EDMONTON — The eight nations that ring the North Pole need to make room for the rest of the world as they decide how to manage an increasingly accessible Arctic, says Denmark's ambassador to Canada.

"We realize that there is an interest from other countries that we need to handle somehow," said Erik Lorenzen, who was in Edmonton to speak at an international conference on the Arctic.

In an interview with The Canadian Press, Lorenzen pointed out that more and more nations are becoming interested in the top of the world, and several countries want permanent observer status on the Arctic Council -- an advisory body that studies northern issues.

Canada, the United States, Russia, Iceland, Denmark, Sweden, Finland and Norway are full members. China, Argentina, France and Italy, as well as the European Union, are among jurisdictions that want to be observers.

"The question of observers is on the table," Lorenzen said.

Canada has attempted to limit the number of countries involved in Arctic discussions. Ottawa restricted invitations to a recent summit on northern issues to the five nations with Arctic coastlines, snubbing not only Iceland, Sweden and Finland, but the aboriginal groups who now have observer status.

U.S. Secretary of State Hillary Clinton scolded Canada over the exclusions, especially of the aboriginals.

But Lorenzen said giving other nations some kind of formal observer status on the Arctic Council may be the best way to ensure its continuing influence -- allowing other countries inside the tent may be the best way to keep it standing.

"We want to keep the Arctic Council a strong council. We want to make sure we all agree that that's where you discuss Arctic issues.

"You can discuss Arctic issues in all kinds of bodies. But in order to keep it there (at the Arctic Council), you need also to have the ones that will raise the Arctic issues acknowledge the Arctic Council."

That needn't mean letting non-Arctic countries in on decisions, said Lorenzen.

"We have to handle the ... issues so that these observers are satisfied to a certain extent. But we are not talking of them changing the Arctic Council as such -- sitting at the table or making decisions."

Lorenzen said relations between Canada and Denmark are getting stronger all the time. Earlier this month, the two countries signed an agreement on military and search-and-rescue co-operation in the North.

"One hour after they signed the (agreement), we had a Danish boat being helped by the Canadians."

In April, a Danish military dog team participated for the first time in a Canadian Arctic sovereignty operation. Denmark also supports Canada's bid for a seat on the UN Security Council.

Lorenzen hinted that even the long-running, comic-opera feud between Denmark and Canada over who controls tiny Hans Island may be close to a settlement. Legal experts from both countries recently met in Copenhagen.

"They discussed how to move forward," Lorenzen said. "I think there's definitely a willingness to speed up a little.

"We don't go to war, we go to a restaurant."

Lorenzen said that as Arctic sea ice melts and the region becomes more open to resource development and tourism, both Danes and Canadians will have to realize the size of their shared border. That 1,000-kilometre boundary is second in size only to the one Canada shares with the U.S.

"It's two countries that need to work together."