Canada has slightly increased its defense budget, adding C$1.21 billion to the 1999 budget (mostly to cover Timor and Kosovo), and another C$1.696 billion over the next three years. This will reduce the pressure caused by the peacekeeping mission costs, but the budget (originally C$10.3 billion) is still going to force some hard decisions on force cuts or procurement delays. Some possible cuts being considered are to disband the three light infantry battalions, mothball some of the warships, cut back on the upgrades for the CF18 and CP140, mothball the ADATS air defense system, or buying fewer new naval helicopters. --Stephen V Cole