Bush, Mulroney Meet; Tensions Remain

Vice President George Bush and Prime Minister Brian Mulroney met Friday in an effort to relieve U.S.-Canadian tensions, but in spite of some pleasant words, neither man backed away from the actions that have edged the two nations toward a trade war.

Bush came to Canada after Mulroney angrily ordered retaliation last month against some imports from the United States because of a new tariff imposed by President Reagan on exported Canadian cedar roofing products

Bush, telling reporters that the current dispute is only a “tiff,” said “I’m not up here on a name-calling exercise.”

He added that the confrontation, considered by several experts to be the worst between the traditional allies in 15 years, cannot be allowed to disrupt U.S.-Canadian friendship or interfere with current free trade negotiations.

‘Friendship Important’

“The message I brought with me from Washington is that our friendship is too important to let these matters disrupt it,” he said.

Still, Bush did not apologize for what Mulroney has termed “absurd” and “bizarre” actions by Reagan. Instead, he said in a news conference that the prime minister was told that “we took these actions under an established and open process to enforce the existing trade laws of the United States.”

Canada has complained that the 35% tariff on cedar shakes and shingles, will cost up to 4,000 jobs. Mulroney also has expressed fear that the United States might restrict its imports of Canadian softwood lumber, a multibillion-dollar business.

Bush indicated that the only satisfaction he gave the Canadians over the timber confrontation was to acknowledge that “we could have done a better job on our side in notifying” the prime minister about the new tariffs.

No Canadian Retreat

He also said that Mulroney did not back away from his criticism.

“I didn’t get that feeling at all,” the vice president said when asked whether the prime minister was mollified by the American explanation.

“He was very, very frank,” Bush said, using a word often employed when diplomats strongly disagree.

Canadian officials said that Mulroney was businesslike in his discussions about the tariff dispute and also said he would not remove retaliatory duties on American products.

Still, Bush and the Canadian officials maintained that the talks aimed at a free trade agreement will not be negatively affected by the current dispute.

“I don’t think it will spill over in the trade talks” that resume here next week, Bush said. “I don’t live in fear that the trade talks are in difficulty at all.”

Canada and the United States carry on a two-way trade totaling about $150 billion a year, the largest bilateral trading arrangement in the world.

New Accord Sought

Mulroney has sought a new agreement in hopes both of expanding trade and of guaranteeing Canadian access to the huge American market. For its part, the United States wants an agreement that will lower its $20-billion trade deficit with Canada by removing tariff and non-tariff restrictions on U.S. exports to Canada and eliminating subsidies that Washington considers unfair competition.

Bush said at his news conference that he also told Mulroney that President Reagan feels he must enforce trade laws in the light of a growing protectionist mood in Congress and in some sectors of the American public.

Nevertheless, he said, the President is fully committed to free trade “as the best way to generate economic growth” in both nations.

The vice president said that he and Mulroney also reviewed the current South African crisis, Reagan’s decision to abandon voluntary American adherence to the unratified SALT II treaty and international terrorism.