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Smokes trade might finance terror: RCMP 

Ottawa shelved plans in early '90s to invade several Mohawk reserves
Jump to full article: Montreal Gazette (ca), 2009-10-28
Author: JORGE BARRERA and JACK BRANSWELL, Canwest News Service

Intro:

The black market cross-country tobacco trade has created an underground economy Canadian authorities fear could be used to finance overseas terrorism, internal RCMP intelligence documents obtained by Canwest News Service show.

The materials also indicate RCMP intelligence predicted the expansion of the underground tobacco trade shortly after the federal government shelved plans in the early 1990s to invade several Mohawk reserves. The government chose instead to lower tobacco taxes to undercut the financial incentive for smuggling.

The underground tobacco trade now spans the country, with authorities finding Mohawk-made cigarettes from Newfoundland to Vancouver Island, according to an RCMP intelligence analysis from 2008.

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