BETWEEN:

_________________________
STATEMENT OF DEFENCE
AND COUNTERCLAIM
_________________________

1. Except as expressly admitted herein, the Defendant denies each and every allegation made in the Statement of Claim and puts the Plaintiff to the strict proof thereof.

2. The Defendant admits the allegations made in paragraph 1.

3. In response to paragraph 8 of the Statement of Claim, the Defendant says that on or about September 5, 1989, Her majesty the queen in Right of the Province of British Columbia (the "Province") entered into Licence of Occupation Agreement No.103025 with Her Majesty the Queen in Right of Canada ("Canada") respecting an area of the seabed beneath the Strait of Georgia owned by the Province and known as Whiskey Golf (The "Licence"). The Licence was for the periodic operation of a military underwater weapons test range, presently known as the Canadian Forces Maritime Experimental Test Ranges ("CFMETR").

4. In response to paragraph 12 of the Statement of Claim, the Defendant says that Article VI, Section 6.01(a) of the Licence provides that the Province may cancel the Licence with 90 days written notice if, in its sole discretion, it determines that it is in the public interest to do so. On or about May 22, 1997, pursuant to its authority under Article VI, Section 6.01(a), the Province gave written notice to Canada that the Licence would be cancelled (the "Notice of Cancellation").

5. In answer to the whole of the Statement of Claim, the Defendant says that it had at all material times the legal authority to issue the Notice of Cancellation, and that the Licence is lawfully cancelled effective August 21, 1997.

6. In further answer to the whole of the Statement of Claim, the Defendant says that the Statement of Claim does not disclose a reasonable cause of action and further, that it raises issues that are not justiciable.

   WHEREFORE the Defendant submits that the action should be dismissed with costs.

   COUNTERCLAIM

7. The Defendant says that as of August 22, 1997, the Plaintiff is occupying the seabed of the CFMETR in the Strait of Georgia at Nanoose Bay, British Columbia, more particularly described in the schedules to the Licence ("the Seabed"), without legal authority or permission of the Province, which occupation amounts to a trespass.

WHEREFORE the Defendant claims:
(a) an injunction enjoining the Plaintiff from occupying the Seabed;
(b) general and punitive damages;
(c) pre-judgement interest on the amount described in paragraph (b); and
(d) the costs of this action.

DATED in the City of Victoria in the Province of British Columbia this 5th day of September, 1997.

"Joseph J. Arvay"
Joseph J. Arvay, Q.C.
Solicitor for the Defendant

Feature Sites: Peace, Earth & Justice News & Walk for Global Justice Sat., Apr. 27