OTTAWA—Australian Prime Minister John Howard warned Canada of the need to be vigilant against the threat of terrorism. "Terrorism will not be defeated by nuancing our foreign policy," Howard told a joint session of the House of Commons and the Senate yesterday.

"Terrorism will not be defeated by rolling ourselves into a small ball and going into a corner and imagining that somehow or other we will escape notice," said Howard, fresh from a visit to the White House.

Terrorism is a menace that ...