Treasury Board of Canada
TB 606933
Ottawa, February 20, 1963
Mr EB Armstrong
Deputy Minister of National Defence
Ottawa, Canada.
Dear Mr Armstrong:
The Treasury Board at its meeting of February 15, 1963 noted and approved your report of the same date, concerning the construction status of the Gap Filler Programme. The Ministers noted that it is estimated $408,000 in cancellation credits from a revised estimated cost of $2,948,000 will result from having deferred the construction programme in June 1962. This is against an estimated cost to complete of $660,000 when construction is re-instituted or a net increase of $252,000 for a revised estimated cost of porgramme of $3,200,000.
The Board agreed in view of the further delays anticipated in the delivery of the radar equipment that the construction programme of the first 25 sites should be deferred another year (during 1963). However, the Ministers asked that the programme not be re-instated until a further report is forwarded reviewing the circumstances towards the end of 1963, with recommendations for the ultimate disposition of the overall programme (45 sites) including the availability of equipment and revised construction costs.
The Ministers were pleased to note the further anticipated savings which would result from delaying the installation of the diesel units and the change in the construction standard of the access roads.
Yours truly,
Assistant Secretary