We’re coming up to fifteen seconds. All network clearances established. Coming up to ten seconds … five, four, three, two, one.” He flicked the switch for transmission of the Presidential Seal and spoke into the microphone in front of him. “Ladies and gentlemen, the President of the United States.” Then he switched to the President and pointed to him.
“My fellow Americans, I want to inform all of you about certain actions I have decided to take to meet the serious energy crisis which confronts this nation.…”
Ottawa / 12:25 p.m., EDT
Following his phone call to the President, Robert Porter stood for a moment deep in thought, his head down, shoulders slumped. Then he turned and walked slowly back into the Cabinet Room. The din of many voices ceased abruptly as he entered. The tension and anger shown on his face told his colleagues what had happened even before he began to speak.
“The President has given a flat No to my request for an extension of time. Furthermore, the United States has gone further than I thought they would at this stage to show us that they mean business. He has, as of twelve noon today, instructed the Secretary of the Treasury to place an immediate embargo on the movement of all U.S. investment capital into Canada.”
The voice of young Michael Clarkson, the Minister of Finance, broke through the shouts of outrage which greeted this announcement. “The country can’t survive without that capital!”
The Prime Minister hesitated a moment, then replied, “Now listen to me. We can survive, and we must, Michael. We’ve got to show at once that we will not be intimidated. Since the President has chosen to invoke sanctions against us even before the expiry of his deadline, he’d better learn that sanctions can go both ways. You should instruct your deputy, Angus Stone, and the Governor of the Bank of Canada — are they both here? — ah, yes, gentlemen — you should instruct them right now to take all necessary steps to prevent the transfer of any Canadian funds into the United States, directly or indirectly. I have in mind dividends, return of capital, investment money, and the like. And all the stock exchanges should be directed to cease trading immediately and to remain closed until further notice.”
The two financial officials huddled briefly with the Minister, then quickly left the room.
Glancing at his watch, the Prime Minister pressed a button under the table in front of him to activate the large television set mounted high on the wall at the far end of the room. As the panelling slid quietly open, the screen was already showing the words, “Special Bulletin, Stand By.” Porter said, “Now gentlemen, our time is short. During the President’s address, if a point occurs to you which you think I should cover in my response, make a note and pass it up to me. I want to have the benefit of your ideas and I’ll try to incorporate any point you wish me to make.
“As soon as I have finished my televised statement, I’ll come back here so that we can discuss the entire situation and make some decisions as to how the matter should be handled. As you know, I have taken steps to recall Parliament, bring in the provincial premiers, and hold a briefing session at eight o’clock tomorrow morning, to be followed by an emergency sitting of the House at twelve noon.”
At this point the Presidential Seal flashed on the screen. Porter pressed the button to bring up the volume.
“Ladies and gentlemen, the President of the United States.”
The President’s familiar craggy countenance appeared on the screen. He displayed no sign of nervousness; he was, as always, calm and confident, a man who wore power with dignity, directness, and assurance. Years before, when he had been first a senator and then a member of the Cabinet, he had had no hesitation in voicing tough and sharply critical views of Canada. He clearly considered Canada a bothersome colonial attachment to the United States’ empire, worth putting up with only because of its rich treasury of mineral and fossil fuel resources. Everyone in the room knew he was watching a man who would pay no attention to Canada or the Canadian point of view, when they came into conflict with U.S. interests.
The President began, “My fellow Americans: I want to inform all of you about certain actions I have decided to take to meet the serious energy crisis which confronts this nation.
“This morning at nine o’clock Washington time, I telephoned the Prime Minister of Canada to discuss with him the urgency of the situation. I pointed out that this winter approximately 20% of all the industries in the United States which rely upon natural gas would have to be shut down. I made it plain to him that hospitals would have to be closed, that homes and apartments would be without heat, and that the American people would suffer, and indeed many would die this winter, because of a shortage of natural gas in the United States.
“My fellow Americans, the responsibility for this shortage rests primarily on the shoulders of the Canadians.
“The Canadians have vast reserves of natural gas in their Arctic regions, especially in the Mackenzie Delta and on the Arctic Islands. Because Canada could not put up the necessary capital, United States’ money has paid for the construction of a pipeline to bring gas from Mackenzie and Prudhoe Bay in Alaska down to the Chicago and Detroit areas, one of the most critically affected regions of this country.
“Since 1970, American firms have poured millions upon millions of dollars into exploration and development. To date, more than 60-trillion cubic feet in proven reserves of natural gas has been discovered in the Arctic Islands alone.
“Because the Mackenzie pipeline will not meet all our requirements, Tenneco and the other major United States gas distribution firms, which have financed the discoveries in the Islands, are prepared to buy gas at the well-head and to create their own transportation system to deliver it to United States markets.
“For the past three years, American scientists have been carrying out an extremely costly and dangerous experiment to test a prototype pipeline system to transport gas between the Arctic Islands under water. As an alternative solution, we have spent approximately one billion dollars to develop a prototype Resources Carrier aircraft which has just been test-flown at the Boeing factory in Seattle. When fully operational, this aircraft, three times the size of a Boeing 747, will be capable of carrying 2¼-million pounds of liquid natural gas. Although the Canadians at one time had contracts which would have allowed them to control the building, financing and operation of these aircraft, they were once again unable to muster the initiative and financial resources to carry through with the project, and we have therefore taken it over. To sum up, American know-how, and American dollars, have discovered nearly all the reserves of natural gas. We need that gas desperately, right now. American engineering has developed the facilities to bring it to market. This is a great achievement, and we have every right to be proud of what we have accomplished.
“Why, then, do we find ourselves facing the present energy crisis? Quite simply, the Canadian government refuses to let us have any of the natural gas on the Arctic Islands. Negotiating teams from the United States government have been attempting for years to work out an agreement with the Canadians to purchase one-third of the crude reserves on the Islands, that is to say, 20-trillion cubic feet. At the same time, we have been trying to establish a comprehensive continental energy policy under which both countries would have mutual access to all of the electricity, crude oil, natural gas, nuclear power, and any other sources of energy which might be available.
“Unfortunately, we have been totally unsuccessful in our dealings with the Canadians, not because they have at any time said No to our legitimate requests, but because the Canadian bureaucracy is in such a state of division that they find it impossible to agree on a course of action which they are prepared to present to their political masters.
“The result is that no Canadian government since
