withdraw owing to the potential of war breaking out over the disputed Krajina region.

Also, in the ongoing debate over the arms embargo against Bosnia, antagonists are gaining ground leaving nations contributing to UNPROFOR more than just a little edgy and thinking about their own plans for withdrawal from Bosnia.

U.N. envoy Yasushi Akashi was to attend talks in Knin, Croatia yesterday to seek a political agreement with Zagreb and the secessionist Serb rebels. The desired agreement would allow UNPROFOR to remain in Croatia despite last month's decree by Croatian President Franjo Tudjman that peacekeepers leave no later than March 31.

The beleaguered UNPROFOR (United Nations Protection Force) has endured considerable controversy in the world press while it has failed to secure the peace in Bosnia-Hercegovina. The U.N. has not been able to find a solution to the crisis although it claims to have given aid to some 2 million war refugees and other needy civilians.

Last week, United Nations Secretary General Boutros Boutros-Ghali told a press conference that, "We (UNPROFOR) were able to transport tons of food to Sarajevo, Bihac and the main cities. We also managed to restrict the Yugoslav conflict within the borders of the former Yugoslavia and to maintain peace in Macedonia."

He also said, "The role of the United Nations in Yugoslavia is irreplaceable. It is easy to say the United Nations has failed. It has failed so far because we have not yet found a solution, but we will have to continue negotiating for years to find a solution to this conflict."

Yesterday, NATO ended an exercise simulating the withdrawal of U.N. troops from Croatia and Bosnia. A force comprised of as many as 40,000 NATO troops has been offered to the United Nations, if required.

The NATO exercise took place at the U.S. Warrior Preparation Centre, near the United States Air Force Base at Ramstein, Germany and follows a request from the United Nations to prepare for the possible withdrawal of its troops from Bosnia if current efforts to secure a peace agreement fail in all-out war.

NATO has already begun to set up a telecommunications infrastructure as part of its contingency plans.

Contingency plans also call for a NATO force to

Canada's Aerospace & Defence Weekly

Volume 9, Number 7 February 22, 1995

Comment:

Bill's flying up to see us tomorrow. Should be a hoot. The U.S. President, now internationally famous for his uncanny ability to wreck the career of any person he tries to bestow an appointment on, is on his way to Canada. (We thought you ought to be warned.) It's Clinton's first visit to Canada since he became President and it may be a humdinger. The Great Tactless One arrives on the heels of his own proposal to charge us Canadians a fee for crossing the Canada-U.S. border — and not loonies either, real U.S. dollars. Hillary's husband has chosen to meet with Lucien Bouchard in his capacity as opposition leader. Lucien, still recovering from a near-death battle with a vicious illness, recently chose to devote his precious time and effort not to his wife and two children, but to separating Quebec from Canada. One can only guess at what Bouchard will talk about, but be sure that Mr. Bouchard hopes the meeting will endow his independence mission with prominence and prestige. We wish the two men the very best and sincerely hope President Bill will nominate our buddy Lucien for something. Anything.

U.N. Readies For Pullout

The United Nations may be on the verge of withdrawing from the former Yugoslavia.

Croatia has ordered peacekeepers out by the end of March and according to U.N. statements, that would mean U.N. troops in Bosnia would also have to

Publisher and Editor In Chief: Micheal John O'Brien

Editorial Staff Writer:

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Contributing Editors:

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Mike Martin (Ottawa)

Patrick McManus (Halifax)

William Kane (Washington DC)

John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

The Wednesday Report is published weekly by

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deploy to Croatia within 48 hours if withdrawing U.N. troops were in danger or prevented from leaving by military leaders or civilians, notably in the Serb-controlled Krajina region.

The Republican-dominated U.S. Congress is talking toward lifting a U.S. arms embargo on Bosnia. There is a growing camp of supporters of the concept, particularly among the Islamic nations who see the Muslims of Bosnia unfairly impacted by the embargo and left without the ability to properly defend themselves against Serbian aggression and what has been clearly deemed by the global community as "ethnic cleansing".

Britain, France, Russia and Spain, have each indicated that if the arms embargo is lifted on Bosnia they intend to withdraw their troops. Canada has also said it will withdraw its troops under this and other disconcerting scenarios.

As February draws near its close, the U.N. has one month to renegotiate its presence in Croatia and avert the March 31 deadline for withdrawal from that republic. If the United Nations fails to avert its expulsion from Croatia, it is a near certainty that UNPROFOR will have to withdraw from Bosnia as well.

Micheal John O'Brien

IRAN DENIES COOPERATIVE MISSILE PROGRAMME WITH NORTH KOREA

An Iranian foreign ministry official denied in Sunday's Iran newspaper that his country was working with North Korea to build missiles. As reported previously in The Wednesday Report, Israel has claimed that Iran is co-producing long-range missiles with North Korea that can reach the Jewish state.

MD PRESIDENT DENIES RUMOURS — `MD-11 PRODUCTION CONTINUING'

Production of the MD-11 trijet is continuing at the Douglas Aircraft Co. facility of McDonnell Douglas, and there are no plans for a suspension of work in 1996.

McDonnell Douglas President and Chief Executive Harry Stonecipher declared the company's position following news reports suggesting that MD-11 assembly could stop temporarily next year. Advertisements appearing this week and direct communications from McDonnell Douglas to customers and suppliers are reiterating the message that no break in MD-11 work is planned.

"McDonnell Douglas holds 45 firm orders for MD-11s, plus 85 options and other commitments," Stonecipher said. "Several current major sales campaigns hold significant potential orders for MD-11s. The company is very confident of future MD-11 sales, with positive effects on 1996 production. With those prospects open, current manufacturing plans call for continuing, not stopping, work on the MD-11 assembly line next year," Stonecipher said.

ARIANESPACE MARKS MAJOR STEP TOWARD RESUMPTION OF LAUNCHES

Following the disastrous failure of Ariane Flight 70, Arianespace is making preparations to launch the next in the series, Flight 71. Following the acceptance of the third stage Flight 71, Arianespace has now set Tuesday, March 14, 1995 as its target launch date.

The cryogenic third stage for Flight 71 was delivered to Arianespace on Wednesday, February 15th for air shipment that same evening to the launch site in French Guiana. Preparation for the launch has resumed in Kourou, and the launch is now scheduled for the night of March 14-15. The company expects all measures implemented since Flight 70 to be fully validated early in March by its own technical review team.

Arianespace Flight 71 will place two satellites into geostationary orbit: HOT BIRD 1, the European organization Eutolsat's first direct TV broadcast satellite; and BRASILSAT B2, the fourth telecommunications satellite operated by Embratel of Brazil. The launch vehicle is an Ariane 44LP, the version of the European launcher equipped with two liquid and two solid strap-up boosters.

CMC THIRD QUARTER RESULTS SHOW DROP IN REVENUES

Canadian Marconi Company's (CMC) consolidated financial results for the nine months ended December 31, 1994 were released last week showing a general decline in overall performance. Total revenue from electronic products was at $160.8 million for the nine months ended December 31, 1994, down $36.8

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million compared to revenue in the same period last year. The prior period benefitted from the settlement of two major contract cancellations accounting for $38.5 million.

Higher interest rates in the money markets resulted in increased income on lower cash and temporary investment balances. An unrealized pre-tax foreign exchange gain of $1.4 million on U.S. denominated holdings was recorded, compared with $4.9 million in the same period last year.

Profits before tax stand at $1.0 million compared with $13.5 million in the same period last year. Three main factors have contributed to this decline: lower order receipts, higher restructuring costs to reflect current business conditions and higher selling and development costs to penetrate new markets with new products. Net income was $0.8 million compared with $11.4 million last year.

While an improvement in earnings is expected in the last fiscal quarter, the results for the year will be lower than those for the previous year. Order backlog at the end of December was $243 million, compared with $285.9 million on December 31, 1993.

JAPANESE COMPANY BUYS 15 NOTAR HELOS

Japan's Aero Asahi, one of that nation's largest helicopter operating companies, has purchased 15 McDonnell Douglas MD Explorer helicopters. Two additional single-aircraft orders were placed by Japan Digital Laboratory and Tomen Aerospace Corp.

The order from Aero Asahi is the largest to-date for the newly certificated helicopter. Deliveries of the MD Explorers to these customers begin in mid-1995 and stretch through 1999. The helicopters will be used by Aero Asahi for various duties, including aero medical, television news gathering, corporate charter and various other operations.

Japan Digital Laboratory will use its MD Explorer to transport personnel and material. Tomen, which is the McDonnell Douglas distributor for Japan, will use its helicopter as a marketing demonstration aircraft.

The Japanese market represents a significant portion of the worldwide demand McDonnell Douglas expects for the MD Explorer. The company has nearly 200 certificates of interest from operators around the world that will be converted into firm orders when the aircraft are about one year from scheduled delivery dates.

"The MD Explorer is an excellent helicopter for Japan," said William Ringer, director of international business development for McDonnell Douglas Helicopter Systems. "The helicopters are the quietest and safest flying."

The MD Explorer utilizes McDonnell Douglas' exclusive NOTAR (no tail rotor) system for anti-torque and directional control. The lack of a tail rotor makes the helicopter easier to fly and much safer for operating in confined spaces often encountered in crowded urban areas.

Aero Asahi's chief pilot and its general manager of customer support, Yosuki Tsumura and Yokio Matsumura, respectively, were members of the McDonnell Douglas "Blue Team" of operators from around the world that played an active role in the development of the MD Explorer. The Blue Team monitored the programme through its entire design and development and made numerous recommendations and contributions to the final product.

CMR DEAL FINALIZED WITH ST JEAN CITIZENS

The federal government is reported to have reached an agreement with a group of citizens in Saint Jean-sur-Richelieu, PQ to keep the facilities at College Militaire Royale de Saint Jean-sur-Richelieu, PQ operating as a civilian entity. Under the agreement the buildings and other facilities would be leased from the federal government for $1 a year. In addition, Ottawa would put up $25 million over five years to help with the transition to civilian status. It is expected that 200 military and civil service students will undergo language training at the new school. The school, working with the University of Sherbrooke, also plans to run a strategic-studies program, which could handle some 100 students.

CMR was one of many units to be disbanded as a consequence of the 1994 defence budget. Under the plan officer training, which has been conducted at Saint Jean-sur-Richelieu and at Royal Roads, B.C. in the past, is being transferred to the Royal Military College, Kingston.

CDPA TO PUBLISH FIRST ANNUAL CANADIAN DEFENCE ALMANAC

A comprehensive guide to Canada's defence sector is available from the Canadian Defence Preparedness Association (CDPA). The almanac covers the mandates, structures, key officials and programmes of: National Defence, Foreign Affairs & International Trade, Industry Canada, Public Works, Govern

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February 22, 1995

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ment Services, Defence Construction, Canadian Commercial Corporation, as well as defence contractors and suppliers. In addition the book includes information on parliamentary committees, defence associations and academic institutions as well as the various international alliances relevant to Canada. The unit price for the almanac is $65.00. To order a copy contact the Canadian Defence Preparedness Association, 500 - 100 Gloucester Street, Ottawa ON K2P 0A4, or telephone (613) 235-5337; fax, (613) 235-0784.

DE HAVILLAND SELLS ANOTHER DASH 8 TO CHINESE AIRLINE

Taipei-based Great China Airlines announced last week its purchase of an additional de Havilland Dash 8 Series 300 from Bombardier Regional Aircraft Division raising its fleet to 15 Dash 8 aircraft.

Great China Airlines has grown to become the largest single operator of Dash 8 aircraft in the Asia/Pacific region since inaugurating service in 1989. At that time, the airline began by serving four routes within Taiwan. Since then, the airline has become a major force in the country's airline industry serving 10 per cent of Taiwan's domestic air travel market and carrying more than one million passengers per year.

Peter Szu, CEO of Great China Airlines, attributes his company's success to a well-devised plan for steady growth and team work. "We are very proud of our accomplishments over the past six years," he said. "Part of our achievement can be directly related to our choice of aircraft. Both the Dash 8 Series 100 and Dash 8 Series 300 aircraft have provided comfortable and reliable customer appeal backed up by dependable product support."

NAVAL EXERCISE GETS UNDER WAY OFF NORWAY

Five Canadian naval vessels, complete with Sea King helicopters, are participating this week and next in a major NATO exercise off Norway. HMCS Gatineau (DD 236), HMCS Ville de Quebec (FFH 332), HMCS Nipigon (DDH 266), HMCS Preserver (AOR 510) and HMCS Okanagan (SS 74) departed Halifax on 9 February, 1995 to take part in "Exercise Strong Resolve" which runs until 10 March. During the exercise, Captain (N) Don MacKay, Commander First Maritime Operations Group, is commanding a multinational task group including the Canadian ships as well as vessels from the Netherlands, Spain, the United Kingdom and the United States. It is one of only two major task groups involved in the exercise.

CANADIAN SUPPORT WING READY FOR SERVICE IN HAITI

Canada has informed the United Nations that it is ready to provide a Contingency Support Wing for service in the United Nations Mission in Haiti (UNMIH). The Canadian Contingent, (CCUNMIH), which should be operational in Haiti by the end of March, will consist of a Utility Helicopter Squadron (eight CH-135 helicopters), an Engineering unit, Medium Lift Transport, Headquarters staff members and a national support element.

Approximately 500 strong, the contingent is to be commanded by Colonel Rick Findley, a pilot with extensive rotary wing experience, two tours of duty in the Multinational Force and Observers (MFO) in Egypt and command of 89 (Cdn) Rotary Wing Aviation Unit, part of the United Nations effort in Central America. His deputy Commander is Lieutenant-Colonel "Daniel" Gosselin who has considerable experience as a construction and civil engineer.

The contingent will be deployed initially for six months. It joins 17 other Canadians, including the UNMIH Chief of Staff, Colonel Fulton, and 13 members of the RCMP who went to Haiti in October, 1994.

FAREWELL PARADE FOR CANADIAN AIRBORNE REGIMENT

The Special Service Force will hold a parade on the afternoon of March 1 to bid a formal farewell to the Canadian Airborne Regiment. This parade, to be held at CFB Petawawa, will be the last occasion that the Regiment will participate as a unit within the brigade. Brigadier-General Bruce Jeffries, Commander of the Special Service Force, will preside over the parade which will involve over 1400 soldiers.

SECOND C-17 SQUADRON RECEIVES FIRST AIRCRAFT

The U.S. Air Force accepted the first aircraft for its second operational C-17 squadron last Friday, marking the sixth consecutive ahead-of-schedule delivery of a C-17 to the Air Force by McDonnell Douglas.

Harry Stonecipher, president and chief executive of McDonnell Douglas, presented the keys for the aircraft to Lieutenant-General Richard Hawley, principal deputy to the assistant secretary of the U.S. Air Force for Acquisition. "This delivery represents the continuation of the positive trends we're experiencing in the C-17 production programme. This is the sixth consecutive early delivery with continuing improvements in the overall

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quality of the aircraft," General Hawley said. Hawley and Lieutenant-Colonel Tommy McClam, commander of the second operational squadron — the 14th Squadron of the 437th Airlift Wing — flew the aircraft to Charleston Air Force Base, S.C., from Long Beach on Saturday.

The first 12-aircraft C-17 squadron — the 17th Airlift Squadron of the 437th Airlift Wing — was declared ready for worldwide operations on Jan. 17, 1995.

MORE ON THE ODD OCCURRENCE ABOARD KLM FLIGHT

As reported last week in The Wednesday Report, a Canadian passenger aboard a KLM 747 bound from Amsterdam to Toronto early last week forced the aircraft to make an unscheduled landing in Glasgow, Scotland. Raymond Reimneitz of Amherstburg, Ontario was charged with committing a reckless act in a manner likely to endanger an aircraft and passengers therein, and was sent to a psychiatric hospital. The aircraft proceeded to Toronto after a 4.5 hour delay.

SAILOR INJURED ONBOARD HMCS PRESERVER

A sailor onboard HMCS Preserver was injured Thursday, February 9 at approximately 5:30 p.m. while the ship was conducting replenishment at sea operations. Able Seaman David Trider, 29 years old, of Fredericton, N.B., suffered serious injuries to his face when using a linesthrowing gun. Trider was immediately treated by medical personnel from Preserver and evacuated by helicopter to CFB Shearwater, N.S., for transfer to the Victoria General Hospital. The causes of this accident are under investigation.

OLD SKELETONS KILLING NATIONAL DEFENCE

The Department of National Defence is looking at a number of bony old skeletons square in the face these days. The numerous incidents relating to video tapes made months and years ago have had a consequential aftermath, despite the fact that the incidents depicted had no victims.

But last week, a real live victim of another matter came forward to be heard in the Ontario Courts.

Janet McCoy of Orleans, Ontario made Ottawa headlines in 1989 around the time the hallmark Michelle Douglas case was in its early days.

Michelle Douglas was a former member of the Special Investigations Unit. She claimed she was wrongfully treated by the SIU because of her sexual orientation. Her case eventually led her to the front door of the Supreme Court of Canada and as a consequence, the Canadian Forces was forced to adopt an open, non-descriminatory approach to gays and lesbians and change the standing orders for the SIU.

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Janet McCoy was an employee in the PMO LLAD office during the middle Mulroney years when the Low Level Air Defence project was made controversial by alleged government mishandling of the programme. She is a black lady who became involved in an office romance some time before August 1989 and was consequentially harassed by the SIU; accused by the SIU of being a spy; subjected to intense media interest and exposure; her life was made miserable; her children were dragged into the whole matter; and she lost her job and has been unable to work ever since.

McCoy began a lawsuit against the Department of National Defence at the start of the 1990s. Her legal bills reached $35,000.00 and she had to back off. Last week McCoy filed a letter of intent for continuance of the law suit.

McCoy says the Department of National Defence admitted its guilt in the matter. "I was taken discreetly to lunch by an Assistant Deputy Minister of Personnel who told me `You got caught in the crossfire and it was a shame that happened'."

Since reopening her legal action, new lawyers for McCoy have threatened The Wednesday Report with subpoenas for its extensive files and interview tapes dating back to 1988.

SPAR SIGNS NASA SPACE SHUTTLE CONTRACT

Spar Aerospace Limited has signed a $2.3 million contract with the Canadian Commercial Corporation to provide grapple fixtures to NASA for the U.S. Space Shuttle programme. Spar will manufacture, test and deliver to NASA Johnson Space Flight Center in Houston, a total of 53 Flight Releasable Grapple Fixtures in October 1996. Grapple fixtures are the standard interface between the Space Shuttle and its payload. The Spar Canadarm is then able to retrieve and deploy satellites into orbit using an end effector, or hand, to grasp payloads such as the Hubble Space Telescope, the EURECA satellite and the SPARTAN satellites.

CALENDAR

February 27 — The next CDPA Luncheon Meeting will be held at the RCAF Officers' Mess located at 158 Gloucester Street, Ottawa, commencing at 12:00 noon. Members will be briefed by Lieutenant-Colonel Moe Krause about the "Military Automated Air Traffic System (MAATS)". The $15 fee is payable at the door, or in advance at the CDPA office, 500 - 100 Gloucester Street, Ottawa, Ontario, K2P 0A4. Contact Anne Healey at (613) 235-5337 to make reservations in advance.

April 9-11 — The Aerospace Industries Association of Canada's (AIAC) Thirty-Third Semi-Annual General Meeting will be held at the Westin Hotel in Ottawa. The theme of the event is "Canadian Aerospace: Reality in a New World". Speakers will include Diane Francis, Editor, Financial Post; Finance Minister Paul Martin; Wolfgang Demisch of BT Securities Corporation, New York; and Karel Ledeboer of the International Air Transport Association. For additional information contact the AIAC in Ottawa at (613) 232-4297.

May 30-31 — The COPWIN '95 seminar will be held at the National Arts Centre in Ottawa sponsored by the Canadian Defence Preparedness Association (CDPA). The objective of COPWIN '95 is to promote earlier industrial involvement in the capital acquisition process. The Department of National Defence's long-term equipment acquisition and R&D plans will be discussed, including all new projects over $500,000. The focus on the requirements will be through the 15 year planning cycle, reflecting the impact of the '94 defence white paper and the February '95 Budget. In support of DND's `Cooperation with Industry', CDPA is pleased to welcome members and non-members alike to participate in COPWIN '95. Contact the Canadian Defence Preparedness Association, 500 - 100 Gloucester Street, Ottawa ON K2P 0A4, or telephone (613) 235-5337; fax, (613) 235-0784.

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February 22, 1995