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Closer ties with U.S. a priority, Martin says

Patching up differences with the United States is one of the first priorities of the recently returned Liberal government.

Canadian Prime Minister Paul Martin said the two countries must find ways to resolve lingering trade disputes and tighten North American security to improve confidence in the continent.

Speaking to business leaders in Sun Valley, Idaho, Martin said the countries are too important to one another to allow business or security ties to weaken.

Major concerns are the softwood lumber trade dispute and that the U.S. border remains closed to live Canadian cattle after a case of mad cow disease was discovered in Alberta last year.

"We've got to find a way in which disputes can not only be settled, but settled permanently," Martin said.

Physical and economic security at home will translate into more secure dealings with the world, Martin said. It was his first major public speech since narrowly returning to office with a minority government in the June 28 federal election.

"Fundamentally, I think that Canada and the United States should see each other as more than simply important partners, more than simply friendly neighbors," he said. "It's time that we understood our responsibilities as joint stewards of North America and those areas where, at least, our common interests intersect."

Toronto health officials say air pollution is to blame for 1,700 premature deaths and 6,000 hospital admissions every year.

Dr. Barbara Yaffe, the city's acting medical officer of health, said consistently high pollution levels are partly because of an increase in vehicle traffic and a decline in the use of public transit.

A study shows Toronto's nitrogen dioxide levels were the fourth highest of 27 cities surveyed around the world over a 10-year period. It also looked at other pollutants including carbon monoxide, sulphur dioxide, ozone and fine particles.

Recommendations to curb pollution include more money for public transit, promoting energy conservation and tougher air-quality standards.

Hockey player Todd Bertuzzi's criminal assault case was adjourned to July 22 at a hearing Friday in provincial court in Vancouver. The Vancouver Canucks forward was arrested for assault causing bodily harm in an attack on Colorado's Steve Moore during a game in March. Moore had a broken neck and other injuries, putting his NHL career in doubt.

Garfield Mahood of the Non-Smokers' Rights Association expressed dissatisfaction with how long it's taking to get smuggling charges against a tobacco conglomerate to trial. The case against JTI Macdonald Corp. isn't expected to go to trial until next year. In February 2003, police filed criminal charges against JTI Macdonald, three affiliated U.S. companies and eight current or former executives in connection with selling cigarettes to smugglers in the 1990s.

New Democrat politician Svend Robinson plans to plead guilty to stealing an expensive diamond ring. Robinson, 52, who gained notoriety as Canada's first openly gay member of Parliament, decided to leave politics after admitting he "pocketed" a $65,000 ring at a public auction in British Columbia.

Canada's jobless rate rose slightly to 7.3 percent last month as more people were looking for work, Statistics Canada said.

The Canadian dollar is higher at 75.86 U.S. cents, while the U.S. dollar returns $1.3182 Canadian, before bank exchange fees.

The Bank of Canada's key interest rate remains at 2 percent while the prime lending rate is steady at 3.75 percent.

Stock markets are mixed, with Toronto's composite index lower at 8,473 points and the Canadian Venture Exchange higher at 1,582 points.

Lotto 6-49: (Wednesday) 2, 7, 26, 35, 39 and 43; bonus 17. (July 3) 1, 11, 14, 20, 31 and 40; bonus 26.

A foul-smelling liquid mailed to New Brunswick politicians caused the Legislature building and the provincial government office building mail room in Fredericton to be sealed off for most of the day Friday. Police said there was no public health hazard, but didn't confirm reports the liquid was animal feces that oozed from eight large yellow envelopes.

Regina police were expanding their search for a 5-year-old girl. There were no new clues as to what happened to Tamra Jewel Keepness, who was last seen going to bed Monday night. Police found no signs of forced entry or struggle in the home.

A tornado touched down in Grande Prairie, Alberta, Thursday, tearing a wall off a store, flipping over cars and sparking at least one fire. No injuries were reported, but the storm ripped the roof off a building and damaged utility poles, cutting power to the downtown area, before it headed to the southwest.

- Jim Fox can be reached at canadareport@hotmail.com