Canada threatens to seize US ship

Canada's military supplies held in the Atlantic Ocean

The authorities in Canada are threatening to board a US-owned ship that has refused to deliver its cargo of Canadian military supplies returning from Kosovo.

The ship, GTS Katie, has remained outside the Canadian territory in the Atlantic Ocean until a financial dispute is settled between the ship's American owners and the Canadian military.

Canadian supplies

Five tanks

580 army vehicles

390 munition containers

The cargo, worth more than $200m, represents around 10% of the Canadian armed forces' equipment.

The military hardware includes five tanks, 580 army vehicles and 390 crates packed with rifles, ammunition and communications equipment.

The ship had been scheduled to deliver the cargo by mid July but it was delayed, increasing costs of the voyage.

The ship owners, Third Ocean, are demanding more than £200,000 before delivering the equipment.

Quiet diplomacy

Third Ocean was hired by a Montreal-based Company, Andromeda, which had been contracted by the military to bring back supplies used by Canadian peacekeepers in Kosovo.

Three Canadian soldiers are on board to guard the cargo while two Canadian warships have been monitoring the ship which has been off the coast since Monday.

We've been told if we do not accept the $90,000 offer they board us. We've told the ship's manager not to resist

Peter Margan, Head of Third Ocean company

The Canadian government says there is little it can do other than pursue quiet diplomacy since the ship is flying the flag of its country of registration.

However, a foreign affairs department spokesman said on Wednesday the government had received permission to board the boat from St Vincent and the Grenadines, the Caribbean nation where it is registered.

Ultimatum

The head of Third Ocean company, Peter Margan, confirmed reports that the Canadian government had issued an ultimatum to the ship's owners to accept a third of the money they say is owed to them or prepare to be boarded.

"We've been told if we do not accept the $90,000 offer they board us. We've told the ship's manager not to resist," Margan said.

Canada routinely charters foreign transport for its military equipment overseas.

Its Navy has no facilities equipped to carry heavy armour.