Canada Boards U.S. Ship to Retrieve Army Gear

O T T A W A, Aug. 3, 2000 -- Canadian troops have boarded a cargo ship to end a standoff over a freight of Canadian military equipment stranded at sea by a payment dispute between the U.S. company that owns the vessel and the Montreal company that chartered it.

“At approximately 1:45 p.m. today the Canadian Navy began boarding the vessel on orders of the government of Canada,” Canadian defense spokesman Lt. Ken MacKillop said.

He was unable to say if there were any casualties, but the ship’s owners had pledged the crew would not resist.

The GTS Katie, a 750-foot freighter, had been stationed about 140 miles off Newfoundland since Mondaynight. The Katie was in the middle of a bitter commercial tug of war that dragged in a Canadian government increasingly impatient to get back the $150 million worth of military equipment on board — tanks, armored vehicles and lots of ammunition.

The transport ship is owned by Maryland-based Third Ocean Marine Navigation, which said the Montreal company that hired it, Andromeda Navigation, had refused to pay it what it was due.

“We’re owed approximately $282,000, and until we have a contract resolution that will secure payment to us, the vessel will stay at anchor,” said Peter Margan, head of Third Ocean.

Andromeda denies wrongdoing.

A Show of Force

Canada responded to Third Ocean’s action earlier this week by sending two warships and an ultimatum: Give us our arms, or be boarded.

Third Ocean said earlier that negotiations had broken down overnight, but MacKillop said that at 1 a.m. the Katie had weighed anchor and started steaming of its own accord west toward Quebec, its original destination, shadowed by Canadian warships.

Federal officials haven’t commented on the ship owner’s claim.

How Did This Happen?

How did Canada get into this mess? When its peacekeeping mission in Kosovo ended, Canada needed to get its supplies home. But budget cuts left the nation short on big cargo ships.

So the government hired contractors, who are now locked in a bitter financial battle with the owners of the Katie.

The result: Ten percent of Canada’s military equipment is stranded at sea.

“We’ve become a laughingstock,” said opposition politician Art Hanger. “It is growing into an international incident, an international embarrassment.”

The incident had been made more personal by the presence of three Canadian soldiers on the ship, who are there to guard the cargo. They want to go home.

“We’ve been out of Canada from the first part of December,” said Cpl. Dan Daly.

ABCNEWS’ James Walker and The Associated Press contributed to this report.