Standard radar which use microwaves can usually only 'see' on a light of sight but HF or shortwave radio waves can travel over the curvature of the earth hugging the surface.
Surface wave radar (SWR) uses the 'ground wave' of a short wave radio signal to detect objects on the sea.
Over the horizon radar that uses the sky wave of a shortwave radio signal which bounces off the ionosphere is used to detect aerial objects thousands of miles away and can also be used over ground.
Canada's federal government planned to build and operate eight radar sites on the country's east and west coasts as part of its push to improve security in the aftermath of the September. 11, 2001 terror attacks on the U.S.
"But the government has shut down the existing experimental radar sites in Newfoundland and the program has been cancelled," the newspaper said.
"The project was derailed after one complaint was received that the radar interfered with civilian communications. The experimental radars had been operating for 10 years without a complaint."
Raytheon Canada, which builds the high-frequency surface wave radar, is pushing ahead with marketing the system to other nations and has sold the radar to Sri Lanka with the help of the Canadian Commercial Corporation, a Crown agency that helps firms market their products overseas.
Sri Lanka has been looking for ways to improve its maritime surveillance to prevent Tiger arms smuggling ships.
Last year the navy sank several Tiger arms ships in the Indian Ocean after weeks of deep-sea surveillance.
Other international customers are being lined up for the Canadian radar, the National Post quoted Raytheon Canada vice president Denny Roberts as saying.
"The technology works," said Roberts. "Other countries don't seem to have a problem with it."
Roberts said the U.S. State Department informed the company on January 15 that the high-frequency radar is not subject to U.S. government regulations since it is designed to track vessels within a nation's own waters and because of that is not considered military equipment.
The radar is said to be unique as it can track ships at much greater distances than regular surveillance systems, being able to detect objects as far away as 200 nautical miles (370 kilometres) from Canada's coasts.
The system transmits high-frequency waves that follow the curvature of the Earth to detect and track objects hundreds of kilometres over the horizon.
Regular radars are restricted to objects in their line of sight on the horizon.
To gain its advantage, the high-frequency surface wave radar uses the ocean as a conducting surface to increase its range, the newspaper said.
The Canadian navy had been hoping the radars would cut down on surveillance costs, in particular the flying time of Aurora maritime patrol planes.
The radar could be used to pinpoint suspicious ships, after which Aurora aircraft could be directed to those vessels to conduct further surveillance.
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