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                  <text>Clerk of the Privy Council and
Secretary to the Cabinet

Greffier du Conseil prive et
Secretaire du Cabinet
Ottawa. Canada
K1A 0A3

SECRET

MEMORANDUM FOR THE PRIME MINISTER

IMPLICATIONS OF SEPTEMBER 11. 2001
(Information Only)
SUMMARY

The initial fall-out from the September 11 attack in the US has
been effectively managed. We now need to begin to consider the
implications of these events for the government’s agenda and
priorities, as well as the next steps required to ensure we are in a
position to address the associated challenges.
To assist in moving forward on this issue, we have compiled a
series of documents, annexed to this note, which address a
number of key related issues and considerations.

I will be working with Deputy Ministers to continue to review the
policy implications of Tuesday’s events over the weekend and into
next week. Ministers will have a first opportunity to address the
issues at next Tuesday's Cabinet meeting, but further discussions
will be necessary.
We will need to discuss in more detail how to proceed to address
the implications for the government’s policy agenda.

000038

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SECRET

Details

Further to my frequent discussions with you on management of the
situation since the terrorist events of Tuesday, we have now begun
to take stock of the impact of these events on the overall agenda of
the government, as well as the specific public safety implications.

To this end, we have prepared a preliminary analysis of the impact
of Tuesday’s events on the government’s agenda (Annex A). This
analysis examines these impacts across a range of areas
(domestic security issues; fighting terrorism; economic and fiscal
impacts; impact on the government’s agenda and relations with
other countries; and public communications) and a series of time
periods (immediate impacts, to the end of October, to
February, 2002, and beyond).
You will need to keep in mind that this analysis does not yet
capture the many possible interactions across time periods and
across policy elements. Nor does it fully take into account the
implications of unknowns such as: possible follow-up terrorist
actions in either the US or Canada; the impact of Canadian
participation in any retaliation (particularly of a prolonged duration);
or the potential US reaction in the event of a proven Canadian
connection to Tuesday’s events.

However, this analysis does show that there will be an inevitable
impact on the timing, pace, and substance of government priorities
over the fall, as well as potentially significant fiscal implications. In
doing so, it points to the need to look at a range of issues, including
but not limited to the public safety domain, in managing the
government’s response to the terrorist attacks in the US.
A note detailing the economic implications is being
forwarded to you under separate cover.

We have prepared a more in-depth analysis of the public safety
issues that will need to be considered in managing this event, both
for the immediate time frame and beyond:
for the immediate time frame (Annex B) the main
considerations are communications and emergency
operational steps (such as increased airport security) that
are already underway;

000039

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SECRET

beyond the immediate response, there are a range of issues
that will need to be explored to develop a full understanding
of the impacts of the September 11 events on the public
safety environment in Canada (Annex C).

In assessing specific public safety initiatives as part of its response
to this situation, the government will need to address fundamental
considerations, such as the balance between individual rights and
collective interests, and set priorities and make choices as it moves
forward to identify appropriate initiatives. Annex D provides a
sense of the kinds of questions that will need to be asked in striking
this balance, and outlines other considerations that could shape the
nature of future federal actions.
I have also included background information on the organization of
security and intelligence matters in the federal government
(Annex E). and a summary of actions taken since the Ressam
incident by Canada, either alone or in partnership with the US
(Annex F).

PCO Comment
In response to Tuesday’s events, the government will need to take
stock of impacts on the agenda as a whole.

It will be important to look beyond the September 11 attack itself to
consider: the heightened and likely enduring level of public interest
and concern on public safety matters; the need to ensure the
safety and security of Canadians in this new environment; and
possible changes in our relationship with the United States in
particular, and the rest of the world in general.
It will also be important to re-examine the priority areas for the fall
to determine whether they are still appropriate and whether other
issues rise in importance (e.g. public safety, foreign policy, defense
capability, etc.). We will need to review the pace and sequencing
of federal initiatives, particularly in light of potential economic and
fiscal consequences.

000040

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SECRET

For these reasons, it will be important to take time to assess and
analyze the full implications of the September 11 attack. I will be
convening meetings of Deputy Ministers this weekend and into next
week to reflect on this analysis and provide you and all Ministers
with advice on short and medium-term implications.

Cabinet will have an initial opportunity to discuss the situation on
Tuesday of next week, at which point I would expect the focus will
be on preliminary reactions to the situation.

We will need to address how best to structure discussion on these
issues in the weeks ahead. In this regard, we will need to discuss
the appropriate Ministerial forum where participating Ministers can
dedicate sufficient time and bring a broad variety of perspectives to
the table.

Mel Cappe

P&amp;P/Charette/db

000041

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