IN THE U.K.:
MAJOR’s CRISIS OF CONFIDENCE

A savage attack on the Conservative government of Premier John Major has rocked the U.K.’s political community. It came in the resignation speech by former Chancellor of the Exchequer Norman Lamont, displaced in last month’s Cabinet reshuffle, and long the target of media attacks for his stewardship of the country’s economy. Lamont rounded on his long-time colleague Major, accusing him of short termism in his decision making. "The government listens too much to pollsters and party managers. The trouble is that they are not even very good at politics and they are entering too much into policy decisions. As a result there is... too much reacting to events and not enough shaping of events. We give the impression of being in office but not in power."
Major’s present round of troubles began with the loss of what had been considered to be one of the safest Conservative seats in a recent by-election. To make matters worse, the unpopular Lamont had quoted chanteuse Edith Piaff to an election meeting. "Je ne regrette rien" might have rallied Les Paras but it was far from being the right message for voters in recession-hit rural England. The seat was lost to the Liberal Democrats and there are fears that another seat will be lost to them when voters turn out in a second by-election probably next month.
Even if that happened, Major would still have a sufficient parliamentary majority to push through most of his proposals. The sticking point could be a crucial July 22 vote to opt out of the Social Chapter of the controversial Maastricht (EC) Treaty. If right wing Euro-rebels vote with the Opposition -- which supports the Chapter -- the Major government could be in mortal trouble.
Lamont’s attack came at a time when Major’s Cabinet is searching for ways of reducing public spending in advance of the autumn budget. Its already-announced proposal to impose a Value Added Tax on domestic fuel is far from popular but in isolation would probably have been containable. In conjunction with leaked proposals for cuts in social security benefits it too has the capacity to inflict

severe damage at the popularity level.
There is no serious suggestion at this stage of a sustainable challenge to Major’s leadership. If there is a political lesson to be learned, it must be that the "long knives" which accounted for former Premier Thatcher and her Labour opponent Neil Kinnock have been kept unsheathed. Observers are unable to recognize an effective political assassin lurking in the shadows. However, party politics are still unstable and the mood encourages talk -- however wild -- of conspiracy.
John Major’s premiership may not yet be irreparably damaged. The next few weeks will be critical if he is to reach the safety of Parliament’s summer recess. Should he suffer a by-election defeat it will be difficult -- but by no means impossible -- for him to restore confidence before he faces the autumn’s party conference. Rebuffs on his European policy would make his task more difficult. The next crucial date in his calendar will be the June 21 EC Summit. The risk is that if Major fails to dissuade other heads of government from restoring federalism from their agenda, he may be unable to stave off a back-bench revolt.
John Reed, U.K. Editor

DND SMALL CONTRACTS AWARDED IN QUEBEC
Rolls-Royce (Canada) Limited of Lachine received two contracts totaling $2,610,000 to provide DND with repair and technical support for aircraft engines. Work under both contracts will be completed by March 31, 1996.
Bombardier Inc. in Mirabel received two contract amendments and two contracts to provide services for DND. The amendments, worth $630,000 and $692,233, are to continue publications management services for two aircraft publications. The first contract, valued at $377,710, is to conduct the aircraft structural programme on CC-138 Twin Otter aircraft. The second contract, worth $583,010, is for the services of a field service representative for Challenger airframes. Both contracts will be completed by March 31, 1996.
Finnie Manufacturing Co. Ltd. of Montreal won a $1,136,468 contract to supply DND with fabric for the manufacture of expandable tents. Delivery is expected by September 7, 1994.
APM Diesel 1992 Inc. of Cowansville won a $539,280 contract to repair and overhaul engine assemblies in 1/4-ton trucks for DND. The contract runs until March 31, 1996.
Bombardier Inc. received a $535,933 contract to provide DND with training courses on the Challenger.
Les Entreprises Albert Cloutier Inc. of St-Raymond won a $467,738 contract to supply DND with gloves for Canadian Forces personnel. Work under the contract maintains 15 jobs until January 1994.
Les Industries Tolbec Inc. of Boucherville won a $443,836 contract to supply DND with sheet metal. 
Dominion Propane Corp. of Boucherville won a $342,828 contract for lease of a propane storage facility at Defence Research Establishment Valcartier until March 31, 1996.
H.P. Gilbert & Fils Inc. of St-Victor-de-Beauce won a $244,602 contract to supply DND with wet-weather parkas and trousers. Delivery will be completed by August 31.
Canadian Marconi Company of Montreal won a $214,000 contract to provide DND with technical investigations and engineering services (TIES). The contract runs until March 31, 1995, with an additional one-year option.
Systèmes Informatiques Bull HN Limitée of Quebec City won a $198,014 contract to provide on-site preventive and corrective maintenance services for a host computer and a group of about 150 microcomputers belonging to Defence Research Establishment Valcartier. The contract runs until March 31, 1994.
Socomar Inc. of Quebec City won a $117,700 contract to provide technical support services for developing, maintaining, repairing and modifying electronic equipment at Defence Research Establishment Valcartier.

CANADAIR WINS $10M EVALUATION CONTRACT WITH U.S. NAVY
The Canadair defence systems division of Bombardier Inc. has been awarded a $10 million (U.S.) contract to operationally evaluate CL-227 Sea Sentinel automatic landing capabilities on a U.S. Navy frigate. The deployment will be conducted in the Caribbean in early 1994 under the auspices of the U.S. Unmanned Aerial Vehicle (UAV) Joint Project and is co-funded by Industry, Science and Technology Canada (ISTC). It is a follow-on to the 1991 Maritimized Vertical Takeoff and Landing Unmanned Aerial Vehicle System (MAVUS) programme.
The main purpose of the deployment is to evaluate at-sea automatic recoveries using Sierra Nevada Corporation’s Common Automatic Recovery System (CARS). Additionally, the deployment will assist the U.S. Navy in evaluating the operational utility of a VTOL UAV on a small surface combatant, as well as aid in risk-reduction for ongoing and planned UAV programmes. The U.S. Coast Guard and naval vessels from member countries of NATO Project Group 35 have shown interest in participating in the exercise as well. Video images received by the host ship may be rebroadcast to vessels equipped with video monitors.

SPAR OPENS OFFICE IN TEXAS
On Monday at the Paris Air Show, Spar Aerospace Limited announced the formation of a new subsidiary, Spar Operations and Engineering Corporation, which will commence operations later this summer in Houston, Texas. The new facility will provide operations and engineering support to NASA Johnson Space Centre and local NASA contractors particularly in the areas of manned space, automation, robotics and related fields. "Through this new operation, we can provide total systems support for the programmes we have developed for NASA," said Charlie Dannemann, president of Spar’s Advanced Technology Systems Group.

CANADIAN FORCES LEAVE CYPRUS
The 600,000 Christian Greek Cypriots and 170,000 Muslim Turkish Cypriots on the island of Cyprus will no longer have Canadian U.N. troops patroling between them, keeping the peace. Yesterday some 534 Canadian Forces personnel began withdrawing from the island leaving roughly 980 British and Australian U.N. troops and a handful of military police to maintain law and order between the two sides.
Canadian troops have been a part of the United Nations Force in Cyprus (UNFICYP) since 1964, operating at the "Green Line" which splits the divided island capital of Nicosia. In all that time the United Nations has been unable to arrange a peace agreement between the intransigents.
Later this year Britain may be withdrawing troops as well, although it is expected to maintain the bulk of its 587-person force. Sweden withdrew its force in 1988 and Denmark pulled out over a decade ago in 1982. The latter two nations along with Ireland and Finland still have small contingents of support personnel on the eastern Mediterranean island.
The UNFICYP mission has run up a $213 million funding deficit due to the reluctance of U.N.-member nations to underwrite the cost of a mission where the parties have no intentions of forming a peaceful settlement. The most recent activity of participating nations indicates that the United Nations wishes to apply pressure against the two sides to settle their differences. No replacements for the 514-member Canadian contingent have been announced. 

CANADA SIGNS BILATERAL MILITARY AGREEMENT WITH ROMANIA
DND announced last week that Canada and Romania have signed a bilateral military agreement to facilitate the growth of exchanges and contacts between the Canadian Forces and the Romanian armed forces as well as the defence departments of both countries. The agreement was signed during discussions between Lieutenant-General Dumitru Cioflina, Secretary of State and Chief of the Romanian General Staff, and Admiral John Anderson, Chief of the Defence Staff. General Cioflina was in Ottawa as part of a Canadian visit (June 6-10) which also included stops in Halifax, Quebec City, Montreal and St. Jean.


UNITED NATIONS MISSION             PLACE             PERSONNEL

UNCMAC U.N. Military Armistice Commission Korea 1
UNTSO U.N. Truce Supervision Organization Egypt, Israel, Jordan, Lebanon, Syria 13
UNDOF U.N. Disengagement Observer Force Syria 180
MFO Multinational Force and Observers Sinai 27
OSGAP Office of the Secretary General in Afghanistan and Pakistan 1
UNIKOM U.N. Iraq/Kuwait Observer Mission Iraq & Kuwait 5
MINURSO U.N. Mission for the Referendum in the Western Sahara 32
UNOSAL U.N. Observer Mission in El Salvador El Salvador 3
UNAVEM II U.N. Angola Verification Mission Angola 15
ECMM European Community Monitoring Mission Yugoslavia 12
UNTAC U.N. Transitional Authority in Cambodia 215
UNPROFOR U.N. Protection Force Bosnia/Croatia 2,100
UNOSOM U.N. Operation in Somalia Somalia 1,260

TOTALS: 13 Missions involving 18 Nations & 3,864 Canadians

LOCKHEED’S DEFENCE SALES INCREASE DUE TO MARKET-SHARE GAIN
Lockheed defence sales are up despite declines in the U.S. defence budget, the corporation’s Chairman of the Board and Chief Executive Officer, Daniel M. Tellep, told a press gathering at the 1993 Paris Air Show.
Between 1989 and 1993, with U.S. Department of Defence (DoD) outlays dipping 11 percent, Lockheed gained defence market share and also increased its non-defence and international sales. 
Lockheed sales in 1993 will top $13 billion, up more than 30 percent from 1989, due to internal growth and the acquisition of General Dynamics’ Fort Worth Division, completed on February 28. These dramatic gains are being achieved, the company believes, as a result of a business strategy that is paying off with financial strength and opportunities for profitable growth, Tellep said.
Lockheed’s business strategy is comprised of five basic precepts: 1) focus on core business; 2) maintain premier technology; 3) leverage skills to enter related new markets; 4) capitalize on unique acquisition opportunities; and 5) reduce costs and sharpen competitiveness.
"We will see more industry consolidation with a gradual emergence of winners and losers," Tellep said. "With Lockheed’s intrinsic strengths and our recent acquisition of Fort Worth, we believe Lockheed is positioned to be one of the winners."
Tellep also underscored Lockheed’s improving business mix. In past years, U.S. DoD sales accounted for over 80 percent of the corporation’s business. Today, U.S. defence accounts for about 66 percent, with the remaining business split between U.S. commercial (7 percent), NASA (9 percent), and international, including foreign military sales (18 percent). The Lockheed Fort Worth Company is adding over $3 billion per year in sales and contributes over $13 billion to the corporation’s total backlog of over $32 billion. The resulting $6.5 billion a year in military aircraft business essentially ties Lockheed with McDonnell Douglas as the largest military aircraft producer in the world.
"Beyond the F-16 programme, we see significant synergies between the Fort Worth Co. and other segments of Lockheed. The relationship will enhance cost effectiveness of the F-22 fighter programme and help sharpen our competitiveness overall," Tellep said. In addition to aircraft, Lockheed sees potential for growth internationally in defensive missile systems, defence electronics, environmental and engineering services and civilian space programmes.
Lockheed recently announced its expansion into commercial space launch systems with two new initiatives. Earlier this year, the corporation completed a joint venture with Russia’s Khrunichev Enterprises to market the Proton launcher worldwide. Lockheed also is developing a new class of small- to medium-size launch vehicles capable of lifting 2,300 to 8,000 pounds to low-earth orbit. The first demonstration flight is expected in late 1994, Tellep said.
"For the future, our premier technology, record of excellent performance, and solid market positions will increasingly differentiate us from our competitors. We will add to our financial strength and flexibility by reducing leverage on our balance sheet. Most importantly, Lockheed’s entire management team is committed to building and delivering shareholder value." 

ADOUR-POWERED BAe HAWK SELECTED BY INDONESIA
Indonesia is to buy another 24 British Aerospace Hawk aircraft which will be powered by Rolls-Royce Turbomeca Adour engines. The order, announced at the Paris Air Show last Thursday, is worth about £50 million to Rolls-Royce. Delivery of the engines to Indonesia from Rolls-Royce’s Bristol facility in the U.K. will begin in 1995. The Adour that will power Indonesia’s new Hawks is the latest variant of the engine, the 6,030-pound-thrust Mk 871.
This is the second order from Indonesia for the Rolls-Royce Turbomeca Adour-powered Hawk. The first order, for Hawk T53 advanced trainers, led to delivery of 20 aircraft between 1980 and 1984. To date, more than 2,400 Adours have been delivered to 18 air forces worldwide. Adour engines are currently being delivered to the U.S., Finland, South Korea and the United Arab Emirates for British Aerospace Hawks.

BOEING ANNOUNCES B767 ORDERS AT PARIS AIR SHOW
Last Thursday, Boeing Commercial Airplane Group marked the opening of the 40th Paris Air Show with the announcement that three airlines have ordered nine Boeing 767 twinjets at a total value of about $700 million. Bahrain-based Gulf Air has ordered two 767-300ERs for use on longer-range routes including over-water service. The aircraft will be configured to seat 212 passengers in a three-class arrangement. Taiwan’s EVA Airways has ordered four 767-200s for use on shorter regional routes. Japan Airlines will operate three new 767-300s on its expanding domestic network. General Electric CF6-80C2 engines will power the aircraft included in all three orders.

HARRIS AND GDLS WORK TOGETHER ON M1A2 SIMULATOR
Harris Corp.’s Computer Systems Division announced Monday that General Dynamics Land Systems (GDLS) has decided to port its M1A2 Main Battle Tank vehicle simulation software to the Harris "Night Hawk" computer. GDLS plans to unveil the new land combat vehicle simulator prototype by year-end. The prototype will demonstrate a level-2 Image Generator (IG) and next generation computational system. The Harris Night Hawk will be the real-time host computing system. 
The series of low-to-high fidelity manned simulators, developed by GDLS, accurately replicates the interior and functionality of the M1A2 Main Battle Tank. The simulators are used to evaluate and demonstrate new vehicle technology in a Synthetic Battlefield Environment (SBE) and to support engineering analysis, full-scale development and fielding of the M1A2 Main Battle Tank.
In addition, the simulators support instructor and key personnel training. Carl Hobson, manager of Simulation and Intelligent Systems, General Dynamics Land Systems, said: "The philosophy to simulate before building is an integral part of the GDLS process. In order to maintain our leadership role in the development of simulation technology for use in vehicle concept definition and full-scale engineering development, GDLS utilizes state-of-the-art engineering and development tools, and strives to keep pace with technological advancements.
"Therefore, when faced with the challenge of incorporating a next generation computational system into the simulator, we were drawn to the Night Hawk. It provides a fully integrated solution and is designed specifically for real-time simulation," Hobson added.
"The Night Hawk’s open architecture and the fact that it supports compatible real-time and multi-level secure UNIX operating systems were key to our decision. We were also very impressed with Harris’ pre-planned product improvement strategy."
Harris’ Pre-Planned Product Improvement (P3I) is designed to accommodate system upgrades and technology insertions (when increased performance is required) through a variety of board replacement options.

BEECH STRENGTHENS BID FOR 700 A/C JPATS COMPETITION
The U.S. Joint Primary Aircraft Training System (JPATS) competition is heating up. The total joint U.S. Air Force and U.S. Navy requirement for a primary trainer is expected to exceed 700 aircraft to be built during a 10-year period beginning in 1997. A contract award is scheduled in 1994. The winner of the project could anticipate hundreds of additional orders from around the world. 
The Raytheon-owned Beech Aircraft Corporation together with Oerlikon-owned Pilatus Aircraft Ltd. have now reached agreement for Beech to manufacture the complete airframe of the PC-9 MkII -- entrant in the Joint Primary Aircraft Training System (JPATS) competition -- in Beech’s Kansas facilities. The PC-9 is being offered to the U.S. Air Force and Navy as a primary pilot trainer. The Pilatus/Beech PC-9 MkII JPATS entry is based on the Pilatus PC-9 single-engine turbine-powered trainer.
"Final assembly of the Beech PC-9 MkII will occur in the company’s Salina, Kansas manufacturing plant, with all of the detailed parts fabrication to occur in our Wichita, Kansas facilities," said Jack Braly, Beech Aircraft Corporation president.
While Beech originally had only engineering responsibility for the aircraft, and had planned to construct the fuselage and perform aircraft final assembly in its Kansas facilities, the previous manufacturing plan called for the wings and empennage of the U.S. Air Force/Navy primary trainer to be built at the Pilatus Aircraft Ltd. facility in Stans, Switzerland. "The change to an all-U.S. manufactured Beech JPATS airframe will be accomplished on our previous schedule and it will provide the lowest risk and cost for the joint services," Braly said.

ENHANCED PATRIOT MISSILE SCORES AT WSMR
According to Raytheon’s Dick Sherman, Patriot, with an enhanced guidance system has recently scored a hit on a surrogate tactical ballistic missile target at the White Sands Missile Range in New Mexico. The successful test was the second of three scheduled for the Patriot Guidance Enhancement Missile (GEM).
The Patriot programme is managed by the U.S. Army Patriot Project Office in Huntsville, Alabama. Raytheon of Lexington, Massachusetts is the prime contractor for both the Patriot and the anti-tactical missile modifications to the system. GEM modifications include reduced missile noise, resulting in greater sensitivity against low-profile targets. The enhancements also include greater accuracy and improved warhead fuze lethality against high speed targets.
Patriot accomplished the first intercept of a tactical ballistic missile (TBM) during Operation Desert Storm. Throughout the Gulf War, Patriot was called upon repeatedly to defend Saudi Arabian and Israeli assets against Iraqi Scud missiles. Those engagements illustrated the need to improve Patriot’s performance against a wide proliferation of TBM threats.
Following the Gulf War, the U.S. Army initiated a structured growth plan to improve Patriot’s performance against more sophisticated TBMs.

LOCKHEED CANADA AWARDS $6 MILLION CONTRACT TO LUCAS
Lucas has been awarded a contract from Lockheed Canada, Ottawa, Ontario, to provide VHF/UHF communications direction finding and jamming systems for the Lockheed Challenger Electronic Warfare Training Aircraft. The contract is valued at approximately $6 million.
The system, called the ZS-1910, is a version of the ZS-1000 Direction Finding System integrated with a Lucas Zeta Communications Jammer. The ZS-1910 system seeks and jams communications. 
Lucas Zeta will manufacture, integrate and test the systems at its San Jose, California facility. The business is part of Lucas Communications Systems, which, in addition to its direction finding and jamming systems, designs, develops and manufactures satellite communications subsystems, microwave components/subsystems and test instrumentation.
Lucas aerospace businesses are leading suppliers of aerospace systems and equipment with annual sales of $1.2 billion and operating facilities across North America, Europe and Asia-Pacific, as well as associated companies, joint ventures, marketing and customer support facilities around the world. The businesses are part of Lucas Industries plc, a leading international supplier of advanced technology systems, components and services to the world’s aerospace, automotive and other selected markets, with sales of $4.5 billion.

DASH 8 ORDER ANNOUNCED AT PARIS AIR SHOW
USAir Leasing and Services, a subsidiary of USAir Group, has signed an agreement to acquire up to 10 de Havilland Dash 8 Series 100 aircraft from the Bombardier Regional Aircraft Division. The order, for which deliveries will begin in March, was announced on Monday at the Paris Air Show. The aircraft will be operated by the USAir Express companies that are also wholly-owned subsidiaries of USAir Group. Distribution of the new aircraft is still being determined. The USAir Express Group of carriers is the largest collective user of the 37-passenger, twin engine Dash 8 aircraft with more than 60 in its total fleet.

PEOPLE: NEW CHAIRMAN OF THE BOARD AT CAE
The Board of Directors of CAE Industries Ltd. announced that R. Fraser Elliott elected to step down as Chairman of the Board at the conclusion of the corporation’s annual general meeting held last Thursday in Toronto. Elliott served as Chairman for 35 years and will continue as a director of the corporation.
Succeeding Elliott will be David Race, who retired as President and CEO. At a meeting of the board following the annual meeting, Race was elected Chairman of the Board and Chairman of the Executive Committee.
John E. Caldwell has been appointed President and Chief Executive Officer, succeeding Race. Prior to this appointment, Caldwell was Executive Vice President.
CALENDAR
June 19-20 -- The Hamilton Air Show will be held at the Mount Hope Airport in Hamilton, Ontario. Gates will open at 7:30 am for the military and heritage aircraft ground exhibit and the flying display will begin at noon. This year’s event will feature a WW II bomber fly-past to salute Bomber Command ’43; the CF-18, F-117 Stealth, B-52 and F-16 aircraft; the Snowbirds; the Sky Hawks Parachute Team; the Daring Damsels Wing-Walking Duo; Clancy Speal’s Pitts Special; and hot air balloons. To order tickets call (416) 528-4425.
August 4-8 -- Airshow Canada, North America’s aerospace tradeshow, will take place in Abbotsford, British Columbia. Sponsored by the governments of Canada and British Columbia, accredited by the U.S. Department of Commerce, and supported by the Canadian aerospace industry, Airshow Canada ’93 is expected to attract more than 500 exhibitors and 15,000 professional visitors from over 70 nations. For more information contact Airshow Canada at (604) 852-4600.
September 14-19 -- The Turkish Armed Forces Foundation is hosting "IDEF Turkey 1993", its first international defence industry and civil aviation fair, at the Turkish Air League Airport facilities in Ankara, Turkey. Government and army delegations from 108 nations are being invited. For detailed information, contact the TUYAP Fairs and Exhibitions Organization in Istanbul at (9-1) 2676704-05 2752350.
November 7-11 -- "DUBAI 93", an international aerospace exhibition, will be held at the Dubai International Airport in the United Arab Emirates. The exhibition is being presented in cooperation with the government of Dubai, Department of Civil Aviation and Dubai International Airport and in collaboration with the U.A.E. Armed Forces. Contact Fairs & Exhibitions in Dubai at 9714 822855/236155.
November 10 -- Financial Post Conferences in cooperation with The Wednesday Report will host the annual defence conference at the Ottawa Westin Hotel. This year's conference will offer delegates a broader range of panelists and topics including new priorities in the domestic and international defence/political arena, new business opportunities, rearranged alliances and their infrastructure, market crossovers and conversion, and more. 
November 26 to December 1 -- The Aerospace Industries Association of Canada (AIAC) will hold its Annual General Meeting (AGM) at the Ottawa Westin Hotel/Ottawa Congress Centre. This is a change of date and venue from the earlier scheduled time in September, in Quebec City. A strike at the Quebec City Hilton caused the change in venue and timing. Members may contact Belva Neale at the AIAC (613-232-4297).