CANADA TO CONTRIBUTE A FURTHER $200 MILLION FOR IRAQ'S RECOVERY AND RECONSTRUCTION

May 14, 2003
Ottawa, Ontario

Prime Minister Jean Chrétien today announced that Canada will contribute a further $200 million to meet humanitarian and reconstruction needs in Iraq, bringing Canada's total commitment to more than $300 million. The Prime Minister also announced that Canada plans to re-open an embassy in Iraq.

"A stable, self-governing, and prosperous Iraq, with a government that represents the Iraqi people and is respectful of human rights, is in everyone's interest," said the Prime Minister. "The Government of Canada's contribution will help ensure that the needs of the Iraqi people are met and draw on Canada's significant expertise and experience in helping societies recover from conflict."

The new funding will help Iraqi authorities improve basic services, including access to clean water, proper sanitation and good primary health care. It will support Iraqi efforts to build strong democratic institutions, reform judicial, police and correctional services, strengthen civil society and promote human rights. Canada will also work with neighbouring countries to address the political, economic and social challenges and opportunities created by the new situation.

Canada will continue to work closely with key partners, including the United Nations, international financial institutions, the United States, the G8 and countries in the region as well as non-governmental organizations in determining specific needs and contributions. Today's announcement builds on Canada's earlier commitment of $100 million in March, which focussed on meeting the immediate basic humanitarian needs of the Iraqi people and the protection and safety of civilians and aid workers.

The Government of Canada is also planning to re-establish a diplomatic presence in Iraq by re-opening an embassy in Baghdad once the security situation permits. The Canadian Embassy in Baghdad was closed in 1991 before the start of the Gulf War. A diplomatic presence in Baghdad will help Canada manage its contribution to reconstruction efforts, liaise with key partners, and support other Canadian interests, including the business community.

Funding for these initiatives was provided for in the February 2003 Budget and is therefore built into the existing fiscal framework.

-30-

PMO Press Office: (613) 957-5555