Canada threatens sanctions against Talisman over Sudan
OTTAWA, Oct 26 (Reuters) - Ottawa on Tuesday
threatened to slap sanctions on a Canadian oil firm operating
in Sudan unless the company did more to help end the African
country's 16-year civil war and curb alleged human rights
violations.
Although Foreign Minister Lloyd Axworthy did not specify
who the sanctions would be aimed it was clear he was
referring to Calgary-based Talisman Energy Inc. (TLM-T) ,
which has a controversial 25 percent stake in a south Sudan
consortium.
Axworthy also announced he had invited the leaders of
Sudan's warring factions for talks in Canada to help end a
conflict which has killed an estimated two million people.
He said Canada -- worried that revenues from the oil trade
were fueling the campaign by Sudan's Islamic government to
crush guerrillas in the predominantly Christian south -- would
send a team to probe human rights abuses in the country and
the role played by private sector oil companies.
He added that he would meet Talisman Chief Executive Jim
Buckee next Tuesday to demand the firm did more to help
broker an end to the war, encourage the Sudanese
government to improve the country's human rights record and
start talks with Khartoum to ensure oil revenues were spent
on humanitarian aid.
"Canada expects Talisman Energy to respond seriously and
constructively to these efforts," Axworthy's ministry said in a
statement.
It said Canada was deeply concerned by reports of fighting
in the regions of oil development and by evidence that oil
extraction could be contributing to the forced relocation of
people living near oil fields.
"If it becomes evident that oil extraction is exacerbating the
conflict in Sudan, or resulting in violations of human rights or
humanitarian law, the government of Canada may consider, if
required, economic and trade restrictions such as are
authorized by the Export and Import Permits Act, the Special
Economic Measures Act, or other instruments," it said.
Asked whether Axworthy's comments were aimed at
Talisman, a government official replied: "I'd say that was
correct."
Company officials could not be immediately reached for
comment.
Axworthy -- saying the sanctions could be applied against
both companies and countries -- told reporters that Canada
would not normally impose the measures without a decision or
vote by an international body such as the United Nations.
"I want to emphasize that those steps are at the moment in
reserve. Our priority is to have voluntary compliance with the
code of conduct and behavior and also to determine what the
exact circumstances are," he said.
Officials said the sanctions acts could be used to ban the
export to Sudan of equipment and products needed by
Talisman, which is Canada's biggest international oil producer.
Canada has encouraged companies not to invest or operate
in Sudan but has not banned them from doing so.
U.S. Secretary of State Madeleine Albright criticized
Talisman -- the only Canadian company involved in oil
extraction in Sudan -- over the weekend for its 25 percent
stake in the Greater Nile Petroleum Operating Co. group.
Axworthy said the Sudan probe into alleged human rights
violations -- including slavery -- would be led by John Harker,
an Ottawa-based specialist in Africa and an adviser to the
governments of Canada and South Africa.
"I think it's important because there are Canadian
companies involved that we determine this for ourselves. We'll
see what Mr Harker has to say," he said. "It won't be the only
source, but it will be a primary source. In the meantime we'll
be having talks with the (chief) executive of Talisman."
Buckee has often said that Talisman's involvement in the the
country would help bring stability in the war-torn and
impoverished nation by providing new wealth for such things
as education and health care for the people of the south.
Canada supports a process by a seven-nation African group
known as the Inter-Governmental Authority for Development
(IGAD) that has produced many rounds of largely fruitless
peace talks between Khartoum and the rebels.
Axworthy said Canada would would be offering
C$300,000 to the secretariat organizing the peace talks and
appointing Senator Lois Wilson as Ottawa's envoy to IGAD.
($1=$1.47 Canadian)
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