National Trade Data Bank ITEM ID : ST BNOTES CANADA DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - CANADA Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1994 Date of record : 19941018 Keywords 3 : Keywords 3 : | CANADA BACKGROUND NOTES: CANADA PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE AUGUST 1994 Official Name: Canada PROFILE Geography Area: 9.9 million sq. km. (3.8 million sq. mi.); second-largest country in the world. Cities: Capital--Ottawa (pop. 833,000). Other cities--Toronto (3.5 million), Montreal (2.9 million), Vancouver (1.4 mil-lion). Terrain: Mostly plains with mountains in the west and lowlands in the southeast. Climate: Temperate to arctic. People Nationality: Noun and adjective--Canadian(s). Population (est.): 28 million. Annual growth rate (est.): 1.5% Ethnic groups: British 28%, French 23%, other European 15%, Asian/Arab/African 6%, indigenous Indian and Eskimo 1.5%, mixed background 26%. Religions: Roman Catholic 46%, Protestant 41%. Languages: English, French. Education: Literacy--99% of population aged 15 and over have at least a ninth-grade education. Health: Infant mortality rate--7/1,000. Life expectancy--75 yrs. male, 82 yrs. female. Work force (13.8 million, 1992): Trade--18%. Manufacturing--15%. Transportation and communications--8%. Finance--7%. Public administration--7%. Construction--6%. Agriculture--4%. Forestry and mining--2%. Other services--33%. Government Type: Confederation with parliamentary democracy. Independence: July 1, 1867. Constitution: The amended British North America Act of 1867 patriated to Canada on April 17, 1982, Charter of Rights and Freedoms, and unwritten custom. Branches: Executive--Queen Elizabeth II (head of state, represented by a governor general), prime minister (head of government), cabinet. Legislative--bicameral parliament (104-member Senate, 295-member House of Commons). Judicial--Supreme Court. Political parties: Progressive Conservative Party, Liberal Party, New Democratic Party, Reform Party, Bloc Quebecois. Subdivisions: 10 provinces, 2 territories. Economy GDP (1993 est.): $611 billion. Annual growth rate: 3.1%. Per capita GDP: $21,800. Natural resources: Petroleum and natural gas, hydroelectric power, metals and minerals, fish, forests, wildlife. Agriculture: Products--wheat, livestock and meat, feed grains, oil seeds, dairy products, tobacco, fruits, vegetables. Industry: Types--motor vehicles and parts, fish and forest products, processed and unprocessed minerals. Trade (1993): Exports--$156 billion: motor vehicles and parts, lumber, wood pulp and newsprint, crude and fabricated metals, natural gas, crude petroleum, wheat; partners--U.S. 79%, EU 15%, Japan 4%. Imports--$157 billion: motor vehicles and parts, industrial machinery, crude petroleum, chemicals, agricultural machinery; partners--U.S. 72%, EU 8%, Japan 6%. Exchange rate: U.S. $1=C $1.38. PEOPLE Of Canada's 27.3 million people, 80% live within 160 kilometers (100 mi.) of the U.S. border, and half live in the southeastern part of the country near the Great Lakes and the St. Lawrence River. The population of Canada is less than three people per square kilometer. Canada's more than 6 million French-speaking citizens are primarily descendants of colonists who settled the country three centuries ago. The English-speaking community has increased mostly as a result of immigration from the United Kingdom. The largest influx from the United States occurred during the American Revolution when thousands of "Empire Loyalists" fled to Canada. Other Canadians have indigenous, other European, and Asian origins. Four major influences have helped shape Canadian culture: a multi-cultural heritage (including aboriginal); English-French bilingualism; sustained government funding for artistic and literary pursuits; and the abundance and availability of U.S. cultural productions. Canadians view their country as a cultural mosaic and not as a melting pot. Inuit (Eskimo), Indian nations, French speakers, English speakers, and immigrant groups have all sought to maintain their unique cultural identities. Such efforts have been encouraged by extensive government funding of the arts. The government-funded Canada Council has become the major patron of all forms of creative endeavor in Canada. Canada has a rich literary tradition, with many influential writers in both English and French. Other prominent Canadian artists include a school of painters known as "The Group of Seven;" Canadian filmmakers such as Harry Rasky and Bill Mason, who are world leaders in producing documentaries; and a number of world-class dance troupes, orchestras, and repertory theaters. HISTORY Canada may have been populated as early as 10,000 years ago, according to carbon-dating of remains found by archeologists. It is believed that travel between Asia and Alaska took place during an ice age when a land bridge formed through the Bering Strait. Many diverse ethnic and cultural indigenous groups formed throughout Canada, the most well-known being the Inuit Indians of the Arctic region. Other indigenous groups include the Iroquois, the Huron, the Cree, the Bella Coola, and the Kwakiul. The various cultures also had numerous languages and are usually grouped into common language families, from the Salish-speaking peoples of western Canada to the Iroquoian peoples of the east. Each culture also had unique social systems, ranging from bands of a few related families of the Inuit to the Iroquois Confederacy that united five different tribes. The American Indian population in Canada was decimated following the arrival Europeans; in the mid-1980s they made up only 1% of the entire population. By the 1990s however, the indigenous population had risen to 1.5%, and it is believed that this trend will continue. Vikings are believed to have landed in Canada in the 10th century. In 1497, John Cabot reached Newfoundland and claimed for Britain a large portion of the Atlantic seaboard. Cabot was followed by French explorer Jacques Cartier, who landed at the mouth of the St. Lawrence River in 1534 and claimed the Gaspe Peninsula for France. Canada's early history was dominated by rivalry between France and Britain. While the British settled along the coast, the French pushed rapidly into the interior. For more than a century Canada was a French colony. The founder and settler of French Canada was Samuel de Champlain, who founded Quebec City in 1608 and established a number of other settlements along the Bay of Fundy and the shore of the St. Lawrence River. Explorers, traders, and missionaries, including Marquette, Joliet, and La Salle, extended the French influence in "New France." Following the early years of settlement, the French and English pioneers engaged in the highly competitive fur trade. Canada's political shape began to emerge from the Battle of the Plains of Abraham at Quebec, where the British defeated the French in 1759 and took over the French colonies in North America. The memory of that event still resonates for French-Canadians. Although New France came under British control, it was permitted to retain its religious and civil code. Canada is still attempting to find a constitutional formula that will satisfy the aspirations of the French-speaking Quebec (see POLITICAL CONDITIONS). During the American Revolution, French and British colonists in Canada rebuffed the overtures of American leaders and chose British rule over independence in association with the United States. A colonial raid on Quebec in 1775 was unsuccessful. In the War of 1812, U.S.-British rivalry in North America again resulted in the invasion of Canada. Several events accelerated the union of the British colonies in Canada into a new nation. First, the political uprisings of 1837 in both English Upper Canada and French Lower Canada led to the creation of local governments and to greater citizen participation in the government. Second, at the end of the American Civil War, it was feared that the United States might turn against British North America. Finally, the expansion of the American west and the slower settlement of the Canadian west encouraged the development of a Canadian transcontinental railroad and the perception among eastern Canadian political leaders that a Canadian federation from the Atlantic to the Pacific had to be achieved if western Canada was to avoid absorption by the United States. The British North America Act of 1867 created the new nation of Canada, comprising four provinces--Ontario, Quebec, New Brunswick, and Nova Scotia. It provided for a federal union and for a parliamentary system of government. Six other provinces eventually entered the confederation; the last was Newfoundland in 1949. GOVERNMENT Canada is a constitutional monarchy with a federal system, a parliamentary government, and strong democratic traditions. Many of the country's legal practices are based on unwritten custom, but the federal structure resembles the U.S. system. The 1982 Charter of Rights guarantees basic rights in many areas. Queen Elizabeth II, as Queen of Canada, serves as a symbol of the nation's unity. She appoints a governor general on the advice of the prime minister of Canada, usually for a five-year term. The prime minister is the leader of the political party in power and is the head of the cabinet. The cabinet remains in office as long as it retains majority support in the Commons on major issues. Canada's parliament consists of an elective House of Commons and an appointive Senate. Legislative power rests with the 295-member Commons, whose members are elected at least every five years but also at any time the prime minister advises the governor general to dissolve the House, which last occurred in September 1993. Senate members (104), in contrast, are appointed by the governor general on the advice of the prime minister. During the Meech Lake and Charlottetown debates, many Canadians, seeking to achieve better regional representation, called for direct election of senators and for other reforms of the Senate. This effort proved unsuccessful, however, as they were unable to reach agreement among the provinces. Criminal law, based largely on British law, is uniform throughout the nation and is under federal jurisdiction. Civil law is also based on the common law of England, except in Quebec, which has retained its own civil code patterned after that of France. Justice is administered by federal, provincial, and municipal courts. Each province is governed by a premier and a single, elected legislative chamber. A lieutenant-governor appointed by the governor general represents the Crown in each province. Principal Government Officials Chief of State--Queen Elizabeth II Governor General--Ramon Hnatyshyn Prime Minister--Jean Chretien Secretary of State for External Affairs--Andre Ouellet Ambassador to the United States--Raymond Chretien Ambassador to the United Nations--Louise Frechette Canada maintains an embassy in the United States at 501 Pennsylvania Avenue, NW, Washington, DC 20001 (tel. 202-682-1740). Provinces and Territories Atlantic provinces: Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick. Area--541,180 sq. km. (208,146 sq. mi.). Ethnic groups--predominantly British, French. Industry--fishing, agriculture, mining, manufacturing. Quebec: Area--1,356,790 sq. km. (523,857 sq. mi.). Ethnic groups--predominantly French, British, other European groups. Industry-- agriculture, mining, manufacturing, hydroelectric power. Ontario: Area--891,190 sq. km. (345,420 sq. mi.). Ethnic groups--British, French, other European groups. Industry--manufacturing, agriculture, mining. Prairie provinces: Manitoba, Saskatchewan, Alberta. Area--1.77 million sq. km. (680,757 sq. mi.). Ethnic groups--British, other European groups. Industry--agriculture, cattle, petroleum and natural gas, mining, manufacturing. British Columbia: Area--934,125 sq. km. (359 279 sq. mi.). Ethnic groups--British, other European, Chinese, indigenous Indian. Industry--forestry, manufacturing, fishing, mining, agriculture. Territories: Northwest Territory and Yukon Territory. Area--3.79 million sq. km. (1.45 million sq. mi). Ethnic groups--British, indigenous Indian, Inuit. Industry--mining. POLITICAL CONDITIONS In the province of Quebec in the early 1960s, Jean Lesage's "Quiet Revolution" led to a new assertiveness and heightened sense of identity among the French-speaking Quebeckers, who make up about one-quarter of Canada's population. Radical elements within Quebec, most notably the Quebec Liberation Front (FLQ), precipitated an urban violence campaign and the "October Crisis" of 1970, during which former Prime Minister Trudeau invoked extraordinary measures to maintain public safety and order. In 1976, the separatist Parti Quebecois won the provincial election and began to explore a course for Quebec of greater independence from the rest of Canada. In 1982, Queen Elizabeth ceremonially turned over full responsibility for Canada's constitution--the amended British North America Act of 1867--to the Canadian parliament. The federal government and all provinces except Quebec had agreed on a charter of rights and an amending formula. Quebec's status remains a serious political issue in Canada. In a 1980 referendum, the Parti Quebecois sought a mandate from the people of Quebec to negotiate a new status of "sovereignty-association," combining political independence with a continued economic association with the rest of Canada. Sixty percent of Quebec voters rejected the proposal. The 1987 Meech Lake Constitutional Accord, which would have brought Quebec into Canada's federal constitutional framework while recognizing it as a "distinct society," was another attempt to develop a constitutional formula to satisfy French-speaking Quebec. Quebec's Liberal government strongly endorsed the accord. However, it was not ratified by Manitoba and Newfoundland because it gave too much power to Quebec, and it expired on the June 23, 1990, deadline. Quebec subsequently announced it would negotiate constitutional issues only on a bilateral basis with Ottawa, and a special commission established by Quebec's "National Assembly" recommended holding another sovereignty referendum by the end of 1992. Despite the failure of the Meech Lake accord, a new constitutional deal was approved by all the premiers, as well as aboriginal leaders, at Charlottetown in July 1992. But even with a strong campaign by the government, the referendum to approve the deal failed when the voters in seven of the 10 provinces rejected it on October 22, 1992. Worried about high unemployment and a slowly recovering economy, most Canadians, including Quebeckers, do not wish to see constitutional issues revived in the near term. Quebec provincial elections, which must be held by November 1994, and a possible sovereignty referendum--if the Parti Quebecois wins--have nonetheless provoked renewed discussion of national unity issues. Canada's current Liberal government was elected on October 25, 1993, when it won 178 of 295 seats in parliament. The party's strength is in Ontario, the Atlantic provinces, Montreal, and urban centers in the west. This center-left party had formed the official opposition to the center-right Conservative Party, which governed Canada from 1984 to 1993. The near annihilation of the Conservative Party (it won just two seats in last year's election) largely is attributable to the rise of two new regionally based opposition parties--the Bloc Quebecois and the Reform Party--which formed out of discontent with the government. The Bloc Quebecois advocates the independence of Quebec; it won 54 seats in that province. The Reform Party is a conservative movement largely focused on fiscal responsibility and institutional reform; it won 52 seats in western Canada (principally in Alberta and British Columbia). The socialist New Democratic Party, which has traditional ties to organize! d labor, was reduced from 43 to ju st eight seats scattered throughout western Canada. Federal-provincial interplay is a central feature of Canadian politics: Quebec wishes to preserve and strengthen its distinctive nature; western provinces desire more control over their abundant natural resources, especially energy reserves; industrialized central Canada is concerned with economic development; and the Atlantic provinces have resisted federal claims to fishing and mineral rights off their shores. Canadians have responded to these different regional needs by trying to strengthen both their confederation and the fundamental democratic principles essential to a balanced federal-provincial political system. But the setbacks of recent years--such as the June 1990 failure to ratify the 1987 Meech Lake accord and the October 1992 rejection by voters of another constitutional formula--have made this process more difficult. ECONOMY Canada ranks seventh in the world in gross domestic product and is one of the world's largest producers of a wide variety of minerals. The mineral industry, forest products, and agriculture have been major factors in Canada's economic development. Canada's lakes have more than 50% of the world's surface fresh water, and 75% of Canada's power needs are met by hydro-electric energy. The spectacular growth of Canada's manufacturing segment, particularly since the 1950s, has transformed the nation from a rural, agricultural society into one primarily industrial and urban. Industry is now the leading segment of the nation's economy, employing one-third of the work force. Following rapid expansion from 1985 to 1989, the Canadian economy slipped into recession in the first half of 1990. Although the recession technically ended in the first quarter of 1991, growth did not resume until the first quarter of 1992. Growth in 1993 was 2.5%-3%. Employment has been slower to recover, and the jobless rate has remained above 10% since 1991. Inflation remained at about 1%. A 10% devaluation of the Canadian dollar in 1992, followed by further devaluations in 1993 and 1994 caused by concern about debt and public finances, boosted exports. The most serious macro-economic concern now is the high public debt burden--the legacy of generous government expenditures combined with revenue shortfalls. Agriculture's contribution to the Canadian economy averages less than 4% of both GDP and employment. Agricultural exports, led by wheat, barley, pork, and horticultural products, are less than 10% of all trade. The U.S. is Canada's leading market, taking nearly one-third of all food exports. Conversely, Canada is the second-largest U.S. agricultural market (after Japan), primarily importing fresh fruits and vegetables and livestock products. Forest covers about half of Canada's total land area. Forest product exports, including pulp and paper, represent 15% of Canada's total export trade; nearly two-thirds is exported to the United States. Canada is the world's leading producer of newsprint, accounting for 40% of global output; almost 75% of Canada's total newsprint production is exported to the United States. Commercial fisheries provide an annual catch of about 1.4 million metric tons (1.5 million tons), of which about 70% is exported. Canada ranks first in the world in mineral exports and third in mineral production after the U.S. and the states of the former Soviet Union. It is the world's largest producer of zinc, potash, uranium, and nickel; the second-largest producer of asbestos, silver, titanium, gypsum, and sulfur; and a leading producer of molybdenum, aluminum, cobalt, gold, lead, copper, iron, and platinum. Every region has significant mineral resources. Canada is a major producer of hydroelectricity, oil, and gas; unlike most of its industrial partners, it is a net exporter of energy (primarily gas and electricity). Canada's exports and imports of oil are currently in approximate balance. Crude petroleum is the largest single component of Canada's minerals output. Canadian oil reserves are about 6.8 billion barrels. Canada annually produces more than 500 million barrels of oil and about 3.5 trillion cubic feet of natural gas. The United States imports about 2 trillion cubic feet or 10% of its natural gas requirements from Canada. Canada is the fourth-largest energy supplier for the U.S. In total volume of trade, Canada ranks seventh in the world, after the United States, Germany, France, United Kingdom, Japan, and Italy. The value of U.S.-Canadian merchandise trade for 1992 was $192 billion, more than that between any other two countries in the world (also see U.S.-CANADIAN RELATIONS). U.S. exports to Canada were $91 billion, and imports were $101 billion. Also in 1992, about 22% of all U.S. merchandise exports went to Canada, which supplied about 19% of total U.S. merchandise imports. U.S.-Canada trade increased by about 50% between 1989--when the Free Trade Agreement (FTA) came into effect--and 1994, when the North American Free Trade Agreement (NAFTA) superseded it. Growth trends are expected to continue under the NAFTA, which continues FTA liberalizations while extending trade openings to new areas such as financial services. Almost one-third of U.S.-Canadian trade is in the automotive sector. Under the 1965 U.S.-Canada Automotive Agreement (Auto Pact), which provided for free trade in cars, trucks, and auto parts, two-way trade in automotive products rose from $715 million in 1964 to $23 billion by 1978. In 1980-81, it declined to about $18 billion, but it rose to $58 billion in 1992. Auto Pact benefits continue under NAFTA. The U.S. is Canada's largest foreign investor; at the end of 1993, the stock of U.S. direct investment in Canada was $69 billion, or about 65% of total foreign direct investment in Canada. U.S. investment is primarily in Canada's mining and smelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance. Canada's investment exposure in the United States is substantial. At the end of 1993, the stock of Canadian direct investment in the United States was $47 million, or 6% of total foreign direct investment in the United States. Canadian investment in the United States is concentrated in manufacturing, wholesale trade, real estate, and petroleum, with recent growth in investment in services. FOREIGN RELATIONS In Canada's early days as a nation, its foreign affairs were conducted by the U.K. By 1909, the Canadian drive for autonomy led to the creation of a department of external affairs. After World War I, Canadian representatives signed the Treaty of Versailles and began to conduct an independent foreign policy. World War II gave considerable impetus to Canadian participation in world affairs. In the early post-war period, Canada embarked on a foreign policy that has become its trademark--multilateralism. The country was a charter signatory to the United Nations, the North Atlantic Treaty Organization (NATO), and the General Agreement on Tariffs and Trade (GATT). Canada has continued to take an active role in the UN, contributing troops to UN forces in Korea, the Middle East, the Congo, Yemen, Namibia, Cyprus, former Yugoslavia, Cambodia, and Somalia. Canada also contributed naval vessels and fighter aircraft to the multinational force during the Persian Gulf crisis. In addition to its peace-keeping activities, Canada has assumed a prominent role in UN disarmament discussions, environmental activities, law of the sea negotiations, human rights issues, North-South issues, and world food problems. For example, in 1956, Canadian Secretary of State Pearson mediated in the Suez Canal crisis, for which he was awarded the Nobel Peace Prize. Canada also continues to be a strong supporter of the nuclear Non-Proliferation Treaty. Canada shares responsibility with the United States and other allies for the North Atlantic Treaty area. Due to its membership in NATO, Canada is an active participant in discussions stemming from the Conference on Security and Cooperation in Europe (CSCE). Two other international organizations of special interest to Canada are the Commonwealth, an association of former British colonies that share similarities of language, customs, and institutions, and La Francophonie, an association of French-speaking countries that includes France and former French colonies. Since about 24% of all Canadians regard French as their mother tongue, Canada has sought to broaden and strengthen ties with La Francophonie. Canada joined the Organization of American States in 1990 and has been an active member. Canadian economic assistance to developing countries totals more than $2 billion annually. The official channel for government overseas aid programs is the Canadian International Development Agency. Canada also contributes substantially to international and regional development organizations and is a major supplier of food aid worldwide. U.S.-CANADIAN RELATIONS Canada views its relationship with the U.S. as crucial to a wide range of interests. The bilateral relationship is varied and complex. Like the United States, Canada enjoyed significant post-war economic growth and prosperity, which was reflected in World Exposition '67 in Montreal. However, concerns about foreign (particularly U.S.) investment in Canada mounted and contributed to a cooling of the U.S.-Canada relationship during the Diefenbaker and Trudeau administrations. While Canada has worked to remain anchored in the West, it also has pursued policies designed to accentuate its independence from the United States. These include Canada's early "normalization" of relations with Fidel Castro's Cuba and the People's Republic of China, as well as strong Canadian opposition to U.S. involvement in the war in Vietnam. Although occasional differences occur, U.S.-Canadian relations now are close and cooperative. Investment and trade issues are a major feature of U.S.-Canadian relations (also see ECONOMY). Cooperative economic efforts include the Auto Pact, which created a largely integrated two-country market for automobiles, and defense economic arrangements, which diminish obstacles to trade and technology exchange and encourage a balance of trade in defense-related areas. Trading relations also have been enhanced by the 1989 FTA and the 1994 NAFTA. NAFTA--which took effect on January 1, 1994--continues the FTA's moves toward removing all tariffs and virtually all import and export restrictions. It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. NAFTA forms the largest trading area in the world, embracing the 370 million people of the three North American countries. Canada is further expanding its economic ties across the Pacific through membership in the Asia-Pacific Economic Cooperation forum (APEC), of which the U.S. also is a member. The United States and Canada have resolved several major issues involving fisheries. By common agreement, the two countries submitted a Gulf of Maine boundary dispute to the International Court of Justice in 1981; both accepted the court's October 12, 1984, ruling which demarcated the territorial sea boundary. In 1990, the United States and Canada signed a bilateral Fisheries Enforcement Agreement which has served to deter illegal fishing activity and reduce the risk of injury during fisheries enforcement incidents. Their success in achieving a Pacific salmon treaty in 1985 has been tempered by difficulties in negotiating multi-year extensions of its constituent fisheries regimes. The two countries work closely to resolve transboundary environmental issues, an area of increasing importance in the bilateral relationship. A principal instrument of this cooperation is the International Joint Commission, established in 1909 to promote international environmental cooperation. The Great Lakes Water Quality Agreement of 1987, aimed at preserving and enhancing the water quality of the Great Lakes, is a historic example of joint cooperation in controlling transboundary water pollution. The two governments also consult semi-annually on transboundary air pollution. Under the Air Quality Agreement of 1991, both countries have made substantial progress in coordinating and implementing their acid rain control programs. Energy and transportation problems--such as natural gas trade and trucking regulations--can be nettlesome, although such issues usually have been successfully resolved or managed through bilateral consultative forums. Canada and the United States have sought to negotiate an "open skies" regime in civil aviation, thus far without success. U.S. defense arrangements with Canada are more extensive than with any other country. The Permanent Joint Board on Defense, established in 1940, provides policy-level consultation on bilateral defense matters. The United States and Canada share NATO mutual security commitments. As the only other non-European ally, Canada contributes forces to NATO commands in Europe and the North Atlantic. In addition, U.S. and Canadian military forces have cooperated since 1958 on continental air defense within the framework of the North American Aerospace Defense Command, an integrated, bilateral military command that exercises operational control over U.S. and Canadian air defense forces and also provides early warning information on possible air and missile attacks on North America. Canada and the U.S. work closely in defense research and production. Principal U.S. Officials Ambassador--James Blanchard Deputy Chief of Mission--James Walsh Minister-Counselor for Political Affairs--David Jones Minister-Counselor for Economic Affairs--Marshall Casse Minister-Counselor for Public Affairs--Dell F. Pendergrast Minister-Counselor for Commercial Affairs--Robert Marro The U.S. embassy in Canada is located at 100 Wellington Street, Ottawa (tel. 613-238-5335). TRAVEL NOTES Customs: For U.S. citizens visiting Canada as tourists, passports and visas are not required. They should, though, be prepared if necessary to show proof of citizenship, such as a U.S. passport, birth certificate, or naturalization certificate. Climate and clothing: Climate varies by region. Currency: The unit of currency is the Canadian dollar. Canadian and U.S. dollars are fully convertible at banks and at most border crossing points. The rate of exchange varies daily. Transportation: Major airlines have service to Canada. Canada also can be reached by boat, automobile, bus, or train; it has dozens of border crossing points with the U.S. Public transportation within Canada generally is excellent. Further information about Canada is available from the Canadian embassy in Washington, DC, and Canadian consulates in 15 U.S. cities. Published by the United States Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC August 1994 -- Managing Editor: Peter A. Knecht -- Editor: Dawn Vanderhaar Department of State Publication 7769 Background Notes Series For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.