OTTAWA - Jean Chretien says Canada should proceed with caution as it considers recognizing Kosovo's independence.

The former prime minister toyed with journalists Friday after receiving the Order of Canada, playfully evading questions about current events -- but he stopped joking when the topic turned to Kosovo.

Chretien described the situation in the Balkans as a political powder keg with far-reaching implications. And he appeared to back the go-slow approach of the Harper government, which is taking its time and has not yet followed the lead of many other countries in recognizing Kosovo.

Chretien suggested countries with separatist movements, including Canada, have reason to be cautious.

"Canada has to be careful because we have people who want to separate from Canada,'' he said outside Rideau Hall.

"If you start (looking) around, we have this problem but the French have this problem with Corsica, the French Basques, the same thing with the Spaniards, the Scots could leave Great Britain any day I'm told, let alone the Wales, you have the problem in Belgium . . . and Mr. Putin (in Russia) has a lot of problems with states that want to go.''

He used the opportunity to laud his government's Clarity Act, which set basic ground rules for Quebec independence.

Chretien was livid after the 1995 referendum that the country had almost been torn apart by a ballot question that never mentioned the words "independence'' or "country,'' and that sovereigntists argued they could use a one-vote margin of victory to split up Canada.

"We in Canada have a piece of legislation that clarified things. It's called the Clarity Act. What does it say? (That) you need a clear question and a clear majority . . . Do you want to separate -- yes or no?

Chretien was named to the order's highest rank -- Companion of the Order. Other order recipients Friday included businessman Gerry Schwartz, former defence minister Barney Danson, and broadcaster and diplomat Pamela Wallin.

Chretien was cited for a 40-year political career in which he held a dozen cabinet posts, including serving as justice minister during the patriation of the Constitution and the Charter of Rights' introduction in 1982.

He was also cited for winning three majority governments which balanced the federal budget, focused on national unity, worked to ban landmines, and legalized same-sex marriage.

Chretien broke into a proud grin when the master of ceremonies mentioned his three consecutive majorities, prompting a chain reaction of smiles from his friends and family in the audience.

On Kosovo, Liberal Leader Stephane Dion reiterated Friday that he would recognize the country's independence, and he addressed the Quebec issue head on.

"If you want to have a conclusion for the separatist forces in Quebec, they must admit that international recognition is always very difficult to obtain,'' he said.

"And in the case of Canada, no country would jump over the head of the government of Canada to decide what would happen in Canada''.

Chretien was careful not to contradict the current Liberal boss -- or even to offer him public advice.

Dion will grapple over the coming days with whether to trigger a federal election over Tuesday's budget.

A legion of Liberals have urged Dion to wait for a better moment before pulling the plug on the minority Conservative government. But Chretien noted that in 2000, he went to the polls against the wishes of almost the entire Liberal caucus and wound up with his third majority government.

"It's the leader's decision. I remember in 2000 everyone came to me and told me not to have elections. I was alone -- but I said I'm going into an election anyway.''

"I don't know. I really don't know -- because I'm not there. I don't have all the elements.

"Of course people think that I love a fight, but this has nothing to do with a fight. It is, what is the right thing to do for the country?''

Chretien joked with reporters that he was contemplating a comeback -- given that he's only a couple of years older than U.S. presidential hopeful John McCain.

But he was clearly in no mood to offer prime ministerial advice. As he was being pressed for a more detailed answer on Kosovo, he decided he'd had enough of answering questions.

"Hey, I'm on vacation over here,'' he said. "I'm not making comments. I just explain the situation. I become Professor Chretien.''

And with that, he spun on his heels, walked out the door, and beat a hasty path back into retirement from public life.