PRESS DIGEST- Canada - July 23

Reuters

July 23 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL

* U.S. ambassador to Canada Bruce Heyman had little to say on Tuesday about a possible decision on the controversial Keystone XL pipeline project, but that didn't stop Canada's ambassador to the United States from bluntly stating there's no proof that the pipeline shouldn't be built. (http://bit.ly/1A4JPDx)

* U.S. flights to Israel were grounded on Tuesday by the Obama administration, fearing missile strikes at Tel Aviv's airport could imperil U.S. airliners and passengers. Air Canada also canceled its Tuesday evening overnight flight. (http://bit.ly/1p7mrg8)

Reports in the business section:

* Target Corp is pushing its suppliers in Canada to give it a 2 percent cost break to help the U.S. discounter turn around its struggling Canadian operations and win an increasingly tough retail battle. (http://bit.ly/WCzaRw)

NATIONAL POST

* Canadian Prime Minister Stephen Harper does not intend to testify in the trial of suspended senator Mike Duffy because he doesn't have any useful information to offer, his office said on Tuesday. The Royal Canadian Mounted Police laid 31 criminal charges against Duffy last week, and experts say Harper could be called to testify, although he could invoke parliamentary privilege to avoid the witness box. (http://bit.ly/WCAh3y)

* The federal New Democratic Party (NDP) wants the House of Commons to pay for the party's legal costs in a lawsuit it filed against the House board that monitors spendings of members of Parliament. The NDP made the request on Tuesday during a closed-door meeting of the Board of Internal Economy. (http://bit.ly/1x02lIU)

FINANCIAL POST

* Ulyanovsk in Russia will be home to Bombardier Inc's newest factory if a planned joint venture comes to fruition. But the escalating crisis in Ukraine and the threat of additional sanctions against Moscow could halt progress on those talks just as Bombardier gets set to grab a piece of the growing Russian aviation market. (http://bit.ly/Us3VGM)

* Canadian negotiators will meet with their Japanese counterparts next week in Ottawa for another round of talks on a free-trade agreement between the two countries. (http://bit.ly/1ueqe3n) (Compiled by Arnab Sen in Bangalore)

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