Bosnia.

Meanwhile, NATO is under pressure to finalize plans and take early steps to make ready for the withdrawal of U.N. troops from Bosnia and Croatia. At least three nations, — Canada, Belgium, Denmark — are beginning to apply pressure with the Netherlands and others also showing concern NATO should be on the sharp edge of readiness. It seems the glove is down.

Serbs in Bosnia have continued to bombard so-called safe havens and NATO aircraft have conducted what amount to no more than finger-wagging at the Serbs, in the form of light air attacks. NATO has been held back from full blown air assaults by the U.N. command which justifiably fears retaliation against lightly armed U.N. forces on the ground in Bosnia.

Croatian President Franjo Tudjman in January had ordered the 12,000 peacekeepers in Croatia to leave after the March 31 mandate expired. Since that time his edict has been rescinded on the basis of an agreement negotiated by U.N. envoy Yasushi Akashi in Knin, Croatia wherein the U.N. has promised that most of its peacekeepers will be withdrawn from Croatia, leaving only a nominal force behind.

U.N. Secretary General Boutros Boutros-Ghali fears that any change at all is destabilizing and could lead to all out war. He may be right although the situation is so fraught with posturing politicians it must be very hard to read, at any given time, for Boutros-Ghali and his advisers.

But the U.N. presence in the former Yugoslavia is a finite thing. It may end this fall when the U.N. mandate is again up for renewal. The U.N. has been perpetually hindered in its bid to provide humanitarian aid to civilians, and has done little to keep the peace. The antithesis to this allegation, of course, is that no one really knows what would have happened if the U.N had not moved into the region. The situation, in terms of the war refugees, would have been worse, many say, but that is also not a certainty.

It is conceivably possible that the U.N. presence has delayed the Serbs' achievement of their geographic goals and has thus prolonged what might otherwise have been a short engagement and

Canada's Aerospace & Defence Weekly

Volume 9, Number 14 April 12, 1995

Comment

Recent news from Croatia benignly illustrates the insanely awkward conditions the world faces in the former Yugoslavia.

As Canada punishes Major Ross Wickware who wrongfully drank at a wedding in Bosnia, Russian Major-General Alexander Perelyakin, commander of a U.N.-controlled area in Croatia known as "sector east" has been ordered out of the area by the U.N. for aiding rebel Serb forces in eastern Croatia.

Moscow, huffed at the order, said its officer would leave at Moscow's discretion and timing, and only then. (Translation: "In your ear, comrade Secretary General.")

The beef with Perelyakin is about arms moving from Serb-held areas of Yugoslavia into Serb-held Croatia, and smuggling and corruption which have run rampant in the Russian U.N. troop monitored sector.

Perelyakin's illicit activities are believed to follow a modern tradition. In 1993, Russian Colonel Victor Loginov, after a tour of duty in the same sector returned to the area and set up a trading business in cooperation with an infamous Serb who is reportedly guilty of numerous war crimes. The trading business deals in arms.

Others believe that the Perelyakin affair is barely the tip of the iceberg and that even heavy weapons are moving freely with outside help from Russia and other nations to support Serb forces in their offensive action in

Publisher and Editor In Chief: Micheal John O'Brien

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Patrick McManus (Halifax)

William Kane (Washington DC)

John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

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swift taking of real estate by a much stronger Serb force. Admittedly that overlooks the valid accusations of "ethnic cleansing", but over the ages, whether one wants to admit it or not, that has been a recurring horror of war.

Nevertheless, support for the now various missions in the former Yugoslavia is flagging. It is certainly time for the EU and the CSCE, which fumbled the ball in the first place, to assume some kind of responsibility in the troubled Baltic region because few others want to do this for much longer.

During a debate in the House of Commons late in March when Parliament discussed Canada's options with respect to participation with the U.N. in Croatia and Bosnia, Defence Minister Collenette properly pointed out that, "We were 29 years in Cyprus and we do not intend to be 29 years in Bosnia and Croatia."

Micheal John O'Brien

RCR,RCD PROVIDE HUMANITARIAN AID

In March The Royal Canadian Regiment and the Royal Canadian Dragoons continued to provide humanitarian aid in former Yugoslavia.

In the Rastevic area of Croatia 1 RCR distributed over 800 kilograms of supplies and 1000 kilograms of clothing to local schools and displaced persons.

In the Visoko area of Bosnia the RCD continued to provide supplies and building materials to three schools. In addition work parties provided assistance to the schools and local hospitals, water was tested and provided and 21 tonnes of seed were delivered to local communities. At the same time mine awareness and first aid training was provided to students.

ONTARIO BACKS COM DEV IN SPACE RESEARCH PROGRAMME

The Ontario Government is investing in a private/public sector research and development programme that will position COM DEV to capture more than half of the $800 million market for satellite payload subsystems over the next decade. Economic Development and Trade Minister Frances Lankin last Thursday joined COM DEV Chairman and CEO Val O'Donovan to make the announcement at the Cambridge facilities.

In completing the $10.4 million five-year programme, COM DEV will assemble a support team that includes three universities, two federal government agencies and the private sector in the development if miniaturized filters and multiplexers for satellites. The Ontario Government's $4.7 million contribution will be matched by an additional $5.7 million from COM DEV.

"Our support of this research project is an investment in long-term job creation," Ms. Lankin said. "It clearly demonstrates our commitment to increase high-tech jobs which contribute to Ontario's economic growth. This type of joint initiative reflects our government's sectoral approach to economic renewal."

COM DEV has supplied electronic payloads for more than 140 satellites. The new programme will help the company expand its market share. Spin-offs from the technology could generate $1 billion in new revenues and create at least 250 new high-tech jobs at COM DEV over the next 10 years, according to the company.

"Our success is critically dependent on the time required to bring to market new products which provide better performance to customers," said Mr. O'Donovan. "This research grant will greatly enhance the company's ability to reduce the time required to develop the next generation of space electronics. We expect these new technologies will help us increase our share of satellite payload electronics and ensure COM DEV's growth in the years ahead."

Other project partners include the University of Waterloo; McMaster University, Hamilton; the University of Western Ontario, London; the National Research Council, Ottawa; Communications Research Centre, Ottawa; and Kingston Ceramics.

DEAL MAKES SASKATCHEWAN, ALBERTA, CANADA & INDUSTRY WINNERS

It's an exciting deal. One that conveys sustained viability to two western Canadian businesses — Pelorus Navigation Systems of Calgary and SED Systems of Saskatoon — and significantly improves regional air transportation in the prairies by enhancing flight safety and by inviting extended air transportation services to the traveling public.

The two aerospace companies, both long-time, well-established western Canadian businesses, and

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both specialized niche marketers in their respective specialties, stand to benefit from their entry into a potential global market which some estimate could reach as high as $8 billion.

In this recent event, Pelorus Navigation Systems Inc. of Calgary, Alberta signed a $1.5 million agreement with the Saskatchewan and federal governments to supply and install a Pelorus/Honeywell Local Area Differential Global Positioning System (LDGPS) at five airports in the province of Saskatchewan.

To pay for the project, the Province of Saskatchewan will contribute up to $1,038,000; the federal government up to $462,000.

Saskatchewan clearly sees the project as a major development. The Premier himself, Roy Romanov, with Saskatoon-Humboldt federal MP Georgette Sheridan, announced the contract at the end of March.

The venture is funded in part under the Canada-Saskatchewan Infrastructure Works Agreement which was signed in January 1994. This unique federal/provincial agreement enables Canada, Saskatchewan, municipalities and the private sector to co-operatively undertake projects which will renew and improve the quality of the public infrastructure and create employment opportunities for Canadians. In this case the approved project will enhance the safety and reliability of air operations and create skilled employment in Saskatchewan.

A planned Pelorus facility in Saskatoon will support the firm's export sales of LDGPS and is intended to compliment the company's corporate, engineering and production activity in Calgary.

"We're excited about the agreement on two counts," says Ed Fitzhenry, Pelorus president. "Saskatchewan is an excellent venue for high productivity manufacturing and the project will showcase our technology to customers worldwide. We've got it all here, excellent research facilities, world class educational institutions, efficient telecommunications and transportation networks, an educated, vigorous work force and government that supports export-driven businesses."

Speaking on behalf of Lloyd Axworthy, minister of Western Economic Diversification and implementing minister of the infrastructure programme in Western Canada, Sheridan said: "The federal government is pleased to be involved in this non-traditional and innovative infrastructure project with private sector interests. It will foster economic growth and job creation in the province — two key objectives of the Infrastructure Works Programme — and enhance Canada's internationally-recognized aerospace and satellite technology industries. Isolated Canadian communities will benefit from safer air transportation."

Earlier this year, Pelorus and Honeywell Inc. had signed a teaming agreement to develop, manufacture, market, install and maintain the Pelorus/Honeywell LDGPS.

Honeywell Vice President, Keith Aakre said, "We share Pelorus' enthusiasm for the Saskatchewan project and look forward to cooperating with the province, Transport Canada and the regional aircraft operators on this important milestone..." The project, he noted, is the world's first application of DGPS at a network of airports to support commercial air carrier operations.

Commenting on the project from an aircraft operator's perspective, Al Brydon Knibbs who is Sask Air's head of flight operations said, "We're delighted by the Province's initiative. The Honeywell/Pelorus system provides greater reliability and an added measure of safety to air operations at regional airports in the Province."

The Pelorus/Honeywell Satellite Landing System, SLS-1000, operates with three DGPS receivers installed at precisely surveyed locations and referenced to and dispersed around a precisely surveyed point on a runway. The receivers each determine the differential corrections necessary to remove the errors in the satellite signals received due to the effects of the ionosphere, troposphere and selective availability (SA). The ground station processes the data from each DGPS receiver and after ensuring the integrity, transmits the correction message once per second to the airborne DGPS receiver. The airborne receiver is equipped to apply the corrections and produce navigation data that is accurate to within 1.5 meters horizontally and 2 meters vertically.

In addition to the minimum requirements for compliance, the system also transmits the precision approach path points for all approaches in the local area.

Work on the project has begun already. Pelorus has awarded a contract worth roughly $500,000 to SED Systems of Saskatoon to assist with product development. Pelorus will scale up its production facility in Saskatoon in early 1996 to coincide with global marketing activity and certification of the Saskatchewan instal

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lations by Transport Canada.

MCDONNELL DOUGLAS SAYS COMMITTED TO MD-95

A market estimated at more than 1,600 aircraft over the next 20 years cements the commitment by McDonnell Douglas and its team of supplier/partners to continue the 100-passenger MD-95 jetliner programme.

Following a recent meeting in Long Beach, member companies of the MD-95 programme declared that they have "a firm commitment to go forward" with advanced developments on the new airplane and with marketing efforts aimed at capturing the orders necessary to proceed into production.

Executives from McDonnell Douglas and a number of the largest supplier/partner companies have formed a steering committee to guide the MD-95 programme through its development and marketing phases.

Harry Stonecipher, president and chief executive officer of McDonnell Douglas, said, "McDonnell Douglas and its board of directors are firmly behind the MD-95. Anyone who thinks that this airplane isn't going to be a leader in the 100-passenger market is wrong. The MD-95 is still the right airplane for that segment."

Stonecipher added, "Someone might beat us at some airlines, but they will not prevent us from winning at all of them. I said I was going to succeed in the commercial aircraft business, and I will."

Bob Hood, president of Douglas Aircraft, the commercial jetliner division of McDonnell Douglas, said, "We and our MD-95 partners are going to go to the market and get orders for this airplane. We have put together a strong team of suppliers who, as partners, have made a commitment to winning, and we have the airplane that can win."

John Wolf, executive vice president-development of Douglas Aircraft, chaired the Long Beach meeting and said, "There is no change in the confidence all of us have in the market and in the MD-95 itself, and there was unanimous commitment to press forward.

"The campaigns we are involved in," Wolf said, "confirm the competitive edge of the airplane. It is unquestionably the right aircraft for the 100-seat market." Wolf also said that entry into service of the MD-95 will be determined by the schedules of the initial customers.

CITY-CLASS COMBATANT SCARES AWAY PIRATES

Early in the morning of 5 April, 1995, a Canadian Forces Halifax-class vessel, HMCS Fredericton (FFH 337), while en route to Jeddah, Saudi Arabia under the command of Commander Dan Gallina, responded to a distress signal from a British 15-metre sail boat, the Longo Barda, which was under attack by pirates in the Gulf of Aden off the coast of Somalia. The pirates had fired a mortar at the vessel and were attempting to board it when a container ship, the Maersk Antwerp arrived on the scene. The pirates backed off but stayed in the area until the arrival of HMCS Fredericton. The sight of one of Canada's new patrol `frigates' (CPF) proved more than the pirates had bargained on and they immediately fled the scene. Fredericton sent a friendly boarding party aboard Longo Barda and confirmed that persons aboard the British racing vessel were unharmed.

PANEL REPORT: COMPETITION IN SATELLITE BROADCASTING

The Government of Canada should direct the CRTC to proceed promptly with the licensing of all qualified satellite TV operators, the federal Government's special panel on satellite broadcasting policy said in its report released last Thursday.

"The fundamental issue the panel faced was to balance the right of viewers to access the broadest possible choice of programming at the most competitive prices with the need to ensure that Canadian viewers have the opportunity to receive Canadian programming — programming by Canadians for Canadians, programming that resonates with the Canadian experience," said panel chairman Gordon Ritchie.

The panel has submitted its report to Canadian Heritage Minister Michel Dupuy and Industry Minister John Manley.

The three-member Direct-to-Home Satellite Policy Review Panel recommends that full competition be encouraged in the emerging direct-to-home satellite TV market, including competition among packaging services such as pay-per-view. Comprised of Gordon Ritchie, Roger Tasse, and Robert Rabinovitch, the panel was appointed on November 29, 1994. It was asked to review public submissions and provide recommendations on DTH policy.

In arriving at its conclusions, the panel was guided by three essential objectives: promoting competi

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tion, ensuring equitable conditions of license, and generating funds for Canadian programming.

First, competition in the satellite TV market should offer consumers increased channel choices, competitive prices, and attractive alternatives.

Second, DTH operators and pay-per-view services should be licensed, and conditions of licencce — such as Canadian content and ownership rules — should be the same for all competitors.

Third, DTH satellite systems and pay-per-view services should each contribute 5 percent of their gross revenues to a fund to finance the production of Canadian programmes. The fund's budget could reach at least $35 million a year with one million satellite TV subscribers in Canada.

The government set up the panel last fall following a decision by the Canadian Radio-Television and Telecommunications Commission to exempt from licensing DTH broadcasting distributors as a class - a decision which had the immediate effect of creating a de facto monopoly in the Canadian satellite TV market.

"Monopoly privileges can no longer be justified at a time of rapid technological change and expanded channel capacity," said panel member Robert Rabinovitch. "Canadians clearly want the widest range of channel choices at affordable prices. Besides conventional channels already familiar to viewers, competitive pay-per-view services on satellite TV will offer as many as 100 movie channels to pick from. With additional digital radio and data services, satellite TV is a long overdue competitive alternative to cable."

The panel rejects the CRTC's exemption approach for DTH broadcasting and recommends that the Government direct the regulator to proceed promptly with a formal licensing procedure for DTH distribution and pay-per-view services.

"The CRTC should exempt from licensing only those broadcasting entities that do not have a significant impact on the Canadian broadcasting system," said panel member Roger Tasse. "Satellite TV clearly will be an important part of Canada's broadcasting system, and as such should be licensed. Formal licensing gives the Government the required degree of control over broadcasting distribution and programming services whose economic, social and cultural impact is significant."

The panel submitted its report to Ministers following a two-phase process of written submissions that ended on February 23, 1995. In total, the Government received 468 submissions, including more than 300 from individual Canadians.

Readers may obtain copies of the Review Panel Report, by contacting Industry Canada at (613) 947-7466; Canadian Heritage at (819) 997-0055, or access on the Internet at http://debra.dgbt.doc.ca/isc/index.html

GERMAN ORDER BRINGS YEAR'S TOTAL TO 75 BOEING 757s

LTU, a German inclusive tour operator, has ordered one Boeing 757 and one 767-300ER, Boeing Commercial Airplane Group confirmed on Monday. Estimated value of the order is $160 million.

In LTU's configuration, the Rolls-Royce-powered 757 will seat 209 passengers, while the Pratt & Whitney-powered 767-300ER will seat 276 passengers. Deliveries are scheduled for spring 1996.

The 757 will be certified to fly at high gross weights, enabling LTU to use it to serve the East Coast of North America from Germany. LTU's new extended-range 767 will have the capability to serve the entire North American continent, in addition to providing LTU the flexibility to open up new routes it identifies in the charter market.

The 757 and twin-aisle 767 were developed by Boeing concurrently, so both share the same technological advancements in propulsion, aerodynamics, avionics and materials. This commonality reduces training and spares requirements when both are operated in the same fleet. In the early 1980's, LTU, which celebrates its 40th anniversary this year, was the first operator in continental Europe to operate both models in the same fleet.

Monday's order brings to 14 the number of 757s ordered by LTU and the number of 767s to five. For the year, Boeing has announced 75 orders. -0-

OVERSEAS AVIATORS TRAIN IN CANADA

As a result of an international marketing plan carried out by the Canadian Forces (See The Wednesday Report 29 March, 1995) another group of aviators from overseas has started training in Canada. Four student navigators from the Republic of Singapore Air Force commenced training at the Canadian Forces Air Navigation School at Winnipeg on April 3. The program allows Singapore, which has indicated that more

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students could come to this country later this year to evaluate the Canadian Forces Air Navigator training system.

Brigadier General Keith McDonald, the Director General of Aerospace Development at NDHQ says, "It is our hope that this arrangement with the Republic of Singapore Air Force will encourage other nations to commit to our training system."

CALENDAR

May 9/11 — Dataware Technologies is offering at no charge to The Wednesday Report's readers its "1995 Spring Seminar Series", a comprehensive half-day seminar series that provides a closer look at advanced electronic publishing solutions. Issues addressed by the seminar will include when to outsource and when to develop in-house; when either CD-ROM or `online' is more appropriate; and how CD-ROM and online can compliment one another. The seminar — to be held in Ottawa on May 9 and in Toronto on May 11 — will also address questions surrounding CD-recordable technology and publishing across the Internet. For more information, or to register, call 1-800-229-8055 and ask for the Seminar Desk.

June 1 — The Canadian Defence Preparedness Association will hold a two-day Maritime & SAR Helicopters Exhibition & Seminar to provide government officials and Canadian industry a forum in which to interact with helicopter manufacturers and to explore the current military helicopter requirements and various equipment options to meet these requirements. The seminar will take place at Hanger #10, International Airport, Ottawa. Fees include both June 1 and 2. Registrations must be made by May 22, 1995. For information, contact CDPA, 500 - 100 Gloucester St., Ottawa, ON, K2P 0A4; phone (613) 235-5337 or fax (613) 235-0784.

June 1 — The Military Vehicles Exhibition and Seminar, to be held at the Ottawa International Airport, is a two day seminar and exhibition sponsored by the Canadian Defence Preparedness Association to provide government and industry representatives the opportunity to discuss current military vehicle requirements and a range of possible solutions. Fees are payable in advance. Registrations must be made by May 22, 1995, after which date cancellations will not be accepted. For registration information contact Canadian Defence Preparedness Association, 500 - 100 Gloucester Street, Ottawa, ON, K2P 0A4; phone (613) 235-5337 or fax (613) 235-0784.

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