The RCN knew about the sub's condition, it wasn't a secret (the Aussies were offered them around the same time and they went running away as fast as possible). The RCN knows that procurement money is a different pot than repair and sustainment, and that the subs needed modified anyways for Canadian service (Mk-48 for example).The common link with the Merlin and Upholder was Chrétien, a useless POS. While he was trying to make his mind to purchase the Upholders they were being left without proper mothballing as the RN expected the deal to proceed quickly. Then the RCN failed to properly evaluate their condition (perhaps intentionally fearing an exit from the sub business). As for the Merlins, he cancelled the deal out of spite for Mulroney and we paid a huge cancellation penalty. Twenty two years later we have 6 CH-148s out of 28 orders and they still don't meet specifications. The EH101 was the only right choice and still is.