Part 13 - Energies Dedicated To Results
Robert Stanfield's election in 1974 was a sign that politics had shifted in Canada, but what Stanfield also represented was that the Progressive Conservative Party was very much seeking to combine those two elements, aiming to make life better for as many Canadians as possible while sticking to their principles, using whatever solutions worked. This process began almost immediately upon Stanfield's election, as he pledged that he would not do anything to dismantle Petro-Canada, which at least two Western Premiers were howling loudly for. Stanfield was also more than willing and able to use crown corporations for national purposes (something which drove men like Diefenbaker nuts) and to negotiate with his political opponents on important issues. Stanfield called this "intelligent, pragmatic, conservative decision-making". Stanfield's first government created two new crown corporations in Via Rail Canada (which took over Canadian passenger rail operations from Canadian National Railways and the Canadian Pacific Railways) and the National Infrastructure Bank of Canada (which was meant to government projectsat provincial and municipal levels). Canada saw certain provinces benefit enormously from the raised energy prices, but the rest of Canada was more than able to adapt to the realities of the time, and the vast sums in the bank from several provincial natural resource funds (and two in Ottawa) helped to make sure the Canadian dollar didn't fall to any particular degree. Stanfield was also willing to push for continued advancement of Canada's energy realities, with the Trans-Canada pipeline rebuilt in stages between 1974 and 1980, the Canadian National Research Council conducted experiments and developments into new energy sources (one result of this was the first ocean-thermal-energy-conversion power station in the world, built at Pedro St. James on Grand Cayman and entering service in 1982) and the building of the Sir Alexander Bustamante Nuclear Generating Station at Hopewell, Jamaica, which began producing electricity in 1985. Stanfield also pushed for improvements in the operations of crown corporations that had private sector rivals in order to create efficiencies, and in the particular case of Petro-Canada, Air Canada and Canadian National Railways they had more than a little bit of success.
Canada was similar to the United States in its social transformations in the 1960s leading to economic ones in the 1970s. Canada avoided the worst of stagflation but still saw very sluggish economic growth, testing the Welfare Capitalism idea to the limit, but by the later 1970s new generations of workers were entering positions of greater authority and leadership in many companies, a situation mirrored in the United States and supercharged in Canada by the country's vast electronics industries and laboratories and the Canadian Broadcasting Corporation, which introduced ever-better technologies into the television and radio worlds in the 1960s and 1970s. Solid-state electronics began to be made in Canada in large amounts for public usage during this time period, and the presences of the famed computer science laboratories at the Queens and Carleton Universities in eastern Ontario and McGill University in Montreal led to eastern Ontario and southwestern Quebec becoming a hotbed for electronics development, even as the by-now famous Bell Canada Laboratories developed Quadraphonic stereo sound and ever-better color television systems in the late 1960s, creating the 'Hi-Vision' system of television transmission that all of Canada rapidly adopted, while Canadian firm Avaria Technics worked with Phillips to develop the first modern cassette players and then some of the first commercially-available VCRs, the Avaria V100 becoming available in Canada in 1969, and Avaria and Phillips both sided with the VHS system during the VHS vs. Betamax conflicts of the 1970s and 1980s as well as making their own V2000 players, which due to the ability to play much longer movies and all models offering Quadraphonic sound carved themselves out a substantial niche, which got bigger after Sony gave up on Betamax in the early 1990s and began making V2000-format players and movies themselves. Bell Canada Laboratories also were among the first to setup fiber-optic communications networks (which proved to be a major improvement over the older copper wires) and develop satellite phones and microwave telephone networks, the latter a major benefit to rural regions of Canada which struggled to get good communications services.
Mergers and consolidations also happened, as did foreign investments, in Canadian industries. The largest ones by some margin was the alliance between Renault and American Motors in 1978. This was a merger between a French and American company, but which was negotiated out by Canadians, and one of the results was two of the largest auto assembly plants ever built by the companies, the mammoth Brampton Assembly and Brantford Engine Manufacturing facilities, which opened in 1982. This was followed by an alliance between Subaru and Westland-Reynard in 1986, and that merged company became allied with PSA Peugeot Citroen and Chrysler in 1991. (Chrysler had for decades been entirely reliant on exports to supply Canadian markets, a situation which changed dramatically after their alliance with Westland-Reynard.) GM of Canada by this point was the second-largest division of the firm after its American counterparts (and by the mid-1980s the Trillium Natural Resource Fund and Wildrose Resource Fund were two of GM's biggest shareholders, and this did make a big difference in GM's decisions with regards to Canada), and Ford Motor Company's expansive operations in Canada only grew larger in the 1970s and 1980s after the signing of the Auto Pact in 1969. Dominion Steel and Falconer Metals were merged into Dofasco in 1976, the former after having been suffering through bankruptcy problems for a decade. Dofasco's takeover of Dominion Steel was classic welfare capitalism - Dofasco spent over $75 million modernizing the massive Sydney steel mill and reworked several coal mines in the area, and while demand for the coal suffered from recessions, its demand was subsequently assured for good when Petro-Canada built its first East Coast F-T refinery in Brownsville, Nova Scotia, the plant beginning operations in 1982. Canadian Pacific took over the almost-bankrupt Milwaukee Road railroad in 1972, a move that looked curious considering CPR's long-standing ownership interest in the newly-formed Burlington Northern, but it was soon clear that the purchase was done because CPR saw it as a passage to Chicago and serving the rich agricultural lands of the American northern plains as well as Welfare Capitalism move, proving that even very large companies could do good for those who work for them.
Indeed, Welfare Capitalism's passing of its 1970s tests came to be beneficial to many others besides Canada, as the 1980s would see a long string of American corporations taking the Welfare Capitalism ideas to heart, and the passing of changes to union laws in the 1970s (most famously the Employee Free Choice Act, passed by the United States in June 1977) also resulted in greater employee involvement in their workplaces, a situation that was growing on both sides of the border. This also resulted in the 1980s in a wave of employee-owned businesses, both ones created by employees and those spun off of major corporations, with the workers at such businesses seeking to improve the viability of the businesses and thus preserve their livelihoods. This saved North Bay-based Ontario Metals, a former steel industry giant which had suffered badly through economic issues in the 1960s and 1970s before the company filed for bankruptcy in 1972, only for the employees of Ontario Metals to work with the United Steelworkers of Canada union to organize an employee takeover of the firm. Ontario Metals became an employee-owned firm on May 22, 1975, and subsequently rebuilt the company in Northern Ontario, including preserving the company's famed North Bay Integrated Mill - it was closed for rebuilding in 1978, re-opening with more than a little fanfare in August 1981 able to produce many metals it couldn't before.
As the Baby Boomers' authority grew, in Canada so did its desire to change the world, and having built sizable diplomatic influence, huge economic clout, social influence and a powerful military to back it all up, Canada by the 1970s was able to swing the Commonwealth on issues even when Australia and Britain weren't always in total agreement (this was most pronounced with regards to South Africa, whose policy of apartheid was something Canada absolutely loathed) and was acting as a middle player in the world. Canadian diplomats began to grow a reputation first with negotiating out the terms of the final treaty between Pakistan, India and Bangladesh with the Treaty of Colombo after the 1971 Indo-Pakistani War, the treaty's signing in January 1973 ensuring Bangladesh's independence, even as Washington (a major ally of Pakistan) wasn't particularly happy with the end result - however, the brutality of the Pakistanis in defeat (as opposed to the Indians, who were rather more restrained, though by no means perfect) caused a rift between the Commonwealth and Pakistan that subsequently made life difficult for Washington. Regardless, the successful Treaty of Colombo was a sign of what was to come, as Ottawa got in 1975 the call of a lifetime, one which many had had a hard time believing.
The Yom Kippur War between Israel and its Arab Neighbours in 1973 had ended with an Israeli victory, though at truly awful costs to both sides, and with Israel's losses from multiple wars having by then affected every family in the nation and done atrocious harm to the Arabs, calls on both sides for peace were being heard on both sides. Egyptian President Anwar Sadat made the fateful first move, making agreements with Israel over the disengagement of their forces in 1974 and 1975, allowing the Suez Canal to re-open in June 1975, and setting the groundwork for Sadat to continue to work on improvements in relations between the two nations. Recognizing Canada's involvement in the peace treaty in India, peacekeeping, the ability to influence the Commonwealth and a reputation for being even-handed, Sadat in September 1975 asked Ottawa to help him negotiate out a full peace deal with the Israelis, and had Ottawa pass to the Israelis a message that Egypt would accept losing the Sinai if the Palestinians were able to have a sizable part of it as part of their homeland. Israel initially responded with shock, but Sadat's visit to the Vatican in April 1976 was a very loud sign that he was intent on bringing Egypt into the world, that the bluster and excesses of the Nasser era was going into history. Sadat was something of a visionary in this regard - he could see the Soviet Union's stagnation was not being matched in the West, and Sadat saw the Commonwealth as the best potential ally, and saw Egypt as an ally of the Commonwealth to allow it to not have to live with the problems that could come from Washington and Moscow. Diplomatic contact between Canada and Egypt made clear that the Egyptians, in return for recognizing Palestinian independence and a land of their own, were willing to establish full diplomatic relations with the Israelis and would push the rest of the Arab world to do the same. Canada quickly passed this on to Israel, and the Israelis sent back that they wanted to negotiate with the Egyptians face to face.
Sadat proved true to his word, leading a delegation to Israel in March 1977 and speaking in the Israeli Knesset of a desire to put a generation of bloodshed behind them. Even Israel's more hawkish government officials could see the interest was genuine, and Sadat convinced Israel's new Prime Minister, Menachem Begin, to be a part of an international conference on the future of the Holy Land, and said categorically that Egypt would not have any issue with a Canadian proposal for Jerusalem being an international city, so long as Arabs could live and work there along with the Israelis. That news didn't take long to get to Ottawa, London, Washington and Moscow, and all parties were supportive, with US President Jimmy Carter calling an international conference in New York City for April 1978.
The New York Conference and the Berkshire Conference that followed it the following year between delegations from Israel, Egypt, Jordan, the PLO, United States, Canada, Britain and the Soviet Union laid out what the parties desired for the Holy Land. Sadat's willingness to give up a large chunk of the Sinai to a Palestinian state was a genuine shock to much of the Arab world but Sadat made it stick, and the Jordanians got the PLO to agree that an independent Palestinian state would be the home of the Palestinians alone, thus reducing the problems Palestinian refugees had caused for Jordan in the previous decade. Everyone agreed that Jerusalem would be an international city open to all Israelis and Palestinians, and Sadat proposed that both governments be able to locate all of their departments and ministries there save their armed forces and security services. The Canadians proposed that Israel's security concerns be settled by the deployment of Western armed forces to Israel with a clause in the treaty that in the event of an emergency that the forces would be put under Israeli control, and both Britain and America offered the Israelis access to pretty much anything they desired out of the NATO arsenal as a way of ensuring Israel's security. King Hussein openly called for commerce links after peace, and he made an offer to Canada to have Canadian National Railways contracted to build rail lines from Tel Aviv and Haifa to Amman and throughout the Palestinian territories as a way of improving commerce, and the Soviet Union offered to restrict arms sales to the region in an attempt to help with the peace process.
Even with the promising start in New York, the Arab street was unconvinced and Hafez al-Assad in Syria was livid, loudly trying to stir up trouble for Sadat, a situation mirrored in the Arab world. But within days of the New York Conference's breaking up, two big allies jumped into the game - the Shah of Iran and Pope Paul VI, the former getting involved in an attempt to improve his country's diplomatic position (though by this point Iran was in good stead economically and was a staunch ally of the United States, and was improving its relationship with the Commonwealth) and the latter saying that he had a duty to advance the cause of peace in the world. While 1978 was to be dramatic year for the Catholic Church, with three popes in a year as a result of John Paul I's untimely death from a heart attack, it did nothing to change the Church's viewpoints, and John Paul II in November 1978 proposed that "The City of God should be governed, at least in part, by Men of God, and if the good men of Israel and Palestine so desire, I will be quite happy to assist their efforts in any way possible." Shah Pahlavi, for his part, proposed the creation of a vast fund supported by both Iran and the Arab states for the Palestinians' economic rehabilitation, and made the first move for it, dropping some $26.5 Billion into the fund, and he publicly called on Saudi Arabia's King Fahd to contribute to the Palestinian cause as well. Fahd rose to the skillfully-delivered challenge and matched Pahlavi dollar-for-dollar, and privately Fahd spoke to Hafez al-Assad, asking that he back off his sabre-rattling. The result of this was a shifting sense on the Arab street, particularly after PLO members began to begin arriving back in Palestinian territories in the fall of 1978, allowed to do so by the Israelis. Israel made a sizable concession by releasing a number of convicted PLO terrorists in January 1979, and the good terms between the sides involved and the shifting sands in the region, particularly in both Egypt and Jordan, made sure that the Berkshire Conference that followed began with high hopes that the March 1979 would come to a complete agreement on the future of relations between Israel and the Palestinians.
Hosted by Queen Elizabeth II at the incredible Windsor Castle and chaired by Canadian Prime Minister Robert Stanfield, the Berkshire Conference hammered out the complete agreements in principle, though with specific lines to be drawn. Jerusalem would become an international city with a third-party force protecting it, with any crimes involved in the city resulting in the perpetrators having their choice of being tried by Islamic law or Israeli civil law. The city would be governed by three religious clerics - one Jewish, one Muslim and one Christian, chosen by their respective sides. The city would also have two civil mayors - one Israeli, one Palestinian - and a complete civil service that answered to them, and they in turn would answer to the clerics. The city was to be open without restrictions to citizens of Israel and Palestine, and both governments could - and both indicated they would - claim it as their capital city, and Sadat's proposal that only armed forces and security services be excluded from Jerusalem was accepted at the Conference. Israelis living on Palestinian land would be moved back into Israel, but they would be allowed to stay where they were until their new homes were built. There would be a section of Israel where Palestinians were allowed to travel through, live in and do business in as they pleased, on the condition that they followed Israeli laws, connecting the two sections of the state of Palestine. About half of the Sinai would be returning to Egypt, with the israelis keeping a small section and the Palestinians having the rest of it, with the Palestinians having a long section of land that took the whole of the west coast of the Gulf of Aqaba, which also had the effect of separating the borders of Israel and Egypt, a situation Sadat was keen on pushing for. Both Israel and Palestine would get a sizable amount of economic aid to help to move their existences forward.
Israel's security would be taken care of by the United States and the Commonwealth of Nations, with the United States committing to building a naval base at Haifa and a huge army training facility at Mitzpe Ramon which also served as the base for the American army contingent, as well as massively expanding the Beersheba Air Force Base to also be used by the Americans. The Commonwealth was to build a major air base at Ashalim and a major army base, Camp Lightfield, between Eliakim and Bat Shlomo in northern Israel, and both countries agreed on contributions at the Berkshire Conference - the Americans sent two cavalry regiments, a Marine unit, six air force attack and strike squadrons and two air superiority squadrons to Israel, while Commonwealth would deploy three infantry regiments - one British, one Canadian and one Australian - and two armored regiments as well as units of the RAF, RCAF, RAAF and RNZAF. The knowledge of these new units being in Israel - and both the size of them and their relationship with Israeli command - tipped the scales in favor of the treaties in Israel, and rumors that the Americans would base an aircraft carrier in Haifa and the Commonwealth stationing heavy bombers at Ashalim made the point stronger still. (Indeed USS Kitty Hawk was assigned to the newly-built Naval Base Haifa in July 1982, and 480 Squadron RCAF, equipped with Handley-Page Victor B.4 bombers, was deployed to Ashalim in January 1983.) The Arabs weren't left out, as (with Israeli approval) the United States offered a vast fleet of American equipment to the Palestinians, including AH-1 SuperCobra attack helicopters and F-4E Phantom II fighter-bombers, in an attempt to help the Palestinians gain some repute, even if the Israelis would be far stronger. With the agreement in general signed on April 10, 1979, the negotiations shifted to Ottawa in June to make the final arrangements and draw the borders. In the middle of this, anti-Treaty elements in the Knesset made a point of dramatically expanding the size of Jerusalem's borders in an attempt to poison the negotiations, only for Arafat to brush that off and Begin to push the agreement through the Knesset anyways. Israel passed the treaty in the Knesset on May 23, 1979, thus clearing the way for the final negotiations.
The drawing of lines done and agreements made, the leaders of the nations involved - Israel, Palestine, Egypt and Jordan and their allies - the United States, Canada, Britain and the Soviet Union, along with the Vatican City and Iran - converged in Ottawa's famed Chateau Laurier on August 4, 1979 to sign what was now known as the Ottawa Treaty. Menachem Begin signed for Israel, Yasser Arafat for Palestine, Anwar Sadat for Egypt, King Hussein I of Jordan, President Jimmy Carter for the United States, Prime Minister Robert Stanfield for Canada, Queen Elizabeth II for Britain (Prime Minister Margaret Thatcher was initially to do so, but Her Majesty was favored by the Middle Eastern participants and nobody in London objected to the action), Alexei Kosygin for the Soviet Union, Pope John Paul II for the Vatican and Shah Mohammed Reza Pahlavi for Iran. The speeches were impressive and the agreement was an incredible one, but a lot of work remained to be done, as the treaty mandated that the agreements be finalized by September 1, 1980. All involved took to the task with a will, however, and the job was done. The Israelis and Palestinians agreed that the first guardians of Jerusalem should be Canadians, as they had been key drivers of the operation from the beginning, and they sent that request to Ottawa in late August 1979. That led to the Canadian Army reviving one of its storied regiments, the Black Watch (Royal Highland Regiment) for the duty, commanded by two of its most senior battalion commanders, Colonel Jean-Paul Gauthier and Major Romeo Dallaire. They deployed to Jerusalem in July 1980, raising their flag in Jerusalem on August 17, 1980. Canada's contribution was also joined by the famed Fort Garry Horse armored regiment and the 22nd Regiment of Canada, the famous VanDoos, who both deployed to the Commonwealth base at Camp Lightfield in August 1980. Just days after the signing of the treaty the first settlers moved back into Israel proper, and fast work meant the last to leave were only there until October 1981. The clerics selected by the Arabs (their choice was famed Sunni scholar Abdul Haadi Rahman), Israelis (who chose moderate scholar Eliezer Zahavi) and the Vatican (they chose Husaam al-Bagheri, the Archbishop of Beirut, who was elevated to Cardinal upon his selection), they issued their first orders to the two mayors (Teddy Kollek and Amin Majaj) and Colonel Gauthier on September 2, 1980, officially marking the beginning of Jerusalem's new world. The agreements done and in place, Palestine declared independence on September 8, 1980, and was recognized by Israel the next day, and Palestine formally recognized the state of Israel's existence alongside Jordan and Egypt on September 12. Iran followed on September 15, and Palestine's recognition came fast and furious from the West. Prime Minister Stanfield was the first signatory leader to visit Jerusalem and inspect his troops, doing so in November 1980 on a trip to the Holy Land.
The Ottawa Treaty was to be Canada's greatest diplomatic triumph for some time, and the new world between Israel and the Palestinians did indeed last. The booming 1980s saw the Palestinians, who had never been dumb and had a greater level of education than many places in the Arab world, took to trading with the Israelis and their neighbors with a will. Israel's situation was even better - hugely-reduced military spending and much-improved international standing contributed to give israel a tech and science boom in the 1980s, taking an already well-off nation and making quite wealthy indeed. Egypt and Jordan did well also, and the Treaty's success made both Sadat and King Hussein enormously popular people among their countries, indeed Sadat having little difficulty leading Egypt until his death from a heart attack in 1997 and his successor, Hosni Mubarak, ultimately being the last military leader of Egypt, leading it into democracy in the mid-2000s, peacefully handing power to Mohammed El Baradei in 2007. Aid from the West led to massive growth in all of the nations involved, and the success of the more liberal-minded politicians ultimately discredited many of the harder-line leaders in the Arab world. Hafez al-Assad's loud calls for the treaty to be rejected (and equally-loud shouts from Saddam Hussein in Iraq) led to Assad facing a monumental uprising in 1982 and an attempted coup by his brother in 1984.
Hussein also suffered, though in a way that was entirely his own making - Iran was in the middle of troublesome changes in the late 1970s and early 1980s, and the thuggish Hussein in August 1980 invaded Iran under the guise of reclaiming Aran territory from the Iranians and taking away foreign attention focused on Israel and Palestine. Hussein's action would prove a monumental mistake, as the Shah took personal command of his country's armed forces and went himself to the region to lead his armies from a strategic viewpoint, proving both competent at it and perfectly willing to trust both his military commanders and political allies in Tehran. The Iran-Iraq War of 1980-81 united Iran behind its leadership, in the process destroying much of the support for Islamists like Ayatollah Khomeini and communist groups. The Iranians were victorious, defeating the Iraqis for fair in March 1981, and in the process the Shah, who had insisted on doing whatever he could to assist his officers until cancer forced him out of a day-to-day position in February, was made into something of a war hero, helped by the fact that his son Reza Pahlavi, a fighter pilot for the IRIAF, also fought in the war and was wounded in it when his F-4 Phantom was hit by an Iraqi SAM on a mission in January 1981 (Reza got his badly-damaged fighter back to base and got treated for his wounds before returning to the fight) and the Shah's wife, Farah Pahlavi, proved a very, very good political negotiator and diplomat. Shah Pahlavi died of cancer in a hospital in Tel Aviv on July 24, 1981, but such was his actions during the war and Farah and Reza's popularity that Reza was able to claim his father's throne, being coronated in Tehran on February 20, 1982. The price of the crises of the 1980s, however, was a turn towards demoracy by Iran, something Reza and his mother both publicly and privately supported. After over two years of negotiations, Iran's first completely free elections were held in April 1985, electing long-time pro-democracy activist Mehdi Bazargani as Prime Minister, with a wide 'unity cabinet' selected by him, though Islamists continued to oppose it. Their efforts ultimately came to naught, and by the time Ruhollah Khomeini died in 1989, his movement was fading, even as the more conservative Mir-Hossein Mousavi replaced Bazargani in the 1990 elections. Iran had been a staunchly pro-Western country during Mohammed Reza Pahlavi's time, but while his son kept that alliance with the West, he was a loud supporter of Iran's place in the world and fought hard to have Iran be seen as the country that the west looked to when working with the Islamic faith, something that drove the Saudis absolutely insane. By the 1990s, however, he was becoming successful, as iran's decades of social progress was proving to the world that Islam and a modern, tolerant society was possible, even if Iran socially was way more conservative than most western countries. Iran did, however, support the efforts of Muslim nations (and not just Shia ones, but all Muslims) to forge bonds with the West, and Iran's relationship with Egypt and Israel proved a major sign of what was to come, as the Middle East was soon divided between those societies which sought to merge Islam with modernity, and those who fought such actions.