Statistics Canada said on Thursday that a 5.1 percent jump
in exports was behind an unexpected trade surplus of C$24
million ($24 million). Traders had predicted a shortfall of
C$720 million after the revised C$1.25 billion deficit in
February.

Canada last recorded a trade surplus – a modest C$45 million
- in March 2012.

Canada’s export sector – a major driver of the economy – has
long struggled with a strong Canadian dollar and weak
international markets. It is also heavily reliant on the United
States, which has been showing signs of recovery.

Other recent figures, including strong February growth
figures on Tuesday, also suggest the domestic economy is
starting to pick up speed.

Last month, the Bank of Canada predicted first quarter
growth of just 1.5 percent on an annualized basis.

“It now looks like trade will add significantly to real GDP
growth in the first quarter,” said Robert Kavcic of BMO Capital
Markets in a note to clients.

“We upgraded our Q1 Canadian growth forecast to 2.3 percent
(from 1.5 percent) after Tuesday’s real GDP report, and these
trade results fully support that change.”

The Canadian dollar firmed to a session high of C$1.0060 to
the U.S. dollar, or 99.40 U.S. cents. It closed at C$1.0081, or
99.20 U.S. cents on Wednesday.

In March, exports jumped by 5.1 percent, the biggest leap
since the 5.3 percent recorded in March 2011. Exports of energy
grew by 3.9 percent while shipments of motor vehicles and parts
increased by 6.1 percent.

Peter Hall, chief economist at Export Development Canada,
said the export figures reflected a U.S. economy which is still
recovering from last year’s Superstorm Sandy, which hit the
eastern seaboard in late October, and fears over the impact of
wrangling over the budget.

“I am thrilled about the fact we have a 5.1 percent month
and that it’s very broadly based a lot of industries. That shows
to me that this is not a flash in the pan,” he told Reuters.

Hall echoed Bank of Canada Governor Mark Carney, who said
this week that private industry rather than government spending
was fueling U.S. growth.

“This is a report that illustrates what we’ve been trying to
say for an awfully long period of time, and that is that
fundamental underlying growth in the United States is very
strong,” Hall said.

Exports to the United States, which took 72.8 percent of all
Canadian exports in March, grew by 4.0 percent while imports
were up by 2.0 percent. As a result, the trade surplus with the
United States grew to C$3.82 billion from C$3.18 billion in
February

Imports increased by 1.7 percent, thanks largely to an 18.1
percent leap in imports of crude oil and bitumen after three
consecutive monthly declines.

Ken Hughes said he has been talking to the government of
Canada’s Northwest Territories, which lie directly north of
Alberta, about a pipeline to a port such as Inuvik or
Tuktoyaktuk on the Beaufort Sea, a section of the Arctic Ocean.

The government of landlocked Alberta has hired a
Calgary-based consultant to produce a feasibility study on such
a pipeline. It expects the study to be delivered by the end of
the year.

Delayed pipeline projects and an excess of supply mean
Alberta’s heavy crude often has been selling at a deep discount
to world prices, although the price gap has narrowed recently.

“We need access to tidewater, to the ocean, in order to
secure world prices … any rational economic option will be
explored, and this is part of our oil market diversification
strategy,” Hughes told Reuters in a phone interview.

Another possibility might be to ship oil by rail to the
Valdez oil terminal in Alaska, he said.

An Arctic pipeline would face serious challenges from
environmentalists as well as possible resistance from aboriginal
communities along the route. There would also be the threat that
unpredictable ice conditions in the Beaufort Sea could block
ports.

“It’s quite possible that at the end of the day a pipeline
for oil to the Arctic Ocean doesn’t make sense in the immediate
next decade or two,” Hughes said. “But I’d rather be
well-informed based upon science and economics.”

He denied the Arctic oil plan had been prompted by the
delays facing TransCanada Corp’s proposed Keystone XL
pipeline from Alberta to refineries in Texas, which is still
awaiting approval from U.S. President Barack Obama.

“The Gulf Coast in America is simply one point of access …
we need to be more diversified,” Hughes said.

Canada’s Conservative government, keen to boost oil exports
to China and other Asian markets, backs private-sector plans to
boost pipeline capacity from Alberta to ports in the Pacific
province of British Columbia. These proposals, however, are also
facing problems.

Green activists and aboriginal bands strongly oppose
Enbridge Inc’s proposed Northern Gateway pipeline to
the West Coast, and there are increasing doubts about whether
the project will ever be built.

And this week, the leader of the opposition party most
likely to win next month’s election in British Columbia
expressed major doubts about Kinder Morgan Energy Partners LP’s
plan to more than double the capacity of its existing
Trans Mountain pipeline from Alberta to Vancouver.

(An artist’s sketch shows Chiheb Esseghaier making his first court appearance, in Montreal, April 23, 2013. REUTERS/Atalante)

Canada’s Muslim community, which alerted police to an alleged plot to attack a passenger train that led to two arrests this week, said imams were ready to report radical members who seemed ready to cross a line.

Police arrested Raed Jaser of Toronto and Chiheb Esseghaier of Montreal on Monday and said they had been investigating them since last fall after a tip from the Muslim community in Toronto. The men appeared in separate courts on Tuesday.

Muslims comprise around one million of Canada’s 34.5 million population.

While relations between Muslims and law enforcement are generally not as tense as they can be in the large Muslim communities in France and Britain, Canadian spy agency officials have often expressed concern about the dangers posed by radicalized youth.

Naseer Irfan Syed, a lawyer who initially approached police on behalf of a Toronto imam who was concerned about Jaser, said on Tuesday  that community figures had to figure out what was just angry talk and when there was a real threat.

“People have to realize that the community leaders and imams are concerned about these accusations and are responsible people and they will report to the authorities when necessary,” he told Reuters.

“But at the same time they will also exercise judgment so it is not done frivolously or in a knee-jerk fashion,” he said. Syed declined to name the imam who spoke with police over the train plot.

Read the full story by Alastair Sharp and David Ljunggren here.
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Police arrested Raed Jaser of Toronto and Chiheb Esseghaier
of Montreal on Monday and said they had been investigating them
since last fall after a tip from the Muslim community in
Toronto. The men appeared in separate courts on Tuesday.

Muslims comprise around one million of Canada’s 34.5 million
population.

While relations between Muslims and law enforcement are
generally not as tense as they can be in the large Muslim
communities in France and Britain, Canadian spy agency officials
have often expressed concern about the dangers posed by
radicalized youth.

Naseer Irfan Syed, a lawyer who initially approached police
on behalf of a Toronto imam who was concerned about Jaser, said
community figures had to figure out what was just angry talk and
when there was a real threat.

“People have to realize that the community leaders and imams
are concerned about these accusations and are responsible people
and they will report to the authorities when necessary,” he told
Reuters.

“But at the same time they will also exercise judgment so it
is not done frivolously or in a knee-jerk fashion,” he said.
Syed declined to name the imam who spoke with police over the
train plot.

Both Prime Minister Stephen Harper and Public Safety
Minister Vic Toews stood up in Parliament on Tuesday to thank
the Muslim community.

MUSLIM “PARTNERS FOR PEACE”

Canada’s commitment to protecting minorities is enshrined in
the country’s Charter of Rights and Freedoms as well as a number
of Supreme Court judgments.

Ihsaan Gardee, executive director of the Canadian Council on
American-Islamic Relations, also stressed the importance of the
imam’s decision last year to tip off police.

“This is a clear demonstration that Canadian Muslims, whose
welfare is tied to that of our fellow citizens, are in fact
partners for peace,” he told a news conference in Ottawa.

“We think it’s an important thing to acknowledge the role
that Muslims are playing and regularly play in outreach work. We
have regular contact with security agencies.”

Canadian police briefed Muslim representatives before
publicly announcing the arrests on Monday, something they have
done in similar cases in the past.

The most serious Canadian plot involving Muslims occurred in
2006, when police arrested and charged nearly 20 Toronto-area
men accused of planning to plant bombs at various Canadian
targets. Eleven of them were convicted.

Gardee said the community was aware of the risks of
radialized youth and noted that groups of imams had in 2005 and
2010 condemned terrorism in any form.

“It’s a concern that we take very seriously and it’s
something we’re continuously working to address. Can more be
done? More can always be done and that’s why we’re reaching out
to security agencies,” he said.

Christian Leuprecht, an expert in terrorism at Queen’s
University in Kingston, Ontario, said the tip-off reflected
extensive efforts by the Royal Canadian Mounted Police to
improve ties with Muslims.

“One of the key things, and what makes us very different
from the United States, is that the RCMP has always very
explicitly separated building relationships with local
communities from the intelligence gathering side of the house,”
he told Reuters.

Gardee said he was confident Canadians would see the plot as
the “alleged criminal and misguided actions of a few” who did
not reflect or represent Muslims as a whole.

“Our message to anyone who espouses this ideology of
violence is this: you have nothing to do with our faith,” he
said.

(Writing by David Ljunggren; Editing by Janet Guttsman and
David Storey)

“I would say that as we sit here today, we are encouraged by
the fact that the rate of debt accumulation has slowed,” Carney
told lawmakers.

The household debt-to-income ratio, which now sits at an
all-time high of 165 percent, should level off this year after
rising steadily for the past few years, he said. Various housing
market indicators are also showing improvement.

But Tiff Macklem, senior deputy governor at the central bank
and seen as the most likely to replace Carney when he leaves in
June to run the Bank of England, said it’s too early to say that
those risks has disappeared completely.

“House prices are starting to stabilize, but they are high.
So the vulnerabilities are still there and it’s important that
this gradual evolution continues … it’s too soon to let down
our guard and if we see an acceleration, yes, we need to look at
the measures we can take,” he said.

Carney repeated the central bank’s warning that it expects
its next move to be an interest rate increase, even after
recently cutting economic growth forecasts.

“The considerable monetary stimulus which exists now in
Canada will probably remain like this for a certain period –
that is clear,” he said. “But after a certain time, which the
Bank of Canada is not specifying, it is probable there will be a
modest increase in interest rates.”

When asked whether high personal debt was the main motive
for the bank’s rate-hike bias, Carney conceded that it was a
factor, but that low inflation and substantial slack in the
economy were also key.

“On the margin we do take into account what is happening in
the household sector and on the margin that influences policy to
be less loose, if I can put it that way, than it otherwise would
be,” Carney said.

Evidence of a soft landing for housing included a drop in
the number of mortgages with floating rates, the policymakers
said. Growth in household credit has slowed to 4 percent from 6
percent.

Canadian housing starts have also eased to about 185,000,
in line with the bank’s estimate of demographic demand, while
housing resales are just below the 10-year average, they said.

The Ottawa-Brussels negotiations to open up access to each others’ economies were launched in 2009, and were originally presented as a straightforward bid to reinvigorate growth and generate around $28 billion in trade and new business a year.

But diplomats and officials told Reuters wrangling over the amount of beef Canada will be able to export to the EU, and EU demands for greater ability to bid for Canadian government contracts, are bedeviling the final stages of the agreement.

“This was supposed to be done in November, then we said February, but now there’s no clarity … No one wants to walk away from this, but it could be put on ice if things remain stuck for a prolonged period,” said an EU diplomat.

An EU agreement with Canada would be its first with a member of the G7 club of major economies. It would also be one of a new generation of deals that not only remove import tariffs but also harmonize rules on how companies do business across borders.

The European Commission’s negotiating teams and the EU diplomats who shape such pacts already often work into the small hours and need Canada out of the way to focus on the biggest of the new deals they are facing, with the United States.

“Everyone in Brussels is shifting efforts and attention to the United States … The challenge lies in maintaining the political momentum,” said Adrian van den Hoven, a director at the EU’s biggest industry lobby Business Europe.

Any failure of the Canadian deal could have an impact on the U.S. negotiations, due to start in July. Brussels officials were hoping to use the Ottawa accord to show Washington they were serious about opening up their sensitive agricultural markets to a large, developed economy.

An EU-U.S. trade deal, which would encompass half the world’s economy and a third of global trade, could increase EU economic output by 65 billion euros ($85 billion) a year, according to a European Commission estimate.

TUSSLE OVER BEEF

Diplomats say much of the EU-Canada deal is agreed, and at the heart of the final dispute is a Canadian demand to be able to export up to 100,000 metric tons of beef to the EU every year.

Canadian beef exports are effectively blocked by the EU at present because they contain hormones. Ottawa argues it needs a large quota to make production of hormone-free beef for Europe economically viable.

Irish and French farmers are unhappy with that, and the EU has offered a much lower quota. That means both sides have to seek a compromise, especially as Brussels wants to leave quota space for the beef the United States will seek to export under its free-trade deal.

In return for opening up to Canadian beef, German and French companies want to be able to bid for government contracts in the urban transport sector, which would challenge Canadian rail car builder Bombardier’s dominant domestic position (BBDb.TO: Quote, Profile, Research, Stock Buzz).

The extent of the discord became evident in February, when EU trade chief Karel De Gucht flew to Canada to shake hands on the deal with Canada’s Trade Minister Ed Fast.

According to people familiar with the exchanges, Fast was unable to agree on the deal because he did not have the authority to do so from his prime minister, Stephen Harper.

“De Gucht was ready to sign a deal when he came over, but the Canadians weren’t prepared. They were nowhere near ready,” said one EU diplomat.

Harper has taken a close interest in the Canada-EU talks and one person close to the talks said he had covered one document with handwritten suggestions on how negotiators could proceed.

But analysts say he needs more time to sell a deal to his electorate, especially in Quebec, where Bombardier has its base.

“Harper and the government is recognizing they are going to have to make some sacrifices and spend some political capital to close this,” said one Canadian source close to the talks.

Asked about the state of play, a spokesman for Fast said negotiations were continuing and a deal would be signed when both sides were ready.

“Harper has to add his political weight to get an agreement,” said another person close to the talks. “The best scenario would be for both sides to sign the deal at the G8 summit in Northern Ireland in June, but there’s no guarantee.” ($1 = 0.7644 euros)

(Additional reporting by Philip Blenkinsop in Brussels; Editing by Andrew Heavens)

The main reason for the drop in the annual rate was lower
gas prices, Statistics Canada said on Friday. The March rate was
slightly less than the 1.1 percent predicted by economists.

The Bank of Canada – which has kept its overnight lending
rate at a near record low since September 2010 – this week said
it did not expect inflation to hit its 2 percent target until
mid-2015. The central bank is not expected to raise rates until
the second half of 2014.

“After quite a bit of volatility in the prior few months,
Canadian inflation has shown its true colors a little more
clearly this month – and those colors are pretty bland,” said
Doug Porter, chief economist at BMO Capital Markets.

“Inflation, like growth, is at the very low end of what the
Bank of Canada is comfortable with.”

The Canadian economy is struggling to cope with weak
foreign markets and a strong domestic dollar. The Bank of Canada
central bank this week also cut its economic forecasts on signs
of a slackening economy.

Gasoline prices in the year to March fell by 0.3 percent
after rising 3.9 percent in the 12 months to February. Food
prices grew by 1.8 percent in the year to March, down from the
1.9 percent recorded in February.

The Bank of Canada’s closely watched core rate, which strips
out volatile prices of energy and some foodstuffs, stayed
unchanged at 1.4 percent.

“The key take-away here is that growth has disappointed,
slack is quite material and that in turn will help keep
inflation pressures very much benign over the next several
quarters,” said TD Securities macro strategist Mazen Issa.”

After the figures were released the Canadian dollar remained
steady at C$1.0260 to the U.S. dollar, or 97.47 U.S. cents. It
later strengthened slightly and by 10:05 a.m. (1405 GMT) was at
$1.0252, or 97.54 U.S. cents.

Overnight index swaps, which trade based on expectations for
the central bank’s key policy rate, showed that after the
announcement traders trimmed their very small bets on an
interest rate cut later this year.

“Certainly these low inflation readings argue for the bank
to keep policy highly accommodative, to try to get a bit more
momentum into the economy,” said Paul Ferley, assistant chief
economist at the Royal Bank of Canada.

Separately, Canadian wholesale trade unexpectedly remained
flat in February from January, held back by lower sales of
machinery, equipment and supplies.

Market operators had expected a 0.4 percent increase.
Statscan revised January’s advance to 0.5 percent from an
initial 0.3 percent. The volume of sales remained stable.

In February there were decreases in five of the seven
subsectors, representing about 70 percent of wholesale trade.
Wholesalers in seven of Canada’s 10 provinces reported higher
sales, but these were offset by a 1.1 percent drop in Ontario,
the largest province.

The main reason for the drop in the annual rate was lower
gas prices, Statistics Canada said on Friday. The March rate was
slightly less than the 1.1 percent predicted by economists.

The Bank of Canada – which has kept its overnight lending
rate at a near record low since September 2010 – this week said
it did not expect inflation to hit its 2 percent target until
mid-2015. The central bank is not expected to raise rates until
the second half of 2014.

“After quite a bit of volatility in the prior few months,
Canadian inflation has shown its true colors a little more
clearly this month – and those colors are pretty bland,” said
Doug Porter, chief economist at BMO Capital Markets.

“Inflation, like growth, is at the very low end of what the
Bank of Canada is comfortable with.”

The Canadian economy is struggling to cope with weak
foreign markets and a strong domestic dollar. The Bank of Canada
central bank this week also cut its economic forecasts on signs
of a slackening economy.

Gasoline prices in the year to March fell by 0.3 percent
after rising 3.9 percent in the 12 months to February. Food
prices grew by 1.8 percent in the year to March, down from the
1.9 percent recorded in February.

The Bank of Canada’s closely watched core rate, which strips
out volatile prices of energy and some foodstuffs, stayed
unchanged at 1.4 percent.

After the figures were released the Canadian dollar remained
steady at C$1.0260 to the U.S. dollar, or 97.47 U.S. cents.

Overnight index swaps, which trade based on expectations for
the central bank’s key policy rate, showed that after the
announcement traders trimmed their very small bets on an
interest rate cut later this year.

“Certainly these low inflation readings argue for the bank
to keep policy highly accommodative, to try to get a bit more
momentum into the economy,” said Paul Ferley, assistant chief
economist at the Royal Bank of Canada.

Separately, Canadian wholesale trade unexpectedly remained
flat in February from January, held back by lower sales of
machinery, equipment and supplies.

Market operators had expected a 0.4 percent increase.
Statscan revised January’s advance to 0.5 percent from an
initial 0.3 percent. The volume of sales remained stable.

In 2008, Shaw, based in Western Canada, bought some of the
spectrum the Conservative government had set aside for new
entrants in the mobile telephony market as part of a plan to
encourage more competition for the big three: Rogers, BCE Inc’s
Bell Canada and Telus Corp.

“The intent of the policy was not to have this set-aside
spectrum to end (up) in the hands of incumbents,” Industry
Minister Christian Paradis told reporters on a conference call
when asked about Shaw’s plans.

Consumer and advocacy groups want Paradis to block the sale.

All spectrum license transfers must be approved by the
federal industry ministry, giving Ottawa an effective veto.

In March, the government announced public consultations on
the transfer of spectrum licenses, in particular on whether such
proposed sales would affect the efficiency and competitiveness
of the Canadian telecommunications market.

Once the consultation period is over, the Conservatives will
announce new criteria for license transfers.

Canada’s wireless market has some of the highest charges in
the developed world. Rogers, Bell Canada and Telus together
command a 90 percent share.

Despite the government’s moves to boost competition the new
entrants are struggling in a market of 34.5 million people
stretched across the world’s second largest country.

Newcomers include Wind Mobile, a carrier in the process of
being acquired by Amsterdam-based VimpelCom Ltd, as well
as closely held Mobilicity and Public Mobile.

Speculation is rife that some or all of the young companies
might look to be bought by either the domestic big three players
or by other deep-pocketed investors willing to enter the market.

“I acknowledge that this is a fierce sector in terms of
competition … consolidation of course might occur,” Paradis
said.

“But I think that we are on the right track in terms of
policy. Of course it’s a work in progress … I still remain
confident that we will achieve our goal (of increased
competition).”

In March, Paradis said the government would start the
process of auctioning more prime wireless spectrum on Nov. 19
and announced other steps designed to stimulate competition and
reduce high roaming charges.

Last year, he reduced foreign investment restrictions on
small carriers that have a market share of 10 percent or less.

Even though the election is 30 months away – in October 2015
- the next few months will be a critical time for Harper, given
mounting evidence in opinion polls that the Conservatives risk
losing power after what would be nearly a decade in office.

A different government would likely raise corporate taxes
and step up environmental controls, with costs to the energy and
mining firms that lead Canada’s growth.

A string of polls in the last two months put support for the
Conservatives between 29 and 32 percent, barely enough to keep
them in power with an unstable minority government.

The party, in power since 2006, won a majority in the May
2011 election with 39.6 percent of the vote.

“I don’t think you can underestimate probably the internal
fatigue of the government,” said pollster Nik Nanos of Nanos
Research.

The likely Conservative response: A restating of priorities,
including: a balanced budget, then tax cuts, and a cabinet
reshuffle.

That would give Harper the chance to bring in new younger
ministers, and bring more women into the cabinet. Harper said
last year that he planned big cabinet changes in mid-2013, and
an aide said the plan remained on track.

The biggest external political threat comes from the
Liberals, who have governed Canada more than any other party,
but who sank to a distant third with less than 19 percent of the
vote in 2011, behind the left-leaning New Democrats (NDP).

The Liberals are banking on the possible re-emergence of
Trudeaumania, the voter excitement of 1968 when Pierre Elliott
Trudeau became Liberal prime minister on a wave of flower power.

Trudeau’s son Justin is likely to be elected Liberal leader
on April 14, and polls show that helping the party enormously.

A Forum Research poll this month said they would win 40
percent of votes with Trudeau in charge, and perhaps a majority
of seats. An Ipsos Reid poll on Thursday also had Trudeau
Liberals ahead of the Conservatives, but by just one point.

Karl Belanger, principal secretary to NDP leader Thomas
Mulcair, brushed off the threat from its rivals on the left.
“The Liberals will pick their seventh leader in nine years,” he
said. “We will let them sort themselves out, the NDP is focused
on the Conservatives.”

Conservative strategists play down the opinion polls, noting
how far away the next election is. They acknowledge Trudeau’s
charisma, but stress his inexperience.

Trudeau has banked on presenting a message of hope, much
like U.S. President Barack Obama, and has sought to make a
virtue of the fact that in many areas he does not have detailed
policies, insisting that he will first listen to Canadians.

KEEP THINGS CLEAN

The Conservatives wrested power from a scandal-hit Liberal
administration in 2006 with a promise to clean up Ottawa. But
now the Conservatives have accountability problems of their own.

Two ministers were forced to quit this year over ethics
violations and Elections Canada has laid charges against a
Conservative campaign worker in connection with fraudulent
robocalls in the 2011 campaign. The Conservative Party says it
ran a clean campaign and was not involved with the calls, and
anybody responsible should be prosecuted to the full extent of
the law.

In an unusual sign of open protest against Harper, some
backbench Conservatives are grumbling about tight controls on
what they can do or say in public, particularly on abortion,
which is legal in Canada but opposed by some in Harper’s party.

One anti-abortion Conservative, Stephen Woodworth, accused
Harper’s government of being “tyrannical” after party whips
denied another lawmaker the opportunity to speak in Parliament
about a proposal to condemn gender-selective abortion.

Harper’s answer to his woes looks set to include the largest
single cabinet shuffle since he took power. The timing is
unclear, but he has said it will be in mid-2013.

“He will not be fiddling around at the edges or moving a few
pieces around,” a leading Conservative told Reuters.

A key question is whether Jim Flaherty will stay on as
finance minister despite health problems. He has held his post
from the moment Harper formed his government in 2006, and says
he wants to stay until the budget is balanced in 2015.

Though he ran up record budget deficits in response to the
recession, markets see Flaherty as an experienced hand
determined to balance the budget without tax hikes.

Harper has until now kept his cabinet changes moderate,
preferring to stick to tried-and-true ministers over new blood.

“If the Conservative end game is to be a governing party in
the long term…then they’re going to need something before the
next election that puts some sort of newness on what the party
has to offer,” Nanos, the pollster, said.

After the shuffle he will lay out his priorities for the
second half of his term, expected to include tax cuts (in time
for the election), action on shortages of skilled labor that
have bedeviled the natural resources sector, getting oil to
markets and reaching free-trade agreements.

In the 2011 election, both the Liberals and the New
Democrats, the biggest opposition party at present, campaigned
on a promise of higher corporate taxes, either rolling back tax
cuts brought in by the Conservatives or raising them further.

Both opposition parties have pledged to implement some sort
of carbon-pricing scheme, whether a cap-and-trade system or a
straight carbon tax, and both have opposed Conservative measures
to limit the environmental assessments.

They would also be more cautious on oil pipelines, currently
opposing the proposed Northern Gateway pipeline from Alberta to
British Columbia, which would enable crude to be shipped to
China. The Liberals back the Keystone XL line to take Canadian
crude to refineries in the United States, but the NDP does not.

(Editing by Claudia Parsons and Leslie Gevirtz)