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                  <text>Document disclosed under the Access to Information
Document divulgue en vertu de la Loi sur I'acdl^m

GGC/HMP
APEil 4, 1946.

M J[ SECRET

M

MEMORANDUM FOR
MR. ROBERTSON
During our recent.visit to London Mr.
Glazebrook and I discussed informally the future of Hydra. ,
During the course of our conversations we put forward
tentatively the suggestion that the Canadian Government
might be willing to take over and operate Hydra. The
United Kingdom authorities appeared to favour this proposal
and suggested that they would probably be prepared to
transfer the present installations to the Canadian Government without charge.

Prom our point of view there appear

to be three main reasons why this would be desirable:
(1)

To carry External Affairs traffic

between Ottawa and London and Ottawa and Washington;
(ii)

To carry Sigint traffic, which would

include all raw intercept material between Ottawa and
London and Ottawa and Washington;
(iii)

By ownership and operation of Hydra we

should be contributing substantially to the post-war
signal intelligence effort of the Commonwealth and the
U.S.A.

It is thought that it would ensure the co-

operation of the United Kingdom and the United States in
our cryptographic effort, and the reception by External
Affairs of all ultra intelligence, which we might require.
Hydra would, in addition to carrying the
traffic indicated above, also carry traffic between the
Foreign Office and the British Embassy in Washington, and
between the United Kingdom and United States Sigint authorities.
From the Sigint point of view the use of
Hydra would speed up the process of examining raw material
very substantially.

The alternative is that important

raw material would be handled by cable companies and the
remainder sent by diplomatic bag. At the recent Technical
Conference in London the. latter alternative was

iV
• - '^ •

sT
?i
000273

�Document disclosed under the Access to Information Act
Document divulgue en vertu de la Loi sur I'acces a {'information

-2not considered desirable by either the Americans or

'f

ourselves and, in principle, it was decided to use
wireless facilities under the control of the Sigint
authorities as much as possible.
APPENDIX A
I attach an estimate of External cable
costs at the present time, the cable costs of other
possible users of Hydra, the running costs of Hydra
and the estimated capital expenditures.

The installation

of a new transmitter is considered necessary in order to
carry the future peak load of Sigint traffic and to
ensure that the station is open for traffic for the best
part of twenty-four hours a day.

The Installation of a

new transmitter, however, is not considered essential
in order to start operating the scheme.
At the present time Hydra is capable
of handling 120,000 groups a day.
cost iso,25^ per group.

The estimated ultimate

It will be noted that the

estimated costs of the Examination Unit traffic esam plus
the present cable charges and land-line charges borne
by External, Urcapproximately equal to the running
costs of Hydra.
' APPENDIX B
I enclose a statement of the volume of
cable traffic between External and London for the month
of January.
APPENDIX C
I attach a statement of the estimated
cost of the installment'of Rockex II equipment at any
terminal.

It should be pointed out in this connection

that there are at present at Hydra four Rockex machines,,
which would presumably be handed over to us by the
United Kingdom authorities, if it is decided to take over
Hydra,
600274

�Document disclosed under the Acft
Document divulgue en vertu de la Lois

'APPENDIX "A
Estimated monthly cost of Hydra facilities

Estimated present monthly costs of cable and
teletype facilities between Ottawa and
London - Ottawa and Washington
Cost of External cables
Ottawa-London at bz&lt;f per word
(including incoming and outgoing
traffic to Canada House, and
outgoing traffic to the
Dominions Office.)
Cost of teletypewriter Line
Ottawa - Washington
Ottawa - Hydra

906.38
356.67
$4,863.05

Estimated monthly cable costs of other
possible users of HydraGps.per day
Examination Unit 3,000 ? (5ic' per gp)
British S.L.U.
London Washington 1,200 )
P.O. to British
(8i£ per
Embassy 10,000 ,
group)
Arlington Hall 15,000 J
Dominions Office

to External

$3,600.00

[bzj

^r$f&gt;-)

Hydra wireless station, fuel, light,
power and telephone
Transportation
Signal maintenance
Building and grounds maintenance
Salaries (40 people)
. TOTAL •
Ottawa - Hydra Line
s Hydra - Washington Line
"
and cable companies
(for emergency traffic)

o

cL

$ 800.00
100.00
500.00
250.00

7,350.00

$9,000.00
* 356.67
-708.95-55.00- $10,120.62

Estimated c a p i t a l expenditures:
$5,400.00

Hydra:

3,060.00

Hew t r a n s m i t t e r

Installation and buildings
Emergency power supply

160,000.00

25,500.00
37,000.00 (Approx.)
2,000.00
*

Additional.

000275

�Document disclosed under the Access to Information Act
Document divulgue en vertu de la LoJ sur I'acces a finformatioh

•

•

APPENDIX B
Outgoing to Dominions Office, January, 1946.
Cypher Groups
2,796

Code Groups
'

74

Incoming from Dominions Office.
Cypher Groups

Code Groups

33,673

2,794
Outgoing to High Commissioner, London
January, 1946.

Cypher Groups

Code Groups

21,150

8,170
Incoming from High Commissioner London,
January, 1946.

Cypher Groups
29,244

Code Groups
4,386

Approximate cost outgoing groups to
Dominions Office

$ 157.85

Approximate cost incoming groups from
Dominions Office

^2,005.68

Approximate cost outgoing groups to
H.C. London

1,612.60

Approximate cost incoming groups from
H.C. London

1,849.65

/ /

000276

�Document disclosed under the Access ip Information Act Document divulgue en vertu de la Loi sur I'acces a {'information
•4 *

*9

# • •

APPENDIX C

USE OF ROCKEX II
The capital cost of a terminal of
Rockex II is as follows:
2

Rockex II units at flOOO.

2

19 Printer

2

15

2

14 Reperforators at 400

"

#2000.
3200.

at 825

This is the minimum terminal recommended.

1650.
800.
$7650.
It provides

for complete simultaneous encyphering and deciphering
and in case of breakdown still provides 100$ spare
equipment.

The installation will handle a total

incoming and outgoing traffic of 100,000 groups over
a 24 hour day. For 24 hour a day service at full
output required 8810 operators. Minimum operator
requirements for small station: one.

/

000277

_A_

1
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              <text>Memorandum from G.G. Crean to N.A. Robertson detailing proposed Canadian takeover of Hydra for three reasons: 1. To carry External Affairs traffic between Ottawa and London, Ottawa and Washington 2. To carry SIGINT, including raw intercept between Ottawa and London and Ottawa and Washington 3. To contribute to the post-war SIGINT effort of the Commonwealth and the US. Additionally, Hydra to speed up process of examining raw SIGINT, and it is said to be preferable to have wireless under control of sigint authorities rather than have raw material handled by cable companies or send by diplomatic bag. Document includes appendices detailing traffic volume and costs of potential Hydra users, as well as cost of Rockex encryption equipment. </text>
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