Xi Jinping, has some observers speculating about a possible political motivation.And even though most cases of U.S.-requested Canadian extradition proceedings end in the surrender of the accused to American authorities, one prominent lawyer and policy consultant to Ottawa said the defence appears to have plenty of ammunition to get the extradition stayed.Top among them are U.S. President Donald Trump’s comments on Dec. 11 that he would “certainly intervene” in the Meng case if he thought it was necessary. Trump also said the case could be used in trade negotiations with China.“The argument would be that this is not about wire fraud or mail fraud or Iranian sanctions; you are getting to the centre… of an important family at the highest level of Chinese government to create an advantage in your trade negotiations,”© CREC Bob Hillier 2019

On 30 March 2019, China banned the CanadiancanolacropThe free-trade discussions between the countries has been halted,In recent decades China has consistently become Canada's largest source ofimmigrationevery year. The numbers are even larger when people from Hong Kong are added. Chinese Canadians are now one of Canada's largest ethnic groups, after Europeans and First Nations population. They are set to overtake Koreans as the largest group of international students studying in Canada.]In December 2018, Chinadetained Michael SpavorandMichaelKovrig, another Canadian national, on charges of endangering state security.https://en.m.wikipedia.org/wiki/Michael_Spavorhttps://www.crisisgroup.org/who-we-are/people/michael-kovrig© CREC Bob Hillier 2019

3. Saudi arabian “diSpleaSure”Remember 2 weeks ago we looked at the CSE (Canadian Security Establishment), top secret encryption etc.- The manner in which countries normally conduct discussions on matters between them is via secure communication between the Foreign Minister and our Ambassador in the host country, remember an Ambassador has a ranking equivalent to a senior Cabinet Minister. - A previous gaff was made by the Harper administration when the PMO released top secret reports from our First Secretary in Riyadh, mentioning thesecretary’sname etc. TheSaudi’sdemanded his recall- Canadian Minister of Foreign AffairsChrystia Freelandissued a statement viaTwitteron 2 August 2018 expressing Canada's concern over the recent arrest ofSamar Badawi, a human rights activist and sister of imprisoned Saudi activistRaif Badawi. Freeland advocated their release. Other Canadian diplomats and the Canadian Embassy in Riyadh later released statements of their own in which they called for the release of all peaceful human rights activists detained in the kingdom.© CREC Bob Hillier 2019

https://en.wikipedia.org/wiki/Samar_Badawihttps://en.wikipedia.org/wiki/Raif_BadawiWho are these peopleHusband and wife (bin and bint)These two are not Canadian citizens, although RaifBadawi’s wife has taken refuge in Canada. (Sherbrooke, Que)© CREC Bob Hillier 2019

The Saudi responseIn response, the Saudis exploded. Officials described Canada's statements as \"blatant interference in the kingdom's domestic affairs, against basic international norms and all international protocols\" and a \"major, unacceptable affront to the kingdom's laws and judicial process, as well as a violation of the kingdom's sovereignty.\"The Saudis also ordered the suspension of upcoming Saudi Airlines flights to Canada, which echoed the steps taken by Riyadh at the start of its ongoing standoff with Qatar. The kingdom also ordered the withdrawal of some 12,000 Saudi citizens studying at Canadian universities. It was a startling move - seen as a huge overreaction by some analysts - that will force life-altering disruptions upon the students and their family members. \"The Saudi students - and their tuitions - will be moved to study programs in other countries with similar education systems, such as the United Kingdom.”\"We consider the Canadian ambassador to the Kingdom of Saudi Arabia persona non grata and order him to leave within the next 24 hours,“ Saudi Arabia (KSA) recalled their ambassador to Ottawa.Who is MBS (Mohammad bin Salman) Deputy Prime Minister of KSA, his father King Salman is the Prime Minister.https://en.wikipedia.org/wiki/Mohammad_bin_Salman© CREC Bob Hillier 2019

But looming over the spat is the matter of a controversial - and unfinished - $12 billion arms deal between the two countries. The deal, inked in 2014 by a since-defeated Conservative government, was upheld by Liberal Prime Minister Justin Trudeau in the face of significant media criticism at home. Trudeau's government issued new export permits allowing Canadian companies to proceed with Riyadh's purchase of light armored vehicles, but Saudi officials were reportedly irked by the widespread negative coverage of the deal in Canada and it has led to a months-long chill in Saudi-Canadian ties.Global affairs states that for months they were trying to influence Saudi policy regarding the dissidents to no avail.LESSON LEARNED - You DO NOT conduct diplomatic affairs through social media© CREC Bob Hillier 2019

4 . Why is our Minister of Foreign Affairs“perSonaNonGrata” inRussiaIn May 2017, theRussian Ministry of Foreign AffairswarnedCanadathat its anticipated new law, known asThe Justice for Victims of Corrupt Foreign Officials Bill (Sergei Magnitsky Law), was a \"blatantly unfriendly step\", and that \"If theCanadian Parliamentapproves this sanctions legislation, the relations between our countries, which are already experiencing difficult times, will suffer significant damage\".CBC Newsin Canada also reported that Russia has placed Canada's Foreign Minister,Chrystia Freeland, and twelve other Canadian politicians and activists on aKremlin'blacklist' and has disallowed them from entry into \"Russia because of their criticism of Russian actions inUkraineand its annexation ofCrimea\".On October 19, 2017, the Canadian Parliament passed the Bill into law, after a unanimous vote in Canada'sHouse of Commons, with 277 for, and none against. Russia's President,Vladimir Putin, accused Canada of \"political games\" over its new Magnitsky law.Canada's Magnitsky Act also targeted 19 Venezuelan and 3 South Sudanese officials, along with the original 30 Russian individuals under sanctions© CREC Bob Hillier 2019

The origins of the Magnitsky act.In 2009, Russian tax accountantSergei Magnitskydied in a Moscow prison after investigating a $230 million fraud involving Russian tax officials. Magnitsky was accused of committing the fraud himself and detained. While in prison, Magnitsky developedgall stones pancreatitis,andcalculous cholecystitisand was refused medical treatment for months. After almost a year of imprisonment, hewas allegedly beaten to deathwhile in custody. Magnitsky's friend]Bill Browder, a prominent American-born businessman working extensively in theRussian Federationafter the collapse of theUSSR, publicized the case and lobbied American officials to pass legislation sanctioning Russian individuals involved in corruption. Browder brought the case to SenatorsBenjamin CardinandJohn McCain, who proceeded to propose legislation.BrowderMagnitskyFreeland - How are they connectedFreeland served as Moscow bureau chief and Eastern Europe correspondent for theFinancial Times. It is believed she was the reporter that had access to Magnitsky© CREC Bob Hillier 2019

Russian response to the U.S Magnitsky actInresponseto the adoption of theMagnitsky Act, theRussiangovernment denied Americans adoption ofRussianchildren, issued a list of US officials prohibited from enteringRussia, and posthumously convictedMagnitskyas guilty.TheTrump Tower meetingtook place on June 9, 2016, inNew York Citybetween three senior members of the2016 Trump campaign Donald Trump Jr. Jared Kushner–,, andPaul Manafort–and at least five other people, including Russian lawyerNatalia Veselnitskaya.Donald Trump Jr. made several misleading statements about the meeting.He told the press that the meeting was held to discuss adoptions of Russian children by Americans.© CREC Bob Hillier 2019

That’s all folksThank you for filling out the Course FeedbackformsI will be taking a sabbatical next semester buthope to return in the fall with anotherinteresting topic.© CREC Bob Hillier 2019