Thank you very much.
First of all, it's indeed my pleasure to be able to come here and to talk to you about a subject of such critical importance for Canada.
My talk will be based on the main premise that we are currently witnessing a fundamental transformation of the Arctic security environment. In many ways the types of transformation that we are seeing right now are akin to, and in many ways just as powerful as, when we saw the end of the Cold War and the factors, of course, that led in to that. I have three major points that I wish to address in explaining what the ramifications for Canada are for this transformation.
The first one, of course, is the foundation, which is what is causing this change and why we should view it as long-term, destabilizing, and of complete importance to Canadian interests.
Second, I want to talk about some of the indicators of this change. How do we know that it's just simple talk? How do we know that it's not rhetoric, that in fact what we are seeing within the Arctic region is indeed a transformation of a security regime, and that as much as I wish I could believe in Dr. Lackenbauer's optimism of cooperation and progress, unfortunately the indicators, at least through my assessment, suggest a different direction?
The last point, and what I would contend is the most important, is where are the pressure points? Where does Canada actually have to be paying attention in the long term and what does this mean in the context of the types of responses that we have to create?
For the foundation of why we are seeing this transformation there are four major factors. The first, and the one that has gathered the most attention, is of course the impacts of climate change. The reality of an ice cap that probably will be gone as a permanent ice cap is something that our children will be seeing in terms of a new globe. This is something as humans we haven't seen before.
Alongside of that is the recognition of new resources. I would disagree with my learned colleague in pointing out that resources have been developed. When we look at the production of diamonds within the Canadian Northwest Territories alone, we have seen the manner in which resources have already started to be developed. Mary River has started production in what is probably going to be the largest supply of iron ore in the world, full stop. So it has already begun.
The third factor is the interest of the international community. The fact that the Chinese, the Japanese, and the South Koreans are all now very interested in the Arctic, and many Europeans have become so, also highlights the changing nature of the field.
But perhaps the most important and the one that I would argue is the most overlooked is that there is a growing strategic importance of the Arctic to the Americans and Russians that goes beyond anything in regard to the current situation in Ukraine, and rather represents core strategic interests that regardless of climate change, regardless of resource development, are going to be the fundamental challenge that Canada will be facing.
What indicators do we have? We can look in terms of policies. There were no Arctic security policies amongst any of the Arctic countries until around 2006. Now everybody has one. Everybody, of course, says the good stuff at the beginning, we want to cooperate and it's an area of peace, etc., but all of them conclude their defence statements with, but by the way we will defend our national interests by unilateral means if necessary. So it's a two-way rhetorical comment.
We are also seeing clearly however that there are force developments. The Russians, particularly commencing in the second term of the Putin administration, have begun to reinvigorate their strategic deterrent capabilities, and that is focused on their submarine capabilities, both for their SSBNs and their SSNs. This, of course, has to be situated in the north by virtue of geography. The Russians do not station their older subs on their Pacific coast, even though they say they treat them as equals. That simply is not what they are doing in terms of the evidence.
We see the Americans developing their strategic capabilities, particularly their anti-strategic capabilities, in Alaska. So we are seeing indicators that go beyond just simply dealing with constabulatory issues in the Arctic, but rather larger strategic ones.
We are also seeing a conduct of exercises the likes of which we thought had ended at the end of the Cold War. Canada was first with the beginning of its operations back around 2002, but since that time countries such as Russia, the United States, and Norway regularly have winter exercises of up to 10,000 troops, which is a substantial effort and endeavour.
Where are the pressure points? Where should we be concerned, having set the stage in this context?
The first pressure point is, of course, oil and gas. This is the one everyone focuses on. This is the one, of course, they talk about, the rush to resources. I do agree with Dr. Lackenbauer that there is little evidence that we are going to see conflict over oil. Oil, of course, goes up and down in terms of price, and some people suspect, for example, that right now the Saudis are oversupplying not only to bring pressure on Russia—once again the larger geopolitical picture—but also to push out the independents and the medium-power industries in North Dakota that they claim are oversupplying the market. There are all sorts of interesting geopolitics in that.
The problem that we will probably face will be environmental security. The activism of many NGOs as we've seen in both Russia and Greenland is, of course, to physically try to stop oil exploration. The challenge that Canada will face in that regard is that when oil drilling occurs in the Beaufort and Mackenzie Delta, and I'm completely convinced it will in the long term, will we be prepared to respond to the type of situation that both the Greenlanders and the Russians have had to face?
I'd like to go to the two major pressure points that I see. The second one is fish. The allocation of the seabed under article 76 does not touch the water column beyond 200 nautical miles. When the ice is eliminated, and on a permanent basis, and, as many suspect, fish stocks move north, we can anticipate that there will be international fishers who will become very interested in moving into this region. Combine that with the factor that world stocks are collapsing. Experts from both the University of Victoria and Dalhousie University have been very vocal in explaining that we are heading towards a fishing worldwide crisis. If in fact we have a limited stock moving north, I dare say that we will be facing a replication of the type of crisis that we faced with the Spanish in 1995, that the British and the Icelanders faced off their waters, and that we are starting to see increasingly worldwide.
But I'd like to finish by looking on what I see as the major challenge, the issue that no one wants to confront but will confound Canadian defence interests in the Arctic, and that is the changing strategic balance in the Arctic region. The Russians have three core strategic needs. The first is nuclear stability, and that means deterrence in our context. It is still their number one security policy, the maintenance of their nuclear deterrent capability. Their second major security statement is that they do not want to see the expansion of NATO. The third is to stop the American ABM systems. All three of these are core defence requirements and are in the Arctic.
To maintain their nuclear stability, their modernized nuclear stability, the Russians are rebuilding their submarine force. We helped them decommission a lot of their Cold War era...through the cooperation programs that we set up, through what is known as AMEC and the G...well, what was then the G-8. The Russians are now rebuilding and it is going to be north. They are rebuilding the bases that give them the infrastructure protection. Regardless of what happens in the north per se, this increases the challenge for Canada.
The crisis in the Ukraine has very much been sparked by Russian fears that the Ukrainians were going to join NATO. We have to recognize that this is not the first time the Russians have engaged in such activity. Going back to 2007, the Russian intervention in Georgia, many analysts contend, was the result of the Georgian open consideration of joining NATO. We can take the Russians at their word that they are fearful.
The question that you need to be watching right now is, what happens within the context of Finland and Sweden? Both countries have begun to increasingly consider the possibility of joining NATO. If they decide to do so, that means, then, that the members of the Arctic Council will have seven NATO members, and one non-NATO member. That does not bode well for future cooperation.
The third aspect, and this leads me to my last comment in terms of the development of American strategic capabilities in the Arctic, is that the two core defence initiatives of the Americans are first of all maintenance of the deterrence, but also protection of the homeland, particularly protection against the possibility of missile attack.
This is where this comes directly into the issue that is being considered vis-à-vis NORAD. Every time the North Koreans do something to unnerve the Americans, the American response, Democrat and Republican, is to increase the number of mid-course interceptors that are placed in Alaska at Fort Greely. This is about 70 miles away from the Canadian-American border of the Yukon. Every time the Americans do that it causes the Russians and Chinese to view this as being directed against them and not the North Koreans.
If we bring this all together, I wish I could believe we were headed for a cooperative era. I wish the last 15 years of impressive cooperation we've seen could continue. When you look beyond the Arctic and you begin to consider the strategic imperatives of both the Russians and the Americans—the requirements to pursue fish stock— and you combine that, my assessment is the Arctic is going to become a less cooperative regime. This developing international security regime is going to be more problematic and it is going to get worse before it gets better.
Thank you very much.