with the battalion group were shaken up on Boxing Day when their armoured personnel carrier detonated a mine 12 kilometres southeast of the unit base at Rastevic. Sergeant Terrance Haley and Corporal Lawrence Cotter of 2 Combat Engineer Regiment were reported to be in good condition and returned to duty the day after the incident.

A convoy of a dozen vehicles commanded by Major Pat McAdam of the Royal Canadian Regiment made the hazardous 275 kilometre trip from Rastevic to the Bihac area over the period 26-29 December.

The convoy, including several 10 tonne trucks, followed rough mountain roads to carry supplies including food and diesel fuel to the 1,000-member battalion from Bangladesh that is attempting to preserve the United Nations presence in the besieged Muslim enclave.

The peacekeepers have been without resupply for some time and although a number of attempts have been made this was the first convoy to make it successfully through the opposing lines. On one occasion it was delayed while mines were cleared from the route; and during its presence in the Bihac area there was some discharge of small arms as well as anti-aircraft weapons, but none were directly aimed at the Canadians.

As 1994 ended two members of 1 RCR were wounded by small arms fire which appeared to be directed at them. A reservist, Master Corporal John Tescione and Private Philip Badanai were returning to the battalion base from an observation post about 10 kilometres southeast of Rastevic, on New Year's Eve.

They had just passed a group of Serbian soldiers without incident when suddenly, someone opened fire on them, apparently with a semi-automatic weapon. Tescione was hit four or five times and Badanai received three wounds but was miraculously able to drive the jeep back to the battalion headquarters where both were reported to be alert and out of danger following emergency surgery.

As a result of the incident, movement in the Royal Canadian Regiment area of operations was restricted. Nevertheless, on January 4, another observation post manned by the regiment came under small arms fire from an unidentified belligerent. In this instance fire was returned. There were no casualties reported from either side.

Canada's Aerospace & Defence Weekly

Volume 9, Number 1 January 11, 1995

Comment:

Russia's atomic energy minister, Viktor Mikhailov and the head of Iran's nuclear agency, Reza Amrollahi, signed an interesting deal on Sunday. As a result of the contract, Russia will receive roughly $1 billion to finish building a nuclear facility in Iran, one that was started by Germany's Siemens/Kraftwerke Union but halted by the 1979 Islamic revolution. Meanwhile U.S. Defence Secretary William Perry was in Israel while the Teheran deal was struck. In a diplomatic understatement, he said that Bill Clinton is "very much concerned about the potential that Iran might become a nuclear power."

What Clinton must know from his `intel' briefings is that Iran, on its own, is within 5 years of becoming a nuclear military power. Cut that time in half if Iran continues to savour and nourish its rapport with North Korea on ballistic missile development and nuclear weapons technology. Standing in the middle of all this is mother Russia with its hand held out for cash. In the shadows is China. ...And did someone say the Cold War's "doomsday clock" was dismantled?

CF CASUALTIES OVER HOLIDAY

Serving with the United Nations Protection Force (UNPROFOR) in the former Yugoslavia, 1st Battalion, The Royal Canadian Regiment (RCR), was kept on its toes in the Rastevic area of Croatia over the Christmas holiday in spite of the increasing possibility of a cease-fire in Bosnia. Two Sappers serving

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Patrick McManus (Halifax)

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John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

The Wednesday Report is published weekly by

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U.S. AEROSPACE INDUSTRY SALES DOWN — PROFITS UP

According to the U.S. Aerospace Industries Association, U.S. aerospace sales are down but profits were up in 1994. U.S. aerospace sales declined for the third consecutive year to $113 billion in 1994, as fewer orders for military, civil, space and missile equipment accelerated a downward spiral in employment. In terms of profit, 1994 was a record year. Net profit rose $612 million to $5.2 billion, although that figure lagged behind overall U.S. manufacturing as a percentage of sales, assets and equity. Last year's $11 billion overall decline in aerospace sales was spurred chiefly by a $7.5 billion decrease in the number of civil aircraft produced and the consequent reduction in spare parts manufactured. Together, sales in both sectors fell 22 percent to $26 billion, according to the AIA.

RCD AND WOODBRIDGE TOY COMPANY BRING CHEER TO DRIN HOSPITAL

Thanks to the collective efforts of a member of the Royal Canadian Dragoons, his mother, a Woodbridge, Ontario toy company and many others, a couple of hundred Bosnian orphans received a little bit of comfort over the holiday season. Private Alexander Vanderploeg who is serving in the RCD at Visoko, Bosnia persuaded his mother, Elizabeth Ecker of Willowdale, Ontario that the orphans in the Drin Hospital at Visoko would be cheered by receiving something special at Christmas. Ms. Ecker persuaded Ganz Brothers Toy Company to donate two hundred teddy bears, which with the help of The Toronto Star and Canadian Forces Air Transport Group, made the long journey to Bosnia. They were presented to the youngsters at the hospital which has been receiving considerable support from the Canadian peacekeepers who have been busy providing wood and installing new showers, washers and dryers as well as entertaining the children in play.

OTTAWA TO MOSCOW — "STOP BOMBING CHECHNYA"

Canada has officially insisted that Russia halt its bombing of the breakaway Chechnya. Ottawa has indicated it prefers to see the dispute resolved through peaceful means.

"We recognise that this is a matter internal to Russia, but have been deeply disturbed by the suffering of innocent civilians and the violations of human rights," Secretary of State for External Affairs Andre Ouellet said.

Ouellet added that both he and Prime Minister Jean Chretien have written to Russian President Boris Yeltsin urging him to to follow through on his order to halt the bombing of Chechnya and to try to reach a peaceful settlement of the conflcit.

Chechnya, in the Caucasus of southern Russia, has been under assault by Russian troops and tanks since December 11. Yeltsin sent in the troops to stop an independence drive.

HMCS MONTREAL SAILS FOR THE ADRIATIC

HMCS Montreal (FFH 336), Commander Christopher Gunn commanding, departed Halifax on 4 January 1995 bound for the Adriatic Ocean where she will replace HMCS Toronto (FFH 333) as Canada's contribution to NATO's Standing Naval Force Atlantic.

STANAVFORLANT is currently enforcing the United Nations arms embargo against the former Yugoslavia in OPERATION SHARP GUARD. Montreal has a crew of 225 all ranks including a Sea King helicopter detachment from 12 Wing, Shearwater, Nova Scotia.

HMCS CALGARY ON WEST COAST

HMCS Calgary (FFH 335), Commander Gary Paulsen commanding, arrived at CFB Esquimalt on the Friday before Christmas. Still undergoing trials, the new Canadian Patrol Frigate departed Halifax on 25 November, 1994. After a call at Aruba in the Dutch Antilles, Calgary transited the Panama Canal early in December. HMCS Calgary is scheduled to be commissioned in May 1995 and will serve on the West Coast.

SPAR AWARDED IR PROCESSING CONTRACT FOR NETHERLANDS

Spar Aerospace Limited announced last week that it has been awarded a $10.2 million contract to develop the processing subsystem for the Netherlands Sirius Naval Infra-Red Search and Track system. This joint programme between Canada and The Netherlands comprises the development, construction and trials of a dual-band passive long range infrared search and track system to enhance the horizon search capabilities

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of surface ships against sea-skimming anti-ship missiles. The Sirius system will operate in the mid-wave and long-wave infrared regions and incorporates the latest focal plane array and signal processing technologies.

Hollandse Signaalapparaten B.V. is the prime contractor and the FEL/TNO laboratory will be the scientific advisor to the program. In addition to Spar, the other key Canadian team members are the Defence Research Establishment-Atlantic, the Defence Research Establishment-Valcartier and the Naval Engineering Test Establishment.

"This contract allows Spar and Signaal to pool our technical strengths", said Jim Middleton, Vice President, Marketing, Spar Space Systems. "We anticipate significant sales for both Signaal and Spar during the production phase of the program."

SPAR SATELLITE NETWORK LINKS NEW SLOVAKIAN EMBASSIES

In one of the first pan-European satellite networks, the country of Slovakian is establishing phone and data communications between 40 embassies in and around Europe using a satellite communications network from Spar Aerospace's ComStream unit. The network, installed by distributor SOFTEL, is using ComStream DT7000 Ku-band earth stations at remote sites. A 4.6 meter antenna and hub earth station in Bratislava will anchor the network for the Slovakia Ministry of Foreign affairs. The first phase of the network, including engineering and installation, is valued at U.S. $1.4 million.

With the split of the former Czechoslovakia into Slovakia and the Czech Republic, Slovakia is establishing embassies for the first time. The new single-channel-per-carrier (SCPC) satellite network will set up one phone line and data line to each location, with an aggregate data rate of 11.6 khps. The Eutelsat 2 satellite will provide space segment for the network.

To manage the system, the ComStream Star Network Management System (SNMS) will be installed at the Bratislava hub. The SNMS includes a Windows-based software package that graphically monitors the status of the hub and circuits and enables network operators to configure the hub and remote sites as well.

SOFTEL, a Slovakia-based distributor for ComStream, sells, installs and supports medical electronics and telecommunications systems in Europe.

ComStream is a provider of satellite-based communication systems and networks for voice, data, imaging, and video applications, with offices in Canada, the United States, Mexico, Indonesia, China, Bangkok, and the United Kingdom. It is a wholly owned subsidiary of Spar Aerospace Limited.

ROLLS-ROYCE'S INDUSTRIAL RB211 SCORES A FIRST

Rolls-Royce Industrial & Marine Gas Turbines' industrial RB211 has become the world's first aero derivative Dry Low Emissions (DLE) engine to enter service. This represents a milestone in the efforts to reduce exhaust gas pollutant levels from this type of powerplant and is a significant step in the worldwide drive to protect the environment.

The engine has entered operation at a natural gas pumping station, near Spokane, Washington, operated by Pacific Gas Transmission Company (PGT). The RB211 engine is incorporated in a Corberra 6000 gas compression installation, the first of four to be supplied to PGT through Cooper Rolls Inc.

Rolls-Royce Canada Limited of Lachine, Quebec and its sister company Bristol Aerospace Limited of Winnipeg, Manitoba provide a wide range of parts for the RB211 DLE engine. Since 1980, RRC has produced all industrial RB211 engines for sale worldwide by Cooper Rolls. In 1996, RRC will build and test all new-production RB211 DLE engines.

Validation testing of the Dry Low Emissions system by Rolls-Royce has demonstrated that the NOx (oxides of nitrogen) level in the exhaust gas has been reduced to under 26 ppm with carbon monoxide barely measurable.

Bob Sunerton, Managing Director, Rolls-Royce Industrial & Marine Gas Turbines, said: "I am delighted once again Rolls-Royce has been the first to demonstrate new technology which will be applied to all company products for the gas, oil and power generation markets in the coming years to enable operators to meet their environmental obligations.

SUBMISSIONS TO SATELLITE POLICY PANEL DUE THIS WEEK

The Industry Minister along with the Canadian Heritage Minister jointly appointed a three-member panel at the end of last year, to review public submissions and make recommendations in the public consultation phase of the Government's review of direct-to-home (DTH) satellite policy. The review says the government, has become necessary due to the imminent introduction of these services in Canada, and their potential impact on the Canadian broadcasting and telecommunications systems. It will also take into account the governments's policy on Canadian content and culture.

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Panel members are Gordon Ritchie (Chairman) Chief Executive Officer of Strategico Inc., former federal government trade negotiator and senior public servant; Roger Tasse, former Deputy Minister of Justice Canada and Co-Chair of a federal government task force on Canadian periodicals; and Robert Rabinovitch; Executive Vice-President and Chief Executive Officer of Claridge Inc., former Deputy Minister of communications and Under-Secretary of State.

DTH satellite distribution undertakings combine the use of high-powered satellites, digital technology and small "dish" receivers to deliver a range of broadcasting and other services directly to households, offering up to 200 channels. These undertakings will affect the evolution of the Canadian broadcasting system and become a component of the emerging information highway.

Written submissions to the panel are to be put forward in two phases. The first phase was for a period of 45 days and terminated yesterday. The second phase calls for public comment on all of the initial submissions by February 23, 1995.

U.S.A.F. EXPANDING RECCE OPS TO INCLUDE UAVs — ALREADY IN BOSNIA

Aviation Week & Space Technology reports in its January 9th edition that the U.S. is poised to begin revitalizing its tactical reconnaissance capabilities this year with the introduction of several new unmanned air vehicle (UAV) systems, one of which the CIA is already operating over Bosnia, and the reactivation of manned SR-71s on a limited basis.

Air Force officials predict that 1995 will be the year they begin learning to operate with reconnaissance UAVs.

Tactical reconnaissance was targeted after Desert Storm as one of the major areas needing improvement and the U.S. military has been steadily moving to field new systems despite technical problems and budgetary constraints.

After years of skepticism among operational users, however, UAVs are finally overcoming the cultural barriers that slowed their acceptance. Indeed, the Pentagon's joint-service Tier 2 long-endurance UAV programme is now ready to deploy a contingency force. The CIA's Tier 1 UAV programme overcame technical delays, and is now conducting flights from a new base on Brac Island, Croatia, about 90 air miles from the Bosnian capital of Sarajevo.

767-300 SALES GROW TO 690 WITH CHINESE ORDER

China Yunnan Airlines, headquartered in Kunming, Yunnan Province said yesterday it has ordered three Boeing 767-300s, and secured options on an additional three of the long-range twin-engine jetliners. The contract was signed Tuesday in Kunming by President Xue Xioming of China Yunnan Airlines, and representatives of the Boeing Commercial Airplane Group, China Aviation Supplies Corp. and Rolls-Royce.

Total value of the order with options and spares is approximately worth $600 million. Delivery of the three firm aircraft by Boeing Commercial Airplane Group will begin in May 1996, with additional deliveries in June 1996 and January 1997. The option airplane deliveries are scheduled for 1998 and 1999.

Yunnan will operate its new 767-300s both on domestic and international routes. The twinjets will be powered by Rolls-Royce RB211- 524H engines.

"China continues to be a vibrant market, and airlines are developing a market advantage in the region by investing in new Boeing equipment which allows them to provide a high quality service," said Larry Dickenson, vice president, Asia/Pacific Sales, Boeing Commercial Airplane Group. "This order is a strong vote of confidence by Yunnan in Boeing airplanes as a contributor to the airline's business objectives."

China Yunnan Airlines currently operates Boeing 737-300s. The Boeing 767's design provides excellent fuel efficiency, operational flexibility, low noise levels and modern airplane systems, including an advanced all-digital flight deck. New structural materials are employed such as improved aluminum alloys and man-made composite materials.

With the order for China Yunnan Airlines, orders total 690 for the twin-engine 767.

LITTON INGALLS WINS CONTRACT FOR TWO MORE AEGIS DESTROYERS

The United States Department of Defence has awarded a $738.8 million contract to Litton's Ingalls Shipbuilding division to build two Arleigh Burke-class (DDG-51) Aegis guided missile destroyers. This award funds construction by Ingalls of its second and third ships in a two-year plan announced by the Navy last July to divide construction of six Aegis destroyers between Ingalls and Bath Iron Works in the government's 1994 and 1995 fiscal years.

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The U.S. Navy's allocation plan provided one ship to Ingalls last year and two to Bath. This year, Ingalls is awarded the funding for the two ships, with one to Bath.

The U.S. Navy has now ordered 32 ships of the class, including 14 from Ingalls in Pascagoula, Miss. The Navy had announced last month its plan to procure 16 additional Aegis destroyers over the next five years. Three Ingalls-built destroyers are now in active service, with four more ships planned for delivery by Ingalls in 1995. The new award brings Ingalls' business backlog to $3.5 billion, involving the construction of 14 Aegis destroyers, amphibious assault ships and corvettes.

Aegis destroyers are the major ongoing shipbuilding programme in the Navy's five-year construction plan, and will provide primary protection for the Navy's battle forces well into the 21st century.

The 505-foot vessels are equipped with a computer-controlled Aegis combat system utilizing an advanced, electronically-scanned radar that can search in all directions simultaneously. The system is able to detect, track and engage hundreds of aircraft and missiles while continuously watching for new targets from wave top to the stratosphere.

Aegis destroyers mount a below-deck vertical missile launching system capable of firing up to 90 Standard surface-to-air, Tomahawk surface-to-surface and antisubmarine missiles. Additionally, the ships mount eight Harpoon antiship missile launchers, torpedo tubes, two Phalanx close-in weapon systems and a five-inch, rapid fire deck gun. The ships also are equipped with an antisubmarine warfare system, a bow-mounted sonar, a towed sonar array and an antisubmarine helicopter.

LITTON (U.S.) ACQUIRES TELEDYNE ELECTRONIC SYSTEMS

Litton Industries Inc. yesterday announced the completion of its purchase of Teledyne Inc.'s southern California-based Teledyne Electronic Systems operations. The Teledyne units, located in Northridge, Newbury Park and San Diego, California recorded 1994 sales of more than $150 million. Litton's purchase price was not disclosed. Litton has hired approximately 1,000 of a total of more than 1,100 former Teledyne employees at the three facilities.

"This transaction continues the implementation of our long-term strategic plan to further strengthen our business and technology base and grow by acquisition," said John M. Leonis, Litton president and chief executive officer. "The Teledyne operations are highly complementary to our own military electronics business. The new product lines include airborne computers, avionics, doppler radars, communications, controls, displays and identification friend-or-foe systems."

Most of the new operations are being integrated into Litton's Guidance & Control Systems division, based in Woodland Hills, but will continue at their present locations leased from Teledyne for the near term.

Virtually all of the new Litton employees continue in their same responsibilities. Their years of service with Teledyne were carried into Litton without a break, and they immediately picked up all Litton benefits with no waiting period or exclusions for any family member.

ROLLS-ROYCE EXPANDS DEAL WITH GULFSTREAM

Rolls-Royce and Gulfstream Aerospace have signed a $150 million contract for additional Rolls-Royce Tay engines for the Gulfstream GIVSP business jet programme through the end of 1997.

Gulfstream, based in Savannah, Georgia has been an exclusive Rolls-Royce customer throughout its 36 year history, taking delivery of a total of 1, 800 engines, including its 500th Tay which was installed last May. The Dart engine in the GI aircraft was followed by the Spey-powered GII and GIII.

Gulfstream's new GV aircraft flies for the first time later this year and enters service in 1996. The GV was the launch aircraft for the Rolls-Royce BR710 engine currently under development.

The GIVSP, with its twin 13,850-pound-thrust Tay 611s, satisfies all environmental legislation including many stringent low-noise curfews at the world's most demanding airports. It also provides operators an average of 10 years flying between engine overhauls.

Higher thrust versions of the Tay engine also power Fokker 70 and Fokker 100 airliners and are being used to re-engine Boeing 727-100 freighter aircraft. Altogether, well over 1,100 Tays have been delivered. Total programme flying hours total 3.5 million, a quarter of these on GIVs and GIVSPs.

PEOPLE: MILITARY MEMBERS JOIN ORDER OF CANADA

The Governor General, His Excellency the Right Honourable Ramon John Hnatyshyn announced the appointment of eighty-five appointments to the Order of Canada last week. Included among the new appointees were four men with military backgrounds.

The Honourable Judge George F.G. Stanley, OC, CD an has been promoted within the order to Companion in recognition of his contribution to the recording of Canadian history. An historian and public figure

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he served as one of the most effective Lieutenant Governors of New Brunswick. He served the Canadian Army during World War Two from which he emerged in the rank of Lieutenant Colonel. He is the author of many historical works and taught at the Royal Military College for twenty years. From 1982 to 1992 he served as Honorary Colonel of 1 New Brunswick Regiment and, in that capacity at the age of 85 became probably the oldest member of the Canadian Forces to receive the CD.

The Honourable Pierre A. Sevigny PC, CD has been named an Officer of the Order in recognition of his public service. He served in the Royal Canadian Artillery during the Second World War from which he emerged in the rank of Lieutenant Colonel. He became a politician and in 1959 was appointed Associate Minister of National Defence.

Colonel James Riley Stone, DSO, MC, CD has been named a Member of the Order in recognition of his voluntary service. Colonel Stone was awarded Military Cross and the Distinguished Service Order for his gallantry and devotion to duty in Italy while serving with the Loyal Edmonton Regiment. He was awarded the first bar to his DSO in Holland near the end of World War Two and the second bar as Commanding Officer of 2nd Battalion PPCLI in Korea. As Provost Martial of the Canadian Army in 1957 he founded the Military Police Fund for Blind Children which, since its inception has raised more than two million dollars for the visually impaired and provided special medical equipment for hospitals and educational equipment for schools.

Commander Francis John Blatherwick, CD has been named a Member of the Order in recognition of his contribution to health care. As Vancouver's medical health officer he has been a moving force behind a number of programs especially those involving youth, people with disabilities, people with AIDS and the abolishment of smoking in the work place. He has served in various elements of the Royal Canadian Navy, the Canadian Army and the Royal Canadian Air Force and is active as a Commander in the Naval reserve. He is also the author of several works on Canadian honours and awards.

PEOPLE: HILLARY TO DROP IN ON PM JEAN AND MADAME CHRETIEN

U.S. First Lady Hillary Clinton will expand her foreign policy platform by visiting Prime Minister and Madame Chretien in Ottawa late next month. This first presidential state visit to Canada will take place on February 23. (Bill is coming too.)

On the agenda for the U.S. President is Bosnia, international security in general, and the Group of Seven talks scheduled for Halifax in July. Hillary hasn't yet said what is on her agenda, but it is expected to be intense and expansive.

CF SENDING 120 TO RWANDA

Canada will send 120 troops to Rwanda this month to supply logistical support to the United Nations peacekeeping force based there. The Canadian peacekeepers are going in response to a request from the United Nations that Canada maintain a presence in Rwanda, says Defence Minister David Collenette. Ottawa also announced it is bringing back to Canada a group of 360 communication specialists who were sent to Rwanda last June on a six-month mission.

CALENDAR

February 15 — The winter meeting of the Industrial Benefits Association of Canada will be held at the Ottawa Congress Centre, 55 Colonel By Drive, Ottawa, Ontario. The meeting will deal with subjects relating to Canadian industrial regional benefit policy, international offset and government reorganization. The invited guest speaker is the Honourable John Manley, Minister, Industry Canada. The meeting is open to all who wish to attend, however pre-registration is a requirement. For further information contact Bob Brown at 1538 Featherstone Drive, Ottawa, K1H-6P2, Tel: 613-733-0704 or Fax: 813-945-3367.

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