Security Restrictions May Hamper Canadian Purchases

Security restrictions by the U.S. Government placed on military purchases to other countries are causing a paralysis in Ottawa, Canada to the extent that the Canadian government last year considered scrapping its project to replace the 40-year old Sikorsky Sea  Kings. The Canadian government has a contract with Sikorsky to supply the Cyclone helicopter. Negotiations are ongoing between the Canadians and their American counterparts to find a way to soften the impact on Canada of the U.S. International Traffic in Arms Regulations (ITAR). Under the current regulations, people who hold dual nationalities in foreign countries such as Canada may not access U.S. military materials. In this case, they may not review the work of Sikorsky or its subcontractors. The program, which is due to deliver the Cyclones by 2009, may be delayed. The regulations may also delay the upcoming purchase of Boeing helicopters and Lockheed Martin planes.
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