Cablegate: Pco Investigation On "Naftagate" Fails to Solve

VZCZCXRO2460
OO RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #0703/01 1442038
ZNR UUUUU ZZH
O 232038Z MAY 08
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7913
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE PRIORITY
RUEHME/AMEMBASSY MEXICO PRIORITY 1819
RUEHFR/AMEMBASSY PARIS PRIORITY 1000
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 OTTAWA 000703

SENSITIVE
SIPDIS

STATE FOR WHA/CAN, EEB/IFD/OIA, AND EEB/DCT
USDOC 4320/OFFICE OF NAFTA/GWORD/TFOX; 3134/OIO/WESTERN
HEMISPHERE
STATE PSS USTR FOR MELLE AND SULLIVAN
PARIS FOR USOECD

E.O. 12958: N/A
TAGS: PGOV PREL ETRD CA
SUBJECT: PCO INVESTIGATION ON "NAFTAGATE" FAILS TO SOLVE
MYSTERY

REF: OTTAWA 378

1. (SBU) Following a two month investigation, the Privy
Council Office released a May 22 report on "NAFTAGATE"
related to alleged leaks by either or both Chief of Staff the
Prime Minister Ian Brodie and Ambassador to the U.S. Michael
Wilson regarding alleged comments from Democratic U.S.
Presidential campaign staffs on possible renegotiation of the
North American Free Trade Agreement. The conclusions
confirmed that both apparently did speak to reporters on this
issue, but that neither had ever specifically claimed either
Presidential campaign staff had suggested the candidates were
only posturing for domestic political purposes. The
investigation failed entirely to determine how an
unclassified report from the Canadian Consulate General in
Chicago about a meeting between its staff and an economic
advisor affiliated with one of the campaigns reached the
media. The report exonerated both Brodie and Wilson of
leaking any classified information. (The initial Consulate
report was actually unclassified, and sent to 232 addressees,
mostly in the Department of Foreign Affairs and International
Trade, which then place the report on its information
repository, to which all its employees have access.)
Investigators found no email links between recipients and any
media source related to this report, however.

2. (SBU) The PCO report included recommendations that all
government departments and ministerial offices "should be
reminded on a regular basis of the sensitivity of such
documents and the need to protect them" and that DFAIT should
expand its new protocols on sensitive reporting beyond only
U.S. election-related messages.

3. (SBU) The Prime Minister's Office on May 23 released the
following statement on the report:

Begin text:

Upon receipt of the Report on the Investigation into
Unauthorized Disclosure of Sensitive Diplomatic Information,
the following conclusions are noted:

Any comments Mr. Brodie may have made during the lock-up did
not reveal any information tied to the diplomatic report, of
which he was made aware only on February 28. There is no
evidence that Mr. Brodie disclosed any classified information.

Based on the findings of this investigation, there is no
evidence that Ambassador Wilson revealed any information tied
to the diplomatic report or to any U.S. presidential
candidates position with respect to NAFTA, though his
comments likely helped lead the reporter to the Senator Obama
campaign. There is no evidence that Ambassador Wilson
disclosed any classified information.

The original diplomatic report was incorrectly classified and
had an inappropriately broad distribution list.

The Prime Minister has accepted all the recommendations from
the Report.
End text

4. (SBU) Separately on May 22, media reports -- which the
government has not confirmed -- revealed that Brodie intends
to step down as Chief of Staff o/a July 1. His replacement
is expected to be Guy Giorno, a one-time chief of staff to
then-Ontario Premier Mike Harris, and who also worked in the
last Conservative federal campaign. Some reports linked this
disclosure to the expected release of the PCO report, while
others noted that new restrictions against lobbying for a
five year period for former senior officials come into effect
Qfive year period for former senior officials come into effect
on July 1.

5. (SBU) Comment: The report has already provoked negative
reaction from the opposition, and will likely be a prime
topic during Question Period in the House of Commons during
the week of May 26. Prime Minister Harper will miss the
brunt of it, since he will be on an official visit May 27-29
to meet in succession in their capitals with French President
Sarkozy, German Chancellor Merkel, Italian Prime Minister
Berlusconi, and British Prime Minister Brown. The
Conservatives will continue to treat this as a tempest in a

OTTAWA 00000703 002 OF 002

teapot -- as it indeed seems to be -- but this latest furor
will likely provide yet another incentive for them to allow
the Commons to "rise" on the earliest possible date of June 6
for the long summer recess.

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