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Peter Worthington

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Hey Nexen, What's the Chinese Word for "Treason"?

Posted: 09/21/2012 11:05 am

David Kilgour was a Member of Parliament for 27 years, and during that time served in both Conservative and Liberal governments, and finally became an independent MP on issues of principle.

At present he is best known for investigative work with human rights lawyer David Matas, into China's appalling record of harvesting human organs from convicts and Falun Gong dissidents for sale to foreigners. Their book, Bloody Harvest, is a powerful indictment of the practice and is taken seriously in the UN and around the world

So Kilgour is no fan of Beijing's policies or methods.

Right now he's upset -- justifiably so -- at the China's bid to buy Nexen, Inc., Canada's sixth largest oil company, for $15 billion. The sale would reap a tidy profit for Nexen share holders, who overwhelmingly have voted to accept the offer.

The prospective buyer is the China National Offshore Oil Corp (CNOOC), which means the Beijing government. Kilgour notes that it is now up to Prime Minister Stephen Harper to decide whether the sale represents a "net benefit" to Canada, and doesn't undermine of threaten "national security," as defined by the Investment Canada Act.

According to Kilgour: "Harper should block the proposed takeover and make it clear that any state-owned enterprise, regardless of national origin, will be limited to a minority share-holding in any Canadian business."

It's pretty hard to argue with that.

As Kilgour says: "Beijing would not for a moment allow a foreign company or government to buy control of one of its natural resource companies."

Canadians in a Sun News-Abacus Data poll seem to endorse Kilgour's views, with 69 per cent saying the government should not approve the CNOOC take-over of Calgary-based Nexen, and eight per cent favouring the sale.

Doubtless, China needs energy sources. But it seems folly for a country like Canada to sell and loose control of a resource that is increasingly going to be needed in the future, and which will always have willing customers elsewhere.

Kilgour takes it a step further: "The conduct of Chinese state-owned enterprises globally is outrageous." He says when the China National Petroleum Corp bought into Sudan's oil fields in 1996, Beijing immediately supported Sudan's Omar al-Bashir, for whom the International Criminal Court (ICC) at the Hague issued an arrest warrant in 2009 for war crimes and crimes against humanity.

Beijing has provided arms to Sudan, and is complicit in atrocities committed in South Sudan and Darfur, and provided diplomatic cover for the Bashir regime at the UN.

Chinese resource companies are accused of underbidding local firms in Africa, and not hiring local workers. "In Zambia, Chinese mining companies banned union activity," says Kilgour, "and in two instances were charged with attempted murder after opening fire on local employees protesting work conditions."

State-owned corporations in China are above the law when it comes to safety, environmental and employment considerations, and Kilgour fears "they will demonstrate no more respect for the rule of law in Canada than they do in China -- and will act always as agents of the party-state that controls them."

Anyone familiar with China knows all this -- as does Prime Minister Harper.

He also knows China is buying up all the resources it can around the world -- not for world domination so much as to satisfy its own population and growing needs.

Kilgour and others point out that the government has an obligation to prevent control of its resources being in the hands or another country.

Cooperate, sure, if it is in Canada's interests, but to cede control to a regime like China's is not only folly, but verges on treason.

 
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HUFFPOST SUPER USER
spinnerator
09:17 PM on 09/24/2012
Not to worry, I just watched MSNBC and apparently the U.S. gov't. can and will stop the sale.
03:19 AM on 09/24/2012
Hey Worthington, learn to spell. It is not "loose" , but "lose".
But what would I expect from the co-founder of that bastion of journalism and integrity, the Toronto Sun?
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04:49 PM on 09/23/2012
I agree with "My Opinion Counts 2"

Are we too dumb to build our own refinery and take control of our own future?
04:35 PM on 09/23/2012
I am confounded that Nexen shareholders would agree to this sale, but I guess for some it doesn`t matter where their riches come from, or what the ramifications of such ill gained riches may be for the country of origin. Canadian shareholders of Nexen who voted for this sale have got to be a few bricks short of a load and so are those who would even consider approving such a sale of our resources to a country with the reputation China has.. or to any foreign country, for that matter. It is time for Canada to take ownership over its own resources and focus on the production of end product sales.. that`s where the jobs and money are. I can`t believe that we are even having this discussion!! When will Canada ever learn??
HUFFPOST SUPER USER
nicumber
04:34 PM on 09/23/2012
"It seems folly for a country like Canada to sell and lose control of a resource that is increasingly going to be needed in the future....". I couldn't agree more. More thought and consideration is needed. One would think this could not pose difficulty for the government in power.
Carin
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HUFFPOST SUPER USER
CalgarySandy
If you have a brain you can have a mental illness.
08:18 PM on 09/22/2012
Nexen for sale? Lets let foreigners own all our companies. Let's let them apply Chinese management styles on their staff. If they own the lands that Nexen has leases on then they do own the resource on those leases. As the Conservatives are afraid all the companies will run away if they are made to pay a reasonable royalty we know the Chinese will be getting a good deal. Even corporate taxes are low for these companies.
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05:53 PM on 09/22/2012
That's capitalism.
12:52 PM on 09/22/2012
If I'm not mistaken, most of the Mines that Nexen exploits aren't in Canada so how can they be considered our resources? Add to that the fact that the resources are sold on the open market and in no way are reserved for Canadians and I really wonder why this transaction should be blocked.
11:52 AM on 09/22/2012
I'm waiting for the day when the government will proudly proclaim that in this resource rich country Canadians do not own a single major resource company. So progressive has been our views on globazization.
08:53 AM on 09/22/2012
Reciprocity seems like the best principle. If it's closed for foreign ownership of "strategic" industries or any other for that matter, then it should be hasta la vista from Canada as well.

Meanwhile this Worthingless dude seems like a double talker more motivated here by prejudice towards China or other non western interests, not by clean principles
11:23 PM on 09/21/2012
It should be kept in mind that 70% of Nexen's assets are not even in Canada. Shareholders have a right to decide what happens to their own company. Oh ! , I see that's just a technicality !!
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BCSLAVE
Got a key?
06:11 PM on 09/22/2012
The Chinese want majority ownership to do what they wish with the place.
08:56 PM on 09/22/2012
The Chinese, if successful, will be bound by all the existing rules applying to Canadian corporations. They certainly will not "do what they wish with the place"  The $15.1 billion received by shareholders will likely be reinvested in the Canadian energy industry.   As I said shareholders have a right to decide what happens to their ownership stake, not a buch of naysayers
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spinnerator
09:21 PM on 09/24/2012
Exactly, they want control of the 70% of assets outside of Canada. And you are a fool if you don't think they won't do what they want with that portion because the gov't of Canada is absolutely powerless to stop them.
01:03 PM on 09/25/2012
They cannot "do what they want" with the 70% of assets held outside Canada, because the US, the UK and other governments can and may   modify or disallow a takeover of assets within their borders. As in Canada, it's a government call, and if you think otherwise then , perhaps you are not so wise.
06:45 PM on 09/21/2012
I couldn't agree more with Kilgour. Senior management should have no right to sell ownership of Canadian resources to a foreign power for their own gain. Sell the oil to them, but not the source of it or the land. Just try to imagine a Canadian entity buying up a Chinese rare earth mine or an offshore gas field. It isn't a reciprocal relationship, and Canada and Canadians in the long run will regret this sale if it is approved.
05:13 PM on 09/21/2012
Funny that for 40 yrs little Petey never complained about any other foreign takeover.
HUFFPOST SUPER USER
spinnerator
09:24 PM on 09/24/2012
I absolutely despise the thieving cheating Chinese and they weren't trying to kill me 59 yrs. ago. Little Petey as you call him has a much more legitimate intimate reason to hate them.
08:32 AM on 09/25/2012
Lol!
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HUFFPOST SUPER USER
Glass Cannon
Let every eye negotiate for itself.
05:11 PM on 09/21/2012
As a mercantile colony established for the purposes of resource exploitation, the government(s) of Canada is busy fulfilling the original mandate of supplying the Empire with resources and wealth. We just supply different Empires now than we used to.

We even sell condos to the Chinese. This is all No Big Deal. The Chinese are business and business is good for Canada. :p
07:07 PM on 09/21/2012
So long as Canada simple sells off its assets to foreign powers it will remain a "mercantile colony" and not a sovereign nation.
05:09 PM on 09/21/2012
Treating natural resources as a strategic asset is a direction that Canada is trying to take with the Arctic holdings (albeit not comprehensive) - China is making the same play with Nexen.

On an aside, the BBC documentary "When China met Africa" is an interesting reflection of Chinese participation at a national level.