FEDERAL GOVERNMENT TAKES COURT ACTION TO PREVENT CLOSURE OF CANADIAN FORCES MARITIME EXPERIMENTAL AND TEST RANGES IN NANOOSE BAY, BRITISH COLUMBIA

OTTAWA, August 14, 1997 -- The federal government today began legal proceedings in the Supreme Court of British Columbia to assert its right to keep the Nanoose Bay Maritime Experimental and Test Ranges open. In Court the position of the fede ral government will be that the Province's notice to cancel the licence permitting use of the sea bed in Nanoose Bay is invalid because the provisions of the licence agreement do not permit cancellation for the reasons advanced by the Province in its no tification. In particular, the Province has failed to act reasonably and in good faith by exercising its discretion to cancel the sea bed licence in order to frustrate the federal government's fulfilment of its responsibilities in critical areas such as national defence and international relations.

The federal government is requesting that the Court declare invalid the Province's notification that it would cancel, on August 21st, this year, the licence permitting use of the sea bed in the Nanoose Bay area of British Columbia for military testing of torpedoes and weapons systems. The federal government considers the Canadian Forces Maritime Experimental and Test Ranges essential to Canada's national defence and security requirements. They fulfil an international defence treaty obligation that Canada has with the United States.

Ever since the Province announced its intention to cancel the sea bed licence the federal government has made efforts to resolve the impasse out of Court, but without success.

By taking this action to prevent closure of the testing facility the federal government also hopes to avert the loss of some 90 jobs and an annual contribution of between $8-$10 million in salaries, construction, and subsidiary benefits for the local e conomy.

Counsel for the Government of Canada is John Hunter, Q.C., of Davis and Company, Vancouver, British Columbia.

 Ref.: John Hunter, Q.C.
       (604) 687-9444