General Raymond Henault, chief of the defence staff, recalled that last year "I argued quite emphatically that the Canadian Forces were at a crossroads, that the status quo was not sustainable, and that urgent action was needed to ensure that the Forces were both affordable and sustainable."

In his second annual report on the state of the Canadian military, Henault said that the situation was now much better thanks to "the single largest increase in defence spending over a decade."

This was a reference to the government's decision to increase defence spending by 800 million dollars (590 million US) for fiscal 2003.

"With this increase in funding," the general said, "our sustainability gap can be nearly eliminated and we are now in a position to stabilize the Forces."

But Henault accepted continuing improvements had to remain a priority.

"We need to continue to build on our relationship with the US, both on defence and homeland security matters, through the new Canada-US Planning Group and a more pro-active presence in Washington," he said.

The pending takeover by Canada of a major role in the UN-sanctioned International Security Assistance Force (ISAF) in Afghanistan would be a test for Canadian military capabilities.

"This is a very important undertaking for Canada," said Henault. "Afghanistan remains a dangerous theatre and this will not be an easy mission.

"It requires a modern, combat-capable military with exceptional peace enforcement and peace building experience."

He expressed confidence Canada's commitment to provide 1,800 troops for a year, starting this August, would be a success.

WAR.WIRE