Gaspe was ordered on 23 August 1937 as one of four minesweepers ordered for the Royal Canadian Navy. She was laid down on 24 January 1938 by Morton Engineering and Dry Dock Co. at Quebec City and launched 12 August later that year. She was commissioned into the Royal Canadian Navy on 21 October 1938 at Quebec City.
After commissioning, Gaspe was one of two of the Fundy-class minesweepers assigned to the east coast of Canada. She was stationed at Halifax, Nova Scotia when the war broke out. She served with the Halifax Local Defence Force as a local minesweeper. On 14 January 1945, she picked up 56 survivors of the British tanker British Freedom that was torpedoed and sunk east of Halifax by U-1232. She was paid off on 23 July 1945 at Halifax.
Gaspe was sold into mercantile service in 1946 and in 1947 became the tug Sung Li working out of Shanghai.