Canoe

EDMONTON (CP) -- Prime Minister Jean Chretien has warned U.S. President George W. Bush that if American consumers want Canadian energy, they'll have to take softwood lumber too.

Linking energy with punitive lumber duties for the first time, Chretien spoke to Bush Monday night in a phone call.

"You want gas, you want oil and you don't want wood?" Chretien said he told Bush.

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"You don't hit a guy with a two-by-four on the forefront before asking him to help on the energy front," Pettigrew told a breakfast meeting of the Canadian Manufacturers and Exporters Association.

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Bush has emphasized the importance of Canadian energy resources -- especially the development of Arctic gas reserves -- in meeting American needs. As well, any pipeline bringing Alaskan gas south would have to cross Canadian soil.

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Tuesday's announced WTO challenge will be Canada's fourth before international trade authorities over softwood lumber. Canada has won all three previous challenges.

-- Rachel Gibson (rgibson@hotmail.com), August 22, 2001