Tag Archives: foreign affairs

Canada’s neoliberal policies enable exploitation in Zambia

While few Canadians could find Zambia on a map, the Great White North has significant influence over the southern African nation.

A big beneficiary of internationally sponsored neoliberal reforms, a Vancouver firm is the largest foreign investor in the landlocked country of 16 million.

First Quantum Minerals (FQM) has been embroiled in various ecological, labour and tax controversies in the copper rich nation over the past decade. At the end of last year First Quantum was sued for US$1.4 billion by Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), a state entity with minority stakes in most of the country’s mining firms. The statement of claim against First Quantum listed improper borrowing and a massive tax liability.

In a politically charged move, President Edgar Lungu recently ordered ZCCM-IH to drop the case and seek an “amicable” out of court settlement with FQM. Social movements criticized the government for (again) caving to powerful mining interests exploiting the country’s natural resources. According to War on Want, Zambia is losing $3 billion a year to tax dodges by multinationals, mainly in the lucrative mining sector. A recent Africa Confidential report on the row between First Quantum and ZCCM-IH highlighted the Vancouver firm’s political influence, pointing out that “top government officials are frequently feted and hosted by FQM.”

First Quantum’s presence in Zambia dates to the late 1990s privatization of the Zambian Consolidated Copper Mines (ZCCM), which once produced 700,000 tonnes of copper per year. In a report on the sale, John Lungu and Alastair Fraser explain that “the division of ZCCM into several smaller companies and their sale to private investors between 1997 and 2000 marked the completion of one of the most comprehensive and rapid privatisation processes seen anywhere in the world.”

The highly indebted country was under immense pressure to sell its copper and public mining company. Zambia’s former Finance Minister Edith Nawakwi said, “we were told by advisers, who included the International Monetary Fund and the World Bank that…for the next 20 years, Zambian copper would not make a profit. [But, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us — like waving medicine in front of a dying woman. We had no option” but to privatize.

Ottawa played a part in the privatization push. Canada was part of the World-Bank-led Consultative Group of donors that promoted the copper selloff. With the sale moving too slowly for the donors, a May 1998 Consultative Group meeting in Paris made $530 US million in balance of payments support dependent on privatizing the rest of ZCCM.

(Canada had been a proponent of neoliberal reform in Zambia since the late 1980s. At the time Ottawa slowed aid to the country in a successful bid to change the government’s attitude to neoliberal reforms, explains Carolyn Bassett in The Use of Canadian Aid to Support Structural Adjustment in Africa. After Zambia fell into line with the International Monetary Fund, CIDA recharged its aid program. As part of a push for economic reform Ottawa secured an agreement that gave a former vice president of the Bank of Canada the role of governor of the Bank of Zambia, where he oversaw the country’s monetary policies and “responses to the IMF”. In her 1991 Ph.D thesis Bassett notes, “instrumental in developing Zambia’s new ‘domestically designed’ [economic] program was the new head of the Bank of Zambia, Canadian Jacques Boussières.” Paid by Ottawa, Boussières was the first foreign governor of the Bank of Zambia since independence. This was not well received by some. Africa Events described Boussières as “a White Canadian who came to de- Zambianise the bank post under controversial circumstances.”)

The hasty sale of the public mining behemoth was highly unfavourable to Zambians. The price of copper was at a historic low and the individual leading the negotiations, Francis Kaunda, was later jailed for defrauding the public company. “ZCCM’s privatization was carried out with a complete lack of transparency, no debate in parliament, and with one-sided contracts which few of us have ever seen,” said James Lungu, a professor at Zambia’s Copperbelt University.

Taking advantage of the government’s weak bargaining position, First Quantum and other foreign companies picked up the valuable assets for rock bottom prices and left the government with ZCCM’s liabilities, including pensions. The foreign mining companies also negotiated ultra low royalty rates and the right to take the government to international arbitration if tax exemptions were withdrawn for 15 years or more. Many of the multinationals made their money back in a year or two and when the price of copper rose five fold in the mid-2000s they made bundles.

Having conceded tax exemptions and ultra low royalty rates, the government captured little from the surge in global copper prices. In 2006 Zambian royalties from copper represented about $24 million on $4 billion worth of copper extracted. The .6% royalty rate was thought to be the lowest in the world. The government take from taxing the mining companies wasn’t a whole lot better. Between 2000 and 2007 Zambia exported $12.24 billion US in copper but the government only collected $246 million in tax.

Since 2008 Zambia has wrestled more from the companies, but they’ve had to overcome stiff corporate resistance. When the government suggested an increased royalty in 2005 First Quantum’s commercial manager Andrew Hickman complained that it “would probably make any new mining ventures in Zambia uneconomical” while three years later First Quantum said it would have “no choice” but to take legal action if a new tax regime breached the agreement it signed during the privatization process.

With billions of dollars tied up in the country, First Quantum had good reason to campaign aggressively to maintain the country’s generous mining policy.

First Quantum stands accused of cheating Zambia out of tens of millions of dollars in taxes. An audit found that between 2006 and 2008 Mopani Copper Mines under-reported cobalt extracts and manipulated internal prices to shift profits to First Quantum and Glencore subsidiaries in the British Virgin Islands and Bermuda, allowing it to evade millions of dollars of tax in Zambia.

In Offshore Finance and Global Governance: Disciplining the Tax Nomad William Vlcek explains:

As a corporate entity, First Quantum does not directly manage the mining operations in Zambia, rather it owns a subsidiary in Ireland which in turn owns subsidiary corporations registered in The British Virgin Islands and Zambia. … The overall corporate organization involves similar subordinate corporate structures with subsidiaries registered in Barbados, British Virgin Islands, Ireland, Luxembourg, and Netherlands, none of which jurisdictions include a mine or smelter operated by First Quantum. … Jurisdictions such as the British Virgin Islands … do not impose a corporate income tax on foreign-sourced income. Thus, First Quantum’s subsidiaries will pay corporate income tax on their operations in Zambia to the Zambian government, but any income that flows through to the BVI-registered subsidiary will not be taxed before flowing onward.

In a bid to cut down on corporate ‘transfer pricing’ and tax evasion, the Zambian government sought to simplify the mining fee structure. In 2013 Lusaka proposed eliminating income tax on mining companies and substantially increasing royalty rates (up to 20% for open-pit mines and 8% on underground operations). In 2015 Minister of Finance Alexander B. Chikwanda told Parliament:

The tax system was vulnerable to all forms of tax planning schemes such as transfer pricing, hedging and trading through ‘shell’ companies which are not directly linked to the core business. Sir, it has been a challenge for the revenue administration to detect and abate such practices. Further, provisions on capital allowances and carry forward of losses eliminated potential taxable profits. Mr Speaker, the tax structure was simply illusory as only two mining companies were paying Company Income Tax under the previous tax regime as most of them claimed that they were not in tax-paying positions.

First Quantum, Toronto’s Barrick Gold and a number of other foreign mining companies screamed murder and worked to derail the Zambian government. First Quantum government affairs manager John Gladston said “the new system doesn’t incentivise investment in new capital projects which in turn, will inevitably be translated into fewer new jobs and less opportunities for wealth creation for Zambians.” To spur a backlash in the job-hungry country, First Quantum laid off 350 workers at its Kansanshi mine. The government responded by saying First Quantum wasn’t adhering to the country’s labour law. Government spokesperson Chishimba Kambwili told Xinhua that “all mining companies are aware of the standing order, which obliges them to consult the government through the Ministry of Labour before any decision to sack any worker becomes effective.”

Barrick Gold also threatened to lay off workers if the government increased royalty rates. The Toronto company said it would shutter its Lumwana Mine, which prompted 2,000 workers, fearing for their jobs, to hold a one-day strike. The foreign-run Chamber of Mines of Zambia claimed 12,000 jobs would be lost if the royalty changes went through and the IMF added its voice to those opposing the royalty hike.

The mining corporations’ strong-armed tactics succeeded. After a six-month standoff, the government backed off.

First Quantum, Barrick and the other foreign mining companies exploited the immense power ZCCM’s privatization gave them over Zambian economic life. By shuttering their mines they could produce economic hardship for thousands of people. (With an 80% unemployment rate and most Zambians living on less than a dollar a day, each formally employed individual provides for many others.) Some suggested the foreign mining companies were even “powerful enough to manipulate the exchange rate” of the country.

Canadian officials actively backed FQM and other mining companies in Zambia. At the 2013 Prospectors and Developers Association of Canada Convention Ottawa announced the start of negotiations on a Foreign Investment Promotion and Protection Agreement with Zambia, which would allow Canadian companies to pursue Zambia in international tribunal for lost profits. The next year the Head of Office at the Canadian High Commission, Sharad Kumar Gupta, “said the Canadian government is trying to encourage the private sector to explore… opportunities in Zambia’s mining sector,” reported Lusaka’s news.hot877.com.

After the leftist Patriotic Front opposition party accused First Quantum of blocking workers from voting in a 2005 parliamentary by-election, the Canadian High Commissioner defended the Vancouver company. John Deyell, who previously worked at mining giants Inco and Falconbridge in Sudbury, claimed First Quantum wasn’t responsible for day-to-day operations despite owning a sixth of MCM stock and controlling two seats on MCM’s executive board. In response the Patriotic Front sought to take their protest against MCM’s violation of workers’ rights to the Canadian High Commission, but the police denied them a permit.

In Zambia, as with elsewhere in Africa, Canada’s mining industry, foreign policy and neoliberalism overlap tightly. It’s a subject Canadians ought to pay attention to if we want our country to be a force for good in the world.

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Aid and exploitation: Canada in Congo

Imagine if the media only reported the good news that governments and corporations wanted you to see, hear and read about. Unfortunately, that is not far from the reality of reporting about Canada’s role internationally.

The dominant media almost exclusively covers stories that portray this country positively while ignoring or downplaying information that contradicts this narrative. The result? Canadians are ignorant and confused about their country’s role in the world.

In a recent example of benevolent Canada bias, The Globe and Mail reported uncritically about a trip international development minister Marie-Claude Bibeau made to the Congo. In a story last week headlined “Canada commits $97-million to Congo under feminist foreign-aid policy,” The Globe reported that “Canada has committed nearly $100-million to the Democratic Republic of the Congo to support women’s economic empowerment, protect street children and provide humanitarian assistance.”

A week earlier Canada’s paper of record decided a relatively insignificant Canadian project to help miners in eastern Congo was front-page news. “New gold standard emerges for Congo’s miners, Canada’s jewellery buyers,” detailed an Ottawa-funded initiative to promote legal exports and to standardize the price paid to scale miners.

While Partnership Africa Canada’s “fair trade” gold initiative is an interesting project and the international development minister’s announcement was newsworthy, the narrowness of the two articles gives readers the impression Canada helps improve the lives of people who live in a country where 87 per cent live on less than $1.25 a day. But, an abundance of evidence suggests Canada has actually impoverished the central African nation.

What follows is a brief outline of the context within which the good news about Canada’s role in the Congo should be seen:

Over a century ago Royal-Military-College-of-Canada-trained officer William Grant Stairs participated in two controversial expeditions to expand European influence over the Congo. In 1887, Stairs was one of ten white officers in the first-ever European expedition to cross the interior of the continent, which left a trail of death, disease and destruction. A few years later the Halifax native led a 1,950-person mission to conquer the resource-rich Katanga region of the Congo on behalf of Belgium’s King Leopold II. Today Stairs is honoured with a street, island and multiple plaques, even though he was openly racist and barbarous and added 150,000 square kilometres to the Belgium’s King’s monstrous colony.

During this period Hamilton, Ontario’s William Henry Faulknor was one of the first white missionaries to establish a mission station in eastern Congo. Between 1887 and 1891 Faulknor worked under the ruler of the Yeke kingdom, Mwenda Msiri, who would later meet his death at the hand of Stairs. Faulknor’s Plymouth Brethren explicitly called for European rule (either Belgian or British) over Katanga and like almost all missionaries sought to undermine local ways.

Following Faulknor, Toronto-born Henry Grattan Guinness II established the Congo Balolo Mission in 1889. Congo Balolo Mission missions were located in remote areas of the colony, where King Leopold’s Anglo-Belgian Rubber Company obligated individuals and communities to gather rubber latex and chopped off the hands of thousands of individuals who failed to fulfill their quotas.

Faced with the violent disruption of their lives, the Lulonga, Lopori, Maringa, Juapa and Burisa were increasingly receptive to the Christian activists who became “the interpreter of the new way of life,” writes Ruth Slade in English-Speaking Missions in the Congo Independent State. Not wanting to jeopardize their standing with Leopold’s representatives, the Congo Balolo Mission repeatedly refused British-based solidarity campaigners’ appeals to publicly expose the abuses they witnessed.

In the 1920s the Canadian trade commissioner in South Africa, G.R. Stevens, traveled to the Congo and reported on the Katanga region’s immense resources. In de-facto support of Belgian rule, a Canadian trade commission was opened in the colony in 1946. In response to a series of anti-colonial demonstrations in 1959, Canadian Trade Commissioner K. Nyenhuis reported to External Affairs that “savagery is still very near the surface in most of the natives.”

Ottawa backed Brussels militarily as it sought to maintain control of its massive colony. Hundreds of Belgian pilots were trained in Canada during and after World War II and through the 1950s Belgium received tens of millions of dollars in Canadian NATO Mutual Aid. Canadian Mutual Aid weaponry was likely employed by Belgian troops in suppressing the anti-colonial struggle in the Congo.

Immediately after independence Canada played an important role in the UN mission that facilitated the murder of anticolonial Prime Minister Patrice Lumumba in 1961. Canadian Colonel Jean Berthiaume assisted Lumumba’s political enemies by helping recapture the popular independence leader. Lumumba was handed over to soldiers under military commander Joseph Mobutu.

Canada had a hand in Mobutu’s rise and Ottawa mostly supported his brutal three-decade rule. Then, Canada also helped get rid of Mobutu.

Ottawa supported Rwanda and Uganda’s invasion, which ultimately drove Mobutu from power. In 1996, Canada led a short-lived UN force into eastern Zaire (Congo) designed to dissipate French pressure and ensure pro-Mobutu Paris didn’t take command of a force that could impede the Rwandan-led invasion. As Rwanda has unleashed mayhem in the Congo over the past two decades, Ottawa has backed Kigali.

In 2002 a series of Canadian companies were implicated in a UN report titled “Report on the Illegal Exploitation of Natural Resources and other Forms of Wealth in the Congo.” Ottawa responded to the report by defending the Canadian companies cited for complicity in Congolese human rights violations.

At the G8 in 2010, the Canadian government pushed for an entire declaration to the final communiqué criticizing the Congo for attempting to gain a greater share of its vast mineral wealth. Earlier that year Ottawa obstructed international efforts to reschedule the country’s foreign debt, which was mostly accrued during Mobutu’s dictatorship and the subsequent wars. Canadian officials “have a problem with what’s happened with a Canadian company,” Congolese Information Minister Lambert Mende said, referring to the government’s move to revoke a mining concession that First Quantum acquired under dubious circumstances during the 1998-2003 war.

With about $4.5 billion invested in the Congo, Canadian mining companies have been responsible for numerous abuses. After a half-dozen members of the little-known Mouvement revolutionnaire pour la liberation du Katanga occupied Anvil Mining’s Kilwa concession in October 2004 the Canada-Australian company transported government troops who killed 100 people. Most of the victims were unarmed civilians.

In recent months a number of individuals have been killed at Banro’s mines in eastern Congo. Over the past two decades the secretive Toronto-based company has been accused of fuelling conflict in a region that’s seen incredible violence.

Of course one cannot expect a detailed history of Canada’s role in impoverishing Congo in a story about a government aid announcement or a 1,300-word article about an initiative to standardize pay for some of the world’s most vulnerable miners. But, The Globe‘s failure to even mention the broader story reflects its bias and helps to explain why Canadians are so confused about their country’s role in the world.

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Canadian, US complaints about Russian election meddling hypocritical

If a guy does something bad to someone else, but then complains later when another person does that same thing to him, what do we say? Stop being a hypocrite. Either you change direction or you got what you deserved.

Does the same moral logic apply to countries?

Purported Russian meddling in U.S., French and other elections has received significant attention recently. “Russian meddling abroad underscores need for electoral reform in Canada” declared a rabble.ca headline this week while CBC noted “Russian attempts to infiltrate U.S. election systems found in 21 states: officials.” An earlier Globe and Mailheadline stated “Russia was warned against U.S. election meddling: ex-CIA head,” while a Global News story noted “Canada should worry about Russian interference in elections: former CSIS head.”

Interference in another country’s election is an act of aggression and should not happen in a just world so these accusations deserve to be aired and investigated. But, how can one take the outrage seriously when the media commentators who complain about Russia ignore clear-cut Canadian meddling elsewhere and the decades-long history of U.S. interference in other countries’ elections around the world, including in Canada.

Ottawa has interfered in at least one recent Ukrainian election. Canada funded a leading civil society opposition group and promised Ukraine’s lead electoral commissioner Canadian citizenship if he did “the right thing” in the 2004-05 poll. Ottawa also paid for 500 Canadians of Ukrainian descent to observe the elections. Three years after Globe and Mail reporter Mark MacKinnon explained: “[Canadian ambassador to the Ukraine, Andrew Robinson] began to organize secret monthly meetings of western ambassadors, presiding over what he called “donor coordination” sessions among 20 countries interested in seeing Mr. [presidential candidate Viktor] Yushchenko succeed. Eventually, he acted as the group’s spokesman and became a prominent critic of the Kuchma government’s heavy-handed media control. Canada also invested in a controversial exit poll, carried out on election day by Ukraine’s Razumkov Centre and other groups that contradicted the official results showing Mr. Yanukovich [winning].”

Canada has also interfered aggressively in Haitian elections. After plotting, executing and consolidating the 2004 coup against Jean Bertrand Aristide’s government, Canadian officials interceded in the first election after the coup. In 2006 Canada’s then-chief electoral officer, Jean-Pierre Kingsley, led a team of Canadian observers to Haiti for elections that excluded the candidate — Father Gérard Jean Juste — of Haiti’s most popular political party Fanmi Lavalas. With the country gripped by social upheaval after widespread fraud in the counting, including thousands of ballots found burned in a dump, Kingsley released a statement claiming, “the election was carried out with no violence or intimidation, and no accusations of fraud.” Chair of the International Mission for Monitoring Haitian Elections, Kingsley’s statement went on to laud Jacques Bernard, the head of the electoral council despite the fact that Bernard had already been widely derided as corrupt and biased even by other members of the coup government’s electoral council.

In the 2010 election Ottawa intervened to bring far-right president Michel Martelly to power (with about 16 per cent of the votes, since the election was largely boycotted). Canada put up $6 million for elections that excluded Fanmi Lavalas from participating. After the first round, our representatives on an Organization of American States Mission helped force the candidate the electoral council had in second place, Jude Celestin, out of the runoff. The Center for Economic and Policy Research explained, “the international community, led by the U.S., France, and Canada, has been intensifying the pressure on the Haitian government to allow presidential candidate Michel Martelly to proceed to the second round of elections instead of [ruling party candidate] Jude Celestin.” Some Haitian officials had their U.S. visas revoked and there were threats that aid would be cut off if Martelly’s vote total wasn’t increased as per the OAS recommendation.

Half of the electoral council agreed to the OAS changes, but half didn’t. The second round was unconstitutional, noted Haïti Liberté’s Kim Ives, as “only four of the eight-member Provisional Electoral Council (CEP) have voted to proceed with the second round, one short of the five necessary. Furthermore, the first round results have not been published in the journal of record, Le Moniteur, and President Préval has not officially convoked Haitians to vote, both constitutional requirements.”

The absurdity of the whole affair did not stop the Canadian government from supporting the elections and official election monitors from this country gave a thumbs-up to this farcical exercise in “democracy.” Describing the fraudulent nature of the elections, Haiti Progrès explained “the form of democracy that Washington, Paris and Ottawa want to impose on us is becoming a reality.”

Washington has, of course, interfered in hundreds of elections in dozens of countries, including Italy, France, Greece, Chile, Ecuador, Vietnam, Dominican Republic, Australia and, yes, Canada.

You haven’t heard about that one?

During the 1962 Cuban Missile Crisis the Kennedy administration wanted Ottawa’s immediate and unconditional support in putting the North American Aerospace Defense Command (NORAD) on high alert. Diefenbaker hesitated, unsure if Washington was telling him the full story about Soviet/Cuban plans or once again bullying the small island nation.

Not happy with Diefenbaker’s attitude during the Cuban Missile Crisis or his ambivalence towards nuclear weapons in Canada, President John F. Kennedy worked to precipitate the downfall of his minority Conservative government. Kennedy preferred Lester Pearson’s Liberals who criticized Diefenbaker on Cuba and were willing to accept nuclear-armed Bomarc missiles.

“In the fall of 1962,” notes Peter McFarlane in Northern Shadows: Canadians and Central America, “the State Department began to leak insulting references about Diefenbaker to the U.S. and Canadian press.” Articles highly critical of the Canadian prime minister appeared in the New York Times, Newsweek and other major U.S. media outlets. On January 3 the outgoing commander of NATO, US General Lauris Norstad, made a surprise visit to Ottawa where he claimed Canada would not be fulfilling her commitments to the north Atlantic alliance if she did not acquire nuclear warheads. Diefenbaker believed the US general came to Canada “at the behest of President Kennedy” to set the table “for Pearson’s conversion to the United States nuclear policy.”

A future prime minister, Pierre Trudeau, concurred. He asked: “Do you think that General Norstad, the former supreme commander of allied forces in Europe, came to Ottawa as a tourist on January 3 to call publicly on the Canadian government to respect its [nuclear] commitments? Do you think it was by chance that Mr. Pearson, in his speech of January 12, was able to quote the authority of General Norstad? Do you think it was inadvertent that, on January 30, the State Department gave a statement to journalists reinforcing Mr. Pearson’s claims and crudely accusing Mr. Diefenbaker of lying?…you believe that it was by coincidence that this series of events ended with the fall of the [Diefenbaker] government on February 5?”

A State Department official, Willis Armstrong, described Kennedy’s attitude towards the March 1963 Canadian election: “He wanted to intervene and make sure Pearson got elected. It was very evident the president was uptight about the possibility that Pearson might not win.” Later Kennedy’s Secretary of State Dean Rusk admitted, “in a way, Diefenbaker was right, for it was true that we preferred Mike Pearson.”

During the 1963 election campaign Kennedy’s top pollster, Lou Harris, helped Pearson get elected prime minister. Kennedy backed Harris’ move, though he opposed an earlier request for the pollster to help British Labour leader Harold Wilson, which Harris then declined. Since Harris was closely associated with the US president the Liberals called Kennedy’s pollster by a pseudonym.

Washington may have aided Pearson’s campaign in other ways. Diefenbaker wondered if the CIA was active during the 1963 election while External Affairs Minister Howard Green said a U.S. agent attended a couple of his campaign meetings in B.C.

To Washington’s delight, Pearson won the election and immediately accepted nuclear-armed Bomarc missiles.

The lesson? Perhaps Washington and Ottawa should treat other countries in the same way they wish to be treated. Perhaps it is time for a broader discussion about election meddling.

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Filed under A Propaganda System, Black Book of Canadian Foreign Policy, Canada in Haiti

Banro’s quest for Congo gold yields deaths, kidnapping

When one Canadian mining company goes, violence seems to follow.

Last week a police officer and soldier were killed at a Banro Corporation-run mine in the east of the Congo. One “assailant” was also killed at the Toronto-based company’s Namoya mine. In February three police were killed at another Banro mine about 200km to the southwest. An “assailant” was also killed at Twangiza in what the gold-mining firm labelled an attempted robbery.

In March, five Banro employees from Tanzania, France and the Congo were kidnapped at Namoya. Four of them were released over the weekend by a militia that had apparently been threatening the company for months. Claiming Banro expropriated their lands, the population near its Namoya mine want restitution so they can continue small-scale mining. A 2013 Jesuit European Social Center report pointed out that local communities have not been allowed to see the environmental impact study or community plan for the mine, and said the company paid the central government a million dollars for a tax exemption.

Banro operates in a region that’s seen incredible violence over the past two decades and the secretive company has been accused of fuelling the conflict. In 1996 Banro paid $3.5 million for 47 mining concessions that covered more than one million hectares of land in Congo’s North and South Kivu provinces. At the time over one million refugees were in eastern Congo, and in September 1996 Rwandan (and Ugandan) forces invaded the area.

Resources fuelled the Rwandan/Ugandan invasion. Prominent Belgian Great Lakes journalist Colette Brackman produced a map showing that the zigzag progression of the Rwandan-backed rebels was based on the location of minerals. Multinationals signed deals worth billions of dollars with Laurent Kabila’s rebels before he took office. In an article headlined “Mining Firms Want a Piece Of Zaire’s Vast Mineral Wealth,” the Wall Street Journal explained:

At a time when rebel forces are threatening to topple dictator Mobutu Sese Seko, Zaire’s vast mineral resources are beckoning foreign companies, prompting a scramble that recalls the grab for wealth 120 years ago in this vast land, once known as the Congo. American, Canadian and South African mining companies are negotiating deals with the rebels controlling eastern Zaire. These companies hope to take advantage of the turmoil and win a piece of what is widely considered Africa’s richest geological prize — and one of the richest in the world.”

Ultimately, the Rwandan forces marched 1,500km to topple the regime in Kinshasa. After the Congolese government installed by Kigali expelled Rwandan troops, they re-invaded, leading to an eight-country war between 1998 and 2003 that left millions dead. Since then, Rwanda and its proxies have repeatedly invaded the eastern Congo. At the end of 2012, the Globe and Mail‘s Geoffrey York described how “Rwandan sponsored” M23 rebels “hold power by terror and violence” in the mineral-rich east. The rebel group added “a [new] layer of administrators, informers, police and other operatives” in and around Goma, the capital of North Kivu province, in part to “bolster” its “grip on the trade in ‘blood minerals.'”

As one of the only western mining companies operating in the border provinces of North and South Kivu, Banro reportedly worked closely with the Rwandan government. Keith Harmon Snow claims that “Canadian Banro Corporation is one of the most secretive corporations operating in Congo, and they have established and maintained their control through very tight relations with the Kagame regime. Banro has taken over thousands of hectares of South Kivu province by manipulating the local mwamis (chiefs), by bribing officials and by infiltrating officials into power who are friendly to Banro and Kagame’s interests.”

Upon expelling Rwandan troops from the Congo in 1998, Laurent Kabila revoked Banro’s concessions. With all of its business activity in eastern Congo, the company responded by filing a $1-billion “unlawful” expropriation claim at the International Centre for Settlement of Investment Disputes in Washington. In “Digging Deeper: How the DR Congo’s Mining Policy is Failing the Country,” Dominic Johnson and Aloys Tegera explain:

“On July 29, 1998, just before war again started in Congo, President Laurent-Désiré Kabila annulled the Banro deal and gave ex-Sominki to a newly created Congolese state company called Somico (Société Minière du Congo) led by a Kivu traditional leader. Much of the subsequent fighting around Eastern Congo’s mining pitted Banro supporters, mostly supporting the [Rwandan backed] RCD rebels and backed by business interests, against Somico supporters, mostly consisting of Mai-Mai and supported by the Kabila government.”

Alongside the regional peace accord that officially ended the eight-country war in the Congo, Joseph Kabila (who took over after his father was assassinated) returned the concession to Banro in 2003.

Canadians have heard almost nothing from the dominant media about Banro’s violent quest for billions of dollars in minerals. The little that has been reported is mostly the company justifying its operations. But where are the voices of ordinary Congolese? Don’t they deserve to be heard?

Canadians need to know what this country’s mining companies are doing around the world.

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Trudeau confuses anti-Zionism and anti-Semitism

Canada’s Prime Minister would like us to believe that the ideology that shaped Israel is designed to fight anti-Jewish prejudice. But, even when anti-Semitism was a significant political force in Canada, Zionism largely represented a chauvinistic, colonialist way of thinking.

On Israel Independence Day earlier this month Justin Trudeau delivered a speech by video to a rally in Montréal and published a statement marking the occasion. “Today, while we celebrate Israel’s independence, we also reaffirm our commitment to fight anti-Semitism and anti-Zionism”, declared the PM in a rare reference by a top politician to Israel’s state ideology.

Israel apologists often link anti-Zionism and anti-Jewishness, but it’s disingenuous. Canadian Zionism has long been comfortable with anti-Jewish sentiment and it has never been primarily an anti-prejudicial ideology.

When anti-Semitism was a social force of consequence in Canada it was not uncommon for anti-Jewish politicians to back Zionism. During a July 1922 speech to the Zionist Federation of Canada, anti-Semitic Prime Minister Mackenzie King “was effusive with praise for Zionism,” explains David Bercuson in Canada and the Birth of Israel. King told participants their aspirations were “in consonance” with the greatest ideals of the “Englishman.” According to Zachariah Kay in Canada and Palestine: The Politics of Non-Commitment, long-time Alberta Premier E.C. Manning “allowed his name to be associated with the [pre-state Zionist organization] Canadian Palestine Committee, but was known for anti-Jewish statements on his ‘back to the bible’ Sunday radio broadcasts.”

Known to support Zionism as a way to deal with the “Jewish problem,” in 1934 Prime Minister R.B. Bennett opened the annual United Palestine Appeal fundraiser with a coast-to-coast radio broadcast. Lauding the Balfour declaration and British conquest of Palestine, Bennett said, “scriptural prophecy is being fulfilled. The restoration of Zion has begun.”

At a policy level the government’s aversion to accepting post-World War II Jewish refugees was a factor in Canadian diplomats promoting the anti-Palestinian UN partition plan. An ardent proponent of the Zionist cause during the 1947 international negotiations dealing with the British mandate of Palestine, Canadian diplomat Lester Pearson believed sending Jewish refugees to Palestine was the only sensible solution to their plight.

Compared to six decades ago, anti-Semitism today barely registers in Canada. But, embers of anti-Jewish Zionism linger. Over the past decade the Charles-McVety-led Canada Christian College has repeatedly organized pro-Israel events – often with B’nai Brith – yet in the 1990s the College was in a dispute with the Canadian Jewish Congress over courses designed to convert Jews. Canada’s most influential Christian Zionist activist, McVety also heads the Canadian branch of Christians United for Israel, which believes Jews need to convert or burn in Hell upon the Second Coming of Jesus Christ.

This dancing with the enemy is nothing new. Historically some Jews aligned with anti-Jewish Zionists. During World War I many Canadian Jewish Zionists enthusiastically supported Britain and recruited young men to help conquer Palestine, even though London was allied with Russia’s notoriously anti-Semitic czar. (At that time Zionism was commonly promoted as a way for Jews to escape czarist anti-Semitism.)

After World War II some Jewish Zionists tapped into anti-Jewish sentiment to advance their cause. In Canada’s Jews: a People’s journey Gerald Tulchinsky reports, “fully cognizant of the government’s reluctance to admit Jews to Canada, the [Zionist] delegation reminded [anti- Semitic Prime Minister Mackenzie] King that in the post war years, when ‘multitudes of uprooted people … would be knocking on the doors of all countries,’ Palestine could accommodate many of the Jews who might want to come to Canada.”

It is true that the Zionist colonies in Palestine absorbed tens of thousands of refugees after World War II and provided a safe haven to many Jews escaping Nazi persecution in the 1930s. But, it’s also true that Zionists were willing to stoke anti-Semitism and kill Jews if it served their nationalistic/colonialist purposes. To foil British efforts to relocate Jewish refugees fleeing Europe to Mauritius, in 1940 the Jewish Agency, the Zionist government-in-waiting in Palestine, killed 267 mostly Jews by bombing the ship Patria. In State of Terror: How Terrorism Created Modern Israel Tom Suarez concludes that the Zionist leadership was prepared to kill Jews if it aided the cause, because “persecuted Jews served the political project, not the other way around.”

Generally presented as a response to late 1800s European anti-Semitism — “Zionism … developed in the late 19th century in response to European antisemitism”, according to a recent story on the pro-Palestinian website Canada Talks Israel Palestine — the Theodore Herzl-led Zionist movement was, in fact, spurred by the Christian, nationalist and imperialist ideologies sweeping Europe at the time.

After two millennia in which Jewish restoration was viewed as a spiritual event to be brought about through divine intervention, Zionism finally took root among some Jews after two centuries of active Protestant Zionism. “Christian proto-Zionists [existed] in England 300 years before modern Jewish Zionism emerged,” notes Evangelics and Israel: The Story of American Christian Zionism. Until the mid-1800s Zionism was an almost entirely non-Jewish movement. And yet it was quite active. Between 1796 and 1800, notes Non-Jewish Zionism: its roots in Western history, there were at least 50 books published in Europe about the Jews’ return to Palestine. The movement reflected the more literal readings of the Bible that flowed out of the Protestant Reformation.

Another factor driving Jewish Zionism was the nationalism sweeping Europe in the late 1800s. Germany, Italy and a number of eastern European states were all established during this period.

Alongside nationalist and biblical literalist influences, Zionism took root at the height of European imperialism. In the lead-up to World War I the European “scramble” carved up Africa and then the Middle East. (Europeans controlled about 10 percent of Africa in 1870 but by 1914 only Ethiopia was independent of European control. Liberia was effectively a US colony.) At the Sixth Zionist Congress in 1903 Herzl and two-thirds of delegates voted to pursue British Secretary of State for the Colonies Joseph Chamberlain’s proposal to allocate 13,000 square km in East Africa as “Jewish territory … on conditions which will enable members to observe their national customs.”

As much as it was a reaction to anti-Semitism, Zionism was an attempt by European Jews to benefit from and participate in colonialism.

In Canada today Jewish support for Zionism has little to do with combating prejudice. If Zionism were simply a response to anti-Semitism, why hasn’t the massive decline of anti-Jewishness lessened its popularity in the Jewish community? Instead, the leadership and a significant segment of Canadian Jewry have become increasingly focused on supporting a highly militarized state that continues to deny its indigenous population the most basic political rights.

In 2011 the leading donors in the community scrapped the 100-year-old Canadian Jewish Congress and replaced it with the Centre for Israel and Jewish Affairs. As the name change suggests, this move represented a shift away from local Jewish concerns and towards ever greater lobbying in favour of Israeli policy.

With institutional barriers to advancement overcome a half century ago and an ever more secular society, Rabbis and Jewish organizations have to find a purpose. Israel has become many people’s primary connection to Judaism. In Understanding the Zionist Religion, Jonathan Kay wrote, “In some cases I have observed, it is not an exaggeration to say that Zionism is not just the dominant factor in Jews’ political lives—but also in their spiritual lives.”

Between the late 1960s and mid-2000s there was an inverse correlationbetween Jewish votes and pro-Israel governments. Though they were less pro-Israel, Pierre Trudeau and Jean Chretien gained more support from Canadian Jewry than Brian Mulroney or Stephen Harper in his first victory in 2006.

The political trajectory of the Montréal riding of Mount Royal provides an interesting insight into the Jewish community’s shift towards focusing on Israel. Repeatedly re-elected in a riding that was then 50% Jewish, Pierre Trudeau distanced Ottawa from Israeli conduct more than any other prime minister before or since. Still, Pierre Trudeau was incredibly popular with the Jewish community. Representing Jewry’s ascension to the heights of Canada’s power structures, Trudeau appointed the first Jew to the federal cabinet, Herb Gray, and brought in the Charter of Rights and Freedoms, which strengthened religious freedoms. But, of recent the riding has become a battleground.

During the 2015 federal election Mount Royal was the only riding in greater Montréal the Conservative Party seriously contested. Even though Liberal party candidate Anthony Housefather is a staunch Israel advocate, he won his seat because of non-Jewish voters.

A similar dynamic is at play in the centre of Canadian Jewish life. Possibly the best placed of any in the world, the Toronto Jewish community faces little economic or political discrimination and has above average levels of education and income. Yet it’s the North American base of the Zionist extremist Jewish Defense League. It’s also a power base for an explicitly racist, colonialist, institution. In what was “reported to be the largest kosher dinner in Canadian history”, three years ago 4,000 individuals packed the Toronto Convention Centre to raise money for the Jewish National Fund in honour of Prime Minister Stephen Harper.

No matter what Justin Trudeau says, Zionism and anti-Jewish prejudice have little to do with each other.

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Filed under Canada and Israel

Canada no friend of Haiti or rest of Caribbean

Can cute Canadian Caribbean dreams about enchanted islands come true? Or is reality more complicated and Canada a far less benign actor than we imagine ourselves to be?

In a recent Boston Globe opinion titled “Haiti should relinquish its sovereignty”, Boston College professor Richard Albert writes, “the new Haitian Constitution should do something virtually unprecedented: renounce the power of self-governance and assign it for a term of years, say 50, to a country that can be trusted to act in Haiti’s long-term interests.” According to the Canadian constitutional law professor his native land, which Albert calls “one of Haiti’s most loyal friends”, should administer the Caribbean island nation.

Over the past 15 years prominent Canadian voices have repeatedly promoted “protectorate status” for Haiti. On January 31 and February 1, 2003, Jean Chrétien’s Liberal government organized the “Ottawa Initiative on Haiti” to discuss that country’s future. No Haitian officials were invited to this assembly where high-level US, Canadian and French officials decided that Haiti’s elected president “must go” and that the country would be put under a Kosovo-like UN trusteeship.

Four months after Ottawa helped overthrow Haiti’s elected government Prime Minister Paul Martin reaffirmed his government’s desire to keep Haiti under long-term foreign control. “Fragile states often require military intervention to restore stability”, said Martin at a private meeting of “media moguls” in Idaho. Bemoaning what he considered the short-term nature of a previous intervention, the prime minister declared “this time, we have got to stay [in Haiti] until the job is done properly.”

A few months later a government-funded think tank, home to key Haiti policy strategists, elaborated a detailed plan for foreigners to run the country. According to the Foundation for the Americas (FOCAL) plan for Haiti’s future, commissioned by Parliament’s foreign affairs committee, the country’s different ministries would fall under Canadian oversight. Québec’s ministry of education, for instance, would oversee Haiti’s education system. The FOCAL plan put Haiti’s environment ministry under Canadian federal government supervision.

FOCAL’s proposal was made after the 2004 US/France/Canada coup weakened Haiti’s democratic institutions and social safety network, spurring thousands of violent deaths and a UN occupation that later introduced cholera to the country. Irrespective of the impact of foreign intervention, colonialists’ solution to Haiti’s problems is to further undermine Haitian sovereignty.

Haiti is but one piece of the Caribbean that Canadians’ have sought to rule. Earlier this year NDP MP Erin Weir asked if Canada should incorporate “the Turks and Caicos Islands into Confederation.” Weir echoed an idea promoted by NDP MP Max Saltzman in the 1970s, Conservative MP Peter Goldring through the 2000s and an NDP riding association three years ago. A resolution submitted to the party’s 2014 convention noted, “New Democrats Believe in: Engaging with the peoples and government of Turks and Caicos Islands, and the British government to have the Turks and Caicos Islands become Canada’s 11th Province.” As I discuss in the current issue of Canadian Dimension magazine, leftists have long supported the expansion of Canadian power in the region.

In a 300-page thesis titled “Dreams of a Tropical Canada: Race, Nation, and Canadian Aspirations in the Caribbean Basin, 1883-1919” Paula Pears Hastings outlines the campaign to annex territory in the region. “Canadians of varying backgrounds campaigned vigorously for Canada-West Indies union”, writes Hastings. “Their aspirations were very much inspired by a Canadian national project, a vision of a ‘Greater Canada’ that included the West Indies.”

Canada’s sizable financial sector in the region played an important part in these efforts. In Towers of Gold, Feet of Clay: The Canadian Banks, Walter Stewart notes: “The business was so profitable that in 1919 Canada seriously considered taking the Commonwealth Caribbean off mother England’s hands.”

At the end of World War I Ottawa asked the Imperial War Cabinet if it could take possession of the British West Indies as compensation for Canada’s defence of the empire. London balked. Ottawa was unsuccessful in securing the British Caribbean partly because the request did not find unanimous domestic support. Prime Minister Robert Borden was of two minds on the issue. From London he dispatched a cable noting, “the responsibilities of governing subject races would probably exercise a broadening influence upon our people as the dominion thus constituted would closely resemble in its problems and its duties the empire as a whole.” But, on the other hand, Borden feared that the Caribbean’s black population might want to vote. He remarked upon “the difficulty of dealing with the coloured population, who would probably be more restless under Canadian law than under British control and would desire and perhaps insist upon representation in Parliament.”

Proposing Canada acquire Turks and Caicos or rule Haiti may be outlandish, but it’s not benign. These suggestions ignore Caribbean history, foreign influence in the region and whitewash the harm Ottawa has caused there. Even worse, they enable politicians’ to pursue ever more aggressive policies in the region.

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Filed under Black Book of Canadian Foreign Policy, Canada in Haiti

Media ignores Canada’s role in suppressing Palestinian protests

The Canadian media has mostly ignored recent Palestinian efforts to non-violently disrupt a half-century old occupation. They’ve barely reported on a prisoners’ hunger strike and associated solidarity protests, let alone Canada’s effort to suppress popular protests in the West Bank.

Around 1,000 Palestinians held in Israeli prisons have been on hunger strike since April 17. In the occupied West Bank thousands of protesters have taken to the streets and gone on strike in solidarity with the 6,500 Palestinians currently imprisoned by Israel. The issue resonates with Palestinians since Israel has arrested 40 per cent of the West Bank’s male population — 800,000 people — since 1967.

The hunger strike is directed at the occupying regime, but, it’s also a challenge to the “subcontractor of the Occupation” — the Palestinian Authority (PA) led by Mahmoud Abbas. Ramzy Baround labelled it “a revolt within Fatah against their disengaged leadership, and a frantic attempt by all Palestinians to demonstrate their ability to destabilize the Israeli-American-PA matrix of control.” Nazareth-based commentator Jonathan Cook points out that Abbas wants the hunger strike to end since it threatens his negotiations with Donald Trump and “tight security cooperation with Israel.”

Growing opposition to PA security coordination with Israel is an important backdrop to the hunger strike and recent protests. For years PA security forces have been providing information to Israel’s Shin Bet intelligence agency and Israel often arrests Palestinian activists after they’ve been released from PA detention. Israeli soldiers recent assassination of prominent activist Basel al-Araj, after being released from PA detention, sparked protests against PA security cooperation with Israel. In mid-March Amnesty International criticized a PA security assault that hospitalized 17 Palestinians protesting security cooperation with Israel after al-Araj’s death.

Like all colonial authorities throughout history, Israel has looked to compliant locals to take up the occupation’s security burden. What is unique about the PA security forces’ operations are their international ties. In a 2011 story detailing how PA security “undermine efforts by Palestinians to challenge the occupation,” Adam Shatz writes: “It is an extraordinary arrangement: the security forces of a country under occupation are being subcontracted by third parties outside the region to prevent resistance to the occupying power, even as that power continues to grab more land.”

Since the mid-2000s Palestinian security forces have been trained by US, British and Canadian troops and police at the US-built International Police Training Center in Jordan (established to train Iraqi security after the 2003 invasion). Part of the US Security Coordinator office in Jerusalem, the Canadian military mission in the West Bank also trains and aids Palestinian security forces. Dubbed Operation Proteus, Canada’s involvement includes Royal Canadian Mounted Police officers as well as officials from the foreign ministry, Justice Canada and the Canadian Border Services Agency. In a September 2010 interview with The Jerusalem Post, minister of state for foreign affairs Peter Kent said Operation Proteus was Canada’s “second largest deployment after Afghanistan” and it received “most of the money” from a five-year $300 million Canadian aid program to the PA.

With little media attention, over the past decade tens (possibly hundreds) of millions of dollars in Canadian aid money has gone to training and supporting a Palestinian security force that serves as an arm of Israel’s occupation. Internal government documents unearthed by Postmedia’s Lee Berthiaume confirm that as the overriding objective of Canada’s $300 million five-year aid program to the Palestinians.

There have been increasing references in the past months during high-level bilateral meetings with the Israelis about the importance and value they place on Canada’s assistance to the Palestinian Authority, most notably in security/justice reform,” read a November 2012 note signed by former Canadian International Development Agency president Margaret Biggs. “The Israelis have noted the importance of Canada’s contribution to the relative stability achieved through extensive security co-operation between Israel and the Palestinian Authority.”

The heavily censored note suggests the goal of Canadian aid was to protect a corrupt Mahmoud Abbas, whose electoral mandate expired in 2009, from popular backlash. Biggs explained that “the emergence of popular protests on the Palestinian street against the Palestinian Authority is worrying and the Israelis have been imploring the international donor community to continue to support the Palestinian Authority.”

Berthiaume effectively confirmed that Canadian aid money is used to train a Palestinian security force to serve as an arm of Israel’s occupation, but this startling information has simply been sent down the memory hole. While Berthiaume’s article was published in a number of Postmedia papers, there was no commentary in a major paper or follow-up stories about Biggs’ internal note or Operation Proteus (with the exception of stories in small town papers covering individual police or soldiers leaving for the mission).

Two years before Berthiaume’s revelation I emailed Globe and Mail Middle East correspondent Patrick Martin about Canada’s aid/military mission to support Israel’s occupation of the West Bank. I wrote, “Hi Pat, not sure if you saw Peter Kent’s comment on Operation Proteus, Canada’s military mission in the West Bank. In a recent interview with the Jerusalem Post Kent dubbed Proteus Canada’s ‘second largest deployment after Afghanistan’ and said it receives ‘most of the money’ from a five-year $300 million Canadian aid program to the Palestinians. It’s an issue that has barely been discussed and I thought it might interest you. Below is a piece I recently wrote partly on it.”

Martin responded, “it’s a good idea,” but the Globe has yet to publish anything on Operation Proteus or Biggs’ comment that Canadian aid to the PA was designed to suppress popular protest by a people suffering under a 50-year illegal occupation. (During John Baird’s 2012 trip to Ramallah Martin quoted the then foreign minister saying Canada was “incredibly thrilled” by the West Bank security situation, which Baird said benefited Israel).

It’s not too late for the Globe and other media to cover Canada’s role in suppressing “popular protests” in the West Bank. Operation Proteus continues with Brigadier-General Conrad Joseph John Mialkowski recently appointed the new head of the military mission. When Canada’s five-year aid package to the PA concluded in 2013 the Stephan Harper government extended it and the government’s website says $30 million was dispersed to Palestinians in 2014–15 (the last year cited).

The Canadian media should cover the prisoners’ hunger strike and its challenge to PA security cooperation with Israel. Even better, it ought to report on Canada’s role in entrenching Israel’s 50-year-old occupation.

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Filed under A Propaganda System, Canada and Israel