GS,
Its a technology transfer, and Canada is a signatory of the NPT - and especially dealing with nuclear components in a post 9/11 enviroment. The Brits have their fleet for the sole purpose of a survivable first strike nuclear capability. 2 in the shop, 2 on patrol. I just came back from Russia 2 weeks ago and the Northern fleet, if you do your research is a shadow of what it was 15 years ago. There is no need for Canada, who in Gunny's honest opinion which I agree with being an analyst for the Navy - needs fast attack boats when their primary mission is loiterial within 200 miles of shore. Diesels, are quieter and better suited for those purposes.
Why do you think the US is going completely ape about China's diesel fleet and being able to detect them? Because they are a bricks hurl away from Taiwan and whatever Carrier group we currently have over there making life difficult.
Also your argument about operating illegally in canadian waters doesn't hold up since international law allows anyone to operate within 12 miles of the coastline. Economic exclusion zones don't count as a coastline.
Wolfala