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Canada report
By JIM FOX Chretien's popularity sinks after firing finance ministerPrime Minister Jean Chretien's popularity has plummeted after he dumped popular Finance Minister Paul Martin from the Cabinet. A lingering rift between the two became public as Chretien moved to cut off attempts by Martin and other Liberals to replace him as prime minister. When Martin said he would consider his options about staying on as finance minister, Chretien moved quickly to oust him, insisting that a feud could cause financial market turmoil. At a caucus meeting, many Liberals were unhappy with Chretien's decision and suggested that he should consider "the best interests of the party" and think about stepping gracefully aside. Chretien, 68, faces a leadership review in February but says he plans to serve out his term that could run another three years. Martin remains in the House of Commons with the "backbenchers," politicians who don't have portfolios in the Cabinet. The scandal-plagued government faced new allegations of corruption Friday, along with accusations the prime minister's staff met two years ago to try to cover up problems revealed in an audit of shady federal ad contracts now being investigated by police. Opposition politicians say the Liberals favored ad companies that made big donations to the party. Canada will win softwood war with U.S., official saysDeputy Prime Minister John Manley thinks Canada will eventually win the softwood lumber dispute with the United States. In a speech to senior government workers, Manley said he is "confident that we will win our challenges on softwood lumber" before the World Trade Organization and under the North American Free Trade Agreement. The troubles over lumber and Canadian anger over American farm subsidies are natural in the complex, intertwined Canada-U.S. relationship, he added. The United States has imposed stiff duties on Canadian softwood lumber exports, citing unfair subsidies given to the industry in Canada. Names in the newsAlexa McDonough, 57, is resigning as leader of the socialist New Democratic Party once her successor is chosen within six months. She will remain the Member of Parliament for Halifax and said her resignation was a desire to revitalize the party. Meanwhile, McDonough's mother, Jean Shaw, died Friday of cancer. She was 88. Eleanor Clitheroe remains chief executive of Ontario Hydro although her board of directors quit in protest over a dispute with the provincial government over what it termed was excessive compensation. Ontario Energy Minister Chris Stockwell said it will be up to a new board to negotiate a lower pay package for Clitheroe who earns $2.2-million a year with a severance provision of $6-million and annual pension of $1-million. Martha Stewart flew north to Winnipeg to pick up a business award from the University of Manitoba's I.H. Asper School of Business. She received the international distinguished entrepreneur award and told 1,200 students about her philosophy of business and how it's "terribly important to be trusted." Facts and figuresA booming economy led the Bank of Canada to increase its trend-setting interest rate by 0.25 percent to 2.5 percent. Banks then increased the prime lending rate to 4.25 percent. The dollar was lower at 65.24 U.S. cents Friday while the U.S. dollar returned $1.5328 Canadian, before bank exchange fees. Stock markets were lower, with the Toronto exchange index at 7,478 points Friday while the Canadian Venture Exchange 1,224 points. Lotto 6-49: (Wednesday) 1, 2, 9, 15, 20 and 38; bonus 13. (June 1) 7, 8, 12, 37, 46 and 48; bonus 41. Regional briefsAnthine Calvin LeFait, 35, of Austin, Manitoba, was fined $500 for disobeying railway signals after his truck collided with a freight train, triggering a toxic fire that forced 150 people from their homes. The crash last month near Firdale derailed 20 cars and sparked a fire that burned for three days. No one was injured. The town of Conklin in northeastern Alberta is in the path of peril as 1,000 firefighters tried to control a huge forest fire. The 250 residents left their homes as firefighters try to head off the advancing flames. There are 32 forest fires burning in the province -- 11 out of control -- 48 fires in Saskatchewan and 14 in Manitoba. Mounties say it's a case of the beer bandit striking again in Grand Falls-Windsor, Newfoundland. Police say the man buys a case of beer and then returns a short time later asking to exchange it because he bought the wrong brand. Staff later find the bottles in the case left behind are filled with water.
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