NEW YORK (Reuters) - Canada's Deputy Prime Minister and Finance Minister John Manley promoted his country's resilient economy on Thursday to U.S. banks and businesses, but admitted the deadly SARS (news - web sites) virus still poses challenges.
In an interview with Reuters, Manley said severe acute respiratory syndrome has been dealt with as a health issue but is still perceived as a problem among the financial community he met with in New York.
"They are very sympathetic, glad to hear it is better, (but) no commitments that anybody was going to move a convention there," said Manley in a car racing with a police escort through the streets of Manhattan.
"I think we face a few challenges. One is there is still a perception that somehow or other the disease can still easily be contracted in Toronto, and they are not anxious to have people go there. Secondly they are concerned about legal liabilities if they send people there," Manley said on Thursday.
The SARS outbreak has killed 34 people in the Toronto area, and almost 800 worldwide, since it emerged late last year. That has depressed air travel and the tourism industry.
On Thursday, Manley reiterated that SARS, mad cow disease and a surging Canadian dollar led private sector analysts polled by the ministry to now see economic growth of 2.2 percent this year, 1 percentage point lower than originally forecast.
Manley trod cautiously when discussing the value of the Canadian dollar in depth, saying the U.S. dollar's 15 percent decline in value against the loonie was not a concern, even with the economic slowdown.
"I have to be so bloody careful of what I say about it," said Manley, a leading candidate to take over Canada's ruling Liberal Party.
"I don't think capital would be flowing into the Canadian dollar except that there is a positive outlook for Canadian economic performance and the strength of Canadian fundamentals," he said.
While Manley was not concerned about the Canadian dollar's appreciation, at least one leading Canadian mining company was reconsidering cost cutting plans.
"We've finished with the major cost cuts... But in view of what's happened to the Canadian dollar, we're reviewing costs all the time," said Derek Pannell, chief executive and president of Noranda Inc., who attended a luncheon where Manley gave the keynote address.
ANTI-TERROR TOUR
In addition to minding the Canadian economy, Manley is also in charge of border security issues, and toured the New York City Police Department's anti-terrorism command center with Policy Commissioner Raymond Kelly.
"They are unique as a city in having a counter-terrorism operation," said Manley. New York bore the brunt of the Sept. 11 attacks that destroyed the World Trade Center.
Manley found most interesting the NYPD's ability to marshal resources quickly, increase police visibility in order to discourage terrorist operations, and recruit officers with foreign language skills "so that they can interpret, infiltrate and help identify."
But Manley said he also told Kelly the border between the United States and Canada was not easy to cross undetected.
"There is perception that it is a sieve, but I think we need to do our best to offset that impression. That was one of the things I wanted to talk to the commissioner about," he said. (Additional reporting by Carole Vaporean)
