Thanks to K6DGW K6PJV, G3YMC, WB1HGA, K7UP, K6DGW and
others that responded to my query.
I suspect it is OTH radar, the suggestion of K6DGW. 
Do a Goggle search using  oth radar, lots of
interesting leads, including these:

http://en.wikipedia.org/wiki/Over-the-horizon_radar
http://www.agu.org/sci_soc/prrl/prrl9825.html

This racket is not always on 7040 KHz, it varies but
the spacing of signals seems to be 10.66 KHz.
I now remember such signals back in the 60s and 70s.
I used to have a model 15 and did a lot of RTTY so I
know what FSK sounds like.

I still love my K1 but am thinking of building a K2
this summer.

73, Ty, W1TF, K1 #1423

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