Thank you for those very pertinent questions.
On the Northwest Passage, I think both countries have tenable arguments. I wouldn't want to litigate this because the risks of losing would be too high, and I believe the United States would take the exact same view, that this should be dealt with through negotiation, not litigation or arbitration.
Therefore, it's not a question of which is the stronger legal argument; it's how we resolve the dispute in a way that works for both sides. Whether it's environmental protection, which has historically been Canada's main interest, or a concern about North American security, which is the United States' main interest, I think there's a credible argument to be made, and Mr. Cellucci and I have made it. We should seek to negotiate a bilateral agreement that recognizes Canadian sovereignty and jurisdiction over those waters in return for some concrete commitments by Canada to policing that waterway and making it a safe international shipping route--not an international strait, but a shipping route something like the St. Lawrence Seaway, which is carefully managed with sufficient infrastructure to ensure that ships can pass safely through to everyone's economic interest, and at the same time have security threats dealt with and deterred.
That's what we should do on the Northwest Passage. I'm afraid the Canadian position right now, which is essentially to not open up that issue and just let time take its course, is very risky because there is increased activity and we're likely to see our legal position called into question, not necessarily by the United States but perhaps by some other actor.
On the Beaufort Sea, I think there will be pressure to resolve that dispute from multinational oil companies that will want to explore in the disputed 6,000-square-mile sector. Again, there are perfectly acceptable ways of resolving that. One is to declare it a joint hydrocarbon zone, as other countries have done in similar situations, and actually share the royalties and have a joint environmental assessment and permit-issuing process. Or you could simply draw a line right down the middle of the disputed zone and leave it at that.
It's not an issue that should cause any concern or hostility between the two countries. As it happens, thanks to chapter 6 of NAFTA we're in a common energy market anyway. So EnCana is just as likely to drill on the U.S. side of the eventual line as an American oil company is. Again, cooperation and the realization that we have common interests need to be at the forefront here. Above all, we shouldn't be afraid to deal with the United States on this. We're a major Arctic country. When it comes to energy we are their largest supplier, so I think we could negotiate in good faith and expect a good result.