Lieutenant-General James Clapper, DIA director is on more solid ground. He told the Committee that although global military strength is downsizing, there are still significant threats.

"North Korea continues to be the major near-term military concern." But he mollified that warning by saying, "I believe North Korea's leadership now recognizes its chances for regime survival are better served by strategies emphasizing economic improvement and political- economic accommodation rather than those stressing implacable confrontation with the outside world."

The spy-network heads agreed, however, that changes in the volatile rivalry between North and South Korea could seriously impact their analysis.

Concurrently John Shalikashvili, Chairman of the U.S. Joint Chiefs of Staff reportedly assured Japan earlier this week that the U.S. will maintain its 36,000 well-equipped troops in South Korea for the foreseeable future.

It all corresponds with information gathered from The Wednesday Report's intelligence sources in 1991 through 1994. Our extensive coverage of events building up to the most recent `Korean Crisis' was hinged on confidence in several reliable intel. sources who feared the worst. And still do.

The crisis built to the edge of war by last June, but a fight was averted with a near sell-out deal by Clinton-emissary, former President Jimmy Carter. The Carter deal does not rewind the North Korean weapons project — believed to now be at 7 warheads — but slows certain elements thought to be key to its continued advancement. That's being optimistic.

North Korea's economic state is so calamitous that Pyongyang is easily willing to trade a delay in the visible portions of its nuclear programme for western economic assistance. Pyongyang has apparently agreed to switch its graphite-moderated nuclear reactor systems with light-water types which produce less weapons-grade plutonium.

Sources suggest the CIA knew little of the impressive technology unearthed recently in North Korea by a respectably diligent International Atomic Energy Agency (IAEA). And the sum of the IAEA-gathered intelligence is scanty at best.

World leaders are publicly shaking their

Canada's Aerospace & Defence Weekly

Volume 9, Number 2 January 18, 1995


Even the spy business is having a rough time coping with the New World Order. The Association of Former Intelligence Officers (AFIO) is growing rapidly. "Former" is the operative word.

The alumni of Cold War intelligence artisans will get a bigger boost if the Clinton Administration succeeds in its current initiative to slash the budgets of the U.S. Central Intelligence Agency (CIA) and that of the more respected Defence Intelligence Agency (DIA). A precipitous move, we think.

Yesterday, the two agencies used a briefing session for new Republican Congressmen members of the Senate Armed Services Committee to begin the public fight for their continued existence.

The incoming lawmakers were warned of a "substantial probability" the United States will be the target of a nuclear or chemical weapon attack by an individual kook or group of kooks in the next ten years or less, perhaps during the 1990s.

Meanwhile rumours fly about alleged criminal gangs in Russia prowling that country seeking whole or component parts of nuclear weapons to steal and sell for cash on the global black market.

The besieged CIA, reeling after the Aldrich Ames spy affair, still without a Director since Clinton canned James Woolsey, was represented by acting director Admiral William Studeman.

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Patrick McManus (Halifax)

William Kane (Washington DC)

John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

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heads in bewilderment at what has turned out to be a very impressive array of North Korean technology, some of it indigenous.

Nonetheless, as reported last week in The Wednesday Report, Russia is openly turning its nuclear know-how into hard cash by assisting North Korean ally Iran in the development of its nuclear plan. The origin of Iran's root technology is German dating back to the pre-revolution 1970s. Ironically Germany will no longer touch the Iranian situation with a ten-foot pole.

A part of the growing controversy over the CIA, which has been eulogized as a leaky, ineffective, Cold War dinosaur by its detractors, focuses on the Agency's tasking. Studeman suggested the basis for an emerging, more general and appropriate role for the CIA.

"Theatre conventional war fighting, peace fighting, peacekeeping, humanitarian assistance, things related to the conduct of covert action in an environment of highly internationalized force mixes and complex diplomacy are all going to be more the order of the day...political, military, economic and sociological instabilities will mix together with one or more other factors to create or sustain a smouldering world of growing pop-up threats."

This was the postulation of the mid-1980s. Unfortunately the wheels of progress at the CIA have turned slowly. Studeman, however, has stated that the CIA has grasped the vision and has begun adjusting its structure and operations, cleaning out redundancies with the DIA, and is becoming a more relevant and streamlined operation.

Studeman has also been driving at a new-era CIA aimed at protecting U.S. proprietary technology rights. In other words, commercial industrial intelligence and counterespionage — a traditional role of the DIA and something Canada's Department of External Affairs has been good at for decades.

"There are clearly more future insidious forms of commercial intelligence acquisition for the purposes of acquiring technology or for some economic competitiveness advantage," he told the Senate Armed Services Committee.

No matter how convoluted, he is right, but is Studeman too late to save the CIA?

Micheal J. O'Brien


The Canadian Airborne Regiment, commanded by Lieutenant Colonel Peter Kenward has been warned to prepare for service in the United Nations Protection Force in the former Yugoslavia. The CFB Petawawa unit is now training to replace 1st Battalion, The Royal Canadian Regiment as CANBAT 1 at Rastevic, Croatia early in April. The Regiment has not been out of the country since its return following its much publicized adventures in Somalia in 1991.

The President of Croatia, Franjo Tudjman, in a speech last Thursday, stated that he wants the United Nations out of his country by the end of March. Although Mr. Tudjman has made similar threats in the past and then changed his mind as the critical dates drew near, his remarks are being taken seriously. UNPROFOR has approximately 15,000 people in Croatia, including its headquarters at Zagreb. In addition to the Canadian battalion group at Rastevic, the Canadian Logistics battalion (CANLOGBAT), which supplies the Canadian unit in Bosnia, is also in Croatia.


According to a new release from the United Nations, the United Nations Protection Force (UNPROFOR) has 38,402 troops, 691 military observers and 771 civilian police in Croatia, Bosnia and Macedonia. Of the U.N.'s total of 39,864 personnel, 12,029 are in Croatia, 22,304 are in Bosnia and 1,112 are in Macedonia. Slightly less than 3,000 U.N. personnel man the U.N.'s headquarters in Zagreb. Countries contributing troops to UNPROFOR's effort in Croatia include: Argentina 855, Canada 789, Czech Republic 967, Denmark 875, Jordan 1,244, Kenya 970, Lithuania 32, Nepal 895, Poland 1,180, Russia 905 and the Ukraine's 553.


Four members of the Canadian Forces serving in the United Nations Operation in Mozambique (UNOMOZ), who had hoped to return to Canada by 1 December 1994, finally made it home over the weekend of 14-15 January, 1995. On 15 November the United Nations Security Council extended the UNOMOZ mandate to oversee the assumption of office by the newly elected government. UNOMOZ, which was mandated in November 1992, to supervise mine removal, the demobilization of forces, and the elections held in November, was originally scheduled to end in mid-November, but its mandate was extended until at least 31 January. During its existence 34 Canadian officers served in Mozambique.


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An initiative towards the liberalization of world trade through the establishment of a "Transatlantic Free Trade Zone" between North America and Europe was proposed Monday by Edzard Reuter, Chairman of Daimler-Benz, Germany's largest industrial concern. Reuter, in Washington to participate in an informal meeting of industry leaders from the U.S. and Germany hosted by the Association of German Industry (BDI), called for taking a bold step towards economic integration of the European community and the proposed free trade zone of the Americas as insurance for future world peace.

According to Reuter, it is time "to utilize the rational power of economic networks in order to neutralize conceivable potential for political conflict." In light of strong temptations to erect protectionist barriers around the various economic blocks and government tendencies to intensify involvement and increase subsidies for the sake of their export trade, Reuter sees a bi-lateral Atlantic partnership as "the only tangible solution to successfully combat any attempts to reverse our shared values of liberalism."

Referring to last year's gathering of thirty-four heads of state and government Reuter said, "The spirit of the Miami economic summit in December 1994 sent a significant political signal to the world. In Germany and Europe, we highly welcome a vision that will maintain and strengthen democracies, help eliminate poverty and discrimination and ensure the preservation of the environment."

Reuter particularly sees a leadership role for the U.S. and Germany in the development of a global economic partnership. "With the integration of the classic western and the new eastern European markets and with the prospect of a proliferation of NAFTA countries, the economic and political elites of the U.S. and Germany will have to shoulder an even greater responsibility for free world trade," stated Reuter.

Reuter's visit to Washington concludes a ten-day tour through India, Singapore, Vietnam and Hong Kong where he met with political and business leaders to explore the potential for new partnerships and discuss issues concerning the rapidly emerging globalization of the world economy.

Daimler-Benz, based in Stuttgart, Germany is a multinational, integrated high-technology corporation and a leading supplier of goods and services in all areas of transportation.

With annual sales of over $60 billion and approximately 350,000 employees worldwide, Daimler-Benz is one of Europe's largest industrial concerns and has four corporate units: Mercedes-Benz (passenger cars and commercial vehicles); Daimler-Benz Aerospace (aircraft, aviation propulsion, space technology, defence and civil systems); AEG Daimler-Benz Industrie (transportation systems, microelectronics, automation, power engineering and diesel drives); and Daimler-Benz InterServices (financial, marketing, insurance and mobile communications services, computer systems consulting, real estate management and trading).

In North America Daimler-Benz employs 16,000 people at 30 companies, the majority of which is consolidated within Daimler-Benz North America Corporation. Since October 1993, Daimler-Benz shares have been listed on the New York Stock Exchange.


The first squadron of 12 McDonnell Douglas C-17 Globemaster III transports based at Charleston Air Force Base, S.C. was declared operationally ready for worldwide service yesterday by the commander of U.S. Air Force's Air Mobility Command. General Robert L. Rutherford, AMC commander, declared Initial Operational Capability (IOC) for the 17th Squadron of the 437th Airlift Wing. In addition, the Air Force Reserve's 317th Airlift Squadron, 315th Airlift Wing (Reserve) — whose air crews also fly the C-17s at Charleston — also is operational.

In addition to its combat-ready status, available for instant deployment for humanitarian or defence missions, the C-17 squadron at Charleston will begin preparations for another major milestone — next July's 30-day reliability, maintainability and availability (RM&A) evaluation. During RM&A, the C-17 fleet will be tested under peacetime and simulated wartime emergency conditions.

Built by McDonnell Douglas, the C-17 can carry 160,000 pounds of cargo, unrefueled, 2,400 nautical miles at a cruise speed of 450 knots. With a maximum payload of 169,000 pounds, the aircraft is designed to carry every air-transportable piece of equipment in the U.S. Army inventory, from Patriot batteries and Bradley fighting vehicles to MIA1 Abrams main battle tanks. The C-17 can be aerial refuelled, land on 3,000-foot airstrips, back up and rapidly off load cargo. It is designed to air drop equipment, cargo or paratroopers. On December 16, 1994, the C-17 completed developmental testing and during these tests set 22 world performance records.

Since its first flight on September 15, 1991, the C-17 flight test fleet has flown 4,096 flight test hours. The first C-17 was delivered to the 437th Airlift Wing at Charleston Air Force Base, S.C., in June 1993.


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Ottawa-based Systemhouse (SHL) announced last week the selection of Compuware's UNIFACE Six to rebuild the inventory management and supply system for the Department of National Defence (DND). As part of a $150M contract signed for the Canadian Forces Supply System Upgrade (CFSSU), UNIFACE Six will be used to migrate the existing mainframe applications to a client/server architecture.

Systemhouse will use UNIFACE Six to develop an enterprise-wide system to manage distribution, accounting, provisioning and replacement for all supplies to military bases and defence units in Canada and around the world. The new system will be designed for effective, around-the-clock management of military inventory well into the next century — 24 hours a day, seven days a week, in both peace and wartime conditions.

"UNIFACE Six was able to do in two months what other tools couldn't do in a year," said Bob Morrin, project manager at SHL, when referring to building the system prototype. "We needed an enterprise-strength, client/server solution that could be built rapidly and handle thousands of end-users. Since technology changes and upgrades are inevitable in a long-term project like this, UNIFACE Six's model-driven approach is ideal for CFSSU. It allows our complex applications to be technology-independent, protecting our investment should we decide to migrate to other platforms."

The CFSSU system will need to process up to 170,000 transactions daily and over 6.2 million issues annually, track 1.4 million DND stock numbers of a multi-billion dollar inventory and support over 9,000 end-users in the Canadian military and civilian personnel.

"For a system of this size, the CFSSU project will really take advantage of the enterprise-strength of UNIFACE Six," said Anu Shukla, vice-president of worldwide marketing for Compuware Client/Server Systems. "UNIFACE Six meets the requirements for building a system that must be robust, scalable, and reliable to accommodate the worldwide supply requirements of the Canadian Navy, Army and Air Force." UNIFACE Six

UNIFACE Six is a second generation client/server development environment specifically designed for building enterprise-scale business applications. Incorporating a component-based architecture, the UNIFACE Six development environment consists of five integrated workbenches that share information from an application objects repository.

These components include the application objects repository, application model manager, rapid application builder, deployment manager, developer services and personal series.

UNIFACE is developed, marketed and supported by Compuware Corp.'s Client/Server Systems Group. The UNIFACE product is a leading high-performance client/server tool for developing, deploying and maintaining business-critical information system applications on a wide range of hardware and software platforms.

UNIFACE has 2,300 customers with over 155,000 licenses in financial services, pharmaceuticals, telecommunications, education, government, manufacturing and other industries.

Compuware is based in Farmington Hills, Michigan. The Compuware Client/Server Systems Group is located at 1320 Harbour Bay Parkway, Suite 100, Alameda, California 94501-6556.


A joint venture project between a U.S. company and the government of Ukraine reached the culmination of two years of effort Monday with the opening of the world's first facility devoted to full-scale demilitarization and reclamation of conventional munitions.

Representatives from Minnesota-based Alliant Techsystems, the Ukrainian Ministry of Defence, and British trading company Rapierbase, Ltd. — partners in the joint stock company Alliant Kyyiv — gathered at the facility in Ichnya, Ukraine, to mark the completion of the project's most critical phase: the installation of state-of-the-art high-speed fluid cutting equipment used to separate a projectile's warhead from the shell casing.

They were joined by officials from the Ukrainian government, including President Leonid Kuchma and Valerie Shmarov, Minister of Defence. The U.S. government was represented by William Miller, U.S. Ambassador to Ukraine, and a representative from the Overseas Private Investment Corporation (OPIC), a U.S. government agency which supports international U.S. business ventures. Representing Alliant Techsystems were Kenneth J. Jenson, executive vice president, and Larry Blagdon, director of ordnance reclamation and demilitarization.

Jenson said the start-up of fluid cutting operations should enable the venture to reach full capacity during 1995, resulting in steadily increasing shipments of metals, explosives, and other by-products from the demilitarization process to be sold on the world's commodity markets. The operation is expected to disassemble and process 1,500 rounds of high explosive large-calibre projectiles — about four to five tons — per day.


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Alliant Kyyiv's initial contract is for the demilitarization of 220,000 tons of munitions.

"This is the first facility to use advanced technology such as high- speed fluid cutting to meet one of the world's most pressing needs — reducing the global stockpile of weapons in an environmentally safe manner," said Jenson. "The problem is particularly acute in former Soviet republics such as Ukraine, which were left with thousands of tons of stockpiled munitions produced during the Cold War."

In addition to cartridge disassembly by high-speed fluid cutting, the facility at Ichnya has modules that perform projectile processing, high-explosive conversion, fuse and primer disposal, and environmental assessment and remediation. To date it has reclaimed more than 2,000 tons of cartridge cases and 3,000 tons of steel.

Financed solely with private capital and loans from the U.S. Overseas Private Investment Corporation, Alliant Kyyiv derives its profits from the sale of reclaimed materials such as steel, brass, copper, aluminium, and explosives.

"Alliant Kyyiv will provide returns not only to Alliant Techsystems, but also to the Ukrainian people, who face economic problems as their nation makes the transition to a free market system," said Jenson. "The partnership will provide employment, supply much needed hard currency to the economy, and demonstrate how a free market works."

"Enabling Ukraine to convert obsolete munitions into commercially sold by-products will provide financial resources that can be directed to economic problems such as housing, job training, and employment," said Minister of Defence Shmarov.

Over 100 Ukrainians are employed at the Ichnya site, with plans to hire more than 1,000 people there and at other sites in Ukraine over the next year.

Traditional methods of munitions disposal such as open-air burning and detonation, ocean dumping, and land burial are environmentally unacceptable and also waste valuable by-products. The demilitarization process developed by Alliant Techsystems is claimed by the company to be environmentally safe and reclaims valuable commodities such as metals and explosives.

The process begins with the sorting of munitions into like types. The fuses and primers are removed from individual rounds, which are then transported by conveyor to a separate module for processing. The propellant is removed from the cartridge case, packaged, and transported for conversion into commercial mining explosives. The cartridge casings are conveyed to another module, where they are sectioned and crushed to reduce volume for transportation and to meet the length requirements of commercial smelters.

The projectile processing module uses high-speed fluid jet cutting to wash out residual high explosives. The water is forced through small sapphire or diamond openings under 50,000 pounds of pressure per square inch. This process uses only four to five litres of water per minute versus conventional systems, which require hundreds of litres.

The water slurry containing the explosives is pumped to a filter assembly where the excess water is removed and recycled back to the washout assembly and the explosive is pressed into cakes for further processing or sale.

Worldwide demilitarization market preliminary estimates indicate there are more than 800,000 tons of surplus conventional munitions in Ukraine alone — a figure that is likely to grow as a result of reductions in military force levels, retirements of weapons platforms, and continued aging of ammunition stocks.

"We estimate that worldwide there are more than 35 million metric tons of munitions and platforms available for demilitarization," said Jenson.

The U.S. market alone offers significant opportunities as weapons platforms become outdated, military bases are closed, and storage facilities are filled to capacity. Currently, stockpiles in excess of 500,000 tons need to be dismantled.

As a munitions supplier to the U.S. Department of Defence, Alliant Techsystems has some 50 years experience in munitions design, engineering, integration, and systems management. The company, which also is a supplier of defence electronics to the U.S. and allied nations, is headquartered in Hopkins, Minnesota. It employs approximately 4,500 people.


The $9.2 billion Raytheon Company has merged its three government divisions into a single entity called Raytheon Electronic Systems Division.

These actions by the defence and electronics/communications giant are a part of a restructur

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ing announced by the firm in March 1994. It unites Missile Systems Division, headquartered in Bedford, Massachusetts; Equipment Division, headquartered in Marlborough, Massachusetts; and Electromagnetic Systems Division, headquartered in Goleta, California.

"By this consolidation, Raytheon continues to further streamline our operations and take the actions required to compete effectively, win programmes in defence and accelerate our diversification of defence technology into commercial markets," said Dennis J. Picard, chairman and CEO.

Raytheon Electronic Systems has over 20,000 employees and a current backlog of approximately $4 billion. It serves five primary markets: defence electronics, air traffic control, environmental surveillance, communications and transportation with its electronic systems.

In defence electronics, Raytheon Electronic Systems a global contender in air defence, tactical missiles, radars, shipboard and submarine systems, military communications and airborne and shipboard self-protection systems. Recent significant defence wins include the competition to be the prime contractor for the U.S. Army's Enhanced Fibre Optic Guided Missile (EFOG-M) demonstration programme and one of two awards from the U.S. Navy for initial development of a new, next generation short-range air-to-air missile called the AIM-9X.

Its air traffic control capabilities include radars, displays, automation systems and weather radars, including recent awards in Norway, the Netherlands, Germany, Oman, India, Hong Kong and the People's Republic of China. It is also supplying vessel traffic control systems e government of Brazil to create the $1 billion SIVAM system to monitor the Amazon rain forest, a capability that has similar applications in many nations worldwide. In communications, Raytheon Electronic Systems is the supplier of main mission transceiver modules and antenna systems for the IRIDIUM satellite communications system.

William Swanson, Raytheon senior vice president and formerly general manager of Missile Systems Division, has been appointed as the general manager of the newly created organization.

Dale Reis, a Raytheon vice president, has been appointed as the deputy general manager and reports to Mr. Swanson. John L. Gressingh, also a Raytheon vice president, will head the organization's Electronic Warfare Operation and also reports to Mr. Swanson.

Raytheon Electronic System's new headquarters is located in Bedford, Mass., with primary manufacturing operations and engineering laboratories in Goleta, California; Andover, Boxborough, Marlborough, Sudbury, Tewksbury, and Waltham, Massachusetts; Portsmouth, Rhode Island; and Bristol, Tennessee; and operations in Huntsville, Alabama; Tulsa, Oklahoma; Harlow, England and Raytheon Canada Limited in Waterloo, Ontario.


The arrival in Kigali last Wednesday (11 January 1995) of the advance party from 95 Logistic Support Group marked the beginning of a change in Canada's commitment to the United Nations Assistance Mission in Rwanda (UNAMIR). With the completion of six month's duty and the establishment of communications for UNAMIR, 1 Canadian Divisional Headquarters and Signals Regiment's job in the African nation is finished and it is returning to CFB Kingston, Ontario. The new unit, 85 all ranks strong, is comprised initially of personnel from CFB Gagetown, New Brunswick.

When the changeover is complete later this month Canada's contribution to UNAMIR will include, in addition to the commander, Major-General Guy Toussignant, 85 all ranks in 95 Logistic Support Group, 6 at Headquarters UNAMIR, 8 United Nations Military Police and 20 United Nations Military Observers.


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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January 18, 1995