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Exchange of Notes constituting an Agreement between the Government of Canada and the Government of the United States of America on the Modernization of the North America Air Defence System [1985] CATSer 9 (18 March 1985)

E101003 - CTS 1985 No. 8

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA ON THE MODERNIZATION OF THE NORTH AMERICAN AIR DEFENCE SYSTEM

I

The Secretary of State for External Affairs of Canada to the Secretary of State of the United States of America

Quebec, March 18, 1985

JLE-0313

The Honourable George P. Shultz,
Secretary of State of the
United States of America

Sir,

I have the honour to refer to discussions which have taken place between representatives of our two Governments regarding modernization of the North American Air Defence System.

The Governments of our two countries have long held the view that measures to provide warning of aerospace attack on North America and to control access by potentially hostile aircraft to the sovereign airspace of Canada and the United States can be taken most economically and efficiently on the basis of close cooperation between them. Major elements of the existing North American Air Defence System were established jointly by Canada and the United States during the l950s. These elements are now in the final stages of obsolescence and are proving increasingly expensive to operate and maintain. At the same time, the introduction by our potential adversaries of new bombers and cruise missiles into their strategic inventory has been improving their capabilities for air attack on North America, thereby requiring improved capabilities to detect and to deter such an attack.

Accordingly our two Governments, in the exercise of their national and mutual defence responsibilities within the North Atlantic Treaty Organization for the security of Canada and the United States, have decided to undertake a program to modernize the North American Air Defence System. The elements of this program, and the respective responsibilities of each Government, are set forth in the annexed Memorandum of Understanding on the Modernization of the North American Air Defence System, which forms an integral part of this Agreement and which was signed today by the Secretary of Defense of the United States and by the Minister of National Defence of Canada. It is further accepted that:

a. the defence cooperation between our two Governments as set forth in this Agreement is based on the recognition of and full respect for the sovereignty of each;

b. the obligations of our two Governments in connection with modernization of the North American Air Defence System are subject to the availability of funds appropriated for that purpose;

c. the Agreement between the Parties to the North Atlantic Treaty Regarding the Status of Their Forces (NATO SOFA) signed in London on June 19, 1951, shall apply;

d. disputes other than claims failing within NATO SOFA will be settled by consultation between the Parties and not by reference to any international tribunal;

e. supplementary arrangements or administrative agreements consistent with this Agreement may be made from time-to-time between authorized representatives of our two Governments with the objective of furthering the intent of this Agreement;

f. our two Governments will review the agreements and arrangements currently in effect between them relating to North American Air Defence and, as appropriate, modify or terminate them; and

g. this Agreement may be amended by mutual consent of the Parties.

If the foregoing is acceptable to your Government, I have the honour to propose that this Note and the Memorandum of Understanding signed today, which are equally authentic in English and French, and your reply to that effect, shall constitute an Agreement between our two Governments, which will enter into force on March 18, 1985, for an initial period of ten years. The Agreement shall continue in force thereafter subject to the right of either of our two Governments to terminate it by providing one year's written notice to the other. Upon notice of termination our two Governments will enter into negotiations respecting the disposition to be made of facilities and installations and costs associated therewith.

Accept, Sir, the assurances of my highest consideration.

Joe Clark

Secretary of State for External Affairs

II

The Secretary of State of the United States of America to the Secretary of State for External Affairs of Canada

The Right Honorable Joe Clark, P.C., M.P.,
Secretary of State for External Affairs of Canada

I have the honor to refer to your Note of March 18, 1985, setting forth certain considerations and provisions concerning the intent of our two Governments to modernize North America’s Air Defense System.

I am pleased to inform you that my Government concurs in the considerations and provisions set out in your Note and further agrees with your proposal that your Note, together with its annex and this reply, shall constitute an Agreement between our two Governments effective as of March 18, 1985.

Accept, Excellency, the renewed assurances of my highest consideration.

George P. Shultz

Secretary of State

MEMORANDUM OF UNDERSTANDING ON THE MODERNIZATION OF THE NORTH AMERICAN AIR DEFENCE SYSTEM

PURPOSE

1. This Memorandum of Understanding (MOU), concluded on behalf of Canada by the Minister of National Defence and on behalf of the United States of America by the Secretary of Defense, has the following objectives:

a. to establish and record, as an agreed baseline, the components of a program to modernize the North American air defence system which, subject to the appropriation of funds by the legislatures of both countries, shall be undertaken jointly by Canada and the United States;

b. to establish the responsibilities, including financial, which shall be assumed respectively by Canada and the United States for the acquisition, provision and construction of equipment, facilities, and installations constituting the elements of an air defence system modernization program and for the manning, operation, and maintenance (support) thereof;

c. to establish a basis for future cooperation between the two countries regarding research into and development of technology (including space-based system technologies), consistent with the North American Aerospace Defence Agreement.

COMPONENTS

2. The components of the North American air defence system modernization program are:

a. a North Warning System (NWS) comprising 13 Long Range Radar (LRR) and 39 Short Range Radar (SRR) stations deployed across northern Alaska, northern Canada, and down the Labrador coast, and the communications system required to interface the radars to applicable Region Operations Control Centers (ROCCs); and

b. a life cycle support and maintenance capability for the same to be established in conjunction with a.; and

c. Over-the-Horizon-Backscatter (OTH-B) radar coverage provided from sites located within the United States; and

d. airborne radar coverage in North America provided by USAF Airborne Warning and Control System (AWACS) aircraft; and

e. Forward Operating Locations (FOLs) and Dispersed Operating Bases (DOBs) for AWACS and fighter aircraft at existing airfields in Canada; and

f. communications and other equipment necessary to provide connectivity with, and interoperability of, the above noted system components, and to ensure adequate command and control of intercepts in the surveillance areas.

GENERAL RESPONSIBILITIES

3. This Section details procurement and program arrangements and provides the basis for negotiations for those components of the system which require further definition and funding appropriations.

4. North Warning System

a. Canada and the United States have decided to replace the DEW line with an upgraded system to be called the North Warning System (NWS). This system will be composed of Long Range Radar (LRR) and Short Range Radar (SRR) stations. Eleven LRRs will be located in Canada (eight at existing DEW line sites). Two LRRs will be located in Alaska at existing DEW line sites. 36 SRRs will be located in Canada. Three SRRs will be located in Alaska.

b. Principles for sharing NWS program acquisition and installation responsibilities and costs are contained in the “North Warning System Acquisition Proposal” attached hereto.

5. Over-the-Horizon-Backscatter (OTH-B) Radar System

a. The United States intends to acquire, install and operate an OTH-B system. The system will be located in the United States and will consist of East Coast, West Coast, Central United States, and Alaska radars with associated communications. The United States will fund all costs of acquisition, installation, operations and support of the system, except as identified in item b. below. Ownership of all aspects of the system will rest with the United States.

b. As agreed by the parties, Canada will jointly man those sites with coverage and command and control implications for the North American Air Defence mission in Canada. Details of the joint manning will be determined by the respective air staffs in consultation with CINCNORAD.

6. Airborne Warning and Control System (AWACS) Aircraft. AWACS aircraft have been designated from existing USAF resources to be made available in an emergency to the Commander-in-Chief North American Aerospace Defence Command. Canadian participation as crew members on United States AWACS aircraft will be coordinated by the HQ USAF and NDHQ, taking into account United States national requirements, requirements for NORAD, and USAF crew training capability.

7. Coastal Radars. The adequacy of the OTH-B radar system to provide coverage of Canadian and United States coastal airspace and to provide for detection, tracking, and identification which support tactical action, will be determined jointly, on advice of CINCNORAD. Any requirement for full or partial deployment of supplementary LRRs and communications on the east and west coasts of Canada and the Alaska panhandle will be determined as soon as possible following agreement by the parties that adequate operational testing of the OTH-B system has been completed.

8. Forward Operating Locations/Dispersed Operating Bases (FOLs/DOBs). Steps will be taken to implement minimum essential upgrades at selected northern contingency locations, to allow fighter and AWACS operations. These locations will be sited in accordance with approved NORAD operational plans to take advantage of the increased surveillance coverage provided by the modernized warning system. Minimum essential upgrades include infrastructure, e.g., alert hangars, POL storage, missile and ammunition storage, and other necessary airfield upgrades. Canada will carry out the design, construction, contracting, and management efforts associated with these sites. Conclusion of requirements definition and appropriation approvals is targeted for December 1985. Design work will commence in 1986 and construction in 1988. Each country will be responsible for providing deployment kits and support packages associated with their own aircraft.

9. Interoperability and Connectivity. Requirements must be established and communications resources provided to ensure total connectivity and interoperability of the component systems contributing to North American air defence modernization.

a. North American air defence modernization component systems generate interoperability and connectivity requirements that include:

(1) interfacing OTH-B radar system with the Region Operations Control Centers (ROCCs);

(2) a data interface between ROCCs and AWACS;

(3) interfacing the NWS with the ROCCs;

(4) beyond line of sight communications linking the ROCCs to fighters and AWACS;

(5) the augmentation of line of sight air-ground-air communications for Command and Control purposes;

(6) the acquisition of new or modified software and hardware for ROCCs to accommodate these interfaces.

b. The United States will undertake the development of the systems necessary to allow the NORAD Region Operations Control Centres (ROCC’s) to receive and process data from the NWS, OTH-B and AWACS.

A number of these requirements need further definition by the parties and a formal Canada/United States program baseline needs to be established before procurement action can be taken in accordance with paragraph 17.

10. Operations and Support. The NWS will be operated and maintained on behalf of both governments, by Canada beginning October 1989. Detailed responsibilities and requirements for operations and support of the system require further definition and agreement. Since concurrent procurement of systems spares with the ordering of the prime mission equipments should realize cost savings and facilitate logistics support during the work-up of the system to full operational status, definition of support policy should be completed as early as practicable. While it is anticipated that definition of many requirements will be completed much sooner, final definition of all requirements is expected to be completed no later than the summer of 1986.

FINANCIAL RESPONSIBILITIES

11. The financial responsibilities of each Government for specific components of the modernization program are outlined in this section. To the maximum extent feasible, cost sharing will be effected by allocation of function rather than by reimbursement between the Parties. However, where reimbursement is required, each country will undertake to minimize the costs to the other,

12. North Warning System. The costs associated with this system will be funded on a 60/40 percent, United States/Canada principle. In general this funding principle will match the general program responsibilities. Specific funding responsibilities of Canada and the United States under this proposal are outlined in the Acquisition Proposal appended to this MOU.

13. Over-the-Horizon-Backscatter (OTH-B) Radars. The system will be funded totally by the United States. Canadian personnel related costs will be borne by Canada.

14. Airborne Warning and Control System (AWACS) Aircraft. The costs of operating the AWACS aircraft will be the responsibility of the United States. All related costs of participating Canadian crew members will be borne by Canada.

15. Coastal Radars. If there is a joint determination, on the advice of CINCNORAD, of a joint requirement for coastal radars, both governments will undertake best efforts to negotiate a cost sharing agreement in accordance with a 60/40, United States/Canada principle to the maximum extent feasible.

16. Forward Operating Locations (FOL)/Dispersed Operating Bases (DOB). Canada and the United States will jointly determine what constitute “minimum essential upgrades” to selected interceptor and AWACS FOL/DOBs. Bearing in mind the cost-sharing principles identified above, Canada and the United States will evaluate opportunities for Canada/United States cooperation in the construction of FOLs/DOBs - to meet NORAD operational requirements in Canada - with a view to the United States contributing toward the cost of the FOLs/DOBs. The results of this evaluation will be made available to the North American Air Defence Responsibilities Sharing Steering Group by 31 December 1985 and will be used as the basis for cost sharing negotiations.

17. Interoperability and Connectivity. After a formal program baseline is established, both countries will undertake to discuss appropriate procurement actions.

18. CADIN-Pinetree Line. Canada and the United States intend to terminate the CADIN-Pinetree agreements based on the following principles.

a. Such funding as the United States makes available for CADIN-Pinetree will be terminated no later than September 30, 1988.

b. Canada and the United States will negotiate the sharing of CADIN-Pinetree closure costs on a basis of 55% United States/45% Canada. The elements of expense subject to cost sharing will be defined by agreement.

19. Operations and Support. The operations and support of the different components of the modernization programs are to be shared on the following basis:

a. North Warning System - 60/40 United States/Canada (To the maximum extent feasible, cost sharing will be effected by allocation of function rather than by reimbursement between the parties, due regard being paid to logistics impacts and life cycle cost minimization. Cost sharing for support of NWS LRRs will commence as the sites become operational, 1 October 1988. Cost sharing for the NWS SRRs will commence when all SRR stations reach Full Operational Capability (FOC), 1 October 1992. Prior to these dates, each country will provide maintenance and support for the system components it acquired);

b. FOLs/DOBs - Canadian responsibility with United States paying incremental costs of United States deployments as per existing NORAD agreements.

20. Advanced Technology.

a. Canada and the United States will establish effective means of cooperation in research into, and development and employment of advanced technologies for future North American surveillance, warning, communications, and defence systems consistent with the North American Aerospace Defence Agreement. The first step in this direction will be designation of this subject as a permanent agenda item of the PJBD and DD/DPSA Steering Committee meetings.

b. Both countries will have continued opportunities to compete for participation in each other’s developments.

ADDITIONAL PROVISIONS

21. It is agreed that:

a. the defence cooperation between our two Governments as set forth in this Memorandum of Understanding is based on the recognition of and full respect for the sovereignty of each;

b. the obligations of our two Governments in connection with the modernization of the North American Air Defence System are subject to the availability of funds appropriated for that purpose;

c. the Agreement between the Parties to the North Atlantic Treaty Regarding the Status of Their Forces (NATO SOFA) signed in London on June 19, 1951 shall apply;

d. disputes other than claims falling within NATO SOFA will be settled by consultation between the parties and not by reference to any international tribunal;

e. supplementary arrangements or administrative agreements consistent with this Memorandum of Understanding may be made from time-to-time between authorized representatives of our two Governments with the objective of furthering the intent of this Memorandum of Understanding;

f. our two Governments will review the agreements and arrangements currently in effect between them relating to North American Air Defence and, as appropriate, modify or terminate them; and

g. this Memorandum of Understanding may be amended by mutual consent of the Parties.

TERMS OF CANADIAN-UNITED STATES AGREEMENT IN PRINCIPLE ON NORTH WARNING SYSTEM ACQUISITION PROPOSAL

In order to enunciate clearly the responsibilities of Canada and the United States in acquiring the North Warning System (NWS), this document specifies responsibilities for both governments during the system acquisition process. The NWS project baseline is represented by Electronic Systems Division (ESD) System Specification ESD-SS-NW-2448 dated 17 March 83, modified up to and including Specification Change Notice (SCN) No. 5 dated 13 April 84. Changes to the baseline will be subject to further negotiations and availability of funds.

The acquisition of the NWS is to be accomplished in two phases. In Phase I, 13 Long Range Radar (LRRs) will be procured and 10 installed at existing DEW sites (eight in Canada and two in Alaska) and three at new sites in Canada (Labrador). The Short Range Radar (SRR) and station will be developed and tested. One prototype will be fielded to an Alaskan site for Initial Operational Test and Evaluation (IOT&E) and one to a Canadian-provided site for integration and testing. A logistics station will be established in Alaska. New communications links for NWS will be designed and tested. In Phase II, 37 more SRRs will be procured and deployed to two sites in Alaska and 35 sites in Canada. Five logistics stations will be located in Canada. Construction and equipping of all LRR and SRR stations will be completed.

As specified below, the United States will act as overall system manager and integrator for the Phase I effort and Canada will act as overall system manager and integrator for the Phase II effort. In both phases, however, each government will work closely with the other in accomplishing their respective responsibilities.

The established operational capability dates will be maintained (IOC - defined as 10 Long Range Radars operating at existing DEW Line sites, of which two are in Alaska and eight in Canada - no later than September 30, 1988; FOC no later than September 30, 1992). The specific responsibilities of the United States under this proposal are:

1. Phase I

a. Provide overall system management and integration less the three LRRs on the Labrador coast.

b. Procure 13 LRRs.

c. Transport, install and check-out 10 LRRs and integrate with associated on-station communications in existing DEW line facilities (eight in Canada; two in Alaska), and modify and provide necessary facilities at the existing DEW Line sites.

d. Transport, install and check-out three LRRs at new sites, to be made ready by Canada for occupancy by 31 October 1988, in Labrador and turn over to Canada for integration with other NWS sub-systems.

e. Develop and test two prototype SRRs,

f. Provide facilities design criteria and communications interface requirements for the NWS.

g. Provide overall system specifications, to include interface and communications requirements, for the NWS.

h. Establish a logistics station in Alaska.

i. Establish one integrated prototype SRR station in Alaska for IOT&E.

j. Provide, install and check-out one prototype SRR at a designated Canadian site for Canadian integration and testing of Canadian provided facilities and communications.

2. Phase II

a. Provide 37 production SRRs, including radar controller equipment.

b. Transport, install and site adapt, if necessary, the 37 SRRs at two sites in Alaska and 35 sites in Canada. Relocate and/or refurbish to production standard if necessary, the SRR from Canadian prototype SRR station to operational site.

c. Procure radar performance monitoring displays and maintenance aids for five logistic stations in Canada except internal communications at DEW Line LRR sites.

d. Procure and install facilities and communications for SRR stations in Alaska and communications equipment for LRR stations in Alaska.

e. Procure Ground/Air/Ground radios and crypto equipment as determined by the operational requirement.

The specific responsibilities of Canada under this proposal are:

1. Phase I

a. Design, consistent with the provisions of paragraphs 1.f and 1.g above, construct, and equip (except for external communications) three new LRR sites in Labrador, (to be made ready for occupancy on 31 October 1988) including integration of LRRs provided by the United States into the NWS.

b. Design consistent with the provisions of paragraphs 1.f and 1.g above, and qualification test communications and facilities for use in LRR, SRR and ROCC sites in Canada.

c. Establish and equip (except for SRR) the Canadian prototype SRR station.

2. Phase II

a. Perform overall system management, system level test and integration consistent with design criteria, specifications and interface requirements developed during Phase I.

b. Construct 36 SRR stations in Canada and integrate SRRs provided by the United States.

c. Procure and install the communications equipment for SRR and LRR stations and ROCCs in Canada.

d. Establish and equip (except radar monitoring and control equipment) five logistics stations in Canada.

e. Relocate if necessary, Canadian prototype SRR station (excluding SRR) to operational site.

f. Install, integrate and test Ground/Air/Ground radios and crypto equipment provided by the United States at three new LRRs and the Canadian SRRs and crypto equipment at all other Canadian locations (United States will install A/G/A radios at DEW Line LRRs).

Subject to availability of appropriated funds, each government will bear the cost of accomplishing its responsibilities as stated above. If the two governments agree that the three LRR stations to be constructed by Canada in Labrador cannot be located at formerly occupied sites for operational reasons, the additional cost associated with alternative sites will be negotiated.

Both parties undertake to make every effort to avoid program or schedule changes that will cause increased cost to the other government. If changes or delays by either government in fulfilling its responsibilities under this agreement will cause increased cost to the other government; Canada/United States Steering Group will consult immediately and, if mutually agreeable, amend the responsibilities in this document to meet the anticipated increased cost.

The two governments have entered into this understanding and allocation of program responsibilities based on the assumption that the United States will fund $665 million (constant United States FY 85 dollars) of estimated NWS program costs and Canada will fund $418 million (constant United States FY 85 dollars) of estimated NWS program cost. If in the course of carrying out the acquisition program, it appears that one government is bearing more than its intended share of the costs, the parties will consult with a view towards realigning their program responsibilities and corresponding costs in order to preserve the intended NWS cost sharing formula.

Neither government is authorized to (1) incur obligations for the other government, (2) modify the other government’s obligations or (3) expend the funds of the other government, without the prior written agreement of the other government.

Each government will retain ownership of all equipment and transportable facilities which it funds.

The Canadian and the United States NWS program offices will adhere to the following:

A Joint Senior Review Council will be established to monitor and, where necessary, direct the overall project management process. The Council will be co-chaired by NDHQ/DGCEEM from Canada and ESD Deputy Commander Strategic Systems from the United States, The Council will be the forum for referral of problems encountered by the Project Managers which are beyond their authority to resolve.

The Canadian and the United States Project Managers will develop a Statement of Agreement (SOA) which details their respective objectives, their separate responsibility charters and their consultation and co-ordinating relationships. This document will also contain the structure and membership of any joint project working group formed to facilitate implementation of this project.

In the event of conflict between the Acquisition Proposal and the Memorandum of Understanding on the Modernization of the North American Air Defence System, the MOU will prevail.

DONE in duplicate, in the English and French languages, each language version being equally authentic, at Quebec City, this 18th day of March, 1985.

Erik Nielsen

FOR THE GOVERNMENT OF CANADA

Caspar Weinberger

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA