The Canadian government welcomedPresident Reagan's announcement that he would seek 2.5 billion
dlrs over five years to combat acid rain.
    "This action on the part of the U.S. administration serves
well our ultimate objective of a bilateral accord providing for
a common resolution of this serious environment problem," Prime
Minister Brian Mulroney said in a statement.
    Environment Minister Tom McMillan said the Reagan
announcement was a major step toward elimination of acid rain
and that Canada was pleased with the U.S. decision.
    The Reagan announcement earlier today said the
administration would ask Congress to approve 500 mln dlrs in
each of the next two fiscal years to fund innovative projects
to control smokestack emissions -- blamed for acid rain that
has killed fish and trees in eastern Canada and the
northeastern United States.
    Canada has been pressing the Reagan administration to live
up to a commitment made last year for 5 billion dlrs in
spending by the U.S. government and industry to cut toxic
emissions that cause acid rain.
    The acid rain issue has been the major irritant in
Canada-U.S. relations for several years, with Ottawa accusing
Washington of failing to act on the issue.
 Reuter
