The border post near Cornwall, Ont., has been closed since Mohawks gathered near the Seaway International Bridge on June 1 to protest the arming of border guards. The federal government said Tuesday the post may be relocated. (Rebecca Zandbergen/CBC)

The federal government is considering moving a controversial border post from Mohawk territory near Cornwall, Ont., around 100 kilometres southeast of Ottawa.

The Canada Border Services Agency (CBSA) shut down its post on the Mohawk territory that straddles Quebec, Ontario and the U.S. on June 1 after the border guards cited safety concerns.

Hundreds of Akwesasne Mohawks had surrounded the post to protest a new federal policy that would allow some border guards across the country to begin carrying 9-mm handguns at the beginning of June.

The Akwesasne Mohawks said that if border guards are allowed to carry guns on their territory, they would be violating the First Nation's sovereignty and increase the likelihood of violent confrontations.

The post has been closed since June 1.

The federal government said it won't back down on its decision to arm the border guards, so it's now considering moving them off the territory on Cornwall Island and closer to the town of Cornwall on the north shore of the Saint Lawrence Seaway.

The other option is to move the Canadian border guards into a shared facility on the U.S. side of the river where the post isn't located on Mohawk land.

Public Safety Minister Peter Van Loan said the government has to think about the long-term consequences of the argument.

"If Border Services officers are unwilling to go there on an unarmed basis and the local Mohawk council or community is unwilling to accept them on an armed basis, then it's long-term viability that's in question," he said Tuesday.

"So we have to look for alternatives and that's why we're doing this at this point."

But relocating the post north or south of Cornwall Island wouldn't solve all of the debates surrounding the border guards.

Ron Moran, the head of the border guards' union, said that locating the post in the U.S. would mean Canadian border guards should be allowed to conduct searches and arrests on American soil.

And locating the post closer to Cornwall would mean that Cornwall Island residents would have to clear Canadian customs before they travel to their Canadian homes.

"But with either scenario," Moran said. "I don't think the logistic and legislative challenges would be insurmountable."

Bob Kilger, Cornwall's mayor, said he's happy with either choice, as long as the post is opened soon.

On Wednesday, Kilger and a group of Cornwall-area business people approached the federal government to ask if the government would compensate them for revenue lost during the border closure.

"The losses are mounting every day. Jobs are being lost and some businesses are looking at relocating," he said.

"The recession is one thing — that's global. But this is a nightmare for us. We feel like we're hostages in this issue."