FGT X HAD LTSS FROM MTR Y. SYS ERROR. FGT X NON ADHERENCE TO ATC CLRNC. PLTDEV.

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FGT X WAS RELEASED OFF MCCLELLAN AFB RWY 16 ON AN IFR FLT PLAN THAT CALLED FOR RWY HDG CLBING TO 11000 FT FOR RADAR VECTORS TO SWR. THE ACFT WAS RESTR TO 2000; AS WAS MTR Y RELEASED BEHIND HIM SAME RTE; FOR TFC OFF SMF. FGT X CALLS AND RPTS OFF AND CLBING TO 2000 FT. I TOLD HIM RADAR CONTACT; CLB AND MAINTAIN 4000 FT; SQUAWK X. HE RECEIVED THE XMISSION BUT THE ALT WAS CLIPPED AND ON THE TAPE CAME BACK AS -- THOUSAND SQUAWK X. HE THEN SAID HE WAS IN A R TURN TO 300 DEG. I REMINDED HIM HE WAS TO BE ON RWY HDG AND HE SAID HE WAS TURNING BACK TO RWY HDG. IN HIS TURN I LOST RADAR CONTACT AND TOLD HIM SO AND ASKED HIS ALT. FGT X SAID HE WAS AT 2000 FT THROUGH HDG 240 DEG FOR RWY HDG. THERE WAS A PRIMARY TARGET AND I TOLD HIM TO CONTINUE L HDG 050 DEG AND I'D HAVE FURTHER CLB SHORTLY. MTR Y DEPARTED RPTING OUT OF 300 FT CLBING TO 2000 FT. I TOLD HIM RADAR CONTACT CLB AND MAINTAIN 3000 FT. FGT X'S TRANSPONDER IS NOW OBSERVED AND THE MODE C SAYS 2000 FT. WHEN ASKED HIS ALT FGT X SAYS 2000 FT. AT THIS POINT HE IS CONVEYING WITH MTR Y. I TOLD HIM HIS COMPANY WAS LOW TO HIS L AND TO MAINTAIN VISUAL SEPARATION. HE SAID 'I HAVE HIM VISUALLY.' MTR Y ASKS IF I SAW THAT CLOSURE.