Hillary Clinton: Keystone XL not a proxy for US-Canada relationship

Washington's long-awaited decision to approve or reject the Keystone XL pipeline should not become a symbol of the relationship between the USA and Canada, former US secretary of state Hillary Clinton said on Monday.

Speaking to a business crowd of roughly 1800 in Toronto, Clinton said the controversial project designed to move Alberta crude oil to the Gulf Coast has become "a proxy for everything" as proponents and critics lock horns over its fate.

"However this Keystone decision is finally made, some people are going to be very happy, relieved and think it was the right decision and some people are going to be distraught and even angry and upset, thinking it was a terrible decision," she said.

"I do not see it, though, nor should it be a proxy for the relationship. It is, after all, one pipeline. We already have a lot of pipelines that cross our border."

American approval of the pipeline has been stalled in the US while the Obama administration drops hints that Canada must do more on the environment.

The TransCanada Corp. project should be part of a wider discussion on energy and the environment, Clinton said.

"I do believe that both Canada and the United States can become even richer, more prosperous but also more environmentally sustainable by having a broad engagement over energy and climate, and not focusing everything on this one decision."

The former first lady is in the city to discuss her new memoir, "Hard Choices."

Clinton made a speech in Toronto on Monday to promote her new book before taking questions from Frank McKenna, Canada's former ambassador to the US.

McKenna noted the Obama administration's delayed decision is source of tension and is increasingly viewed as a proxy for the relationship.

The pipeline is critical to Canada, which needs infrastructure in place to export its growing oil sands production. Alberta has the world's third largest oil reserves, with 170 billion bbls of proven reserves.

Edited from source by Elizabeth Corner

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