The French president says he would recognize Quebec if the province secedes from Canada. Fears that the separatists could win next week's referendum on secession sent Canada's financial markets reeling.
In an interview Monday night on CNN's "Larry King Live," French President Jacques Chirac was pressed by King about whether France would recognize Quebec if the separatists win."If the referendum is positive, the government will recognize the fact," Chirac said. Asked if that meant France would recognize Quebec under those conditions, Chirac said "Yes."
Earlier Monday, Canadian financial markets were shaken by fears that Quebec will vote for independence on Oct. 30. The Canadian dollar, which traded last week at nearly 75 U.S. cents, tumbled to just under 73 cents.
The Toronto Stock Exchange also quavered, suffering the sixth-biggest one-day loss in its history. Its composite index dropped nearly 3 percent. Banks and the Montreal-based conglomerate Imasco Ltd. were hit especially hard.
"Referendum fears dominate the financial markets," said Sherry Cooper, chief economist at investment dealer Nesbitt Burns.
Many financial analysts predict major economic upheaval if Quebec votes to secede, including a further plunge for the Canadian dollar, higher interest rates and a possible exodus of businesses from Quebec.
"That's what you call political instability," said Prime Minister Jean Chretien, in New York for the United Nations' 50th anniversary ceremonies.
Chretien, a native Quebecker who staunchly opposes secession, said he remained optimistic despite recent polls showing a slight lead for the separatists. He noted federalists won by a 60-40 margin in 1980 despite final opinion polls showing a tight race.
One of the leaders of the federalist campaign, Progressive Conservative Party chief Jean Charest, urged his fellow Quebeckers to weigh their vote carefully.
"The choice and the consequences are overwhelming for people and are irreversible," Charest said in Ottawa. "We'd be in a black hole. Where would it go from there?"