NATO MEETING SET FOR END OF MAY
A meeting of NATO Foreign Ministers will be held in Noordwijk, the Netherlands, on Tuesday, 30 May 1995, followed by a North Atlantic Co-operation Council meeting on Wednesday, 31 May 1995.

SPAR AEROSPACE 1994 YEAR END RESULTS
Spar Aerospace Limited's 1994 revenues increased 8.5 percent over 1993 levels, to $571.8 million. Earnings increased by $7.2 million.
Spar reported 1994 revenues of $571.8 million, representing an increase of 8.5 percent over 1993 levels of $527.2 million. Net income, at $7.84 million ($0.53 per share), is up from 1993's $0.60 million ($0.04 per share). The company's debt, net of cash, was reduced significantly from $43.4 million at the end of 1993 to $14.3 million at the end of 1994. Revenues in the fourth quarter totalled $181.3 million compared to $153.5 million in 1993, while fourth quarter 1994 earnings were $6.2 million ($0.42 per share) compared to a loss of $6.7 million ($0.48 per share) in the corresponding 1993 period.
Spar's board of directors has declared a dividend on the common shares of $0.06 cents, payable 3 April 1995 to shareholders of record as of 20 March 1995.
All of Spar's business segments were profitable in 1994, says the firm's annual report. All units showed marked revenue growth, except Space Systems, which is in the final stages of the major MSAT and RADARSAT programmes. Spar's communications sector showed the most significant revenue growth at 45 percent, although operating income was down due to the considerable expense associated with the acceleration of ComStream's high volume multimedia business and the amalgamation of three separate communications segment units -- ComStream, ComTel and Spar Communications Group -- into one: ComStream. With its increased volumes, ComStream's administrative, research and development and marketing costs all were sharply higher than 1993, consequently initial margins were relatively low. By the end of 1994 margins were improving as a result of cost containment, allowing ComStream to contribute significantly to a strong fourth quarter.
"In 1994 our space business returned to a more solid, if smaller, footing, aviation and defence continued to prosper, informatics positioned itself for improved profitability, and our communications business made substantial improvements to earnings performance. With all of our businesses now profitable, we are well positioned for moving forward to increased profitability in 1995," said John MacNaughton, President and Chief Executive Officer.
A number of strategic contracts were won by Spar Aerospace Limited business units in 1994, including those for a ComStream joint venture in Beijing with an electronics import/export company owned by the China Ministry of Radio, Film and Television; an agreement to upgrade the crash position locators for the U.S. Navy's maritime patrol aircraft and supply deployable flight incident recorder systems for its fleet of F/A-18s; a three-year Department of National Defence contract to provide aircraft flight simulator and mission procedural trainer maintenance at six Canadian Forces Bases; and a terrestrial application of the Canadarm space arm technology in the clean-up of nuclear sites. As well, PRIOR joined forces with Raytheon of the U.S. to bid on a transoceanic air traffic control system for the U.S. Federal Aviation Authority for the cities of Oakland, New York and Anchorage.
Spar employs 2500 people at locations in Canada, the United States, Mexico, Indonesia, The People's Republic of China, Thailand and the United Kingdom. 

MD AND IAI TO GO AFTER U.S. T-38 UPDATE PROGRAMME
McDonnell Douglas and Israel Aircraft Industries have signed a Memorandum Of Understanding (MoU) to pursue the U.S. Air Force T-38 Avionics Upgrade Programme.
Under the MoU, the two companies will team together in the competition to modify the U.S. Air Force's T-38 training aircraft and provide new ground-based training devices. MD will serve as prime contractor, with the LAHAV division of IAI as the major subcontractor.
IAI/LAHAV is a gold-level supplier in the McDonnell Douglas Preferred Supplier Certification programme, one of only six companies to achieve this highest level of supplier performance. The T-38 Upgrade Programme calls for modifying 425 aircraft and procuring 16 new aircrew training devices. A request for proposals is expected in September, with a contract award in January 1996.
IAI's expertise in aircraft modifications, including a recent avionics upgrade to F-5 aircraft, will be coupled with McDonnell Douglas' experience in the design, manufacture and support of fighter and training aircraft. In addition, the team will employ McDonnell Douglas Training Systems (MDTS) to provide the T-38 ground-based training system. MDTS provides military aircraft integrated training systems and is the U.S. government's prime integrator for the U.S. Air Force T-1A tanker transport training system, the U.S. Navy T-45 training system and the U.S. Air Force C-17 aircrew training system.

LITTON U.S. WINS CRUISE MISSILE GUIDANCE CONTRACT
Litton's Guidance & Control Systems division of Woodland Hills, California has been awarded a contract initially valued at more than $30 million to continue production of guidance units for the U.S. Navy's Tomahawk cruise missile and concurrently develop a successor system.
"Programme options could take the new work through the year 2005, with a potential value to Litton in excess of $200 million," said Darwin D. Beckel, Litton division president. "Litton has been the sole supplier of these Tomahawk guidance units since the programme started in 1976."
Litton's work is subcontracted through Tomahawk prime contractor Hughes Missile Systems Co., Tucson, Arizona. Development of the new guidance unit will be accomplished at the Litton division's headquarters in Woodland Hills, with production on both systems to be carried out at the division's manufacturing facility in Salt Lake City.
More than 3,500 guidance sets have been built by Litton for Tomahawk missiles for submarines and surface combatants from destroyers to battleships. The subsonic, terrain-skimming missiles, with ranges up to 1,500 miles, were widely employed in the 1991 Gulf War.
The Litton units provide the inertial navigation information to guide the missiles from launch to pre-programmed targets. The guidance systems also exchange and process information to and from the missiles' terrain correlation mapping units. These "look down" radar systems match pre-selected terrain-following flight paths to the actual terrain below, helping to guide the missiles around known defensive weapon sites to their targets.
Until development and integration of Litton's new Tomahawk guidance system is completed, the company will continue to produce its combat-proven, self-contained, electromechanical guidance units called LN-35, or Reference Measurement Unit and Computer.
Litton's new system being adapted for the Tomahawk combines the latest high accuracy laser gyro sensors and a precise global satellite signal receiver in a single unit that can provide continuous position accuracy to within a few yards. The new unit, under 30 pounds, is less than half the weight and size of the current system, and requires less than half the power.
Designated LN-100G, Litton's new embedded Global Positioning System/inertial navigation unit also has been selected for the U.S. Navy's F/A-18, EA-6B and T-45A aircraft, as well as the Defence Department's Tier II and Tier III unmanned aerial vehicle programme.
The LN-100G is a product line derivative of Litton's LN-100 Zero-Lock laser gyro inertial navigation system that will be aboard the U.S. Air Force's new F-22 fighter, Multi-Service Launch System, the U.S. Army's RAH-66 Comanche helicopter and Lockheed Corp.'s commercial space launch vehicle. The LN-100 also is being supplied for a variety of international programmes.

C-17 MAKES MAIDEN PACIFIC CROSSING
A U.S. Air Force C-17 Globemaster III transport conducted its first trans-Pacific operational mission last weekend, making its inaugural visit to Japan on March 4.
The aircraft, based at Charleston AFB in South Carolina, carried cargo on its trip to and from Yokota Air Base, Japan, making en route stopovers at Travis Air Force Base, California, and Elmendorf Air Force Base, Alaska. The C-17 is part of the first operational C-17 squadron, part of the 437th Airlift Wing, based at Charleston Air Force Base. The 17th Airlift Squadron was declared ready for worldwide operations on Jan. 17.
The C-17 crew, commanded by Lieutenant-Colonel Larry Kudelka, departed from Charleston Air Force Base last Thursday (March 2) and arrived in Japan on Saturday, March 4, after its two en route stopovers. Returning, the C-17 left Japan on Sunday and arrived back at Charleston Air Force Base on Monday, March 6.
C-17s previously have conducted operational missions to Europe, the Arabian Peninsula, Panama and Cuba. The second C-17 squadron, the 14th Airlift Squadron of the 437th Airlift Wing, received its first C-17 on Feb. 17. To date, McDonnell Douglas has delivered 14 operational C-17s to the 437th Airlift Wing.

U.N. TROOPS WITHDRAWN FROM FAILED SOMALIA MISSION
With the help of Italian and U.S. troops, the United Nations successfully pulled the last of its peacekeepers (Pakistani and Bangladeshi troops) out of Somalia last week. Shortly before midnight (UTC) last Friday, the last of the U.S. Marines left Mogadishu. The withdrawal was not without incident although clashes with Somali militiamen were only light. The withdrawal was done after a two-year U.N. effort failed to restore the peace in Somalia.

SED WINS $2.4 MILLION CONTRACT
SED Systems Inc. of Saskatoon, Saskatchewan, a wholly-owned subsidiary of CALIAN Technology Ltd., has been awarded a contract by Inmarsat (International Mobile Satellite Organization) of approximately $2.4 M U.S. to supply additional Satellite Spectrum Monitoring System equipment. SED will provide six remote monitoring stations to be located throughout the world, and a central control system located in London, England. The SED system will form part of the overall system used to monitor the communications traffic on Inmarsat's mew third generation satellites. It replaces the existing monitoring system which SED provided under a 1991 contract.
"Our leadership position in the burgeoning mobile satellite communications marketplace has been achieved through long-term relationships with industry leaders like Inmarsat," said CALIAN President and CEO Larry O'Brien. "We are pleased to play a continuing role as Inmarsat prepares to unveil its new generation of satellites."
Inmarsat is an international organization comprising 76 member countries that operates a global satellite system offering communication services for commercial, and distress and safety applications at sea, in the air, and on land. Inmarsat will launch its new generation of satellites in 1995-96. The new series of Inmarsat satellites will use spot beams for providing communications to the mobile terminals. In order to monitor the traffic in the spot beams it is necessary to locate a measurement system within the beam.
"The new contract will bring the total configuration to eight remote monitoring stations integrated into Land Earth Stations of the Inmarsat network, and eight transportable terminals," said Mark Noete, SED's in-orbit test (IOT) systems manager. "The data from the stations will be routed back to Inmarsat's network control centre."
In other related news, SED completed commissioning of the third generation in-orbit test (IOT) system for Inmarsat in Beijing. The IOT systems will be used to perform in-orbit testing of Inmarsat's third generation satellites scheduled for launch in 1995-96.
CALIAN Technology Ltd. of Kanata, Ontario and its wholly owned subsidiary SED Systems Inc., design, manufacture and integrate electronic systems with applications in the satellite communication, space and defence markets, and provide related technical outsourcing services.

DETAILS OF NEW 777 VARIANT RELEASED
Boeing engineers have released design information for the next version of the Boeing 777. Called the B-Market model, the newest design supplements the Boeing 777 with a new set of mission capabilities. 
"The B-Market version is a continuation of the market-driven approach to shape the 777 family," said Larry Magruder, Boeing Commercial Airplane Group 777 Division B-Market airplane programme manager. "The B-Market 777 provides value by providing increased range while retaining maximum commonality between the two models to provide unsurpassed economy and comfort in this market segment."
According to Jeff Peace, chief engineer for 777 derivatives, finishing one quarter of the design for the longer-range 777 is much more than an engineering milestone. "To us, total airplane design now includes parts, plans and tools. We design not only the airplane hardware, but concurrently develop plans to fabricate parts and complex tools for assembly. With today's improved practices, we don't consider the design complete -- or in this case, 25 percent complete -- until we complete all these aspects.
"Customer participation, design/build teams, open communication and digital design are all factors that have spelled success for the 777s currently in flight test," Peace said. "All of these factors have been instrumental in reaching this milestone sooner than we planned."
The newest 777 will fly 8,350 miles (7,250 nautical miles or 13,400 km) with a maximum takeoff weight of 632,500 pounds (286,900 kg). In a typical three-class configuration, it would carry 305 passengers. By contrast, the initial 777 can fly 5,300 miles (4,600 nautical miles or 8, 500 km) with a maximum takeoff weight of 535,000 pounds (242,680 kg).
The B-Market model will have the same physical dimensions as the initial A-Market 777. But the B-Market model increases engine-thrust ratings from 77,000 pounds to 90,000 pounds and carries up to 13,700 gallons (51, 860 liters) more fuel. 
The aircraft would serve such city pairs as London-Los Angeles, San Francisco-Tokyo, Tokyo-Sydney, Chicago-Seoul and Bahrain-New York.
Boeing has orders for 45 B-Market 777s from Euralair of France, British Airways, Lauda Air of Austria, International Lease Finance Corporation, Continental Airlines, Emirates, Gulf Air and Korean Air Lines.

TOBIN SCARES TRAWLERS AWAY -- FOR NOW
"One way or another, this activity will be stopped."
That was Fisheries Minister Brian Tobin speaking early this week on the subject of Spanish and Portuguese fishing trawlers scooping more than the appropriate European share of the turbot catch. Canada's legal argument is that the Northwest Atlantic Fisheries Organization (NAFO) agreement disallows their fishing on the nose and tail of the Grand Banks. 
Three Department of Fisheries and Oceans (DFO) vessels and one Coast Guard vessel were patrolling the region at press time, late Tuesday afternoon. Officially, Canadian Forces assets were not involved in the matter although significant resources were quite apparently in a high state of readiness.
Shortly before deadline The Wednesday Report learned that the Spanish government had dispatched a warship to the region of the stand-off, meanwhile, the offending fishing vessels had vacated the contested region while 'negotiations were under way'.

VICE CHIEF PADDY O'DONNELL RETIRES
Lieutenant-General P.J. (Paddy) O'Donnell, Vice Chief of the Defence Staff, is retiring from the Canadian Forces after a 36-year career. He has enjoyed a distinguished career, beginning as a radio officer with Transport Command and culminating as the Forces' second-in-command.
In announcing Lieutenant-General O'Donnell's retirement, Defence Minister David Collenette said, "Lieutenant-General O'Donnell has served Canada with distinction during his career. As Vice Chief of the Defence Staff, he was instrumental in guiding the Canadian Forces through the 1994 defence review and ensuring the Canadian Forces remained combat-capable."
When asked about his own feelings on retiring, O'Donnell said, "I have enjoyed my career and I leave with positive memories and a great deal of satisfaction. I feel confident that the defence of Canada remains in capable and caring hands."
Promoted to brigadier-general in August 1987, he was posted in Yellowknife, NWT, as the commander of Northern Region. In August 1989, he served as commander Maritime Air Group in Halifax, a position held until July 1990, when he was promoted Major-General and appointed Deputy Commander of Air Command in Winnipeg.
O'Donnell was promoted to his current rank in July 1992 and was appointed Assistant Deputy Minister (Personnel) in August 1992. In February 1993, he was appointed Vice Chief of the Defence Staff at National Defence Headquarters.
O'Donnell will begin his retirement in the coming summer having reached the compulsory retirement age. Vice-Admiral Larry Murray, commander of Maritime Command, will take over the position of Vice Chief of the Defence Staff.

CF TO CONDUCT SAREX WITH U.S. AND RUSSIAN FORCES
A combined Arctic Search and Rescue (SAR) exercise, dubbed SAREX '95, will get under way from CFB Cold Lake, Alberta on March 19 and will run through March 24. The exercise will test the alerting systems of all three nations and exercise their ability to deploy, coordinate and assist each other during SAR operations in the Arctic. The simulated crisis will include an air disaster involving a downed commercial airliner in a remote region of the Arctic.

NORTH AND SOUTH AMERICA 'S DEFENCE MINISTERS COULD MEET MID-YEAR
U.S. Secretary of Defence William Perry has proposed a meeting of Western Hemisphere defence ministers for July 24 to 26 in Williamsburg, Virginia. Topics for the proposed summit include regional security and counter-narcotics issues and Perry is also suggesting the group map out plans for conducting future joint military operations. 

CALENDAR
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.