THE CANADIAN REPORT

GAY MARRIAGE, DRUG LAW CHANGES DRAW TOURISTS

Tourism-battered Toronto is attracting new groups of visitors - pot smokers
and gay lovers.

"With SARS and all the related difficulties we've had in Ontario, this is
ideal to bring hundreds of thousands of tourists here for the fine Canadian
marijuana," said Vancouver cannabis crusader Marc Emery.

He held a pot party outside Toronto police headquarters as dozens of
revelers smoked their joints, bongs and pipes without being harassed.

Canada's liberalization of marijuana possession laws and the acceptance of
gay marriages have made the province the "freest jurisdiction in the
western world," Emery said.

Police Chief Julian Fantino said officers won't arrest anyone for
possession of small amounts of marijuana for personal use until the
country's pot law is clarified.

Many American gay couples are also heading for Toronto as they can now be
legally married.

"Toronto is the coolest place in the world to be right now," Emery said.

Ontario has rejected an offer of up to $250 million from the federal
government for SARS relief, saying it is far too little.

Municipal Affairs Minister David Young called the offer "outrageous" as
$1.2 billion has already been spent by the province to battle the disease
that has killed 35 people in Toronto.

"We were expecting in the neighborhood of about $950 million," Young said.

The Ontario government will compensate people forced into quarantine as a
result of severe acute respiratory syndrome.

Offered payments range from $500 to $6,000 for people who lost earnings
because they were caring for someone with SARS or were ill themselves.

In brief

Toronto police have arrested a 35-year-old software developer after an
intensive search for the killer of 10-year-old Holly Jones. Her body was
found in Lake Ontario near the Toronto islands last month. Michael Briere,
who lives in the girl's neighborhood, faces a first-degree murder charge.

Deputy Prime Minister John Manley, who is seeking to succeed retiring Prime
Minister Jean Chretien, now has the backing of Justice Minister Martin
Cauchon. The successor will be decided at the Nov. 15 Liberal leadership
convention. Front-runner is former Finance Minister Paul Martin while
Heritage Minister Sheila Copps also is in the race.

Ontario Environment Minister Chris Stockwell has resigned from the Cabinet
after a controversy over a $60,000 European trip last summer. At issue are
the costs for Stockwell's family who accompanied him. He joins former
Tourism Minister Cam Jackson who was forced to resign last year for
inappropriate spending of taxpayers' money.

Facts and figures

Speculation that Canada's interest rates could begin falling, pushed the
dollar down Friday to 73.58 cents U.S. The U.S. dollar is worth $1.3590
Canadian, before exchange fees.

The key Bank of Canada interest rate remains at 3.25 percent while the
prime-lending rate is 5 percent.

Canadian stock exchanges are mixed, with the Toronto index down at 7,064
points and the Canadian Venture Exchange up at 1,113 points.

Lotto 6-49: (Wednesday) 1, 11, 29, 30, 42 and 44; bonus 10. (June 14) 7, 8,
21, 22, 27 and 29; bonus 47.

Regional briefs

Prince Edward, the earl of Wessex, was given a warm welcome to Canada
outside the Saskatchewan Legislature in Regina on Thursday. Children sang
"Happy Birthday Regina" to mark the city's centennial. Queen Elizabeth
plans to visit in 2005 to mark the centennials of Saskatchewan and Alberta.

Two Albertans who challenged the provincial government's decision to spend
$800,000 to pay for politician Stockwell Day's legal bills say the issue
was worth the fight - even though they lost. Lawyer Lorne Goddard sued Day
over a letter he wrote to a newspaper criticizing a case involving a pedophile.

Liberal Leader Danny Graham says his party will hire an additional 600
teachers and revitalize an education system "in crisis" if he becomes Nova
Scotia's next premier.

More teachers are needed to reduce classroom sizes in the province where
students rank near the bottom nationally in math and reading skills, he said.