Business
Long Ignored Criminal Infiltration of Canadian Ports Lead Straight to Trump Tariffs
Sam Cooper
Briefings to Liberal Government on Chinese Infiltration of Vancouver Port and Canada’s Opioid Scourge Ignored
Trump Tariffs Loom as Critics Decry Ottawa’s “Fox in the Hen House” Approach to Border Security
As President Donald Trump readies sweeping tariffs against Canada on Saturday—citing Ottawa’s failure to secure its shared North American borders from fentanyl originating in China—The Bureau has obtained a remarkable December 1999 document from a senior law enforcement official, revealing Ottawa’s longstanding negligence in securing Vancouver’s port against drug trafficking linked to Chinese shipping entities.
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The letter, drafted by former Crown prosecutor Scott Newark and addressed to Ottawa’s Security Intelligence Review Committee (SIRC), urged the body to reconsider explosive findings from a leaked RCMP and CSIS report detailing the infiltration of Canada’s “porous” borders by Chinese criminal networks.
Titled “Re: S.I.R.C. Review in relation to Project Sidewinder,” Newark’s letter alleges systemic failures that enabled Chinese State Council owned shipping giant COSCO and Triads with suspected Chinese military ties to penetrate Vancouver’s port system. He further asserts that federal authorities ignored repeated briefings and warnings from Canadian law enforcement—warnings based on intelligence gathered by Canadian officials in Hong Kong, who initiated the Sidewinder review.
Newark also warned that Liberal Prime Minister Jean Chrétien’s decision to dismantle Canada’s specialized Ports Police and privatize national port control had left the country dangerously exposed to foreign criminal networks, noting he had personally briefed the Canadian government on these concerns as early as 1996.
Addressing his letter to SIRC’s chair, Quebec lawyer Paule Gauthier, Newark wrote:
“As the former (1994-98) Executive Officer of the Canadian Police Association, I was assigned responsibility for dealing with the issue of the federal government’s changes to control of the national ports and policing therein.”
“This involved close examination of matters such as drug, weapon, and people smuggling through the national ports and, in particular, both the growing presence of organized criminal groups at ports and the ominous hazard control of those ports by such groups represented.”
Newark’s letter goes on to allege widespread failures in Ottawa that facilitated Chinese Triad infiltration of Vancouver’s port, revealing federal authorities’ reluctance to act on warnings from RCMP officer Garry Clement and immigration control officer Brian McAdam—former Canadian officials based in Hong Kong who had sounded the alarm, prompting the Sidewinder review.
Newark explained to SIRC’s chair that, during his tenure as Executive Officer of the Canadian Police Association, he prepared approximately fifty detailed policy briefs for the government and regularly appeared before parliamentary committees and in private ministerial briefings.
“I can assure you that in all of that time, no clearer warning was ever given by Canada’s rank and file police officers to the national government than what was done in our unsuccessful attempt to prevent the disbandment of the specialized Canada Ports Police in combination with the privatization of the ports themselves,” Newark’s letter to SIRC states.
The letter continues, noting that in October 1996, Newark met with Chrétien’s Transport Minister David Anderson—later addressing the Transport Committee—to highlight the imminent threat posed by Asian organized crime’s infiltration of port operations. Newark’s written briefing to the Minister underscored the gravity of the situation with a blunt question:
“Who exactly are the commercial port operators?”
Citing the Anderson briefing document, Newark’s letter to SIRC states that Anderson had been warned:
“We are, for example, aware of serious concerns amongst the international law enforcement community surrounding the ownership of ports and container industries in Asia and, in particular, Hong Kong, Taiwan, and the People’s Republic of China. There is simply no longer any doubt that drugs like heroin are coming from these destinations through the Port of Vancouver, moved by organized criminal gangs whose assets include ‘legitimate’ properties.”
The Anderson briefing also referenced a British Columbia anti-gang unit report, titled “Organized Crime on Vancouver Waterfront,” which made clear that the Longshoreman’s Union had been infiltrated by the Hells Angels.
“The movement of goods through Canada’s ports requires an independence in policing that is impossible without public control,” the report warned.
It concluded:
“This report should be taken as a specific warning to this Government that, prior to downloading operational control over the ports themselves to private interests, Government be absolutely certain as to who owns what—and that it can continue that certainty with power to refuse acquisition of port assets in the future.”
Scott Newark’s letter to SIRC then turns to new intelligence—gathered from Canadian and U.S. officials—that further underscored the vulnerability created by Chrétien’s border policies.
“To now learn that law enforcement and public officials in Canada and the United States have linked a company (COSCO), granted docking and other facilities in Vancouver, to Asian organized crime, arms and drug smuggling is, to say the least, disturbing,” Newark’s December 1999 letter states.
“That this company, its principals, subsidiaries, and partners have been associated with various military agencies of a foreign government—agencies themselves identified by Canadian and American officials as having unhealthy connections to Triad groups—makes a bad situation even worse.”
Newark next addressed the broader implications of Canada’s failure to enforce border security, particularly in relation to the deportation of foreign criminals—a process he had sought to reform while serving with the Canadian Police Association.
Drawing on his experience, he described a deeply flawed immigration enforcement system, one that allowed individuals with serious criminal records to remain in Canada indefinitely. The problem, he wrote, was twofold: not only were foreign criminals able to enter Canada with ease, but authorities also failed to deport those with outstanding arrest warrants.
Newark recounted how, in 1996, a Cabinet Minister requested that he meet with Brian McAdam, a former senior foreign service officer in Hong Kong who had spent years uncovering organized crime’s grip on Canada’s immigration system. McAdam’s detailed revelations, he wrote, had directly led to the launch of Project Sidewinder.
Newark told SIRC that even after leaving the Canadian Police Association in 1998, he remained in contact with McAdam and other officials working to expose this vast and complex national security risk posed by foreign criminal networks.
It was this ongoing communication that led to an even more alarming discovery. Newark wrote that he was stunned to learn that Canada’s government had not only terminated Project Sidewinder but had gone so far as to destroy some related files.
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Newark suggests SIRC’s chair, in her review of Sidewinder, should determine whether “Sidewinder should not have been cancelled … why such inappropriate action was taken and at whose direction this was done.”
He concludes that SIRC should also freshly examine why intelligence reporting from the Canadian officials in Hong Kong, Brian McAdam and Garry Clement had been ignored in Ottawa.
Newark’s letter to SIRC says these failures to act on intelligence included the “Inappropriate granting of visas to Triad members or associates” and “Granting of docking facilities with attendant consequences to COSCO”—and “Failure of CIC and Foreign Affairs to respond appropriately to the various information supplied by McAdam and Clement in relation to material pertaining to Sidewinder.”
In an exclusive interview with The Bureau, Garry Clement, who contributed to investigations referenced in Newark’s letter, corroborated many of its claims and provided further insight. Clement recalled his role in Project Sunset, a 1990s investigation into Chinese Triads’ efforts to gain control over Vancouver’s ports.
“I can remember having a discussion with Scott when he wrote that to SIRC because Scott and I go back a long time,” Clement said. “I knew about him writing on it, but I knew it was also buried.”
He described his own intelligence work during the same period:
“I wrote in the nineties when I was the liaison officer in Hong Kong, a very long intelligence brief on the Chinese wanting to basically acquire or build out a port at the Surrey Fraser Docks area. And it was going to be completely controlled by that time, with Triad influence, but it was going to be controlled by China.”
Clement expressed frustration that decades of warnings had gone unheeded:
“The bottom line is that here we are almost 40 years later, talking about an issue that was identified in the ‘90s about our ports and allowing China to have free access—and nothing has been done over that period of time.”
Newark’s urgent recommendation for SIRC to reconsider Sidewinder’s warnings on Vancouver’s ports was never acted upon.
“We still don’t have Port Police. We got nobody overseeing them,” Clement added. “The ports themselves, it’s sort of like putting a fox in the hen house and saying, ‘Behave yourself.’”
Finally, when asked about the Trudeau government’s claim this week that Canada is responsible for only one percent of the fentanyl entering the United States—a figure reported widely in Canadian media—Clement’s response was unequivocal.
“The fact that we’ve become a haven for transnational organized crime, it’s internationally known,” he said. “So when I read that, with the fentanyl—Trump is wrong in that there’s less than 1% of our fentanyl going to the United States. That’s a crock of shit. If you look at the two super labs that were taken down in British Columbia—I think there’s three now—the amount they were capable of producing was more than the whole Vancouver population could have used in 10 years. So we know that Vancouver has become a transshipment point to North America for opiates and cocaine and other drugs because it’s a weak link, and enforcement is not capable of keeping up with transnational organized crime.”
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That opinion is evidently acknowledged by British Columbia Premier David Eby, according to documents from Canada’s Foreign Interference Commission that say Eby sought meetings with Justin Trudeau’s National Security Advisor.
A record from the Hogue Commission, sanitized for public release, outlines the “context and drivers” behind Eby’s concerns, including “foreign interference; election security; countering fentanyl, organized crime, money laundering, corruption.”
The documents state Ottawa’s Privy Council Office—which provides advice to Justin Trudeau’s cabinet—had recommended that British Columbia continue to work with the federal government on initiatives like the establishment of a new Canada Financial Crimes Agency to bolster the nation’s ability to respond swiftly to complex financial crimes.
Additionally, the PCO highlighted that Canada, the United States, and Mexico were supposedly collaborating on strategies to reduce the supply of fentanyl, including addressing precursor chemicals and preventing the exploitation of commercial shipping channels—a critical area where British Columbia, and specifically the Port of Vancouver, plays a significant role.
Eby acknowledged the concerns again this week in an interview with Macleans.
“I understood Trump’s concerns about drugs coming in. We’ve got a serious fentanyl problem in B.C.; we see the precursor chemicals coming into B.C. from China and Mexico. We see ties to Asian and Mexican organized crime groups. We’d been discussing all of that with the American ambassador and fellow governors. That’s why it was such a strange turnaround, from ‘Hey, we’re working together on this!’ to suddenly finding ourselves in the crosshairs.”
Yet, despite Eby’s claims of intergovernmental efforts, critics—including Garry Clement—argue that nothing has changed. Vancouver’s port remains alarmingly vulnerable, a decades-old concern that continues to resurface as fentanyl and other illicit drugs flood North American markets.
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Business
Canadians love Nordic-style social programs as long as someone else pays for them
This article supplied by Troy Media.
By Pat Murphy
Generous social programs come with trade-offs. Pretending otherwise is political fiction
Nordic societies fund their own benefits through taxes and cost-sharing. Canadians expect someone to foot the bill
Like Donald Trump, one of my favourite words starts with the letter “T.” But where Trump likes the word “tariff,” my choice is “trade-off.” Virtually everything in life is a trade-off, and we’d all be much better off if we instinctively understood that.
Think about it.
If you yield to the immediate pleasure of spending all your money on whatever catches your fancy, you’ll wind up broke. If you regularly enjoy drinking to excess, be prepared to pay the unpleasant price of hangovers and maybe worse. If you don’t bother to acquire some marketable skill or credential, don’t be surprised if your employment prospects are limited. If you succumb to the allure of fooling around, you may well lose your marriage. And so on.
Failing to understand trade-offs also extends into political life. Take, for instance, the current fashion for anti-capitalist democratic socialism. Pushed to explain their vision, proponents will often make reference to the Nordic countries. But they exhibit little or no understanding of how these societies actually work.
As American economist Deirdre Nansen McCloskey notes, “Sweden is pretty much as ‘capitalistic’ as is the United States. If ‘socialism’ means government ownership of the means of production, which is the classic definition, Sweden never qualified.” The central planning/government ownership model isn’t the Swedish way.
What the Nordics do have, however, is a robust social safety net. And it’s useful to look at how they pay for it.
J.P. Morgan’s Michael Cembalest is a man who knows his way around data. He puts it this way: “Copy the Nordic model if you like, but understand that it entails a lot of capitalism and pro-business policies, a lot of taxation on middle-class spending and wages, minimal reliance on corporate taxation and plenty of co-pays and deductibles in its health care system.”
For instance, take the kind of taxes that are often derided as undesirably regressive—sales taxes, social security taxes and payroll taxes. In Sweden, they account for a whopping 27 per cent of gross domestic product. And some 15 per cent of health expenditures are out of pocket.
Charles Lane—formerly with the Washington Post, now with The Free Press—is another who pulls no punches: “Nordic countries are generous, but they are not stupid. They understand there is no such thing as ‘free’ health care, and that requiring patients to have at least some skin in the game, in the form of cost-sharing, helps contain costs.”
In effect, Nordic societies have made an internal bargain. Ordinary people are prepared to fork over large chunks of their own money in return for a comprehensive social safety net. They’re not expecting the good stuff to come to them without a personal cost.
Scandinavians obviously understand the concept of trade-offs, a dimension that seems to be absent from much of the North American discussion. Instead of Nordic-style pragmatism, spending ideas on this side of the Atlantic are floated on the premise of having someone else pay. And the electorally prized middle class is to be protected at all costs.
In the aftermath of Zohran Mamdami’s New York City win, journalist Kevin Williamson had a sobering reality check: “Class warfare isn’t how they roll in Scandinavia. Oslo is a terrific place to be a billionaire—Copenhagen and Stockholm, too … what’s radically different about the Scandinavians is not how they tax the very high-income but how they tax the middle.”
Taxation propensities aside, Nordic societies are different from the United States and Canada.
Denmark, for instance, is very much a “high-trust” society, defined as a place “where interpersonal trust is relatively high and ethical values are strongly shared.” It’s often been said that it works the way it does because it’s full of Danes, which is broadly true—albeit less so than it was 40 years ago.
Denmark, though, has no interest in multiculturalism as we’ve come to know it. Although governed from the centre-left, there’s no state-sponsored focus on systemic discrimination or diversity representation. Instead, the emphasis is on social cohesion and conformity. If you want to create a society like Denmark, it helps to understand the dynamics that make it work.
Reality intrudes on all sorts of other issues. For example, there’s the way in which public discourse is disfigured on the question of climate change and the need to pursue aggressive net-zero policies.
Asked in the abstract, people are generally favourable, which is then touted as evidence of strong public support. But when subsequently asked how much they’re personally prepared to pay to accomplish these ambitious goals, the answer is often little or nothing.
If there’s one maxim we should be taught from childhood, it’s this: there are no panaceas, only trade-offs.
Troy Media columnist Pat Murphy casts a history buff’s eye at the goings-on in our world. Never cynical – well, perhaps a little bit.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
Alberta
Alberta can’t fix its deficits with oil money: Lennie Kaplan
This article supplied by Troy Media.
Alberta is banking on oil to erase rising deficits, but the province’s budget can’t hold without major fiscal changes
Alberta is heading for a fiscal cliff, and no amount of oil revenue will save it this time.
The province is facing ballooning deficits, rising debt and an addiction to resource revenues that rise and fall with global markets. As Budget 2026 consultations begin, the government is gambling on oil prices to balance the books again. That gamble is failing. Alberta is already staring down multibillion-dollar shortfalls.
I estimate the province will run deficits of $7.7 billion in 2025-26, $8.8 billion in 2026-27 and $7.5 billion in 2027-28. If nothing changes, debt will climb from $85.2 billion to $112.3 billion in just three years. That is an increase of more than $27 billion, and it is entirely avoidable.
These numbers come from my latest fiscal analysis, completed at the end of October. I used conservative assumptions: oil prices at US$62 to US$67 per barrel over the next three years. Expenses are expected to keep growing faster than inflation and population. I also requested Alberta’s five-year internal fiscal projections through access to information but Treasury Board and Finance refused to release them. Those forecasts exist, but Albertans have not been allowed to see them.
Alberta has been running structural deficits for years, even during boom times. That is because it spends more than it brings in, counting on oil royalties to fill the gap. No other province leans this hard on non-renewable resource revenue. It is volatile. It is risky. And it is getting worse.
That is what makes Premier Danielle Smith’s recent Financial Post column so striking. She effectively admitted that any path to a balanced budget depends on doubling Alberta’s oil production by 2035. That is not a plan. It is a fantasy. It relies on global markets, pipeline expansions and long-term forecasts that rarely hold. It puts taxpayers on the hook for a commodity cycle the province does not control.
I have long supported Alberta’s oil and gas industry. But I will call out any government that leans on inflated projections to justify bad fiscal choices.
Just three years ago, Alberta needed oil at US$70 to balance the budget. Now it needs US$74 in 2025-26, US$76.35 in 2026-27 and US$77.50 in 2027-28. That bar keeps rising. A single US$1 drop in the oil price will soon cost Alberta $750 million a year. By the end of the decade, that figure could reach $1 billion. That is not a cushion. It is a cliff edge.
Even if the government had pulled in $13 billion per year in oil revenue over the last four years, it still would have run deficits. The real problem is spending. Since 2021, operating spending, excluding COVID-19 relief, has jumped by $15.5 billion, or 31 per cent. That is nearly eight per cent per year. For comparison, during the last four years under premiers Ed Stelmach and Alison Redford, spending went up 6.9 per cent annually.
This is not a revenue problem. It is a spending problem, papered over with oil booms. Pretending Alberta can keep expanding health care, education and social services on the back of unpredictable oil money is reckless. Do we really want our schools and hospitals held hostage to oil prices and OPEC?
The solution was laid out decades ago. Oil royalties should be saved off the top, not dumped into general revenue. That is what Premier Peter Lougheed understood when he created the Alberta Heritage Savings Trust Fund in 1976. It is what Premier Ralph Klein did when he cut spending and paid down debt in the 1990s. Alberta used to treat oil as a bonus. Now it treats it as a crutch.
With debt climbing and deficits baked in, Alberta is out of time. I have previously laid out detailed solutions. But here is where the government should start.
First, transparency. Albertans deserve a full three-year fiscal update by the end of November. That includes real numbers on revenue, expenses, debt and deficits. The government must also reinstate the legal requirement for a mid-year economic and fiscal report. No more hiding the ball.
Second, a real plan. Not projections based on hope, but a balanced three-year budget that can survive oil prices dropping below forecast. That plan should be part of Budget 2026 consultations.
Third, long-term discipline. Alberta needs a fiscal sustainability framework, backed by a public long-term report released before year-end.
Because if this government will not take responsibility, the next oil shock will.
Lennie Kaplan is a former senior manager in the fiscal and economic policy division of Alberta’s Ministry of Treasury Board and Finance, where, among other duties, he examined best practices in fiscal frameworks, program reviews and savings strategies for non-renewable resource revenues. In 2012, he won a Corporate Values Award in TB&F for his work on Alberta’s fiscal framework review. In 2019, Mr. Kaplan served as executive director to the MacKinnon Panel on Alberta’s finances—a government-appointed panel tasked with reviewing Alberta’s spending and recommending reforms.
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