by Doug Ashbury
Northern News Services

NNSL (Oct 31/97) - The federal government has agreed to a diamond task force, NWT Finance Minister John Todd said Wednesday.

The task force, expected to include federal and territorial representatives, as well as experts from the diamond industry, will re-examine the federal government's policy on the economics of diamond mining, Todd said.

Todd and several other GNWT officials met Monday in Ottawa with federal Finance Minister Paul Martin and Northern Development Minister Jane Stewart.

The GNWT is looking to improve its economic position when it comes to diamond mining in the North. Currently, Ottawa controls the resource.

"We made some progress on the diamond issue," Todd said.

As well as improved benefits derived from diamond mining in the North, GNWT representatives discussed division costs.

"On the funding of division, I have to be careful. We haven't got an agreement.

"(Martin) may be sympathetic to expanding the funding but it is still under discussion," Todd said, referring to incremental costs necessary for the running of two governments.

On the one-time costs of setting up Nunavut, Todd repeated that Stewart has agreed to discuss the funding.