OTTAWA - Secretive discussions by G20 "sherpas" Thursday will focus on keeping the economic recovery from faltering and Canada's top priority is ensuring there's no "premature withdrawal" of stimulus spending, The Canadian Press has learned.

A leaked discussion paper reveals the Harper government's focus for the meeting and priorities for the G20 Summit in Toronto in June.

The paper, which was given to The Canadian Press by a source, also reveals that experts from the International Monetary Fund and World Bank will kick off the closed-door meeting of G20 negotiators from around the world at an Ottawa hotel.

And it says Canada believes the future credibility of the newly empowered G20 will be judged on whether it delivers on commitments made last fall to promote strong sustainable growth in the future.

"As we prepare to meet in March in Ottawa, here is how Canada views the state of play on deliverables for Toronto, according to the main themes we will discuss," the discussion paper states.

"Presentations by the IMF and World Bank, including a question-and answer-session, will help set the tone for these discussions."

Canada's top priority, according to the four-page document, is ensuring that there is no "premature withdrawal" of stimulus spending.

Canada's other priorities are:

  • Promoting strong, sustainable and balanced growth.
  • Strengthening the financial and regulatory systems.
  • Resisting protectionism and promoting trade and investment.
  • Reforming international financial institutions.

The paper was prepared by Canada to guide discussion by the sherpas, who are holding two days of meetings in Ottawa.

The summit activities of sherpas are usually shrouded in secrecy, but this year's preparations for the G20 have deviated from the norm.

Prime Minister Stephen Harper will drop in for the opening of Thursday's meeting and will deliver a public address to the rarefied group that is trying to set the stage for an agreement by the G20 leaders when they meet in Toronto to respond to the global financial crisis.

The discussion paper says that though there are positive signs of economic recovery such as modest growth and increased business and consumer confidence, "output still remains below pre-crisis levels" and credit remains "relatively" tight.

"As such, there remains a risk that premature withdrawal of stimulus could jeopardize the current recovery. As growth recovers, there is also a risk that unemployment will continue to lag behind."

Turning off the taps too soon "could risk a double-dip recession and higher unemployment."

The Harper government says it will end stimulus spending early next year, after rolling out the last of billions of dollars.

Canada wants the sherpas to find a way to sustain the momentum started when the G20 established its "New Beginning" framework at its Pittsburgh summit last fall that committed to promoting sustainable and balanced growth.

"In Canada's view, the G20's future credibility and effectiveness will be judged by its ability to move forward on this key commitment," the paper states.

In order to "prepare the ground" for leaders in Toronto to fully implement the framework, the sherpas are being urged to work closely with their respective financial deputies. In Canada's case, that is a reference to a top Finance Department bureaucrat Tiff Macklem.

The document urges the sherpas to "consider any useful role we might play in ensuring continued political momentum for this initiative."

Thursday's meeting is to be led by Canada's sherpa, Len Edwards, the top bureaucrat at the Department of Foreign Affairs and International Trade.

On strengthening the financial and regulatory system, Canada urges follow through on reform because that is essential in avoiding future crises.

"As recovery gains traction, there is a risk that momentum on essential reforms may falter. We must fully implement all G20 commitments on enhancing sound regulation and strengthening transparency in order to avoid a return to the excessive risk-taking that caused the crisis."

The document notes that there has been substantial progress in strengthening oversight, risk management, transparency and international co-operation. But there can be no let-up in the commitment to "develop by year-end strong international rules on capital and liquidity" among other things.

The discussion paper also affirms the Harper government's commitment to resisting protectionism and promoting free trade and investment. It also says the sherpas "can discuss prospects for a successful Doha round, and consider where there may be opportunities for Leaders to support and demonstrate further measures towards liberalization of trade and investment flows."

On reforming international financial institutions, the document stresses the importance of continuing to help bodies such as the Asian Development Bank and the African Development Fund.

The Toronto G20 summit will be the first meeting of the group as a permanent body. The G20 has held three previous summits -- all in response to the global financial crisis but agreed in Pittsburgh in September to make it a permanent institution.

The G20 is taking over the economic issues that the G8 has usually been seized with. This year's G8 takes place in Huntsville, Ont., immediately before the G20. It is to deal with nuclear non-proliferation, maternal and child health and other global security issues.