Speech to the Montreal Council of International Affairs

GOVERNOR JAMES H. DOUGLAS
Vermont and Quebec: an Expanding "Partenariat"
December 3, 2003

Je voudrais vous remercier pour cet aimable présentation. C'est un plaisir d'être parmi vous aujourd'hui et j'aimerais remercier en particulier nos hôtes: le conseil des relations internationales de Montréal et Montréal International pour avoir organisé ce lunch? Je m’attends à ce que les deux prochains jours nous apportent des rencontres très productives qui renforciront les relations économiques, culturelles et politiques entre le Vermont et le Québec ainsi que tous nos concitoyens.
We share a great deal of common history, heritage and culture, as well as a considerable boarder. Straddling that border between Derby Line, Vermont and Rock Island, Quebec is the Haskell Free Library & Opera House. At the Opera House performances take place in Canada, while the audience sits in the United States. Within the library the reading room is in the United States while the books are in Canada. All to often we think of borders as dividing lines, forgetting that they can represent contiguous interests.
The Haskell Free Library & Opera House illustrates both meanings. A black line within the building marks the political boundary. But the Library’s original donors, by specifying that the building straddle the border, recognized that the two towns and nations were contiguous, sharing cultural and other interests.
There is no doubt that political boundaries are necessary and quite real. This was poignantly illustrated, for example, during the Vietnam War when young U.S. men who had moved to Canada to avoid the draft reportedly met with their families in the Haskell Library. Unable to return without penalty to U.S. soil, they sat on the Canadian side of the library while their parents remained south of the long black line.
Earlier wars made us very aware of that political boundary. From the 18th century wars of empire to the American Revolution to the War of 1812 the border region was often the site of conflict. Armies marched back and forth across the border seeking to expand the territorial limits of our respective countries. Patriots, Fenians, and even Confederate troops launched raids across the border to further their political aims.
Happily, mutual interests and common concerns, not war, have shaped most of the history of the border we share.
Our long shared commercial interests date as far back as 1777; the year Vermont declared itself independent of the competing claims of New York and New Hampshire (Interestingly, Vermont became the first American government without a seacoast.) Its act of self-creation was not widely celebrated by the original thirteen United States, each of whom feared separatist movements within their own boundaries. Consequently Vermont existed as an independent republic for 14 years.
To some of Vermont’s founders Montreal was a logical a port of commerce for our republic, as opposed to New York City or Boston (the closest American port to Europe). Vermont leaders such as Ethan, Ira and Levi Allen went so far as to negotiate with the British over an alliance with Canada rather than the United States. Though such an alliance was not politically feasible, the Allen’s sought to strengthen economic ties between Vermont and Montreal. Though their plans for a canal linking Lake Champlain with the St. Lawrence were never realized, well into the 19th century northern Vermont saw Canada as its primary trade partner. Even during the War of 1812 Vermonters maintained that commerce despite the best efforts of our federal government. To this day Vermont’s landscape is sprinkled with place names, such as Smuggler’s Notch, that commemorate that prohibited trade.
The failure to build adequate infrastructures to sustain cross-border trade inevitably turned Vermont’s economic focus toward the development of closer ties with our sister states. Construction of the Champlain Canal linking Lake Champlain with the Hudson River is an excellent example of this transition. For instance, in 1821, the year before the canal opened, 758,500 feet of Vermont pine was shipped over the Richelieu River into Canada. One year later the Champlain Canal was completed and only 22,000 feet of Vermont pine was sent along the Richelieu.
As Vermont’s economic interests turned south, so did the interest of many resident’s of this Province. During the last half of the 19th Century, many French-Canadians moved south to work in Vermont mills, on her farms, and in her logging industry. The results of that migration are still notable today. The largest percentage of native-born Vermonters is of French-Canadian ancestry. In my hometown of Middlebury, Vermont nearly 20% of the residents trace their heritage back to Quebec.
Over the past twenty to thirty years Quebec and Vermont have again begun to view our border not as a political divide but rather as a contiguous area of shared economic and cultural interests. For example, Vermont now draws a significant portion of its power from Hydro-Quebec while lumber interests on both sides of the border have joined in the harvesting and finishing of wood products. We are beginning to build the economic infrastructures that were once the dream of the Allen family. And now we have before us an unprecedented opportunity to expand our common economic and cultural ties and serve as an example the people of our great nations and of the world.
The infrastructure that is in place, and upon which we will build--is beginning to pay dividends for the people, the businesses and the economies of Quebec and Vermont.
In 2002, Vermont exported over $840 million in product to Quebec representing 80% of all Vermont trade with Canada our largest trading partner. In turn, Vermont is Quebec’s fifth largest trading partner as nearly $2 billion in product was shipped south across the border into our state. While Quebec sent us computers and computer equipment, clothing, specialty food product, energy and sporting equipment we sent wood, iron and steal products, paper, plastic, aircraft components, natural products and our own specialty food products northward.
I should add that what I have learned about the economic development partnerships between cities like Montreal and Laval and the provincial government have impressed me. There is no doubt that Quebec is the home of world-class companies, outstanding and innovative incubator facilities, strategic clusters and the public policy to support those activities.
Moreover, here in Montreal <<Mr. Mayor>> you are known for your economic development infrastructure, the availability of venture capital, low operating costs, incentives for research and development, an exceptional workforce and access to the world from your harbor and airports. Vermont can learn a great deal from our Quebec partners.
In Vermont we are working on many of the same issues to make our state more competitive in this global environment. Vermonters too often hear from some political leaders that we do not control our own fate; and that our futures are beholden to the whims of a global economy. I understand that the global economy is here to stay and do not view it as an excuse, but rather an opportunity to diversify our economies and achieve a new vision for Vermont.
My vision for the future of Vermont is one where every child who wants to can fulfill their highest potential at home in Vermont, where they can enjoy our extraordinary way of life and have a good job. As Vermont’s new Governor, I have focused on leading Vermont on a new course of economic vitality by investing in the people of my state, in their education, in their skills and in their entrepreneurial spirit. Simply put, I will not be satisfied until every Vermonter who wants a good job has one.
Earlier this year our legislature passed my jobs package, which provides millions of dollars of new financial incentives to support the creation of more and better paying jobs. On Monday, I announced a second round of public policy and resource initiatives that will make Vermont an even more attractive place to do business. This package will provide greater resources for job training; employer recruitment and incubator support; the redevelopment of distressed areas; a greater strategic focus on key cluster development and represents the most significant are commitment to the deployment of broadband and wireless infrastructure in Vermont.
We, too, have a world-class workforce with great technical skills and an unsurpassed work ethic. This workforce powers great industrial leaders like IBM, General Electric and General Dynamic, medium sized firms like Mack Molding and Vermont Castings and the multitude of small businesses that form the true backbone of our economy.
In addition, we are extremely proud of our outstanding institutions of higher learning; institutions that offer a range of educational experiences to prepare our young people for the dynamic employment world that awaits them.
And if there is one attribute that defines Vermont more than any other it is our pristine environment and commitment to our natural resources and heritage. It is that commitment that defines Vermont as a state and Vermonters as a people. It is the deeply held belief among the people of our state that we can be successful in the creation of new businesses and new jobs while maintaining a commitment to the protection of our environment. That is how we define quality of life in Vermont. In the end it is about a quality of life and a quality of people that will ensure Vermont’s economic vitality and attractiveness for investment well into the future.
I consider this joint commitment to a strong and growing economy, with good jobs for all Vermonters who wish them, and an environment second to none, as the “hall mark” commitment of my administration, and which truly represents Vermont’s values.
Vermont and Quebec share both; the economic interdependence I have already discussed, and our common commitment to clean air and clean water. We share Lakes Champlain and Memphremagog, many other waterways, our forests, and the air we breath knows no borders.
This trip today and tomorrow only strengthens both our resolves.
We are pleased to see resurgence in the Vermont economy. There is an air of optimism and entrepreneurialism that has been asleep in our state for some time. We will continue to support and nurture this spirit and it is that spirit that is alive and well in this room today.
It is because of our rich and common cultural heritage and our common bond of trade that I am so pleased to be here in Montreal with dozens of Vermont businessmen and women who are engaged in a range of activities from very intensive partnership building to those who are simply establishing relationships. These business people recognize that in a global economy the fortunes of most businesses be they large or small are tied to their ability to think and act beyond their borders and to reach out for market opportunities wherever they may be found. Simply put, if you are in business and not thinking globally you may not be in business long. And what better way to engage in international trade than to do so with partners in whom we have so much in common. That is the message and the theme of this trip.
I began by mentioning the Haskell Free Library & Opera House and it is appropriate I end there as well. In the early 1990s Rock Island and Derby Line began to work together to revive their economies through tourism. The Haskell Library became the focal point of their work. Canadian and Vermont architectural firms participated in restoring and upgrading the building. Quebec’s Ministry of Cultural Affairs provided financial assistance. Vermont safety officials provided waivers to move the project forward. A Sherbrooke construction firm got the project underway, complying with Canadian and U.S. customs, labor, and safety regulations. The elevator for the building was bought from the Canadian branch of a U.S. firm. Manufactured in a southwestern state and shipped to Canada, that process was less expensive than it would have been if the elevator had been bought from a Vermont representative of the Canadian firm.
Initiated by local residents the work on the library succeeded because of cooperation between the governments of Quebec and Vermont. As anyone who visits the library can now attest, the collaborative effort was a success. I am here today because I think our shared economic interests are as strong today as they were back in the days of the Allen’s. I think the residents of Rock Island and Derby Line have pointed the way for us to work together to make those interests real.
Vermont and Quebec; a truly “Expanding Partenariat!”
J'aimerais vous remercier à nouveau de m'avoir invité parmi vous. C'est un privilège. D'après le programme, j'aurai l'opportunité, après le dessert, de répondre aux questions que vous pourriez me poser. Je vous remercie encore.