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                  <text>Document disclosed under the Access to Information Act Document divulgue en vertu de la Loi sur I'acces a f information

•
*

SECRET

MEMORANDU^LFORj Captain Worth

'Colonel Wrinch
Group Captain Hendrick
Mr. Crean

Herewith is a copy of the draft report and
covering letter to the Chiefs of Staff Committee on
the question of whether all government telegraph
traffic should be handled over Service facilities.
This has been drawn up In accordance with
the decisions reached at the meeting held March 7th
when either you or your representative waa present.
If the report, subject to drafting changes,
Is generally concurred in by the members of the committee, there would appear to be no need for a
further meeting*
If, however, there Is disagreement
we will arrange to convene at an early date.
Please let me have your comments by telephone (Local 7073) as soon as possible*

^

°" . ^afcl
\% w

E.W.T. G i l l ,
Chairman.

Privy Council Office,
March 10th, 1947.

1

000211

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

«||LSECRET

MEMORANDUM FOR CHIEFS OF STAFF COMMITTEE:

,

\,,

Use of Service facilities
for government telegraph traffic
Submitted herewith is the report of the.
ad hoc committee appointed to study the possibility of
sending all government telegraph traffic over the communication facilities of the Department of National
Defence,
2.
The committee saw serious objections to
making it mandatory that all government traffic should
be hendled by the communications system of the Armed
Forces.
On traffic to the United Kingdom it would require special distribution arrangements, some increases
in Service personnel and installations, aiM would conflict with existing arrangements entered into with the
U.K. and other Commonwealth governments.
On internal
traffic the Services are not in a position to handle all
government traffic without increases in personnel and
either extending their present system or working out
somewhat complicated accounting procedures with the commercial telegraph companies.
3.
The committee was not able to present the
financial implications of the scheme.
They were of the
opinion that it could not be justified on the grounds of
economy since the corporation operating external services is to be government owned and one of the two commercial telegraph companies in Canada is now government
owned.
The diversion of traffic from these organizations would not, therefore, result in a direct saving to
the government,
4.
The committee noted that in present conditions^a^air volume of civilian government traffic is
now/\Over the Service circuits and they see no reason why
this practice should not be continued or even extended
in cases where the service provided offers mutual advantages.
The problems raised, however, in making this
practice mandatory are out of all proportion to the
benefits which would accrue either to the Services or to
the civilian departments.

E.W.T. Gill,
Chairman.
Privy Council Office,
March 10th, 1947.

\^Q
000212

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Document disclosed uh
. .
____^^^^
Document divulgue en vertu de la Loi sur l^ccSfv^Unfouoatlonj,

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SECRET

MEMORANDUM FOR CHIEFS OF STAFF COMMITTEE:
Use of Service facilities
for government telegraph traffio
I.

INTRODUCTION

1.
The Chiefs of Staff Committee at their meeting
of February 4th appointed a committee to examine (into) and
report on the possibility of using Service communication
facilities for handling all government telegraph traffic:
(a)

between Canada and the U.K.

(b) within Canada.
Thooo are 'regarded as two distinct problems and aro dealt
with ooparatoly horoundor,
2.
This committee, composed of the Director of
Signals of each Service, Mr, Crean of External Affairs
and Mr. Gill of the Privy Council Office, has met and considered in a broad way the two distinct questions, and
they report as follows.
II.

CANADA-UNITED KINGDOM; DESCRIPTION OF SERVICE
PAGILITIEs

3.
According to present plans the following facilities will be operated by the Services between Canada
and the U.K.:
* • (a) Oshawa to Foreign Office, U.K. - 8 channels
multiplex 100 KW. Canadian end operated by

Army,

zc^yycy;

jccy^d^-^j„*^^cc^Si^c^^-A^yt^j

(b) Ottawa to Air Ministry, Stanbridge, U.K. - 6
channels single side band, 20 KV/. Canadian
end operated by R.C.A.F.
(c) Halifax to the Admiralty, U.K. - single channel teletype, 10 KW.
Canadian end operated
by R.C.N.

/

4.
Of these facilities the wireless station at
Oshawa is to be transferred on April 1, 1947, from United
Kingdom ownership (Foreign Office) to Canadian government
ownership, and is to be operated by Army.
The terms of
this agreement are that the station should handle U.K.
Foreign Office traffic, External Affairs traffic with the
Ganadian High Commissioner's Office in London and with
the Dominions Office, and traffic between the Office of
the United Kingdom High Commissioner in Ottawa and the
Dominions 0£f£ce.
Its main purpose, however, is tc
carry special Foreign Office traffic, i.e., Signals,
Intelligence between Washington and London, and be
Ottawa and London.
The terms of the transfer doi

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

- 2include its use for other traffic. While the eight channels, which will be available when the new transmitter is
Installed, might, at first sight, appear excessive, the
standardizati'on of cypher facilities, which is taking
place between the interested United States and United
Kingdom authorities, will, it Is estimated, ensure full
use of the eight channels for Signals Intelligence traffic ,
and traffic between the users outlined above.
1
jS^^ojAU^\^^pm(.
5, In view of the anticipated volume'of Signal
Intelligence traffic, U.K. authorities-'have pressed for
the use of two of- the six channels^isted in (b) and it is
the present intention to reserfe 1 S ^ ^ f o r this purpose.
In additionj one is needed -is a general reserve. All
facilities listed in (c) are required for Naval Services
and are unsuitable for general traffic. This leaves
three channels available for general government traffic.
These three channels have a combined capacity of approximately 40,000,000 groups per year, in each direction.
Estimated volume
6, From figures available to the Committee it is
estimated that the government traffic (excluding Armed
Services) between Canada and the U.K. would perhaps total
7,000.000 word groups per year, made up of cypher code and
plain languages messages.
7. Of this total a^prjD^imately 525,000 groups comprise the^ypher traffic /go^w^on External Affairs, on the
one handj-^lid the Dominions Office and the Canadian High
Commissioners Office on the other. This comprises almost
the total cypher traffic to London originated by civilian
departments as the only other civil department holding
cyphers is the R.C.M.P. whose traffic is negligible.
Effect
of scheme on plan to nationalize external
"' !
cdmmunications services
"
8, As part of a re-organization of Commonwealth
telecommunication services the Canadian government has
agreed to nationalize their external services by acquiring
the assets (excluding manufacturing) of Canadian Marconi
Company and the facilities, in. Canada, of Cable and Wireless
Limited. This plan, it is expected, will be carried out
within the next two years.
9. The plan involves the pooling of surplus revenues
by the Canadian corporation with a Commonwealth Telecommunication Board and after Canada*s share of the upkeep of
the Board and any deficit arising from the operation of the
cable system is borne, the net surplus would be returnable
to the Canadian corporation.
10. The chief consideration which the Canadian
government had in mind in agreeing to participate in this
re-organization was to remove the causes of friction between
the U.K. and the U.S. in connection with telecommunication
and thus avoid a rate war which otherwise appeared likely.
A secondary consideration was to bring this about without
losing the great advantage of flexibility in the transmission of messages which the present system possesses.

00021

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

- 311. The proposal to use Service facilities for all
government traffic would divert some traffic from the
national system but it is difficult to estimate the effect.
There is no doubt, however, that the scheme would be
regarded by the other Commonwealth governments as contrary
to the spirit of the agreement reached by all Commonwealth
governments with regard to the re-organization.
Operational arrangements
12. Canadian government traffic destined for the
U.K. would be handed into the Joint Signals Office at
Defence Headquarters in Ottawa.
This would be done either
by domestic telegram transmitted over commercial or Service
facilities or in the case of messages originating in
Ottawa, \&gt;y runner.
sC*s-o-c*-^yA

13. The traffic «&amp;34 be received in the U.K. at the
Air Ministry Signals Centre, Stanbridge. From there
arrangements would have to be made for its distribution to
the addressee.
This might possibly be done by:
(a) relay to any point in the U.K. over their
defence teleprinter network;
(b) terminate one channel at Canada House, London,
in lieu of Stanbridge;
(c) terminate one channel in the proposed Services
Joint Signals Office, London,
14. Arrangements such as those described in (a)
above would require concurrence of the U.K. authorities
and would probably be opposed as that circuit is at present restricted to military traffic only.
The second
alternative outlined in (b) above would require additional
space l*y Canada House to accommodate the equipment as well
as operating and distribution personnel. We understand
that this space Is not presently available and would be
difficult to secure.
The third alternative outlined in
(c) would require additional personnel to permit distribution of local messages and possibly some additional space
which could probably be arranged in the new quarters of
the Canadian Joint Liaison Officers,
Either (b) or (c)
involve financial accounting arrangements where messages
are passed to civil telegraph company for delivery outside
the London area.,
Conclusions
15. In the light of the above considerations, the
committee concludes that:
(a)

the equipment capacity of the Service system
would be adequate to handle all government
traffic j

(b) adoption of the scheme would require:
(i)

minor increases in Service establishments
in Canada and substantial personnel
increases in Joint Service Signals Centre,
London;

\V)

000215

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

^

- 4(ii) concurrence of U.K. authorities who
operate terminals in U.K.; and,
(iii) arrangements for the distribution of
messages ^at
the U.K. end;
Jol
(c) the scheme would divert some traffic from the
national corporation which it is proposed
would be set up under the re-organization
scheme, and it would be contrary to the spirit
of the agreement made with the governments of
other Commonwealth countries for the re-organization of the Commonwealth telecommunications;
(d) the financial aspects of the problem cannot be
reported upon without undertaking a detailed
study; it is, however, appropriate to point out
that if and when external communications are
nationalized, any saving which might be brought
about hy the present scheme would be largely
nullified since the government will own the
company operating the external telecommunications services;
(e) the present scheme offers advantages to the
Services in peacetime by increasing the volume
of traffic handled and thereby improving the
training value and general efficiency of their
system; however, in the event of war or other
emergency the Service traffic will inevitably
be given priority and this might lead to the
exclusion of other government traffic; and,
(f) the principle of having the Department of
National Defence provide services for civilian
departments or to undertake activities which
could be carried out under civilian auspices
is one which appears contrary to government
policy and which might well conflict with the
interests of the, Armed Services; if the
resources which are to be made available for
defence purposes are to be calculated in the
first instance by settling the amount of money
available to defence, then the fewer commitments which the Defence Department has of a
non-Service or extraneous nature the better.
III. TRAFFIC WITHIN CANADA
16. The Department of National Defence is planning
to operate the following telecommunication facilities
within Canada*
.
,
%
{a)

Army RaaSkTeletyfSS^Slem **" N V J T ^ y Q*&lt;LU &amp;f*£**

{-b-}—Aagmy-ltlnft.,,Tp, 1 f&amp;&amp;$&amp;~8y&amp;temr«
(c)

Navy Landline (leased t e l e t y p e )

(d)

Air Force Radio Teletype

_(je4—^Aj?m^tuHajid--Spe«d-HrV'*E^^

000216

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

- 5 17* The principal centres or areas served by this
system are listed below:
Summerside
Goose Bay
Sydney
Halifax
Dartmouth
Greenwood
Moncton
Fredrlcton
Quebec City
Montreal
Ottawa
Kingston
Toronto
Oakviile,
London
Camp Borden
Clinton
Centralia

Aylmer, Ont.
Trenton
Winnipeg
Churchill
Rivers
Shilo
Regina
Edmonton
Calgary
Fort St, John
Vancouver
Victoria
Fort Nelson
Watson Lake
Chilllwack
Whitehorse
Washington, D,C,

plus Northwest Territories and Yukon Radio System extended
through northern Alberta, Northwest Territories and Yukon,
18* The following places having a population in
excess of 20,000 are not served by the. system:
Charlottetown
Three Rivers
Sherbrooke
Shawinigan Falls
Oshawa
Peterboro
Niagara Falls
St, Catharines
Hamilton
Guelph

Kitchener
Windsor
Sudbury
Timmins
Sault Ste, Marie
Fort William
Port Arthur
Moose Jaw
Saskatoon
New Westminster

Traffic over service circuits

¥

19. There were some 626,OQCrmessages transmitted
over Service circuits in 1946,(oitywhich 469,000 were from
the Department of National Defence and some 157,000 from
other departments.
A reasonable estimate of the volume,
if all government traffic (to points served by the system)
were put over these circuits, is that it would result in
a volume of about 2,000,000 messages per year which is
well within the capacity of the system.
Operating arrangements
20. General government traffic is now accepted for
transmission over the Service network if the point of destination is served by the network.
If not it is handed
on to one of the commercial landline companies at the
point of origin. Government messages addressed to nongovernment organizations are permitted over the Service
system but the latter may not originate a message.

000217

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

- 621. To provide a more complete service throughout
the country it would be necessary:
^A^~~hl yi^^^'Jh^o
(a) to integrate the operation to some
extent with
that of the landline companies/so as to permit
the service system to accept/traffic to point
nearest the destination and/the landline companies from there on; this would call for a
fairly complicated accounting arrangement; or,
(b) to extend the system when traffio oondltiona
warranted to give more complete coverage; this
would tend to build up a competitive system e£
landline companies, and lt is questionable
whether this would be economically sound.
Conclusions
22, In the light of the above considerations, the
committee concludes that:
(a) the equipment capacity of the Service system
would be adequate to handle all government
traffic to points served by the system;
(b) the Service system is well suited for handling
certain types of government traffic and is, in
fact, doing so at the present time;
'(c) adoption of the scheme to send all government
traffic over the Service system would require
either an expansion of the system to give complete coverage or a closer integration with
commercial companies to arrange for the transfer of traffic between the Service system and
the landline companies;
(d) the financial aspects of the problem cannot be
reported upon without undertaking a detailed
study; it is, however, appropriate to point out
that one of the two landline companies is
government operated and the saving that would be
brought about by the proposed scheme would In
reality not be as great as figures would indicate;
(e) adoption of the scheme would require increases
in Service manpower at various centres across
Canada, the extent of which could not be estimated without further detailed study; unless
these increases.were permitted over and above
present manpower ceilings, they would not
appear to be In the general interests of the
Services; and,
(f) the principle of having the Department of
National Defence provide services for civilian
departments or to undertake activities which
could be carried out under civilian auspices
is one which appears contrary to government
policy and which might well conflict with the

000218

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

7 interests of the Armed Services; if the resources which are to be made available for
defence purposes are to be calculated in the
first instance by settling the amount of money
available to defence, then the fewer commitments which the Defence Department has of a
non-Service or extraneous nature the better.

IV.

RECOMMENDATIONS

23. The committee considers that Service facilities
are well suited to handle certain civilian government
traffic both to the U.K. and within Canada and notes that
this is already in effect or is planned on a considerable
scale.
They see serious objections, however, in ruling
that all government telegraph traffic will be handled by
Service facilities.
24. They accordingly recommend that the present
practice, whioh involves informal arrangements between.,
civilian departments and the Department of Naticnal Dofonoo,
be continued on the present informal basis or be extended
in individual cases where It is of mutual benefit.
They
recommend, however, against making it mandatory for all
government traffic to be handled over the Service systems.

Chairman.

i

1^3
00021&lt;

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