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<title>CANADA ANNOUNCES MEASURES TO ASSIST PAKISTAN</title>
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<p><font size="+1"></font><font size="+1"><strong>October 1, 2001 <em>(3:00 p.m. EDT)</em> No. 139</strong></font></p>
<p align="CENTER"><font size="+1"><strong>CANADA ANNOUNCES MEASURES TO ASSIST PAKISTAN</strong></font></p>
<p>John Manley, Minister of Foreign Affairs, and Maria Minna, Minister for International Co-operation, today announced new
measures to assist Pakistan in recognition of President Pervez Musharraf's decision to join the international coalition
against terrorism. Canada will ease sanctions against Islamabad and will convert up to $447 million in outstanding loans,
owed by Pakistan to the Canadian International Development Agency (CIDA), to be used for development programming in
the social sector.</p>
<p>The announcement follows a telephone conversation between Prime Minister Jean Chrétien and President Musharraf on
September 28 during which the leaders discussed the aftermath of the terrorist attacks on the United States.</p>
<p>"Canada commends the courageous stand that Pakistan is taking against terrorism in the region and believes that its role
should be both recognized and supported by the international community," said Mr. Manley. "Measures announced today
clearly demonstrate Canada's strong commitment to helping Pakistan at this difficult time."</p>
<p>"This debt-for-development conversion will enable Pakistan to direct much-needed resources to its social programs," said
Minister Minna. "Canadians have worked side by side with the Pakistani people through a number of recent crises and we
will continue to make a difference on the ground in the days to come." </p>
<p>Pakistan has 43 outstanding loans with CIDA, totalling $447 million, incurred prior to 1986 when CIDA moved to an all-grants aid program. These loans entailed payments of $16 million per year. At Pakistan's request, CIDA has agreed to
convert this debt to be used for development. Minister Minna stated that Canada will work with Pakistan to ensure that the
debt swap will focus on improving social programs. Terms and conditions for the debt conversion are to be determined.</p>
<p>Minister Manley also noted that Canada welcomed President Musharraf's August 14 announcement of a Road Map for
Democracy in which he outlined a phased restoration of democracy in Pakistan culminating in national and provincial
elections between October 1 and 11, 2002. Mr. Manley underscored that Canada was closely monitoring Islamabad's
progress on this front.</p>
<p>In May 1998, Canada imposed economic measures on Pakistan and India following their respective tests of nuclear
weapons, including: restriction of all new bilateral aid to that which focussed on humanitarian needs; support in
international financial institutions only for loans associated with basic human needs; and a ban on military exports. Today,
Canada has removed all of these measures against Pakistan except for the ban on military exports. Sanctions against India
had been eased last March, and the remaining limitation on Canadian support for international financial institution loans
was lifted today. Existing restrictions on military sales to India will remain in place. The long-standing prohibition on
nuclear co-operation with both Pakistan and India also remains in place.</p>
<p>In making the announcement, Mr. Manley stressed that Canada remains deeply concerned about nuclear proliferation in
South Asia and our policies in this respect are unchanged. Canada continues to call on Pakistan and India to respect UN
Security Council Resolution 1172, which calls on both countries to renounce their nuclear weapons programs, to cease
development of ballistic missiles capable of delivering nuclear weapons, to sign and ratify the Comprehensive Test Ban
Treaty and to join the Non-Proliferation Treaty as non-nuclear weapons states. Canada also encourages India and Pakistan
to continue their constructive dialogue aimed at resolving their long-standing disputes. </p>
<p>- 30 -</p>
<p>For further information, media representatives may contact:</p>
<p>Sanjeev Chowdhury</p>
<p>Press Secretary</p>
<p>Office of the Minister of Foreign Affairs</p>
<p>(613) 995-1851</p>
<p>Media Relations Office</p>
<p>Department of Foreign Affairs and International Trade</p>
<p>(613) 995-1874</p>
<p>Jennifer Wesanko</p>
<p>Office of the Minister for International Co-operation</p>
<p>(819) 953-3160</p>
<p>Media Relations Office</p>
<p>Canadian International Development Agency (CIDA)</p>
<p>(819) 953-6534</p>
<p>E-mail: media@acdi-cida.gc.ca</p>
<p>Web site: <a href="https://bac-lac.wayback.archive-it.org/web/20071206222208/http://www.acdi-cida.gc.ca/">http://www.acdi-cida.gc.ca</a></p>
<p>This document is also available on the Department of Foreign Affairs and International Trade's Internet site:
<a href="https://bac-lac.wayback.archive-it.org/web/20071206222208/http://www.dfait-maeci.gc.ca/">http://www.dfait-maeci.gc.ca</a></p>
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