China's sanction threat over Dalai Lama visit serious, former ambassador says

THE CANADIAN PRESS

MONTREAL - A former Canadian ambassador to China believes the government's decision to greet the Dalai Lama on Parliament Hill on Monday could cost Canadian companies lucrative contracts.

Fred Bild, who served as ambassador to China between 1990 and 1995, doesn't believe China will intervene and sanction Canada directly.

But Bild believes Chinese threats should be taken seriously.

Bild told The Canadian Press in an interview on Tuesday that China is a country where the state still has a large influence on economic decisions,

He criticized the Tory government for creating a confrontational situation as opposed to the more discreet approach applied by Jean Chretien and Brian Mulroney, who reserved their criticism behind closed doors.

The federal government has said it is not fazed by China's protests.

© The Canadian Press, 2007