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In my last PBEM game the Canadian HQ - Crerar did not command British units within range even though it was set to automatic. Is the Canadian HQ limited to commanding Canadian units only? If yes seems odd considering that there are so few Canadian units.

That's correct, as Minor HQs cannot command units belonging to any other country, including their Major. So Crerar just exists to command Canadian units.

It cannot command British units, but it can supply them... That is how I usually use it, an an alternate supply source.

As the other Canadian units do not arrive at the same time as the HQ, they are often scattered to the four winds by the time the HQ arrives, so the Canadian HQ commanding the Canadian units is usually a pipe dream. My Canadian Corps and Tank frequently get sent to the Middle East, the HQ usually ends up in Normandy. It is just a timing thing.