New Democratic Party leader Ed Broadbent, has charged in the House of Commons here that “Bell Canada’s $1.1 billion contract to modernize Saudi Arabia’s communications system contains a discriminatory clause against Israel which the Canadian government should have removed.” He said that as a result of the telephone company’s contract, Bell has not submitted a bid on a similar contract for Israel which he said could have helped ease Canada’s severe unemployment problems.
“There is a clause in the contract” between Bell and Saudi Arabia “which states that Bell Canada is not doing business with Israel,” Broadbent said. “That clause is there for one purpose only — which is discrimination.” Industry Trade and Commerce Minister Jack Homer replied in the House that he was not aware that Israel was interested in having Canadian firms bid on the installation of a new telephone system in that country. He added “whether or not Bell Canada will bid on a similar contract in Israel will depend upon Israel and Bell Canada.”
Broadbent insisted that the Canadian government should have acted to remove the discriminatory clause because the State-controlled Development Corporation had insured Bell Canada for $450 million for any possible risk in accepting the Saudi Arabian bid.
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