Canada minister: CNOOC bid being reviewed for security


* Toews says cabinet looks at foreign bids for securityissues

* Internet, infrastructure security is concern, he says * U.S. congressional committee highlighted issue

CALGARY, Alberta, Oct 11 (Reuters) - A Canadian governmentreview of the $15.1 billion Chinese bid for Nexen Incwill take security concerns into consideration in addition to abroader economic analysis of the transaction, Public SafetyMinister Vic Toews said on Thursday.

Toews' remarks came in response to questions about theeffect that reports of Chinese espionage might have on thegovernment's decision on whether to approve the proposedtakeover of the Canadian oil producer by state-owned CNOOC Ltd.

"I can tell you that every transaction that is referred tocabinet is considered from a security and safety point of view,"Toews told reporters.

Industry Minister Christian Paradis announced on Thursdaythat the government's "rigorous" review of the bid for Nexen wasbeing extended by 30 days.

The concerns about the potential for Chinese espionage cameto the fore on Monday with a U.S. congressional report urgingU.S. companies to have no dealing with two big Chinesetelecommunications equipment makers, Huawei Technologies Co Ltd

and ZTE Corp, . The Chinesecompanies could enable Beijing to spy on communications andendanger vital systems, the report said.

A Canadian official suggested strongly on Tuesday thatHuawei would not be welcome to help build a secure governmentcommunications network,. In addition, a formertop Canadian intelligence official said he viewed Huawei as athreat even if in the private sector it ismanageable.

Toews, asked about Huawei's involvement in Canada, declinedcomment on any specific company in a security context butoffered: "I can tell you that the issue that has been raised bythe Americans has also been raised in Canada and among many ofour allies, including Great Britain.

"This is an issue that concerns us, in particular thesecurity of our internet and infrastructure in that context. Sothat's something that the government of Canada is very concernedabout and continues to monitor very closely."

(Reporting by Jeffrey Jones; Writing by Randall Palmer; Editingby Frank McGurty)


Messaging: randall.palmer.thomsonreuters.com@reuters.net))