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The Wednesday Report
Historical Reflection -- FAAD LOS FH Project 

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This is a complete selection of our Published Articles In Raw Text Form Relating to the FAAD-LOS project, a funded Capital Program of the U.S. Army in WHich Canadian COmpany Oerlikon Aerospace Inc. was selected as successfull bidder. (Most but not all mainframe coding has been removed.)

U.S. Army  Forward Area Air Defence Project FAAD-LOS-FH

Forward Area Air Defence Line-Of-Site Forward-Heavy Combat Zone


The evaluation phase of the U.S. Army's Forward Area Air Defence

Line-of-Sight Forward-Heavy project is rapidly nearing a conclusion (see TWR, July 8). According to sources here, the U.S. Army has admirably maintained its ambitious schedule and will adhere to the Congressionally mandated decision date of November 26. This week marks the conclusion of the White Sands Missile Range (WSMR) live test-firing, and the commencement of the acquisition and trcaking phase (see TWR, July 15). The last of the live firings took place on Friday October

According to TWR sources, the test results have indicated a narrow lead being taken by the Martin Marietta/Oerlikon Aerospace ADATS team over the Thompson CSF/LTV Corp. team. Both teams were able to hit most targets in the test-firing of 10 missiles. Falling far behind in the live firing tests are both Euromissile and British Aerospace who missed most targets. Although not confirmed by the U.S. Army, it is widely believed that scoring for the FAAD

L-O-S F-H project is based 15 percent on the live firing phase, 24 percent on the acquisition and tracking phase, and 60 percent on the proposal itself. The critical acquisition and tracking phase beginning this week will allow the Army to fly hundreds of aircraft targets against the contender systems to provide a conclusive database for the evaluation phase. Acquisition and tracking tests and evaluations should be concluded by the end of this month. 



A battle royal is brewing in Washington, DC amongst at least three of the four contenders who are competing in the final phases of the U.S. Army's FAAD LOS program. At stake is a $3.5 billion contract for the line-of-sight forward-heavy system.

During the past week there were two significant events for FAAD watchers: the beginning of FAAD Line-Of-Sight Forward-Heavy (L-O-S F-H) acquisition and tracking tests concurrent with the conclusion of live

test-firings at the White Sands Missile Range (WSMR). Meanwhile the Association of the United States Army convened its annual meeting in Washington, DC. If any single topic could be described as being prevalent at the show, it was the $11 billion FAADS (Forward Area Air Defence) project. Winning and contending system manufacturers for the five FAAD elements were on hand to demonstrate their equipment and capability. The multi-faceted project embraces a broad range of air defence elements that will defend a variety of battle areas (see TWR #5, 6 July 1987). The L-O-S F-H competition _ one of FAAD's five elements _ is currently the most active.

The contending systems for FAAD L-O-S F-H are offered by four groups of companies: British Aerospace/United Technologies/FMC (Advanced Rapier); Euromissile/Hughes (Paladin); Martin Marietta/Oerlikon Aerospace (ADATS); and Thomson CSF/LTV Missiles and Electronics Group (Liberty I/Liberty II). At this point in the evaluation process, ADATS has gained a slight lead over Liberty. Both are well ahead of Paladin and Rapier.

A war of words has begun. Several rumours are circulating in Washington that suggest that Euromissile and British Aerospace, along with their respective American teammates will withdraw from the competition. Tempers are getting hot in some cases. Some contenders are furious about the fact that firing test winner Martin Marietta uses a bore sight alignment module and an alignment target on the missile range. Others say that the ADATS operators fire at will, after waiting for obscurants to clear. (One of our U.S. army sources says that crews fire when they are told to do so.)

An ADATS proponent has accused TWR of publishing a ''sensational'' diatribe against the ADATS creators. One of the low-scoring contender's executives went out of his way to publicly accuse TWR of being ''pro-ADATS'' at the AUSA annual show. Perhaps it was that person or his colleagues who supplied non-attributed and erroneous statements to the U.S.-based newspaper Defence News

which pronounced ''no production line for the ADATS system exists, while missiles such as the Rapier and the Roland are being built in Britain and Germany.'' How such a report could have ignored the recent, widely-publicized, Canadian Low Level Air Defence project is beyond comprehension. That may explain why Canadian journalists are often sought by U.S. media headhunters, but never does the reverse apply.

ADATS is in production in North America. In mid-September TWR visited the 16,000 square meter Oerlikon Aerospace factory in

Saint-Jean-Sur-Richelieu, Quebec, where Oerlikon Aerospace workers (more than 400 of them) man the production line for the launch and command equipment of ADATS. The facility is currently devoted to producing units for the Canadian Low Level Air Defence (CF-LLADS) project which has an initial requirement for 36 systems. Both prime and subcontractor levels of production are currently under way in Canada, Switzerland, Italy and the U.S. The first of the deliveries for the Canadian order are to take place less than a year from now.

When asked by TWR about laser alignment at WSMR, Mr. Werner Oesch, an official of the ADATS corporate team said, ''The ADATS E-O (electro-optical) module has a built-in Bore-Sight module which automatically verifies the alignment of the center lines of various electro-optic components of the tracking and guidance section. During the firing trials (at WSMR) _ for testing purposes _ a distant aiming point, or target board, was used to cross check (and ascertain) that the system had maintained its alignment following extensive travel over rough tank roads. During a tactical deployment this function would be performed by the built-in Bore-Sight module. This double check successfully confirmed the ability of the system to maintain its alignment in a fully tactical environment.'' The bore sight alignment module is included as part of the Canadian LLAD system and is also on board the proposed FAAD LOS ADATS system.

The Thomson CSF/LTV Liberty team has proposed a fearsome competitor to ADATS and the others. The configuration of Liberty that was used for firing trials consists of six Thomson Shahine missiles mounted on an AMX-30 chassis using: surveillance radar; a multisensor fire control suite with a tracking radar; Forward Looking Infrared (FLIR); TV; and integrated IFF (Identification Friend or Foe). If selected for FAAD LOS, the first configuration of Liberty to be fielded would be Liberty I _ an M1A1 Abrams chassis sporting either 12 VT-1 Liberty or six Shahine missiles, and two .50 calibre machine guns for self-protection. Radar capacity would be enhanced with an enlarged antenna. Liberty II would be supplied in later deliveries. This latter version of Liberty is the veritable Cadillac of low level air defence. With 12 Liberty missiles under armour on a low silhouette M1A1, and armour shrouding of the radar antenna and most other systems, the II configuration would be additionally equipped to cover the missile dead zone using the 25 mm Bushmaster Cannon with dual ammo feeds. Thomson/LTV is guaranteeing a mach 3.5 peak velocity and missile range of 10 km.

A Liberty II crew of two soldiers would enjoy most of the protective attributes of a modern main battle tank. The FAADS-M1, as it is called by General Dynamics Land Systems Division, is a nuclear-hardened, biological and chemical weapon safe, 48 km per hour (off road) vehicle. Total weight of Liberty II is proposed to be 27.2 tonnes.

The big question that revolves around the Liberty II, is ''At what price... and how long will it be until the system can be fielded?'' Considering the army's pressing need for an effective low level air defence system, will they be able to wait for Liberty II?

The attractive leading edge technology aspects of the Liberty bid are reminiscent of the ploys used for ADATS in the Canadian Low Level Air Defence competition. ADATS was without doubt, the most advanced technology system offered to the Canadians. From all indications it is still the most advanced system today. But ADATS was not by any means an off-the-shelf,

ready-to-be-fielded system. Much less than that, Liberty II is a veritable 'paper system.' It exists on the drawing board only. Phil Gregory, former ADATS marketing chief for Martin Marietta, crossed the street early in the FAAD LOS project to work for LTV's Missiles and Electronics Group. It is no small coincidence that the tactics of Martin Marietta's CF-LLAD bid and LTV's FAAD LOS bid bear such a strong resemblance.

Canadians were unable to ignore the high-tech Martin/Oerlikon ADATS offering. Realizing full well that the system they bought would likely remain in the field for more than two decades, the Canadian army decision-makers were loathe to select a system like Rapier, Roland, or Crotale, all of which had already been around for the best part of a decade and which represented an older technology generation. They chose ADATS with its attractive, advanced, passive FLIR and laser tracking and guidance methods. Will the same thoughts race through the minds of U.S. Army decision makers? Will the same tactics that worked for ADATS in Canada work for Liberty in the U.S.?

Not likely, Phil. But then, who can be sure! ADATS is already well into production mode. As can be seen from the very successful test firings, the wrinkles have been ironed out of ADATS and it is already heading at a great speed into its first generation of advanced product development. The distinct difference between Liberty and ADATS is that Shahine/Liberty remains a radio command-to-line-of-sight guided missile, whereas ADATS utilizes the more advanced and passive laser beam riding technique: a young technology that shows promise of even greater capability down the road. Although the proposed FAAD LOS ADATS system is mounted on the less protected,

lighter-weight Bradley fighting vehicle, it boasts greater mobility and transportability, something that army commanders do not overlook easily.

At the conclusion of the live firing phase of the Candidate Evaluation Test (CAT), these two systems leaned noticeably ahead of the rest _ ADATS and Liberty. Although U.S. Army sources have refused to discuss specific

live-firing results, it is clear that ADATS and Liberty, with close scores, were far superior to Paladin and Rapier, which demonstrated abysmally poor kill capability. To the surprise of many observers, the British-developed Rapier, in spite of more than 10,000 previous live-firings, failed to achieve direct hits on any of its targets, but sources indicate that the problems encountered early in the firings were ''sorted out.'' BAE claims two hits achieved in the last of the 10 shots. The most prolific in terms of numbers and users, Rapier is not to be counted out of the running yet. It is speculated by many that a major advantage of Rapier is its low price. According to British Aerospace senior VP Michael Rousse, ''Much depends on how the Army evaluates the more questionable shots of other contenders, and even more depends on the results of the acquisition and tracking phase.''

The acquisition and tracking test phase of the U.S. Army's forward heavy program will run from October 12 to approximately October 31. U.S. soldiers who have been trained by the various contractors will operate the systems for three one-hour missions per day. Fixed wing and rotary wing tactical threat profiles will be run against the contender systems in single and multiple aircraft presentations. The system operators must be able to designate hostile and friendly aircraft in day and night environments under clear and obscure conditions during benign and heavy electronic countermeasure activity. The evaluation of results will take into consideration the probability of detection, and the detection range; the engagement range (under benign and countermeasure environments); the probability of a single shot kill; the response time of the system; survivability; reliability; mobility; manprint (man/machine interface); and the growth potential of each contender system.

After the 'acq-&-trac' phase, the full test report will be submitted by the WSMR team to the Data Analysis Group (DAG) and the Source Selection Evaluation Board (SSEB). This is likely to take place early in the month of November. The Congressionally mandated selection date is November 26, 1987, with a planned contract award date of January 1988.

In spite of significant slippage of project internal time lines, army officials insist that as long as they are able to meet the October 31 deadline for test completion, the November 26 announcement date will be maintained. It is clear that U.S. soldiers and officers have taken to heart the wishes of General Ambrose, the Under Secretary of the United States Army. Ambrose has fervently committed to the November 26 deadline and, although he has the option of announcing that there will not be a selection made from the four contenders, he is expected by most observers to proceed into final contract negotiations with a competition winner.

Often touted as the replacement for the ill-fated Sgt. York system, FAADS in reality bears no resemblance to the Division Air Defence (DIVAD) project. Far more complex, and spanning a much larger variety and number of users, FAADS, just like DIVAD, will likely receive considerable political and media attention. The U.S. trade deficit for the month of August was announced last week as no less than $15.1 billion. Widespread U.S. public reaction to such statistics emphasizes the need to buy American products. Will that fact give Martin Marietta the competitive edge in the FAAD L-O-S F-H competition? Most contenders boast 80 percent or more North American content, but none of the system creators except Martin Marietta can boast of being an American based and owned company. Notwithstanding all of the uncertainties of this project, it can surely be said that no matter what decision the army takes, it will most certainly be a controversial one. 

Micheal J. O'Brien


On Tuesday morning, a memorandum-of-understanding was signed by officials of Savabini of Italy and Stork Werkspoor Canada Ltd. (a Dutch company) to create a new enterprise, Sava-Stork Limited. The new company will utilize the technologies of the two firms to manufacture the first 30 environmental control systems for the Oerlikon Aerospace ADATS system _ a

$3-million contract. The cooling system is used to control temperatures of the ADATS Turret Electronics and Electro Optics (TEOC) modules. Savabini will provide the design and manufacturing process technology whilst Stork Werkspoor of Candiac, Quebec will provide the physical plant within which the work will take place. Additional employment is being created for 10 persons at the Candiac facility as a result of this multi-million dollar joint venture. The Sava-Stork cooling system is proposed for the U.S. FAAD LOS project on board the ADATS system. If successful, that contract could be worth as much as $20 million to the new firm.

Stork Werkspoor was incorporated in Canada in October of 1960 and currently employs 48 people. The company provides heating and cooling systems for military users as well as commercial customers. Savabini was founded in April, 1947 and is also involved in the manufacture of cooling systems. The announcement was made jointly by Mr. Donald S. McKelvie, president of

Sava-Stork Inc., and Dr. Marco Genoni, on behalf of Sava-Stork's first customer, Oerlikon. 


The Boeing Military Airplane Company and Hughes Aircraft company have formed a team to compete for the U.S. Army's Fiber Optic Guided Missile (FOG-M)

project. As one of the five elements of the FAADS project, FOG-M

Non-Line-Of-Sight weapons (NLOS) (see TWR #6, July 15, 1987) will attend to enemy helicopters in terrain-masked positions from the Close Combat Zone. The concept is transitioning from laboratory to full scale development and was designed by U.S. Missile Command. Analogous to a wire-guided torpedo in so much as guidance and other telemetered data are transmitted by line, the fibre optically linked FOG-M has a television camera in its nose that supplies the gunner/operator with a visual depiction of the missile's field of view, and kill potential. The missile, once guided into a hostile area by the gunner, will provide visual clues to the presence of hidden helicopters and other threats. The gunner, having designated the target from the optical clues provided, locks on and directs the weapon to a kill.

Boeing and Hughes have been conducting FOG-M related research for more than 13 years. The two companies have completed more than 23 separate R&D FOG-M

contracts for the Army. Boeing has built seekers, sensors and guidance systems. Hughes has extensive experience in fiber optic data links, and rapid pay out fiber optic cable assembly and slew able seekers. Team products have flown on every Army FOG-M mission to date. U.S. Army program manager Col. Oleh Koropey and Brig. Gen. William Fiorentino, FAADS executive officer, will issue a Request for Proposal (RFP) later this year. Contract award for FAAD N-LOS is expected to take place in mid-1988. 


The Plain Plessey Facts 

Congratulations on the launch of your fine new publication. With respect to your October 14 article about Plessey, (see TWR #19 _ ''British Giant Hungry for Canadian Investment Opportunity''), there is an important point we would like to clarify.

Only Plessey Telecommunications has merged with GEC Telecommunications, leaving approximately 54 percent of the old company intact as Plessey _ this means that Plessey will now be primarily defence oriented. A further minor point: the ''frustrated Harris takeover bid'' was actually some four months prior to the Plessey/GEC Telecommunications merger.

We believe that it is important to set the record straight in case your readers become muddled with the hostile GEC takeover bid for Plessey, which was disallowed by the (British) Monopolies Commission last year.

John Markham,

VP Marketing, Canada, 

Plessey Electronics Systems. 



Numerous delays and complex doctrinal, technical, and logistical problems have not hampered the U.S. Army's quest for an anti-air-attack defence of its heavy manoeuvre units in forward areas of combat. The acquisition and tracking phase of the Forward Area Air Defence Line-Of-Sight Forward-Heavy project concluded last week, and the data from this and earlier live firing tests is now being evaluated by the Source Selection Evaluation Board (SSEB). Army officials insist that a decision will be reached by November 26, some 12 working days from now.

Including a hybrid missile/gun combination, the objective system _ according to the Army's statement of requirement _ is to have a maximum effective range of six kilometers or more with survivability and mobility capabilities that are commensurate with the forces the system will defend. The selected equipment must be fully effective in night and adverse weather conditions and defeat all known countermeasures. A series of rigid tests was organized by the U.S. Army's Operational Test and Evaluation Agency (OTEA) and the U.S. Army Air Defence Board. The first in this series began on July 1st of this year.

According to Canadian observers, the trials at Oscura Peak, White Sands, New Mexico, (WSMR) have been conducted with the utmost of professionalism and _ to the chagrin of some candidate system operators _ a high level of realism. Vigorously inducing powerful countermeasures, the Army's Materiel Test and Evaluation Directorate (ARMTE) at WSMR threw ''everything they had at us,'' said a source within one of the candidate teams. Seemingly impervious to almost all deterrents, there are two systems that stand out as overall leaders _ but only one will be selected from the four contenders that have offered the world's best known technology for defending against low altitude attackers.

The British-designed Rapier _ a diplomatically savoury choice, and probably the least expensive _ fell far short of expectations in live firing trials. Paladin, an offering of Euromissile/Hughes, also fared poorly on the range. The newly created Liberty II _ perhaps the most expensive, elaborate and technologically capable system _ performed well overall but will not likely meet the fielding deadlines suggested by the Army. The apparently necessary use of the large, heavy 'FAADS-M1' tank chassis may also be a drawback for Liberty.

Perhaps even before the United States' Thanksgiving Day, the Secretary of the Army will have a final decision on his desk. If the U.S. Army proceeds with a 'go' decision on FAAD L-O-S F-H, it will almost certainly take a page out of the Canadian Low Level Air Defence book and select the North

American-designed Martin Marietta/Oerlikon ADATS. If so, ADATS could become the quintessence of low level air defence for the Western World. At Mach

3-plus, the ADATS missile is passively directed to its target using sophisticated laser guidance control methods. Tracking is accomplished with Forward Looking Infrared (FLIR) and television electro-optic systems in even abysmal weather conditions. Keenly interested from the outset, U.S. Army experts provided considerable amounts of data and advice to the Canadian Forces during their Low Level Air Defence (LLAD) procurement program.

CF-LLAD, during its time, was regarded by many as one of the best run projects of its kind. The Canadian Army's project team, under Colonel David Hampson, set a new standard for stringent evaluation and selection. In typical fashion, the Canadians chose to do business with the most technically advanced industrial team having the greatest American constituency. The Canada/U.S. Defence Development and Production Sharing (DDPSA) agreement has resulted in many billions of Canadian defence procurement dollars pouring into the U.S. Such was the case in the $6-billion New Fighter Acquisition (NFA) project (McDonnell Douglas CF-18 Hornet) and literally hundreds of other Canadian defence procurements. Although not even close in scale to the U.S. FAADS program, the CF-LLAD project bought a relatively small number (36) of ADATS units using the same basic gun/missile hybrid concept endorsed by the U.S. Army. The Canadian-selected missile system is mounted on an M113A2 chassis and is augmented by 35 mm GDF-005 Oerlikon guns, whereas the U.S. system will be mounted on the larger Bradley Fighting Vehicle and will carry the

American-built 25 mm Bushmaster gun.

The ADATS system has apparently earned a great amount of respect, and the largest number of evaluation points amongst eligible contenders, from U.S. soldiers and officers at WSMR. Other candidates have recognized the obvious lead taken by the ADATS team and are conducting a massive campaign to upset the process. At this point, FAAD L-O-S F-H is beginning to resemble the DIVADS program, wherein the U.S. Secretary of Defence was put under tremendous pressure to overturn the Sgt. York decision. The political battle in Washington has taken on the appearance of an all-out war. But too much is at stake _ the Army cannot afford to make another mistake. And the North American aspect of ADATS provides powerful persuasion in spite of other political and diplomatic arguments.

First conceived in the late 70's, ADATS was designed by Martin Marietta in co-operation with the renowned Swiss gun maker, Oerlikon Buhrle. Oerlikon, a company which is reputedly an international leader in air defence, had recognized the trend toward missiles in the air defence equipment decisions of the 70's, and turned to the U.S.-based Martin Marietta for their expertise. Martin created ADATS in its Orlando facilities in partnership with Oerlikon. Martin Marietta has exclusive sales and manufacturing rights for the United States as part of the original agreement with the Swiss. Following the sale of ADATS to Canada, Oerlikon created a major manufacturing facility near Montreal, Quebec. Most components of the Canadian ADATS units are built in North America, and an even larger portion of the U.S. system _ more than 85 per cent, including the Bushmaster guns _ will be built on this continent.

Canadians will play a relatively small but significant role in the production of ADATS, and in the necessary research and development work that will be required for its growth. There could conceivably be as much as $750 million in contracts placed in Canada with U.S. and Canadian-owned companies here. U.S.-owned firms in Canada such as Litton, Bendix, Garrett, Hercules and others will play a major role in the Canadian contribution. Canada's own Devtek, General Systems Research, and Spar Aerospace, with its advanced developments in electro-optic systems including FLIR technology, will also add much to the endeavour of producing and growing a North American-made low level air defence system. Amongst all of the U.S./Canadian co-operative defence industrial programs this too would make a world of sense. The beneficiaries will be the North American people. Ultimately, and in every respect, the U.S. Army will be the winner. 

Micheal J. O'Brien

Year End Review 


It was a remarkable year. On the domestic front, 1987 brought a relatvely new white paper on defence (the first in nearly a generation), a livley debate on the perceived advantages and disadvantages of nuclear-powered attack submarines, a long-awaited order for six follow-on frigates (all from the same shipyard!), a significant upgrading of Canada's Pacific fleet (the first in nearly two decades), a significant upgrading of the northern radar network (the first in nearly three decades), and a host of smaller procurement and re-organization initiatives The year also brought renewed attention to the long-dormant subject of defence industrial preparedness.

For Canada's defence industry, 1987 was dominated by on-going activity on a host of pre-white paper procurement programs (covering everything from small arms to patrol frigates), by initial examination of the short and

long-term opportunities (challenges?) offered by the white paper, and by a series of pivotal export contracts. Numbered among the latter were the French and West German orders for $410-million-worth of CL-289 unmanned airborne surveillance systems from Canadair, a British order for 242 Advanced Integrated MAD (Magnetic Anomaly Detection) systems from CAE Electronics, and last, but certainly not least, the Canadian share of the U.S. Army's potentially massive order for the Oerlikon-Buhrle/Martin Marietta ADATS air defence system. Among the Candian beneficiaries of ADATS' victory in the

hard-fought FAAD LOS-F-H competition were Oerlikon Aerospace, Litton Systems Canada Limited, and Spar Aerospace.

On the international front, the gradual warming trend in East-West relations was reflected in the December summit between U.S. President Ronald Reagan and Soviet General Secretary Mikhail Gorbachev. A media event enveloped in an air of near-euphoria, the Washington summit's almost immediate claim to fame was the signing of the INF (Intermediate-range Nuclear Forces) agreement, but it also appeared to pave the way for a possible START (Strategic Arms Reduction Talks) treaty in the first half of 1988. the START talks hold the key to a potential 50 percent reduction in strategic missile inventories.

Itself a significant and encouraging _ but no means risk-free _ development in arms control diplomacy, the INF treaty would eliminate an entire category of nuclear weapons, including the American Pershing 2 ballistic missile and the BGM-109G ground-launched cruise missile (GLCM), and the Soviet SS-20 ballistic missile. Virtually certain of ratification by the U.S. Senate, the INF treaty will require rigorous _ indeed, unparalleled _ verification procedures. It would also seem to necessitate, as former NATO commander-in-chief Bernard W. Rogers has warned, increased attention to NATO's conventional deterrent.

Rendered even more timely by the INF treaty, the June 5 white paper re-affirmed the Mulroney government's staunch support of collective defence, and unveiled a 15-year game plan for bridging the gap between Canada's declared defence commitments and actual military capabilities. Integral to its vision of a more credible Canadian defence posture were the re-alignment and consolidation of existing NATO commitments, a renewed interest in home defence, a 'vigorous' naval modernization program and a sweeping

re-organization of the Canadian army. The new policy document also outlined a long-term plan to increase the strength of the Primary Reserve from 21,000 to 65,000. The revitalization of the reserves would include the introduction of a genuine

Total Force concept and a reduced distinction between the Regular and Reserve forces.

Dominating much of the white paper _ and most of the discussion and debate it stirred up _ were the government's proposals for the reshaping of the Canadian navy. In place of the existing fleet, which could charitably be described as geriatric, unbalanced and virtually irrelevant to sovereignty and security in the far north, the white paper envisaged a balanced, multi-role fleet capable of operating on all three coasts. In addition to the six

City-class patrol frigates and four Tribal-class destroyers already under construction or conversion, the white paper announced plans for 10 to 12 nuclear-powered attack submarines (SSN's), six follow-on patrol frigates, several sonar array towing vessels (similar in concept to the U.S. Navy's SURTASS operation), and 30 or more minor war vessels. Intended primarily for a revitalized and retasked Naval Reserve, the war vessels would be utilized for mine counter-measures, coastal patrol, training, and other sundry tasks. The white paper also proposed a fixed, under-ice surveillance system for the Arctic. Cancelled to make way for this ambitious shopping list were the eight (rather ill-defined) frigates originally projected under phase three of the Ship Replacement Program (SRP III) and the four to twelve,

conventionally-powered submarines (SSK's) that made up the original Canadian Submarine Acquisition Project (CASAP).

Far les spectacular in the eyes of the media and the public, but in many ways more complex, were the plans for the restructuring and expansion of Canada's land forces. Pivotal to these plans was the goverment's decision to shift the focus of the Canadian Air-Sea Transportable (CAST) Brigade Group from northern Norway to southern Germany. Although the CAST Brigade Group (i.e. 5e Groupe-brigade du Canada) would continue to be based in Canada, it would deploy, in time of crisis, to the Central Front. The result would be a two-brigade Division built around 4 Canadian Mechanized Group (4CMBG) _ the formation stationed year-round in Germany _ and 5e Groupe-brigade du Canada (5 GBC). Concomitant steps outlined by the white paper included the

pre-positioning in Germany ''of a large part'' of the CAST Brigade Group's equipment, and the permanent deployment in Germany of selected Divisional elements (i.e. part of the headquarters) and larger logistics and medical support cadres. In addition, the relatively 'light' 5 GBC would be re-equipped with main battle tanks and other equipment as was necessary for the Central Front. Another Canada-based brigade group, the even more lightly equipped 1 CBG, would be upgraded with main battle tanks and other equipment (i.e. LLAD) in order to provide trained augmentation and reinforcement personnel for the division in Germany. The combined needs of the three brigade groups _ and the Combat Training Centre _ were expected to generate a requirement for 200-300 new main battle tanks.

Also unveiled in the white paper was Ottawa's decision to create a new task force for territorial defence/CANUS (Canada-United States) missions. The task force was to include an airborne battle group of approximately regimental size and a light, air-transportable brigade group. These formations would be created by re-organizing and re-equipping the existing Special Service Force (SSF). The white paper also reported that the revitalized and much expanded Militia would ''contribute to defence operations in Canada and elsewhere in North America, and will train replacements for land forces deployed overseas. The Militia will also establish a relatively large force of lightly armed guards to protect military vital points, and make a major contribution to the logistic and medical organizations required to support our consolidated European commitments.''

By comparison with the navy (which now faces the daunting task of assimilating everything from austere MCM vessels to state-of-the-art SSN's) and the army (which now faces massive re-organization and militia expansion programs), the air force's future course of development was not radically altered by the 1987 white paper. This state of affairs reflected both the priority attached to salvaging the navy and reorganizing the army, and the fact that a significant number of air force procurment programs are already well underway (i.e. North American Air Defence Modernization) or nearing completion (i.e. initial procurement of the CF-18). Still, the white paper was by no means devoid of air force or air force-related programs.

In the area of procurement, the white paper unveiled plans to: acquire ''at least'' six additional long-range patrol aircraft (which should take some of the burden off the 18 existing CP-140 Auroras); modernize and re-engine the venerable CP-121 Tracker medium-range patrol aircraft; acquire additional strategic air-lift capacity (which should generate a hefty order for additional CC-130's); acquire CF-18 attrition replacements (probably in the form of 13 ex-American F/A-18's); acquire advanced munitions for the CF-18; and proceed with the coastal extensions of the North Warning System. The white paper also confirmed the requirement for New Shipborne Aircraft (NSA) to replace the aging (and, of late, somewhat cantankerous) CH-124A Sea King. The document made no reference to new tankers, but a pre-white paper requirement for four KC-130's _ primarily to support home-based CF-18's apparently still stands.

The white paper also announced that the commitment of the two Canada-based CF-18 Rapid Reinforcement squadrons (the yet-to-be-formed No. 416 at Cold Lake, Alberta, and No. 433 at Bagotville, Quebec) would be shifted from Northern Norway _ the originally intended deployment area _ to southern Germany. With the commitment of the two CF-18 Rapid Reinforcement squadrons to the Central Front, the three-squadron (Nos. 409, 421, and 439) Air Group currently stationed in Germany would be elevated to Air Division status.

Apart from the fact that it would be expanded and more closely linked with the regular force, the white paper had relatively little to say about the Air Reserve. A useful glimpse of its future evolution has, however, been provided by the commander of Air Command, Lt-Gen. L.A. Ashley, in a recent interview with TWR's sister publication, Aerospace and Defence Technology

. Ashley reported that ''the air reserves will be postured to complement those areas where we have critical operations, such as air lift.'' The ''kind of thing that will emerge is illustrated in Edmonton, where 418 Air Reserve Squadron will be twinned with the regular force 435 Squadron'' and ''share a common pool of C-130 aircraft.'' Another approach would be taken in Winnipeg, where No. 402 Air Reserve Squadron would be ''equipped with the Dash 8 and be twinned with the Air Navigation School to provide the airlift for air nav training.'' 

{H} Assessing the white paper 

Reaction to Canada's first defence white paper since 1971 was predictably varied. Indeed, the casual observer may have concluded that there are as many opinions on the white paper as there are editorial writers, politicians, peace researchers, academics, defence industrialists, and members of the armed forces. A perusal of the most recent assessments of the white paper _ as found in media commentaries, scholarly journals, defence and business publications, and testimony before the Commons and Senate defence committees _ quickly establishes a number of recurring themes. There is, for example, relief that a new white paper has finally appeared, and well-deserved praise of defence minister Perrin Beatty for his determination to provide a successor to the moribund Defence in the Seventies

_ a document which in some major respects was obsolete within three years of its appearance. For the most part, the Mulroney government has garnered high marks for so explicitly acknowledging the commitment-capability gap, for proceeding with commitment rationalization (when it would have been very easy, politically and diplomatically, to acquiesce with the status quo) and for offering a long-term approach to the modernization and restructuring of Canada's armed forces. Although a 15-year plan is necessarily hostage to the vagaries of future elections and changes in the international environment, it offers at least a modicum of continuity and a useful benchmark or baseline for Canadian defence planners.

Also generally well-received has been the white paper's explicit recognition that Canadian security does not start and end on the Central Front or in the mid-Atlantic _ that legitimate security concerns also exist in our territorial waters, in the Arctic, on the North American continent, and in the north east Pacific. The result _ for the first time in many years _ should be a better balance between our NATO commitments in Europe and our NATO, NORAD 'defence of Canada' concerns on this side of the North Atlantic.

In terms of the specific strategies or policies outlined by the white paper, the decision to shift the CAST commitment to the Central Front has naturally drawn disappointment from those who argued _ in some cases quite eloquently _ for a 'northern' approach to Canadian defence policy. In the face of Norway's (understandable) reluctance to sanction the permanent deployment on its soil of foreign troops, most observers have expressed support for the Canadian government's choice of land force consolidation options. Although one could in theory have earmarked a significant Canada-based contingent for north flank reinforcement (i.e. a two-brigade division, replete with additional airlift support and maximum pre-positioning), its 'out-of-sight, out-of-mind' existence, and doubts over whether Canada would really deploy it in time of crisis, could have fostered the impression in Europe that Canada had opted for 'fortress North America' _ with all that might imply in terms of Canadian linkages with with the United States or weakened cohesion within the North Atlantic Alliance.

Also drawing support from most observers were the decisions to create a balanced Canadian navy (although support for more submarines did not necessarily mean support for SSN's), to expand the reserves and implement a true Total Force strategy, and to place renewed emphasis on Defence Industrial Preparedness and defence-related research and development. The decision to create a balanced fleet (i.e. one that has more to offer than ASW frigates) reflects the belated recognition that a single-role, single-type-of-ship navy cannot possibly be responsive to all of Canada's maritime sovereignty and security concerns. 


On the down side, one fairly common complaint was that the white paper spent too little time articulating an indentifiably Canadian perspective on some of the major issues of Western security. Consider, for example, the assessment of John Halsted _ a former Canadian ambassador to NATO _ in the July-August issue of Aerospace Canada International

(the predecessor to Aerospace and Defence Technology

 ''It is true that [the white paper] deals briefly with the international environment in terms of East-West rivalry, and with the military threat to Canadian security in North America and Europe. But it does not really come to grips with such important questions as the compatibility between NATO stratgey and arms control objectives, the impact on NATO doctrine of the U.S. shift from reliance on MAD (Mutual Assured Destruction) to a countervailing nuclear strategy, and the implications of SDI (Strategic Defence Initiative) for Canada's defence posture and priorities.''

Another frequently-heard observation is that the white paper's rhetoric is, in some cases, too harsh and too 'Cold War'-like, that its 'military threat' section too closely resembles a Canadian version of the Pentagon's Soviet Military Power

. Some may reject such assessments as the misguided musings of the peace movement, but it should be noted that similar concerns have been voiced by more moderate, highly-respected Canadian defence commentators. In a collection of white paper reviews published by the non-partisan Canadian Institute of International Affairs (CIIA), for example, Professor R.B. Byers suggests that ''while the 1971 defence white paper presented too benign an assessment of East-West relations, it may well be that that the 1987 white paper has erred in the opposite direction. This could have the effect of unnecessarily calling into question subsequent sections [of the 1987 white paper] which address changes in defence commitments and future requirements.''

A thought-provoking critique of the white paper has also been provided by Brigadier-General (Ret'd) George C. Bell _ the president of the Canadian Institute for Strategic Studies (CISS) _ in a recent appearance before the Special Committee of the Senate on National Defence. Although Dr. Bell commended the Prime Minister and the Minister of National Defence for providing Canadians with ''a reasonably comprehensive framework of defence policy,'' he expressed concern over a ''number of specific deficiencies in the areas of naval forces, air forces and military space policy.'' The white paper's ''most serious omissions,'' however, were to be found ''in the areas of Regular Force manpower, military modernization for periods beyond 30 days and the scope of emergency legislation.'' Bell noted that: ''Nowhere in the white paper is the size of the Regular Force mentioned. Although informal soundings indicate that the Regular Force might grow from its present ceiling of approximately 84,700 to 90,000 within the 15-year planning period, informed commentators must be concerned about the apparent insufficiency of the Regular Force. Even if it reaches 90,000, it is likely to be unable to provide the training and support infrastructure and integrated personnel in Reserve units which are essential to achieve major growth in the Reserves from current levels of 90,000 (65,000 Primary Reserve and 25,000 Supplementary Reserve).'' Bell suggested that ''if the increase in the Regular Force is not increased well beyond the 90,000 indicated, the net benefit in increased overall force capabilities is likely to be far less than a surface look at the white paper would suggest.''

Another recurring theme, inevitably, has been the white paper's adoption of a two percent-plus funding formula (i.e. ''a base rate of annual real growth in the defence budget of two percent per year after inflation,'' plus occasional extra infusions as major capital programs are introduced). Although this approach could be made to work _ assuming that the two percent figure is a floor and not a ceiling, and that the extra infusions beyond the two percent will amount to more than $1.98 _ it was not as generous as the Department of National Defence had hoped. In the current fiscal environment, however, it is difficult to see how the Department could have done any better.

The major controversy unleashed by the white paper has, of course, centred on the proposed acquisition of nuclear-powered attack submarines. This is potentially the most significant procurement decision in the history of Canadian defence policy _ and one which should be rightly subjected to the most rigorous and penetrating analysis. One barrier to meaningful discussion of the SSN option, however, is the mistaken impression in some editorial, foreign policy analysis, and U.S. Navy circles that the raison d'etre of a Canadian SSN fleet would the checking of passports at the entrance of the Northwest Passage.

While SSN's would indeed bring an important new dimension to Arctic sovereignty, they cannot and should not be assessed on that basis alone. Rather, the SSN proposal must be evaluated in the context of what it would bring to the entire spectrum of Canadian (and Alliance) maritime missions. This means looking at both sovereignty and security, and the Pacific Ocean, the Atlantic Ocean, and the Arctic Ocean. It also means looking at the other equipment options for a late 20th-early 21st century navy. One must also give the utmost consideration to the possible arms control and other implications of an SSN acquisition program. Although some of the arms control and other criticisms (such as fear of linkage, however indirect, with the U.S. Navy's controversial Maritime Strategy) which have been directed at the proposed SSN program may appear exaggerated to some SSN proponents, they must be clearly and satisfactorily addressed if the program is to garner the support of Canadians.

That still leaves, of course, the question of cost _ or, more accurately, cost-effectiveness. Given the military attributes of SSN's (i.e. speed, endurance and the unparalleled ability to shift Canadian naval resources around the three coasts without using the Panama Canal) and the costs of possible alternatives, an SSN fleet for $8 billion or so would be very cost-effective. It would still be cost effective at a cost in excess of $8 billion. If, however, an SSN program threatens to approach the truly frightening worst case scenarios postulated by some observers, it would be difficult to support. It is conceivable that the currently projected overall defence budget might still be able to cope, but the risk would be a seriously distorted defence establishment (i.e. one with too little money for the other branches of the navy, not to mention the army and the air force). In 1988, consequently, one can expect SSN cost-estimating to be a continuing national pastime.

Also at issue, although something of a 'sleeper' at this point, is the continuing tasking of both of the CF-18 Rapid Reinforcement squadrons in the flyover role (albeit to Germany rather than to Norway). More than a few observers had hoped that the government would use at least one of the CF-18 Rapid Reinforcement squadrons to bolster the modest, two-squadron force dedicated to home defence (plus, in crisis, the CF-18 operational training squadron). The rationale for an increase in the dedicated home defence fleet was not predicated on a desire to recreate the massive RAF interceptor force of the 1950's. It did, however, rest on four basic assumptions: (a) that the peacetime interceptor mission of providing ''unambiguous confirmation'' of radar data was becoming more important in an age of cruise missiles; (b) that two dedicated squadrons seemed a rather modest force for a country the size of Canada; (c) that additional CF-18's could be multi-tasked to perform such missions as sea denial (i.e., with Harpoon) and reconnaissance; and (d) that using additional Canada- (and Iceland-?) based CF-18's to help extend

land-based air cover out over the North Atlantic could conceivably be of more use to NATO than two more fighter squadrons in southern Germany. Another irony of the continued tasking of both CF-18 squadrons in the flyover role was that it would mean sending Canadian fighter reinforcements to Europe at the very time _ during a crisis _ when the United States would be seeking to deploy USAF fighter reinforcements in Canada. 

The NDP Position Paper 

On 30 July, the New Democratic Party unveiled its conception of a viable Canadian defence policy. Entitled Canadian Sovereignty, Security and Defence: A New Democratic Response to the White Paper,  it reaffirmed the long-standing NDP desire to withdraw Canada from NORAD and NATO but, ironically, it outlined a force structure which could conceivably be very useful in a NORAD or NATO context. Thus, although it would repatriate the Canadian contingents in Germany, it offered an impressive shopping list. For the navy, it would provide up to 18 patrol frigates, up to 12 conventionally-powered submarines, an unstated number of mine counter-measures and coastal patrol vessels, and an under-ice surveillance system in the Arctic. For the air force, the NDP position paper envisaged the acquisition of a New Shipboard Aircraft, additional airlift capacity, an expanded fleet of patrol aircraft and 'Canadian-controlled' AWACS aircraft. At the close of 1987, there were indications that the New Democratic Party was reassessing _ although not necessarily changing _ its position on withdrawal from NORAD and NATO. If it does modify its stance on this issue _ and if it retains the shopping list outlined in its position paper _ the New Democratic Party's defence policy would be eminently more marketable to mainstream Canadian public opinion. 

 Life Beyond the White Paper 

Although Perrin Beatty's white paper and the issues it raised almost completely dominated the defence agenda during 1987, there were a host of lesser _ but still significant _ developments. For Canada's air force, the year was marked by the handover of the first CC-142 Dash 8 by de Havilland Canada, by the award of the CF-5 update contract to Bristol Aerospace (although it was no doubt a bittersweet experience to the latter), by the selection _ in principle _ of the EH Industries EH 101 for the crucial New Shipborne Aircraft (NSA) requirement, and by a well-publicized CF-18 engine problem (i.e., uncontained engine compressor failures with a potential for engine or engine compartment fires). The difficulty resulted in a temporary suspension of CF-18 deliveries in early November. CF-18 deliveries were resumed on 17 November following discussions between the Canadian government, McDonnell Douglas and General Electric, and the identification of an acceptable modification package. In other equipment developments during 1987, Innotech Aviation was awarded a contract for the modification of three Canadair CE-144 Challengers to an interim electronic warfare standard, and Kelowna Flight Group Limited was awarded a $10.9-million contract for the

CC-109 Cosmopolitan avionics update.

For Canada's air force, 1987 also saw the activation of two more CF-18 squadrons (No. 441 at Cold Lake and No. 433 at Bagotville), the awarding of the operations and maintenance contract for the North Warning System (to Frontec Logistics Corporation of Edmonton), the activation of the North Warning System's first AN/FPS-117 long-range radars, the closure of the bulk of the remaining CADIN-Pinetree Line radar stations in the interior of Canada, and the selection of the five CF-18 Forward Operating Locations (i.e., Inuvik, Yellowknife, Rankin Inlet, Iqualuit [Frobisher Bay] and Kuujjuag [Fort Chimo]). Not co-incidentally, Canadian and American fighter squadrons also did land office business intercepting an inordinate number of Soviet Bear aircraft.

For the navy, 1987 saw the handover to MIL Davie of HMCS Algonquin

, the first of the four DDH-280 Tribal-class destroyers to undergo conversion to the ambitious TRUMP (Tribal-class Update and Modernization Project) configuration. Although the destroyers modified under TRUMP would retain a secondary ASW (anti-submarine) capability, their primary role would become anti-air warfare (AAW). Also noteworthy were the official 'placing in dock' ceremony (i.e., the modular equivalent of 'laying the keel') for the first of the City-class patrol frogates (HMCS Halifax) and, of course, the decision to award the contract for all six of the follow-on batch (HMC Ships Montreal, Fredericton, Winnipe, Charlottetown, St. John's and Ottawa) to Saint John Shipbuilding Limited. In organizational terms, 1987 brought the commissioning of two more Naval Reserve units in Quebec (HMCS Radisson in Trois Rivieres and HMCS D'Iberville in Rimouski), the formal activation of the new Maritime Coastal Defence Organization in Halifax (although it was an organization with something less than an abundance of physical assets) and, most important, the first substantial augmentation of Canada's Pacific fleet in almost two decades. The upgrading of the Pacific fleet _ which unlike its east coast counterpart did not have any helicopters or air-capable frigates or destroyers _ reflected the decision to transfer HMCS Huron Tribal-class destroyer, to Esquimalt in return for the transfer to Halifax of the Improved Restigouche-class frigate HMCS Gatineau. Also transferred to the west coast were four Sea King helicopters from HS 443 Squadron. The Sea Kings would operate from HMCS Huron and from HMCS Provider the Pacific fleet's veteran operational support ship.

A year of less obvious change for Canada's land forces, 1987 was marked by the award of a $19.2-million contract to Invar Manufacturing to produce TOW turrets (for the M113) under license from Thune-Eureka of Norway, and by on-going negotiations with France for the co-production of the advanced Eryx anti-armor weapon. Both moves promised to fill major gaps in Canada's anti-armor inventory. In organizational moves, the Royal Canadian Dragoons _ the armored regiment attached to 4CMBG in Germany _ returned to Canada for the first time in 17 years. Taking its place in Germany _ and its Leopard C1 main battle tanks _ were the 8th Canadian Hussars from CFB Petawawa. Also announced was the decision to increase the size of the Canadian contingent serving with the United Nations peacekeeping force in Cyprus. Reservists, the 60 additional soldiers would help to compensate for the withdrawal of the Swedish contingent. The increase would bring the number of Canadian military personnel on active peacekeeping duty _ in Cyprus and elswhere in the Middle East _ to almost 1,000. 

{H} The Year Ahead 

The new year should bring a host of announcements as Canadian defence planners grapple with the initial implementation of Perrin Beatty's white paper (and with more than a few carry-over programs from the pre-white paper period). Although target dates could well change, the army programs that will attract the most attention during 1988 are the Heavy Logistics Vehicle (which may see contract award by March), TCCCS (the RFP for the first phase of which should appear by early-to-mid year), the main battle tank replacement (with the possibility of project definition approval by May or June), the Close Air Defence Weapon System (with an RFP possible in the spring or summer), the light armored vehicle/light armored utility vehicle (with an RFP likely before the end of 1988). For the army, 1988 should also bring the first LLAD deliveries, and more detailed information on the new Divisional structure in Germany (i.e., the location of the proposed fourth manoeuvre unit for 4CMBG).

For the navy, the pivotal development _ now that work is underway or committed on CFP, SRP II and TRUMP _ will centre on the selection of the 'country of origin' for the SSN program. This decision should appear relatively early in 1988. It is hoped, as well, that there will be solid news regarding mine-countermeasures vessels and new naval auxiliary vessels. On a nostalgic note, 1988 will also see the honourable retirement _ as personnel are released for training on the City-class _ of several of Canada's veteran steam-driven frigates. That these vessels lasted until 1988 is high praise for the people who designed them over the past three decades. It also speaks volumes about the lack of continuity in Canadian naval procurement, but that is another story...

For the air force, 1988 will bring continued progress on the NSA program, delivery of the last of the 138 original CF-18's, closure of the final CADIN-Pinetree Line radar stations, activation of additional AN/FPS-117 sites, activation of the eighth and final CF-18 squadron (No. 416 at Cold Lake), removal of the CF-5 from the NATO flyover role, and further refinement of the plans for the operation and staffing of the CF-18 Forward Operating Locations. Also expected to appear is the RFP for the Canadian Forces Light Helicopter (CFLH). One hopes, as well, that there will be solid developments with regard to the four proposed KC-130's, to the proposed expansions of the strategic airlift and long-range patrol fleets, and to the long-term modernization of the search and rescue fleet. At the present time, SAR modernization seems likely to involve variants of the EH 101 and the C-130, although there are proponents of a mixed C-130/Dash-8 fixed-wing fleet. Also worthy of close attention will be the Tracker update program. The latter promises to generate some very interesting questions. How extensive, for example, should the update be? Should any further privatization of the Tracker's fisheries surveillance duties _ which seem to enjoy very high levels of public support _ be sanctioned?

With all of these issues and developments _ and a federal election looming in the background _ 1988 should be a very interesting year. 


NDHQ recently announced promotions and appointments for several senior officers within Maritime Command. Commodore Tim Porter (49) _ formerly Chief of Staff, Personnel in Halifax _ has been promoted to Rear-Admiral and appointed Chief of Staff, Maritime Command, Halifax, replacing the recently retired Rear-Admiral Mifflin. Commodore Charles Knight (56) has been promoted to Rear-Admiral and appointed Surgeon General at NDHQ. Captain Ed Bowkette (53), formerly Director, Submarine Engineering and Maintenance, has been promoted to Commodore and appointed Director General, Submarine Engineering and Maintenance. Captain Bruce Baxter (48) will replace Captain Dent Harrison as CASAP SSN Project Manager on on January 15. Harrison will become Director, Marine and Electrical Engineering. 


Canadair Inc., a subsidiary of Bombardier Inc., announced recently that it had been awarded a contract to provide Challenger maintenance for the Department of National Defence's fleet of 15 Challenger aircraft. The initial contract is worth $4.9 million and is for a period of 27 months, with an option for an additional two years. As manufacturer, Canadair provides support for DND Challengers including training, bilingual manuals, technical supp ort, spare partds and field service representatives. Under the contract Canadair will alos provide periodic inspections, modifications, repair, overhaul and mobile repair parties for all DND Challenger aircraft. DND operates four Challenger 601s and four Challenger 600s as administrati ve transport for government personnel, head os state, foreign dignitaries, and royalty. Seven Challenger 600s are being equipped to serve as electronic support and training aircraft. 


Canadian Marconi Company announced recently that it had completed delivery to Paramax Elelctronics of a dual SIGNAAL Tracjing and Illumination Radar (STIR) system, the first ''below decks'' equipment to be built in its entirety in Canada. The system, including the SIGNAAL-built antennas, successfully completed integration and test at Canadian Marconi's Radar Division in Kanata, Ontario. Paramax Electronics is the prime contractor for the integration of military electronic systems for the Canadian frigate program. 


Bendix Avelex Inc. announced recently that the company had delivered, ahead of schedule, the first production prototype of the Air Defence Anti-Tank System (ADATS) Optical Encoder to Martin-Marietta as part of the Canadian Forces - Low Level Air Defence (CF-LLAD) program. The Optical Encoder will encode the CO{0I} 2{0E} laser beam for the guidance of the ADATS beam-riding missile . Through this program, Avelex says, it will have established a fully qualified production line for the encoder, making the company a contender for large -scale encoder requirements of the U.S. Army Forward Area Air Defence System (FAADS) program. Oerlikon Aerospace Inc. of Canada, prime contractor for the CF-LLAD contract, will be supplying the first assembled ADATS in October 1988. 


After several delays, DSS has finally awarded a contract for the upgrading of Canada's fleet of M113 armoured personnel carriers. The $4 million contract to upgrade between 151 and 170 APCs was awarded to MIL, which will perform the work at MIL-Vickers in Montreal. The company says the contract will maintain 20 jobs for four years. Another contender for the contract , Atlantic Defence Industries Limited, wasn't left completely out in the cold _ the company will build 421 fuel tanks as part of the upgrade. ADIL, a joint venture between FMC Cor poration of California, manufacturer of the APC, and several Nova Scotian business people, had hoped to win the entire contract, but will have to settle for the $3.2 million contract for the fuel tanks. While it's anticipated that the contract will create 25 jobs for two years, it's not yet clear where the work will be done. ADIL president Andrew MacArthur says he's hoping to set up shop in the former Acadian Distillers plant which closed last year. 


January 21, 1988 _ The Canadian Defence Preparedness Association will hold its annual general meeting and conference at the Chateau Laurier Hotel in Ottawa. The one -day conference, ''Canadian Defence Industrial Preparedness,'' will feature an address on the report of the Defence Industrial Preparedness Task Force by Colonel Cal Hegge, leader of the T ask Force, and three panel discussions: ''CF Structure Requirements and Mobilization Considerations ,'' ''Industrial Benefits and the Enhancement of Defence Industrial Preparedness,'' and ''Industry Reactions to the White Paper: Impacts.'' The Honourable Michel C“t‚, Minister of Supply and Service s will be the luncheon speaker. For more information, contact Mark Fleiszer at (613) 235-5337. 




The air threat to NATO land forces in Europe has become increasingly potent as the ability of low flying attackers to launch weapons from great distances has been enhanced by Soviet technological innovations. Concern since the late 1970's has turned to outright alarm within NATO planning circles as futuristic threat scenarios include some very ugly Soviet weaponry and tactics. Current trends toward nuclear disarmament point to the day when it will be necessary to fight to the bloody finish with conventional weapons if the Soviets were to invade western Europe. Recognizing that NATO air superiority is unlikely, the U.S. has struggled but failed for years to field its own modern air defence system. Perpetuation of this disturbing lack of deterrence could have a destabilizing effect in Europe. To sum up the situation one could safely say that NATO, as equipped, could not cope with the Soviet air threat in a conventional war. The problem, including the disastrous DIVAD project, has bred some fierce competition and some uproarious public comment. The stage was set for controversy.

Remarkably, Canada, in its own unassuming way, has taken a notable lead in providing a structured and effective air defence for its

European-based troops, paved the way for a solution to the Americans' tough air defence problem, pointed out the appropriate technological solutions for other NATO armies, and cut itself into the game with a sizeable stake in the industrial fortunes. But not without 'rocking and rolling' the nation, the air defence market, more than a few corporations, and who knows how many politicians and politocrats.

In April of 1986 then Associate Minister of National Defence Harvie Andre announced that the federal government intended to award Canada's hotly contested Low Level Air Defence (LLAD) contract to Oerlikon Buhrle of Zurich, Switzerland. Shortly afterwards, on June 17, the newly formed Canadian subsidiary Oerlikon Aerospace turned sod in Saint Jean-Sur-Richelieu for what has become a prime 16,000 square meter integration facility for ADATS. The new plant was opened on September 21, 1987, and a commitment of continued development and additional employment was made to a bevy of politicians and military officials. The company would build additional facilities and continue to hire. But a faint shadow cast itself over the exhilarating news. The area's Member of Parliament, Mr. Andre Bissonette, was conspicuous by his absence.

The local MP's much publicized 'land deal' brought him trouble with the RCMP and with his boss, Prime Minister Brian Mulroney, who had swiftly fired Bissonette from his junior cabinet post. NDP leader Ed Broadbent asked the rhetorical question, ''When is integrity going to become the rule of public business for this government instead of the exception.'' The House of Parliament was in uproar for days and the Mulroney government suffered immense damage. An interesting account of the 'affair' can be found in Claire Hoy's book, Friends In High Places

, (Key Porter Books Limited ISBN1-55013-047-1). Whether Mr. Bissonette (who pleads innocence) committed any wrongdoing or not has yet to be decided by Quebec courts.

Ironically, other markets have dismissed the noisy Canadian controversies as silliness (if not madness) and on November 30, 1987, Oerlikon and its industrial teammates won the most coveted prize of all _ the U.S. Army's multi-billion dollar FAAD L-O-S F-H competition. Now in the final stages of negotiation, it is expected that the FAAD contract will call initially for four systems with a follow on option for an additional 166. The first four ADATS units will be used by the Army for it's customary Production Evaluation Phase and to select various minor options. A monumental win, the sole source agreement with the U.S. has a powerful psychological effect on all air defence competitions around the globe. ADATS, virtually unrivalled as the quintessential air defence system of the 90's, will earn sizeable and profitable revenues for its Swiss creators and their Canadian and U.S. corporate partners.

Irrespective of these recent contracts, Oerlikon Buhrle has not fared well. Losing some 90 million francs (Swiss) in 1986 after a modest profit of 37 million francs in 1985, the company is expected to show some red in fiscal '87. Forecasts for 1988 look brighter. According to various financial press reports, Oerlikon Buhrle has invested some 700 to 800 million francs (Swiss) in the development and marketing of ADATS and won't immediately recover its costs. Company shares trading on the Zurich stock exchange ranged from a November high of 1,300 francs to a recent low of 845 francs. News accounts of the FAAD competition were not helpful. Various media reported incorrectly that the company's competitor had actually won the FAAD contest. Fueled with gossip from angry (losing) air defence marketers, the general press in North America contained mixed messages.

Oerlikon Buhrle CEO, Ditre Buhrle, must have been rolling his eyes. He and the company's president-to-be, Michael Funk, may be the only persons with sufficient vision and the appropriate data at hand to anticipate the impact of their staggering victory. The company, historically an international leader in air defence gun systems since World War II, has at least a three year lead on all potential comers to the modern air defence marketplace. In that time, hundreds of systems will be sold, fetching billions of dollars in revenue. It is no wonder that the firm's wise old leader has elected to enjoy some well earned R&R and retire from his leadership role, taking a less active position as chairman of Oerlikon's board of directors. He leaves the reins in the capable hands of the bright, young Michael Funk.

For the Canadian military, the post-contract period has been a busy one. The CAF has reactivated three Air Defence Batteries for the first time since World War II as part of an implementation plan for integration of its new air defence system: an ADATS missile and GDF-005 35 mm gun mix. On November 27, 1987 Defence Minister Perrin Beatty signed a Ministerial Organizational Order (MOO) that immediately created a new Canadian regiment dedicated exclusively to defending both Canadian air bases (Lahr and

Baden-Soellingen) and the 4th Canadian Mechanized Brigade (4 CMBG) in West Germany. The 4 AD Regiment RCA (Air Defence Regiment Royal Canadian Artillery) will consist of 127 Battery, 128 Battery, 129 Battery, and 4 Air Defence Workshop. The workshop will be staffed with 70 officers, technicians and engineers and will be sufficiently equipped to provide complete second line maintenance and a significant number of third line maintenance functions for the equipment of all three of the regiment's Batteries.

Lieutenant-Colonel Randall C. Stowell, effective with promotion on January 1, 1988, is the commanding officer of the newly formed, self-sufficient, air defence regiment. Regimental headquarters have been co-located with Canadian Forces Europe (CFE) HQ, and 1 Canadian Air Group (1 CAG) HQ at the Caserne in Lahr, West Germany. Currently 135 strong, the regiment will reach its full peacetime strength of 640 personnel by 1990. Present equipment assigned to the three batteries includes 42 40 mm Bofors Boffin guns and 40 Blowpipe missile launchers. Deliveries of the new air defence system from contractor Oerlikon Buhrle will begin in 1988 with the GDF-005 35 mm gun. ADATS deliveries are planned for the following year. Said CO Stowell about his new command, ''We have carefully evaluated our existing air defence equipment resource and have formulated a program that maintains maximum air defence capability from now through the first and final phases of ADATS introduction. At no time will there be a deficiency in capability as we integrate the new systems.''

Both 128 (Baden) and 129 (Lahr) Air Defence Batteries will receive eight of the new 35 mm gun systems, four Skyguard radar systems, and four ADATS. Defending 4 CMBG and based at Lahr, 127 Air Defence Battery will receive 12 ADATS and will retain 15 Blowpipe units to be replaced eventually by a weapon selected by the Close Air Defence Weapons System (CADWS) project. As the Boffin guns are replaced by the new anti-air attack system, they will be reassigned to Canadian naval reserve units for use aboard a planned batch of Mine Counter Measure Vessels (MCMV). In total 4 AD Regiment will receive 20 ADATS units. The remaining portion of the 36 ADATS ordered by the CAF will be assigned to 119 Battery at Chatham, New Brunswick (12) and to the Air Defence Training School (3) also at Chatham. One complete ADATS unit will be designated as operational logistics stock.

There have been rumors about possible increases in the Canadian order for ADATS to supply the 1 Canadian Brigade Group (1 CBG) headquartered in Calgary, Alberta. 1 CAG has been given a new lease on life by the white paper which suggests that the brigade will play a greater role in supporting 4 CMBG in Europe. Obviously, 1 CBG would have to be equipped with like equipment in order that troops be fully trained and ready for action in Germany, should their support be required.

Canadian Armed Forces air defence planners have carefully orchestrated every detail in their quest for a smooth and effective introduction of their long overdue air defence gear. Commanding Officer LCol. Stowell is said to be a leading expert in operational aspects of modern low level air defence doctrine. Stowell entered Royal Military College in Kingston during 1967 and was commissioned in 1971. In 1973 he was promoted to the rank of Captain and his postings included 1 CBG HQ, 4 CMBG West Germany and in 1979, to the United Kingdom with the British Army. He trained there to become one of the few Air Defence Artillery Officer/Instructors of the CAF. In 1983, Stowell attended Canadian Forces Staff College, Toronto and, in 1984, was assigned for three years to the Project Management Office, Low Level Air Defence (PMO LLAD) under project manager Col. (retired) David Hampson and program director Col. Glen Decker. As commanding officer of 4 AD Regiment, Stowell will report directly to the Commander, Canadian Forces Europe.

Stowell's promotion is the third of its kind for senior project officers who left PMO LLAD in 1987 after the contract award milestone. Former Lieutenant-Commander Bruce Richardson has since been promoted to the rank of Commander and John Wattes has been promoted to Lieutenant-Colonel _ in all, a true credit to the army and its project team. Retired Colonel David Hampson, who managed the LLAD project alongside Colonel Glen Decker, has earned the praise of military peers and industry observers alike. Even losing bidders compliment the PMO LLAD team. Surprisingly, the man who received only criticism and yet deserved the highest accolades was Prime Minister Brian Mulroney.

Mulroney had in fact made one of the most fascinating decisions in Canadian defence procurement history. He supported the military's experts, who were willing to take a considerable risk in a brand new, high-tech system that promised substantial, top quality industrial benefits for the nation's industry. The political storm that brewed through the short-list selection period was ferocious. Mulroney resisted incredibly strong persuasion that encouraged dumping the recommendation of DND's technical experts. Within cabinet there appeared to be five different views that ranged from practical political considerations to outrageous business deals. Mulroney arbitrated in cabinet, held talks with lobbying dignitaries from other nations, and turned away from easy street to support the choice of the military and various other government departments. Nothing has come to light since that time to suggest that the PM took anything short of an insightful and correct decision. The clobbering that Mulroney received _ for a decision that was resoundingly vindicated by the U.S. FAAD project _ is a great injustice remaining unreconciled in the LLAD post-contract period. The record should be amended. 

Micheal J. O'Brien


Oerlikon Aerospace's ADATS has been given the nod by the U.S. Army with an initial contract for five fire units which the Army will use for ''extensive operational tests before going into full production.'' In a statement issued on Friday afternoon by the U.S. Army Missile Command (MICOM) at Redstone Arsenal, the Army announced that it plans to begin pre-production testing of ADATS with a refurbished fire unit that was used during last year's competitive test program. The Army will purchase this unit and start the firing tests as early as April of this year. An additional four units are to be supplied by the contractor between January and April of 1989. The Army will conduct the tests at ranges in New Mexico and California. This is the first phase of the U.S. program to acquire 170 ADATS units to protect front line U.S. soldiers from attack by enemy fixed and rotary winged aircraft. The Army says that it intends to purchase as many as 562 ADATS systems for deployment in the U.S., Europe and South Korea.

The ADATS missile system _ a laser-guided, Mach 3-plus air defence weapon _ was selected in April of 1986 by the Canadian Forces (CF) for its Low Level Air Defence (LLAD) program and in November of 1987 by the U.S. Army for the Line-Of-Sight Forward-Heavy (L-O-S F-H) portion of it's Forward Area Air Defence (FAAD) project. Martin Marietta's Electronics and Missile Group of Orlando, Florida will be the prime contractor for the U.S. project with Oerlikon Aerospace serving as the primary subcontractor. For the Canadian project their roles are reversed. Oerlikon Aerospace is the prime LLAD contractor. First deliveries to the Canadian Forces are expected to begin in October of this year. Oerlikon Aerospace of Saint-Jean-Sur-Richelieu, Quebec, will build the first 60 units for the U.S. project and is under contract to build 36 units for the Canadian Armed Forces. Emile Laroche, FAADS Project Manager for Oerlikon Aerospace, says that he expects the value of present and forthcoming U.S. Army contracts to total more than $1 billion. 


Nuclear Submarine salesmen have recently been fighting for the attention of prospective buyers in competition with naval powerplant, weapon and surface warship vendors. The Canadian Maritime Industries Association (CMIL) held its annual technical conference along side the Canadian Shipbuilding & Offshore Exhibition in the first two days of this week at the Queen Elizabeth hotel in Montreal. With more than 40 exhibitors at the show and over 800 delegates from across the country and around the world, the combined events have created a significant milestone for the nation's shipbuilding industry. All day Tuesday, technical papers were presented at a series of seminars and meetings. Said the president of the Association, ''It's the best set of papers that has been presented in ages. There is a very strong emphasis on components of the white paper. There are two or three papers on TRUMP, several related to the Canadian Patrol Frigate and an interesting paper by Vosper Thornycroft from the U.K. about their recent design of fiberglass, totally silent, mine counter measure ships for the Royal Navy.''

High profile exhibitors at the show included: Marine Industries Limited, Saint John Shipbuilding, Paramax, Litton, Siemens, Krupp MaK, CGE, the two companies competing in CASAP SSN, SNA and VSEL and a plethora of large and small government agencies and departments. It seems that the biggest question on the minds of attendees was ''Will the government really buy a fleet of nuclear submarines, and if so which design will they choose?'' Others were content to muse about who will build the first batch of Mine Counter Vessels (MCMV's) and ''To what shipyard will the second pair of Tribal-class vessels go for their updating and modernization.'' The atmosphere at the conference was alive with the enthusiasm of an industry which collectively and apparently feels it has at long last been acknowledged after more than two decades of neglect. Whether speaking to a shipbuilder or an accoutrement supplier, there is one concern that is shared in common by most, if not all, in this industry _ the diminishing size of Canada's merchant fleet and thus the lost ability to supply Canadian troops overseas.

TWR interviewed Mr. James Y. Clarke, president of CMIA (formerly The Canadian Shipbuilding and Ship Repairing Association, the organization was renamed the Canadian Maritime Industries Association on the November 23, 1987). ''I have reviewed the DSS report, 'The Defence Industrial Base Review of '87'; a speech given by the Honorable Michel C“t‚ to the Defence Preparedness Association on January 21; and the more recently released report from the Department of National Defence called 'Defence Industrial Preparedness: A Foundation for Defence.' These reports are good, they are very good. They spell out what Canada should be thinking about in terms of meeting its fair share of military commitments to itself, North America, and NATO.

''The DSS report zeroes in on procurement and procurement difficulties that might be experienced in the event of tensions building up to the point where hostilities break out. It talks about the marshalling of necessary industrial sectors to keep the stocks of supplies flowing to the Canadian Armed Forces. This is, as explained in the report, within the mandate of the Department of Supply and Services. It is a good report but it merely goes as far as submitting recommendations to provide the necessary supplies when needed. There is no mention of the transportation logistics. That has not been addressed definitively and serious questions have not been answered. This matter was not referred to by either Mr. Cote or Minister Beatty in their speeches to the CDPA and CDA respectively.

''The DND's report is also very good. It takes over from the procurement side and deals with the tactical and strategic necessities of supplies, as far as the armed forces themselves are concerned. It's a good document and I think Colonel Hegge and his group did an excellent job, but it does not address the requirement to get what, in real life terms, are massive amounts of material and supplies from Canada or any other place in North America, to where the action is likely to be. We are talking about a scenario wherein conventional hostilities are breaking out somewhere in the European continent _ a modern day version of the World War II convoy system. Prior to WW II, Canada had a large Canadian-flagged merchant fleet. It was not organized as a fleet, but indeed there was a large number of ships owned by Canadians and bearing 'total-registration-type' loyalty to Canada. They could be commandeered in an emergency, as a lot of them were, to form convoys for transportation of cargoes to the UK and the European continent.

''We have no such fleet. Somewhere between 25 and 30 vessels are deep sea ships, but most are single purpose designs such as bulk ore carriers. They would not be the kind of ships you would want to have supplying an army. I don't have the exact numbers but your (TWR interviewer) suggestion of 8 might be optimistic. If one approaches this logically, in terms of any possible future conflict, the number of ships we would require would be that number that would allow us to provide the necessary minimum supplies to our troops on the other side of the ocean and to make up for early losses to enemy submarines or aircraft or other enemy activity. It is just not imaginable how we could replace the ships lost in the first few days and probably from the first convoy that tries to supply our troops.

''None of these studies address this huge problem of marine transportation logistics, which is utterly essential to the survival of our armed forces if they are called upon to fight anywhere other than in Canada. I am heartened by the fact that, very belatedly, the question of the strategic reserve of sea lift in support of the American armed forces has come to the fore in the last three or four months. Their merchant marine commission had six recommendations, four of which directly addressed the sea lift in support of national security. That was September 30 of last year, and since then it has come to a final report stage and has been released. It is now drawing praise from the thinking people in the U.S.''

What's the solution to the Canadian problem? _ we asked Mr. Clarke. ''I would say that the first step would be to go back to the Sletmo report of the early 80's _ the last definitive study done under the auspices of the Minister of Transport on a Canadian flagged deep sea fleet. We have got to make it economical for Canadian ship owners and operators to register their ships in Canada and to develop, maybe not a government organized merchant marine, but at least a fleet of ships registered in Canada that are available to Canada. If we are really going to listen and understand what Minister Beatty is saying in terms of defence preparedness, then the Canadian government should be subsidizing, to the extent necessary, Canadian shipyards, to build ships on 'spec.' If the government wants to buy them, then fine, the government can own the ships and lease them out to operators, but they are there and available in the event of an emergency. No such program has been talked about that I know of.'' 


Last Thursday at 4:30 PM, Oerlikon Aerospace of Saint-Jean-Sur-Richelieu signed the initial contract for the U.S. FAADS project with Martin Marietta. The Bethesda, Maryland-based Martin Marietta concluded terms earlier this year to provide the U.S. Army with the first phase elements of the FAAD L-O-S F-H project. The Martin/Oerlikon contract calls for subcontractor Oerlikon Aerospace to provide, by lease, a refurbished unit from the White Sands firing tests to enable the U.S. Army to commence pre-production evaluations. Additionally, Oerlikon will supply four ADATS units, appropriate spares, logistics and training. A contract for 50 to 60 missile was to be concluded this week. The refurbished (Canadian built ''Pathfinder'') pre-production unit must be delivered to the U.S. this spring. The new ADATS units will be delivered to the U.S. commencing early 1989 and concluding in the spring of that year.  

Oerlikon Aerospace and Canada's Department of National Defence have finalized negotiations for changes to the Low Level Air Defence (LLAD) contract originally signed in June 1986. The company will supply a gun/missile mix consisting of 37 ADATS fire units (and missiles) on the M113A2, the GDF-005 35 mm gun with the Contraves Gun King sighting system and the Contraves Skyguard radar. The changed contract takes into consideration the demanding workload placed on the firm's facilities by the selection of Martin Marietta and Oerlikon to supply the U.S. Army with its (FAAD L-O-S F-H) forward area line-of-sight air defence for heavy maneuver units in forward combat areas in Europe and other parts of the world. A parallel delivery schedule for the Canadian and U.S. projects will result from last week's contract with the Canadian government. Oerlikon expects to supply 60 ADATS units for the initial FAADS batch of 170 and later, 10 units for the second batch, which according to U.S. Army sources will include the 500 rounds-per-minute M242 Bushmaster 25 mm air defence gun to be supplied by McDonnell Douglas.  

Although the new Canadian LLAD contract provides for an altered delivery schedule, the delays in the LLAD project are not considered to be significantly disruptive by Canadian army officials. Training of Canadian soldiers will begin on schedule in May of this year. The first two GDF-005 twin-barrelled 35 mm guns have arrived on schedule at CFB Chatham, New Brunswick, where experts from Oerlikon will provide instruction to soldiers. The first Canadian configured ADATS unit is still expected to be rolled out of the Saint-Jean-Sur-Richelieu facility of Oerlikon in October of this year.  

Oerlikon issued a press release on Sunday of this week thanking the Canadian LLAD project office, in particular Colonel (retired) David Hampson whose recent participation in negotiations was instrumental in concluding difficult contract talks. Hampson, along with other government officials of DND, External Affairs, the Department of Regional Industrial Expansion and the Department of Supply and Services, made significant contributions, including adjustments in the Canadian LLAD schedule and information sharing with U.S. counterparts, to support the Canadian air defence team in their bid for the U.S. FAAD project. Of particular noteworthiness to TWR journalists who covered the project were the enormous, seldom-mentioned efforts of the Canadian Ambassador to the United States, Ambassador Gotlieb, and the officials of Canada's embassy in Washington, particularly: Mr. Robert Craig and Maj-Gen. Glen Younghusband. Director-General Roger Blake of the defence trade branch in the Department of External affairs demonstrated the importance and capability of his department in foreign trade conquests of this type. Oerlikon is correct in assuming that their win was aided, in no small way, by the concerted efforts of many Canadians. 


The Canadian-owned Devtek Corporation has once again made headlines in the business press. The company recently reorganized itself into two distinct operations to serve aerospace, defence and electronics markets: Devtek Systems Division and Devtek Precision Components Division. The firm has reported second quarter (ending January 31, 1988) sales increases of nearly 22 per cent over sales in the same period in their last fiscal year. Net earnings for the second quarter were $1.6 million or 17 cents per equity share. The company, headed by president Helmut Hofman, has recently signed an agreement to purchase 50 per cent of the shares of Interfast Inc. with options to purchase the balance at a later undetermined date. Douglas Woolings, the president and general manager of Interfast, will remain at his post in spite of the change of ownership. Interfast is a supplier of traceable, engineered fasteners to a diverse range of markets including aerospace and defence customers. The leaders of the two firms agree that the deal combines complementary customer and technology bases to provide enhanced business opportunities for both companies. 


The Canadian Advanced Industrial Materials Forum (CAIMAF) earlier this month was incorporated as a non-profit corporation without share capital under the Canada Corporations Act. 


TWR congratulates Mr. Tom Muir and Associates who have launched a new defence publication for Australia. Muir is a much respected, Australia-based defence writer who has given special coverage to Canadian events as recently as the fall of 1987. The Australian Defence Intelligencer 

is a monthly newsletter offering its readers ''A monthly compilation of commercial intelligence on Australia's defence equipment programs and policies.'' Although an introductory offer has been extended to Canadians at $200 (U.S.), the publication is normally available for a 12-issue fee of $250 (U.S). For further information contact Tom's U.S.-based associate, Mr. Don Middleton at: P.O. Box 60866, Palo Alto CA 94306. Fax: (415) 948-5824 or Telephone (415) 493-5703. Wish him our best and tell him you read about it in The Wednesday Report


National Defence Minister Perrin Beatty addressed the House of Commons Standing Committee on National Defence last week on the defence estimates for 1988-89. He noted that the five-year plan agreed to by the Cabinet during its consideration of the first annual defence review provides for $1.4 billion above the guaranteed base rate of two per cent real growth annually promised in the white paper. He pointed out that this represents about 60 per cent of the funding required for the second batch of six Canadian patrol frigates over the next five years.  

Other areas touched on by Beatty included: the need for greater surveillance and defence of Canadian territory under the North American Air Defence Modernization program; the increased importance of Canada's contribution to collective security through conventional forces; the revitalization of the Reserves through an increase in personnel, pay and benefits, and the modernization of Reserve equipment and facilities; the consolidation of Canadian commitments in Europe on the Central front; and the modernization of the navy through the construction of 12 frigates, the modernization of the navy's four newest destroyers, the acquisition of a fleet of minor war vessels, and the acquisition of 10 to 12 nuclear-propelled submarines.  

''My Cabinet colleagues and I are determined to press on with the policies set out in the white paper,'' He said. ''This year we did everything that careful budgeting and husbanding of resources allowed. We intend to do more next year and each year thereafter, until we have reached our goal. Barring dramatic and unforeseen fiscal circumstances, this will enable Canada to meet its obligations and diverse commitments with increasing confidence and credibility in the years ahead.'' 


George Harrison has been promoted to president of Aeroquip (Canada) Inc., based in Toronto. Harrison joined Aeroquip in 1982 as controller of Aeroquip (Canada). In 1986 he was promoted to Aeroquip corporate controller at the company's corporate offices in Maumee, Ohio. A native of Welland, Ontario, Harrison holds a business degree from McMaster University and is a certified management accountant. He will succeed Clifford H. McDowell, who will retire on April 30 after 31 years with the company. McDowell joined Aeroquip (Canada) in 1957 as controller, was promoted to VP of operations in 1974, and appointed president in 1985. 


Congratulations are in order for Lionel Leveille, vice-president of Canadian Marconi, who will soon join Canada's air defence leader to become vice-president of operations. Growth at Oerlikon Aerospace of Saint-Jean-Sur-Richelieu has led to the creation of this new position. Predicted to succeed current president Dr. Marco Genoni _ who is expected to become president of Oerlikon's entire North American operations in late 1989 _ Leveille is a director of the Aerospace Industries Association of Canada (AIAC) and head of Canadian Marconi's 650 employee Avionics Division. Leveille has earned industry-wide respect and considerable popularity as a result of his active participation and leadership in professional organizations. A tribute to both Genoni and Leveille is the fact that the two men were fierce competitors in the recent Low Level Air Defence (LLAD) competition: Leveille led the Bofors/Canadian Marconi air defence industrial team to a very close second place. He will join Oerlikon in late April. 


If you had any doubts about Oerlikon's commitment to Canada, you need to take a drive down boulevard du Seminaire Sud in Saint-Jean-Sur-Richelieu. Oerlikon Aerospace, in a relatively quiet ceremony last Friday, celebrated the recent award and signing of the FAADS contract (see TWR, Vol. 2, No. 12) with the announcement of another $90 million to be invested in Saint Jean facilities. Oerlikon Aerospace will construct an addition of 16,700 square meters to its present 16,00 square meter production and integration plant. The new construction will bring the total size of the plant to 107,300 square feet (32,700 sq. m.). In the new facility, 7,000 square meters will be devoted to production, 6,200 to administration and engineering, and 3,500 to quality control and logistics support. Site preparation and construction will commence within the month. The new building will be opened in mid-1989. 


Colonel Glenn Decker will be joining the Tactical Command, Control and Communications project office in July as program director, following a year of studying French at the Canadian Forces Language School. Prior to that, Decker was attached to the Low Level Air Defence program. 


Last November, Senator Alan J. Dixon (Democrat, Illinois) introduced the 'Defence Industrial Base Preservation Act' which, among other things, was designed to deter what the Senator saw as unfair trade practices by foreign nations (see TWR, Vol. 1, No. 28, page 3). Although Canada was not specifically cited as one of these nations, an aide to the Senator said that ''Canadian subsidies to the companies have allowed them to what we consider unfairly underbid U.S. companies for defence contracts.'' Consequently, during discussions of the bill by the Armed Services Committee, measures to be taken against Canada would be discussed.  

Response to the protectionist legislation was swift on both sides of the border. Trade officials with the Canadian Embassy in Washington lobbied against the bill, as did officials within the Pentagon, and the AIAC quietly added its voice to the campaign with a low-profile 'education' program in Washington. Which of these efforts did the trick is not clear. However, TWR has learned that Dixon's bill is to be amended to specifically exclude Canada, and Israel, from the punitive sections of the bill. 



{W} Although no announcement had been made at the time of writing, TWR has learned that the Defence Systems Division of SPAR Aerospace Limited is the choice of the Department of National Defence to supply their Tiger Eye to fulfill DND's requirement for a long range Night Observation Device (NODLR). According to TWR sources who spoke on condition that they not be identified, a $40-million contract was signed last week by the Department of National Defence.  

The contract calls for 233 Tiger Eye units to be delivered before October 1990. Each unit will consist of a laser range finder, goniometer, tripod, battery pack, associated accessories and the Tiger Eye mini-FLIR (miniaturized Forward Looking Infrared). The complete manpack will weigh 23 to 24 kilograms, depending on which options are selected. First delivery of the system is scheduled for mid-April when the Canadian Armed Forces will receive one FLIR and laser range finder as well as four tripod sets and two types of goniometers. Beginning in May of this year, soldiers and officers will conduct final human engineering evaluations and select appropriate options. The first production units are expected in the spring of 1989.  

A fierce competition had been fought in recent months. Spar's opposition for the potentially lucrative project came from Allied-Signal's Bendix Avelex in Montreal. Government indecision appeared to delay the final source selection due to political pitfalls in the ongoing Quebec-versus-Ontario industrial development debate. Although Spar Aerospace is headquartered in Ontario, the firm operates a large division in the province of Quebec. According to suggestions from TWR sources, the Quebec government of Robert Bourassa would not take sides in the competition, although, in the latter weeks of the competition, the two firms appeared to be conducting most of their battle in the political arena.  

But Tiger Eye's mini-FLIR won the day for Spar. It has the distinct advantage of being able to provide high-quality TV images for display on a monitor or for recording and later evaluation. The unit accomplishes this by scanning at a high rate of speed with a spinning polygon that builds the image at TV scan rates of from 30 to 60 Hz. All objects at temperatures above absolute zero (-273 deg. C) radiate heat which, as a form of energy, has a wavelength some 10 to 20 times greater than light in the visible spectrum. The mini-FLIR unit senses the minute temperature changes across its field of view and constructs images based on the thermal radiation of all objects it 'sees.' The images are sharp and clear allowing operators to virtually see in complete darkness.  

The Canadian military intends to use the night observation devices in forward combat areas to conduct reconnaissance, observation, and provide control and guidance of artillery and air-delivered ordnance. A two-man team will be deployed with the system. While one troop packs and operates the NODLR the other troop will shoulder the weapons and radios.  

FLIR technology has become increasingly popular in recent years for numerous military applications. Soldiers operating in the field have developed a high regard for the passive attributes of FLIR. TWR noted during recent FAADS missile firing trials in White Sands, New Mexico, that U.S. soldiers often preferred FLIR devices over radar for acquisition and tracking of low level target drones, even though radar sets were supplied specifically for that purpose. FLIR allows surveillance, target acquisition, and tracking, in total darkness or other adverse conditions causing poor visibility. Unlike radar, FLIR devices are completely passive, thus denying an enemy the opportunity to detect its operator's presence, employ jamming devices, or direct radiation seeking weapons.  

Spar has been researching and developing FLIR technology since the 1950's when the company was a division of The DeHavilland Aircraft of Canada. The firm has been successful in applying its FLIR technology to naval and land-based systems. The Infrared Search and Target Designation System (IRSTD) project for the Canadian and U.S. navies led to the introduction and sale of Spar's AN/SAR-8. Oerlikon's ADATS system employs a FLIR system built by Spar. The Tiger Eye is the third application of FLIR that Spar has sold and the company is researching other land-based, spaceborne and airborne applications. The mini-FLIR technology for Tiger Eye was acquired from Honeywell's Electro-Optics Division in the United States. Both Honeywell and Spar have striven to become world-class developers and manufacturers of FLIR technology applications.  

Tiger Eye is the result of four years of development work and $6 million in research costs. According to earlier estimates, the award of NODLR to Spar Aerospace will provide 200 permanent jobs. Production will take place at two of Spar's facilities: Kanata, Ontario and Ste-Anne-de-Bellevue, Quebec. According to company estimates, nearly one third of the work will be completed in Quebec. The NODLR decision confirms Canadian-owned Spar Aerospace as a world-class center for electro-optic technology, putting Canada in an enviable position, able to participate in the advanced electro-optic projects of the 1990's. 

Micheal J. O'Brien 


DY4 Systems Inc. of Ottawa and Ferranti Defence Systems of Scotland, a manufacturer of military avionics and automatic test equipment (ATE) systems, have signed what DY-4 calls a comprehensive agreement to form a team on the anticipated DND Request for Proposal for forward deployment ATE for the CF-18. Under the agreement, DY-4 will design and develop hardware and software for use with Ferranti's VME-based AST 1200 series ATE. Ferranti will provide the ATE technology and avionics system expertise as well as supplying the core of the system. This product was designed by Ferranti, DY-4 says, to fulfill military requirements for ruggedized man-portable ATE's for forward support test of deployed airborne, seaborne and land-mobile systems equipment and is being supplied to Harrier GR5 avionic support at forward level to the RAF in the U.K. DY-4 will provide in-house facilities for this project and will be the Canadian support arm for the AST 1200, providing application hardware and software support, configuration management and Canadian field service support. 


Bendix Avelex Inc. of Montreal has been awarded a contract to supply TOW Video Interactive Gunnery Simulators (TVIGS) to DND. The TOW (Tube launched, Optically tracked, Wire guided) simulator system will train soldiers in the use of the anti-tank missile system. TVIGS employs interactive video to generate realistic battlefield images, sounds, and targets for the student, while providing the instructor with real-time feedback on the student's performance without any live firing. 


Construction and installation of an industrial acoustic enclosure at the new Oerlikon Aerospace plant in St.-Jean-sur-Richelieu, Quebec, has been completed by Vibron Limited. The 320 foot long enclosure contains eight specially designed work stations that allow the ADATS carrier vehicles to enter and exit through large doors. Each work station measures 40 ft. by 63. The interiors of the walls are made up of acoustic panels which absorb noise created during the assembly and testing procedures. The facilities will be used to assemble, integrate and test the Canadian (ADATS) and U.S. (FAAD-LOS) low level air defence systems. 


Bendix Avelex Inc. of St. Laurent, Quebec will receive a federal contribution of $626,316 under the Defence Industry Productivity Program (DIPP) for research and development. The funds will be used to assist the company with its plans to develop a three-dimensional gun alignment and positioning system to aid in the rapid and accurate deployment of artillery batteries. The project is expected to generate sales of $22.6 million by 1993 and to create five jobs during the R&D phase and 57 others during subsequent production.

Several other companies also received DIPP funding. Aerosafe Technologies Inc. of Fort Erie, Ontario, will receive $250,000 in DIPP funding to modernize its operations by the acquisition of state-of-the-art machinery. In announcing the award, Girve Fretz, MP for Erie, said that the company plans to buy various computer-controlled equipment to improve its ability to supply components to the aerospace industry. The project, which has an estimated total cost of $250,000, is expected to generate increased sales of $3.5 million. CREO Electronics Corporation of Burnaby, B.C., is to receive $325,000 to buy CAD/CAM equipment. This equipment will be used in the production and testing of optical tape recorders used for large volume data storage.

Menasco Aerospace Ltd. of Oakville, Ontario, has received $519,822 in DIPP funding for two projects involving the design and development of components for the V-22 Osprey Tilt Rotor Aircraft being developed jointly by Bell Textron and Boeing Vertol. Assistance of $316,350 has been awarded for the design, development and manufacturing of 16 qualification units of the aircraft's nose landing gear, and a repayable contribution of $203,472 was made to assist the company to design and develop the drag strut retract actuators for the aircraft. 

Venture Tool Company (Windsor) Ltd. will receive $227,700 to increase production. The company plans to buy two CNC machine centres with which it will diversify its products and reduce its dependence on the automotive industry by penetrating the aerospace/defence field. The project has a total estimated cost of $455,400. 


Oerlikon Aerospace Incorporated of Saint-Jean-sur-Richelieu, Quebec, which recently rolled out the first production ADATS fire unit for the Canadian Forces (TWR October 26, page 6), reports that employment at its Quebec facility has reached the 650 mark. Initially, Oerlikon Aerospace was to employ some 300 people. The substantial increase in employment followed Oerlikon's victory in the U.S. Army's hard-fought FAADS-LOS-H competition and the concomitant decision to double the size of the previously-planned production facilities and establish the firm's own Research and Development Centre. Oerlikon's direct investment in Phases I and II of the construction of the plant and the research and development labs will reach $100 million by the end of 1989. Fully 99% of the firm's employees are Canadian. 

Nexus Engineering Corporation of Burnaby, B.C., will receive a federal contract valued at $242,000 under the Defence Industry Productivity Programme (DIPP) to conduct research and development on a high-efficiency power amplifier for use in M-SAT mobile terminals. The project is expected to lead to the creation of five new jobs and generate incremental sales of two to three million dollars annually once M-SAT goes into service. 

Bristol Aerospace Limited of Winnipeg has received a DND contract valued at $5,771,037 to develop and install the prototype of an updated avionics suite in two CF-5s. Phased out of front-line service earlier this year (TWR July 13, page 5), 56 of Canada's 87 surviving CF-5As and CF-5Ds are to be retained, in updated form, for use as fighter-trainers. In the continuation of an existing programme, Bristol also has received an $8,128,687 contract for the inspection and repair of up to 25 Bell CH-135 Twin Huey helicopters. The contract will maintain 15 jobs for three years. 

Hewlett-Packard (Canada) Limited of Mississauga, Ontario, and Selena/Northwest Digital Research of Vancouver, B.C., have delivered a sophisticated new weather image display system to Environment Canada. Hailed as ''the world's most advanced weather picture display system'', the MPDS (Multi-Purpose Display System) was developed in Canada through a joint venture partnership of Hewlett-Packard and Selena/Northwest. The MPDS consists of HP 9000/300 microcomputers than can automatically receive, store and display high resolution satellite, radar and weather chart imagery. The MPDS replaces ''old, expensive-to-maintain, chemically-processed paper facsimile with modern computer displays that are cheaper to operate and easier to update as needs dictate.'' MPDS is presently being installed and will soon be operational at more than 70 Environment Canada and Department of National Defence sites across Canada. 

FAADS Reference contained in the following articles.

The Wednesday Report

VOLUME 2 (1988)
-Assessing the White Paper
-The NDP Position Paper
-Life Beyond the White Paper
-The Year Ahead

-MIL Unveils Restructuring Plan
-NAAWS Update: A Slice of the Pie for Canadian Industry
-Mini-Shuffle in Maritime Command
-Canadair Awarded Challenger Maintenance Contract
-APC Conversion Contract Awarded to MIL

-Canada's MCM Capability Rises From the Ashes
-New Project Manager for CFLH
-Spar Wins Three SBR Contracts
-Hughes Aircraft Opens Ottawa Office
-Promotions and Senior Appointments

-Defence Industrial Base Review Unveiled at CDPA
-Contract Award Imminent for Heavy Lift Vehicle
-Commander Marcom Scolds Halifax Business Executives
-CANTASS Project: First We Buy, Then We Build
-DRIE Launches Microelectronics Development Program
-Canadair CEO R.D. Richmond Retires
-Macdonald Dettwiler Wins Radar Enhancement Contract
-EDO Canada Wins $388,000 Contract
-Toronto Firm to Manufacture High-Strength Bolts
-DY-4 to Pursue Office Automation Market

-CSEL Revises Proposal on Mine Countermeasures Vessels
-DSS Releases Defence Industrial Base Review
-CADW Reclassified as a Major Crown Project
-CRAD Researching Sonar Support System
-HLV Contract Award Rumours Fly
-Leigh Announces Micronav Board
-MAP and TOP Standards Available

-$250 Million Heavy Lift Vehicle Contract Awarded
-Military Presence in the Arctic to be Expanded
-Long-Awaited DIPTF Report Released
-TRUMP Update: Off to a Slow Start but Picking up Speed
-Early Days Yet for Main Battle Tank Acquisition Program
-More UK Airports to get Plessey Watchman Radar
-ADATS Missile Verification Tests Concluded Successfully
-AIT Expands Ottawa Research Group
-Harry Lowe Joins Numet

-Mixed Reactions to Budget Defence Allocations
-FAADS Contract Signed
-Subcontracting Talks in Progress for HLV Contract
-Trade Show: Nuclear Submarines-MCMVs-Frigates
-Mcguigan Elected VP of Litton Industries
-Thomson-CSF Awarded Minefield Breaching System Contract
-Nova Scotia Fines Shipyard
-Embraer and Partner Form New Company

-EHI Canada Submits Proposal for NSA Definition Contract
-Rockwell Takes Aim at Canadian Marine Defence Contracts
-SNA 'Ice Pick' Cracks the Ice Barrier
-Leigh Rejects IMP's Hostile Takeover Bid
-Tessier Appointed President and CEO of MIL

-Quote of the Week
-Macdonald Dettwiler Pursues Defence Market
-LAV Update: Program Complexity Causes Slippage
-Defence Estimates Tabled
-CMC Wins Two Contracts
-House Ad

-DND to Acquire Two Commercial Ships for MCM
-Trading of Innotech Shares Halted
-Leigh Directors Reject IMP Take Over Bid
-ADM/MAT Defends DND's SSN Cost Estimates
-Companies Receive DIPP Funding
-Minister Seeks Industry's Help in Shaping New Department
-Westinghouse Buys Gould's Torpedo Business
-MIL Wins Submarine R & D Contract
-House Ad

-DND Forms Canadian Division
-Ontario Firms Seek Effective Ottawa Lobby 
-Garrett Canada Develops ILS Test System
-Plessey Outbids IMP for Leigh Instruments
-Pay and Benefits Increased for Reserves
-Rubis Emerges from Noise Tests with Flying Colours
-Three Companies Awarded DIPP Funds
-Government of Jordan to Purchase Tornado

-Eryx MOU Negotiations Entering Final Phase
-New Milestones for ADATS
-New Westinghouse VP Appointed
-Devtek in the News
-CAL Delivers $2.2 Million System to NATO
-CAIMAF Incorporates and Elects New Board
-Selling 'Down Under'? Get the Australian Defence Intelligencer
-Harrier Jump Jet in 'Night Bird' Trials
-Our Apologies (re Estimates chart)
-House Ad

-Dixon Bill Amendments: Good News, Bad News
-Leveille to Join Oerlikon Aerospace
-Oerlikon Aerospace to Double in Size
-Bendix Avelex Wins Two DND Contracts
-Program Update: Re-Engined Tracker Should Fly this August
-Beatty Addresses SCOND on Defence Estimates
-Harrison to Replace McDowell as Aeroquip President
-Aero-Marine Expands Space, Targets NSA
-Decker to Join TCCCS Project Office

-Five Companies Awarded DIPP Funds
-HLV Contract Signed
-Bendix Avelex Acquires Line of Smoke Grenade Launchers
-Sanders Canada Wins Electronic Support Training Contract
-Regional Technology Conference Schedule Announced
-Matra Team Pursues Satellite Contract
-DY-4 Introduces Intelligent Interface Module
-Real-Time UNIX Engineering Computers Introduced in Canada
-House Ad

-CASAP Technical Evaluation Underway
-Meet the M1A1 Abrams
-EHI Signs NSA Definition Contract
-First NODLR Unit Completed
-ARINC-727 MLS Autoland for Air Force One

-Plessey Pledges $2 Billion through Leigh Buy 
-Nova Scotia Firm Tackles Hybrid Submarine Market
-DY-4 and Ferranti Sign Teaming Agreement
-Garrett and DRIE R & D MOU
-Bendix Wins Simulator Contract
-Trafalgar Consortium Holds Industry Briefings
-ADATS Acoustic Enclosure Completed at Oerlikon
-Bendix Avelex Receives DIPP Funding
-Lockheed Opens Composite Materials Centre
-Changing of the Guard at NATO
-Joint Venture to Supply Aircraft Electrical Power Systems
-Amdahl to Support IBM NCP-5
-Three AI Systems Introduced by Grumman
-US Government Technology Summarized in Catalog
-Control Data Wins Addition to U.S. Navy Ada Contract
-U.S. Firm Introduces Automatic Source Code Generator
-Walk the Plank, Swabby! (Correction)

-DND Fishing for Deployable CF-18 Test System
-Defence Industrial Research Program Approved
-Prime Minister Mulroney to Meet Reagan Today
-Canadian Navy Deploys to Western Pacific
-Beatty Announces Senior Appointments
-Appointments at Field Aviation
-Hawker Siddeley Wins AQAP-1 Recognition
-Copies of SSN Forum Available

-Canadian Companies Form CASAP Consortium
-Major Subcontractors Selected for HLV Project
-Leckie and Dyment Join Aviation Hall of Fame
-GSR and British Petroleum Form Joint Venture in Composites
-Beatty Establishes Three Naval Reserve Divisions
-New Ceramic Engine Valve Successfully Tested
-New Materials Research to Give NASP its Wing
-AMRAAM Scores in First Live Warhead Test
-Tacit Rainbow Completes Free-Flight Test
-UK Confirms Commitment to New Euro Fighter

-Base ADP Moves Into Development Phase
-CDC Wins US Navy Signal Processor Contract
-Bell's Jim Schwabe: The Future of Bell/Mirabel
-Indal Wins CPF RAST Contract
-Bendix Wins DND Tank Simulation Contract
-Cametoid Spreads its Wings into the US
-LTV Wins $8.9 Million ASW Contract Add-Ons
-Calian Technology Acquires Miller Communications
-Smart Fuel Control System Completes Tests
-Plastic Bead Aircraft Paint Stripper Approved by USAF
-Allied-Signal Forms Core Business Groups
-House Ad

-Seminar Gauges Soviet Cruise Threat
-Spar's Larry Clarke Gives Upbeat Report to Shareholders
-CASI Presents Three Awards at Annual Dinner Last Night
-CAIMAF to get $840,000 Says de Cotret
-Cercast Group Acquired by US Firm
-Multiscript Gets $252,000 DND Translation Contract
-Deliveries of CF-18 Tail Off
-Rolls-Royce Announces Senior Appointments
-New European Anti-Tank Weapons get the Green Light
-Honeywell Division Reduces Work Force
-Rockwell and British Aerospace Pursue Trainer Contract
-Encyclopedia of Robotics Published
-Our Mistake (Calendar correction)

-SACEUR: All Submarine Help is Welcome
-Bofors Wins CPF Follow-On Contract
-First CPF Launched
-Macdonald Dettwiler Developing Defence Simulations
-Harris and CMC Form ATE Team
-CMC Appoints Head of Avionics Division
-ECS Inaugurates Submarine Reactor Test Facility
-People [UNGOMAP]
-USAF Issues RFP for IFF System
-Beam-Index Colour Display Flight Trials Underway
-House Ad

-Ottawa Rife With SSN Rumours-and Lobbyists
-Ashley Outlines Future of Canada's Air Force
-Senator Paul Lafond
-Hughes/Spanish Group to Develop Anti-Tank Missile
-GE Wins Helicopter Engine Competition
-Palm-Size Microcomputer Unveiled
-Hughes Delivers First F/A-18 Navigation Set

-VSEL/GCI Allegations Untrue
-SNA Reacts to TWR Article in June 1 Issue
-Interview: VSEL's Jack Daniel Says U.S. will Approve Treaty
-Interview: Lawrence Herman: France will Build/Operate 2 
Canadian Amethyste Variants
-CMIA Brief Presented to Prime Minister
-Beatty Assesses Moscow Summit
-Whirlwind Progress at Oerlikon Aerospace Facility Continues
-Unisys Granted NATO AQAP-1 Status
-UK Royal Aircraft Establishment Given New Name
-Canadian Firms Share in APGM Contract

-ADM/MAT Reaffirms SSN Requirement and Cost Estimates
-Update: The Senate and House of Commons Defence Committees
-Canadian Hercules Arrive in Ethiopia
-New Publications from DND, CMIA
-RAST Success Story Continues
-Canadian Astronautics Moves Forward with SAR Research
-Environment Canada Utilizing Metrowave Bridge
-New Military Variant of Aerospatiale SA365 Dauphin
-Schweizer 330 Turbine Helicopter Flown
-Daniel Concedes that VSEL Hired Lobbyists
-TWR Celebrates 1st Anniversary
-AN/SSQ-53B Contract for Hermes Electronics

-Beatty Rejects Hybrid Submarine Option
-NAAWS Victory for Thomson-CSF Systems Canada
-Ernst Leitz Canada Pursues Defence Market
-Telemus Success Story Continues
-Devtek Announces Third Quarter Results
-NCR Acquires Unique Ice Sensor
-Fitzwright Helicopter Suit Approved
-Ferranti Wins Contract for Automatic Test Equipment
-New Publications from CISS, CDA and CIIPS
-House Ad

-Beatty Acknowledges ''Total Force'' Challenge
-Status Report: The Canadian Forces Light Helicopter
-Canadair Freezes Regional Jet Configuration/Aerodynamics
-DND Scientific and Research Contracts
-Additional F/A-18 Opportunities for Leigh Instruments
-USN Follow-On Order for Unisys Canada
-Rolls-Royce (Canada) Appoints Chrysler Pentastar
-Hughes-Led Team Awarded MIMIC Research Contract
-DND Annual Report (Correction of wrong no. given by DGInfo)
-Quote of the Week

-Detailed SSN Cost Estimates: Canadian Amethyste
-DND Examining Chinook Centralization Scheme
-Canada Signs Space-Based Search and Rescue Agreement
-AIDS Testing for Some U.S.-Bound Personnel
-Garrett Canada/Plessey Secure LLAD Contract
-Krauss Maffei Ready to Bid for Tank Project
-Plans for New NDHQ Shelved
-NDHQ Named After Former Defence Minister
-Hughes Receives INF Inspection Contract
-Satellite User Conference: Call for Papers

-SCOND Tables Report on Canada's Reserve Forces
-CAE to Acquire Link Division of Singer
-End of the Line for 434 Squadron
-Bombardier to Invest $30 Million at Mirabel
-Refit Contract for Canadian Shipbuilding and Engineering
-Voice-Compression Technology Transfer to Spilsbury
-Sanders Delivers 500th AN/ALQ-126B
-Lockheed's HTTB Enters New Phase
-Satellite User Conference: Call for Papers

-Committee of Concerned Canadians Supports SSN Program
-Cytrigen and Atomic Energy Announce Agreement
-'Submarine' Nears Completion at Davis Engineering
-Sanders Canada Receives Contract for EEPROM Kits
-DY-4 Announces Release of Resident TCP/IP
-Translation System Contract Awarded to Interleaf
-K-Power Products to Receive Federal Assistance
-Canada's Defence Industrial Base Examined
-Major AWACS Work for British Aerospace
-Production of AMRAAM Development Missiles Completed

-Naval Reserve Vessels to be Acquired
-Discussions Continue on North Flank Realignment
-Major Expansion of Northern Terrain Vehicle Fleet
-Hercules Fleet to be Shuffled
-NWS Hydrographic Work for Terra Surveys
-Varian Canada Recognized by CECOM
-F-15E Maintenance Trainer Contract Award
-NAE Selects Canadian Marconi GPS Equipment
-Federal Contract for Schomberg Firm
-Raytheon Introduces Supermini MIL-SPEC Computer
-Hughes Achieves New Highs with AIM-54C+
-British Aerospace Launches Air Combat Training Scheme

-Further Delays-Submarine Project
-Northern Terrain Vehicle Moves Forward
-North Warning System Pre-Tender Video
-FIMA Group Responds to European Study
-Hughes Demonstrates Wireless TOW Guidance System
-Thomson Sintra ASM/Dowty Agreement
-McDonnell Douglas Rationalizes Nomenclature for Model 500
-International News in Brief
-Quote of the Week

-Perrin Beatty: The Defence Industrial Base
-DREO Contract for Andrew Antenna
-Follow-On Orders for Garrett Canada
-Frisco Bay Industries Receives NWS Contract
-Sanders Canada Receives USN Order for PUPS
-Orion Customers and Variants Proliferate
-Interim Engine Selected for EFA
-AM General to Exit Medium and Heavy Truck Business
-Not GCI

-Status Report: Reviving a Division
-Agusta Pursues Canadian Military Market
-New Home for Litton Canada's Atlantic Division
-First Canadian Flight of Turbine-Powered Tracker
-EDO Canada Wins Contract for CF-18 External Fuel Tanks
-Four Companies Receive DIPP Funding
-Amtek Testware to Provide CF-18 Engineering Services
-RDS Engineering to Participate in CPF Project
-SNC Defence Appoints New Vice-Presidents
-CAIMAF Names New Executive Director
-Appointments at Bell Helicopter Textron Canada
-International News in Brief
-CASI Flight Test Proposal: Call for Papers

-Canada and U.S. Aerospace Associations Sign MOU
-Three Companies Receive DIPP Funding
-Woods Gordon Seeks Systems Engineering Data
-New Chairman for Boeing Canada
-Carswell Appointment at Paramax
-International News in Brief

-Diemaco Bids for M249 Contract
-Prime Minister Reaffirms SSN Commitment
-Computing Devices Shares in APGM Contract
-CAE Purchase of Link Simulation Confirmed
-Continued Growth for Menasco Aerospace
-Nine Firms Receive DIPP Funding
-Largest Order in Company History for Miltope
-International News in Brief
-Fokker Aircraft U.S.A. Appointment
-Appointments at Sun Microsystems of Canada
-ECS Names Advisory Board
-CASI Flight Test Symposium: Call for Papers
-Woods Gordon Seeks Systems Engineering Data
-Conference Cancelled

-Subcontractor Development Programme Moves Forward
-SCOND Tables Interim Report on CASAP
-Eight Firms Receive DIPP Contracts
-Military and Strategic Studies Programme Expanded
-Council Urges NCR Location for Federal Space Agency
-New Building for Command and Staff College
-International News in Brief
-Major Reorganization for Hewlett-Packard Canada
-New Chairman for High Technology Advisory Council
-New Director for Rolls-Royce (Canada)

-Peacekeeping Demands May Grow
-Continued Development for Avcorp Industries
-Wilson Pledges Support for CASAP
-DIPP Support for Canadair Regional Jet
-Thirteen Firms Awarded DIPP Contracts
-Canadian Marconi FMS Selected for Civil EH 101
-Canadian Forces Conclude Relief Mission in Ethiopia
-Change in Management at MBB Helicopter Canada
-Diplomatic Appointments
-International News in Brief

-TCCCS Project Definition Approved
-Canadair Moves Forward with CL-227 and CL-215T
-CCACD Urges Full Examination of Hybrid Submarine Option
-Downsview Lands Surrendered
-Spar Receives Major DIPP Contract
-Assistance for Smaller Shipyards
-Indal Technologies Cited for Excellence
-World Product Mandate for Leigh/Micronav
-Paramax Appointment
-National News in Brief
-International News in Brief

-Beatty/DND Respond to Parliamentary Report on Reserves
-New CAE Subsidiary Lands $72 Million Simulator Contract
-Ottawa Assists Iotek and Alberta Microelectronics Centre
-Jim Floyd Honoured by Aerospace Industries Association
-National News in Brief
-$1.35 Billion Boost for Euromissile Dynamics Group
-International News in Brief

-Ashley Stresses Need for Industry Air Force Cooperation
-Turner Renews Vow to Scrap SSN Project
-Telemus Seeks New Markets for ESM Test Set
-$1.2 Million DIPP Contract for Canadian Astronautics
-Turboprop Tracker Takes to the Air
-Nobel Peace Prize a Triumph for UN Peacekeepers
-DIPP Funds Assist Canadair-Aerospatiale Partnership
-International News in Brief

-Canadian Shipbuilding and Leigh Team Up for MCM
-DY-4 Moving on all Fronts
-Leigh Breaks Ground for New Headquarters
-Innotech Lands $6.5 Million Contract for DLIR
-Hornet Triumphs Over Fighting Falcon
-Canadair Reorganizes Military Aircraft Division
-National News in Brief

-Defence Associations Network Going Nation-Wide
-Lockheed Unveils New Canadian Subsidiary
-Paramax Launches Crew Training for Patrol Frigates
-Leitz Pursuing New Markets for Night Vision Systems
-Conference Report: Quantico Hosts Ninth NABIB Workshop
-Motorola Lands $4 Million Contract for Computer Systems
-National News in Brief
-International News in Brief
-Lockheed Takes LRAACA
-Calian Establishes Washington Beachhead
-HELTASP: New Life for an Old Bird
-Mackay Named Innotech President
-Ashley Outlines Estimated Life Expectancy of DND Fleet
-National News in Brief
-International News in Brief

-Associate Minister Forecasts Increased Defence Spending
-Thomson-CSF Continues Expansion
-Microtel Pacific Lands EHF Satellite Contract
-Wilson Named Cercast Vice-President
-National News in Brief
-International News in Brief
-CASI Flight Test Symposium: Call for Papers

-NAAWS and UNISAMS: The Canadian Connection
-Beatty Unveils Defence Science Advisory Board
-Dowty Canada Lands Airbus Industrie Contract
-NPG Expresses Concern Over Conventional Imbalance
-Oerlikon Eyes Naval Market
-National News in Brief

-Turner and Broadbent Fine-Tune Defence Policies
-Canadair's Airbus Contracts Approaching $2 Billion Level
-Canadian Astronautics Adds Australia to COSPAS-SARSAT Team
-DIPP Contributions to Small Businesses Double (Chart)
-National News in Brief
-International News in Brief

-Fleet Mixes and the Election (Chart)
-Status Report: The EHF SATCOM Project
-CAE Subsidiary teams with IBM for U.S. Contract
-National News in Brief
-Field Aviation Appoints New Chief Engineer
-International News in Brief
-Input (Withers)

-AIAC Forecasts Continued Growth for Aerospace Industry
-TCCCS Dominates Montreal AFCEA Seminar
-Assiniboine Bows Out
-International News in Brief

-NATO Study UnderscoresConventional Imbalance in Europe (Chart)
-Seminar Gauges Future Strategic Environment
-Peter Leach Named TRIO President
-DY-4 Introduces Technical Marketing Managers
-National News in Brief
-International News in Brief

-'Trumped' Tribals Set to Receive Standard Block III
-GE Family to Tackle RTM322 for EH 101 Orders
-CAL Delivers Acoustic Positional Trainer to DND
-Maritime Industries Seek Action on Foreign Subsidization
-National News in Brief

-MEL Wins Naval Electronic Warfare Contracts 
-DND Buys Two MCMVs
-NDP Demands Actions by Beatty
-Soviets Reveal Details of Troop Reductions
-NATO Report Evaluates Canadian Performance
-House Ad (Capability Guide)
-Martin Marietta Selected for Airspace System Plan

EDITORIALS: Micheal J. O'Brien (MOB)..........30
Martin Shadwick (MWS).......13
Al Ditter (AD)..............04
Perrin Beatty (PB)..........01
Jim Macintosh (JM)..........01
Brian Macdonald (BM)........01
Jean-Jacques Blais (JJB)....01


Contractor firings of the Oerlikon ADATS missile system continued last week at White Sands, New Mexico, under the auspices of the U.S. Army in conjunction with White Sands Missile Range (WSMR) test and evaluation staff. The programme managers for both the U.S. Forward Area Air Defence (FAAD) and the Canadian Low Level Air Defence (LLAD) projects were present to witness two contractor firings at an eight kilometre-distant stationary target and a close-in 400 metre-per-second crossing target. In each case the missiles destroyed the target after attaining speeds in excess of Mach 3.2. Most of the test data is classified but Canadian LLAD programme manager Colonel (Ret'd.) David Hampson was willing to sum up the tests by stating that they were an unequivocal success. ''I viewed the firings from a forward observer site and am ecstatic about what I saw. We've got a real winner here.'' 


The United States Army's Forward Area Air Defence (FAAD) structure was put on display at Fort Bliss, Texas, last week and the star of the show was the Oerlikon Aerospace Air Defence/Anti-Tank System (ADATS).

The U.S. ADATS _ nicknamed 'Linebacker' _ is mounted on an M3A2 Bradley fighting vehicle chassis and is identical to the Canadian Forces' missile component of the low level air defence system mounted on an M113A2 armoured personnel carrier. It forms the line-of-sight-forward-heavy component of the layered divisional FAAD structure. Other components of the structure on display included the pedestal-mounted Stinger, a prototype of the fibre-optic guided missile (FOG-M), the vehicle-mounted command, control, communications and intelligence (C{0S}3{0E}I) system, and elements of what the U.S. Army calls the 'Combined Arms Initiative' to improve the self air defence capabilities of the armour, infantry and aviation units deployed in the divisional area. These include multi-purpose anti-tank (MPAT) and smart target activated fire-and-forget (STAFF) rounds for the 120mm gun of the M1 Abrams main battle tank, an air defence reticle for the 25mm gun on the M2 Bradley infantry vehicle, and the air-to-air Stinger missile for various U.S. Army helicopters (OH-58, AH-64 and AH-1).

Two the four pre-production ADATS so far delivered to the U.S. Army for test and evaluation were at Fort Bliss while the other two were being used to train army crews. The U.S. Army has indicated a requirement for 562 ADATS under a $2.1 billion (U.S.) programme, with the first option calling for 170 fire units, missiles and contractor support.

Leonard Wroten, president of the U.S. ADATS prime contractor Martin Marietta, said the company had ''delivered the army's four pre-production units within budget and in time to meet the army's test schedule.'' Wroten said the results of that test schedule have included ''a bullseye on a difficult target [i.e. a hovering helicopter attempting to hide behind battlefield smoke, according to a company statement] with the first missile fired off the first ADATS built to U.S. specifications'' and the logging, by that unit, of ''more than 260 hours of operation without a single failure'' since it was delivered in February of 1989.

The testing, to date, has been with contractor personnel but further tests will be conducted by U.S. soldiers as soon as they complete their training on the Linebacker

says a Martin Marietta spokesman. Earlier testing, using an M113-mounted firing unit in which there were two missile failures, caused a redesign of the missile's control actuator system. The revised system has been mounted on the Bradley chassis to which minor modifications are being made to overcome problems with the primary power unit and exhaust fumes.

Missile firings are scheduled to continue at Fort Hunter-Liggett, California, with a force development test and evaluation in the fall of 1989 and an initial operational test and evaluation in April-May 1990. The IOTE will provide the basis for a full-scale production decision in the fall of 1990. The Wednesday Report has learned that the 25mm Bushmaster rapid-fire anti-aircraft gun originally scheduled to be coaxially mounted on the ADATS fire unit may now not be included in the system for reasons of weight, ammunition logistics and complexity of operation and training. 



Minimally, Canada must re-task NATO-assigned CF-18's to a predominantly air-to-air role; purchase 24 to 30 new aircraft; and cancel the NATO fly-over commitment outlined in the 1987 defence policy white paper.

The McDonnell Douglas CF-18 first entered Canadian service in 1982 as a multi-role replacement for the CF-101, CF-104 and NATO fly-over CF-5 fighters. It is currently in service with 410 Tactical Fighter (Operational Training) Squadron at CFB Cold Lake, Alberta., and with six tactical fighter squadrons: 409, 421 and 439 at CFB Baden-Soellingen, 425 and 433 at CFB Bagotville, Que.; and 441 at Cold Lake. The CF-18 is also operated by the Aerospace Engineering and Test Establishment at Cold Lake, Alberta. The eighth, and final, CF squadron, 416, will be formed at Cold Lake later this year. 

CF-18's assigned to Germany and to 433 and 416 NATO fly-over squadrons are largely tasked with an air-to-ground role. Yet they are equipped with only unsophisticated weapons for the 'air-to-mud' job: the unguided 2.75 inch CRV-7 rocket; 20 mm cannon; and small conventional bombs. Overall CF-18 tasking in Germany is broken out as 70 per cent air-to-ground and 30 per cent air-to-air. Ironically, the CF-18 is best suited to the air-to-air role, an attribute that was trumpeted at the time of the New Fighter Acquisition (NFA) project and more recently cited by Lieutenant-General Larry Ashley, Commander of Air Command, who spoke at the Canadian Institute of Strategic Studies' (CISS) spring seminar held in Toronto on May 13. 

Lieutenant-General Ashley told the group that ''NATO recognizes the CF to be a superb air-to-air fighter and would like to see us adjust our role in Europe to the reverse of what it is now. Specializing in air-to-air would be to our advantage as that is, of course, our NORAD role. Thus, advanced air-to-air weapons such as the Advanced Short-Range Air-To-Air Missile (ASRAAM) and its medium range cousin, AMRAAM, could be purchased in greater quantities, potentially reaping economies of scale. This prospect would be enhanced with the early participation of our aerospace industry as has been the case with ASRAAM.''

Universal employment of the CF-18 as an air-to-air interceptor would not only reap benefits for the Canadian aerospace industry, but would also enhance the operational effectiveness and supportability of the aircraft in both the NORAD and NATO theatres by virtue of increased NATO/NORAD commonality and interoperabily of spares; support infrastructure; crew, maintenance and logistic training; and doctrine. If cancellation of our NATO fly-over commitment of 433 Squadron and 416 Squadrons is seen as too anti-NATO to become thinkable, then these squadrons could and should be maintained in the air-to-air configuration so that they would be available to deal with peace-time transgressions and counter an air-breathing attack against North America. And that latter scenario needs greater consideration these days in view of the long-overdue diminished emphasis on Intercontinental Ballistic Missiles (ICBM's) and the menacing concentration by Soviet military planners on air-breathing, high and low altitude cruise missiles to be used against the North American continent.

Thirty year old NORAD strategy calls for the unambiguous confirmation of an air-breathing attacker prior to launching a retaliatory nuclear strike from the U.S. against the attacker's homeland (see TWR Vol. 1, No. 15, page 3). North America does not have the capability to defend against a substantial air attack. That too needs rethinking as current trends point to the possibility of an air breathing nuclear or conventional threat becoming a more likely scenario if efforts to achieve the much needed reduction of strategic nuclear arms are successful.

Canada has little to throw against air attack over or against Canadian territory. Only two of our CF-18 squadrons are devoted to Canadian territorial air defence. (see TWR Vol. 1, No. 10, August 12, 1987, ''Territorial Air Defence''). 425 Squadron at Bagotville and 441 Squadron at Cold Lake have 12 aircraft per squadron with two aircraft from each assigned to permanent detachments located at Goose Bay, Labrador and Comox, B.C. It was one of these aircraft from Comox that crashed while on a search and rescue mission earlier this spring. Cold Lake's 425 Squadron and Bagotville's 441 Squadron, augmented by elements of 410 Operational Training Unit will have ''Forward Operating Locations'' (FOL's) at; Yellowknife, Inuvik, Rankin Inlet, Kuujjuaq, and Iqualit. With a total of 24 aircraft and a possible 10 to 12 additional CF-18's from 410 squadron, the domestic air-to-air fighting capability of the Canadian Armed Forces is spread dangerously thin and would thus leave the defence of Canada to U.S. forces, something that not all Canadians are prepared to accept.

The 1987 defence policy white paper says that ''United States interceptors, and Airborne Warning and Control System (AWACS) would also be able to deploy forward to Canadian airfields to join our air defence forces'' Clearly, a large portion of the NDP supporters who agree with that party's defence policies, and probably a large number of Conservatives and Liberals would abhor the notion of entrusting the air defence of their country to U.S. Air National Guard F-16 and regular Air Force F-15 squadrons. 

Lieutenant-General Ashley commented on the attrition replacement programme for the CF-18 saying that ''an attrition buy of additional CF-18's is essential if we are to continue with our current peace, tension, and war commitments. The current attrition rate suggests a purchase of 24 to 30 aircraft will be needed in the mid-to-late 1990's to sustain our CF-18 capability to the 2010 estimated life expectancy. This is up from the ''up to 20'' aircraft that was negotiated in the original contract.'' His remarks acknowledge a seven year extension to the CF-18's life-expectancy.

The CF-18 and it's capable and courageous Canadian air force pilots have already proven the Hornet's ability to perform as an interceptor. The numerous and difficult intercepts of Soviet aircraft over Canadian territory have testified to that fact. But too many Soviet intercepts over Canada have been made by U.S. aircraft, proving that we have not done enough in the air-to-air regime. Redefining the CF-18's NATO role, purchasing suitable quantities as attrition replacements, and reevaluation of our NATO fly-over commitment must all be done soon to effectively utilize our $5 billion plus investment.

Micheal J. O'Brien



In the TWR Article ''OTTAWA RIFE WITH SSN RUMOURS _ AND LOBBYISTS'' of June 1, 1988, allegations by unnamed sources about arrangements between VSEL and GCI have proven to be untrue in light of statements made to The Wednesday Report by both Ramsey Withers of GCI (Government Consultants International) and Jack Daniel of VSEL (Versatile Shipbuilding and Engineering Limited.) According to GCI's Ramsey Withers, ''GCI is working as a regular consultant. There is no contingency. GCI's agreement with VSEL is of the standard consultancy type with a monthly retainer.'' Jack Daniel, in an interview last week with TWR, stated that his company's arrangement with GCI was not based on a contingency bonus and that the tasking of GCI was restricted to advising VSEL on matters relating to the SSN project. The Wednesday Report regrets any misunderstanding that the June 1 article may have caused.


SNA Canada president Lawrence Herman offered his reaction to TWR's June 1st article. ''I can't tell you about all aspects of our Canadian marketing strategy, but, I want to say that SNA Canada isn't involved in lobbying at all. We have attempted to explain our submarine's design, publicly. We don't think that such important decisions should be squeezed, bent, or manipulated by high-priced lobbyists. We too have done some polling. We have found that Canadians don't understand the major aspects of this project. 55 Percent have no preference in design. In our poll we asked Canadians what they thought were important factors. Among the elements of concern, safety, and the ability of the submarine to meet defence needs were important to those Canadians who responded. 85 Percent said that the country of origin of the submarine design was either of no importance or was the least important factor.''



At the invitation of VSEL's PR firm, Berger and Associates, TWR interviewed Mr. Jack Daniel, VSEL's programme manager for the Canadian nuclear-powered submarine project. Martin Shadwick, Micheal J. O'Brien and Al Ditter met with Berger's Judith Muir, and Jack Daniel in his room at Toronto's Westbury Hotel in the late afternoon of June 1. Daniel first commented on recent musings by some leading defence journalists such as Royal Navy Captain Richard Sharpe, the editor of Britain's ''Jane's Fighting Ships 1988-89'', who imply that Canadians might choose a French submarine design. Daniel appeared eager to comment. In a subsequent telephone conversation, before going to press, TWR offered him an opportunity to review the content of the interview. Daniel declined. The following is excerpted from the text of the interview. The bracketed words and questions are ours.

''I see that Mr. Rohmer is out supporting your choice of the French submarine (see TWR Vol. 2 No. 19, May 11, 1988 ''A Dozen Predictions'' also Toronto Sun, May 31, 1988, pg. 11, ''Nelson Won at Trafalgar'' by General (retired) Richard Rohmer). ''It was a thing I read when I got here. I wouldn't know on what grounds. Clearly there is a cost advantage in favour of the French submarine. But I would then put a little caveat on that, they haven't really built it you know. You might have to walk on water before you can make it work. That is not meant to be a nasty remark, but, a submarine designer's comment. Cost might be one thing, but, cost effectiveness is another as you well know.''

''We have said in fact that they (the Canadian government) can have 10 of our submarines with all of the support and infrastructure within the $8 billion Canadian dollars that were postulated by Perrin Beatty.'' Daniel's firm suggests, as does the French bidder, that the first submarine should be built offshore. ''VSEL (has established the price) with the support of the British government for those parts of a cost equation where the British government has the best knowledge. The Canadian government asked them (the British government) for the cost of supporting the submarines in service for example, rather than us.''

Recent statements by another VSEL spokesperson have given rise to some confusion about the number of submarines bid by VSEL. At least one press report refers to SNA Canada statements about a British bid with less than ten subs. (see Financial Post Special Report May 9, 1988, page 44 ''French edge ahead as fight for sub contract nears end.'') Daniel explained how this apparently erroneous belief about reduced numbers may have occurred. ''In one of my favorite pieces of arithmetic: Let us say that someone has 12 subs and of those 12 submarines with a 60 per cent availability you get eight (subs) available for service at any time. The other four are being refitted or refueled or something. That's life, 60 per cent availability. And of those eight, five are on the Atlantic seaboard and three are on the Pacific seaboard.''

''Now take the case of someone who has got ten submarines but call it nine because the arithmetic is easier. That's where the nine could come from. And so if you have got nine then with a 60 per cent availability you have got six available for service. That puts four on the Atlantic seaboard and two on the Pacific. You've got one extra submarine. That's all. This is the point that I am making. It gives you one extra on each seaboard.''

Daniel argues that 10 British subs can do the job of 12 French subs. ''If you postulate an operation a thousand nautical miles out in the Atlantic or Pacific or 1500 (nm), you can find in fact that the faster, more able submarine can do the things that you want two of the others for. When you look into military effectiveness these are the sort of equations and scenarios that for example British naval staff or the American naval staff would work up and this is how one would decide upon the necessary characteristics of one's submarine; by postulating these operational scenarios and saying, 'lets do a spectrum of various submarine speeds, a spectrum of various weapon capabilities'. And you know the thing the Americans have done, to hypothesize about weapon loads and put many more weapons in because they don't think they have a second chance. This is why we design our submarines, ab initio, to fire American weapons. We didn't really know whether there would be a U.K. base to go back to for second weapon loads. It's as simple as that.'' 

Regarding a published photograph (see The Globe And Mail, May 31, 1988, pg. 1, Paul Koring - ''Ottawa oblivious to Arctic journey by British subs'') of HMS Turbulent and HMS Superb surfaced at the North Pole, a print of which was handed to TWR at the time of the interview, Daniel said, ''I can assure you that VSEL had no hand at organizing that they should be there, but, we were quite happy. Our (British) submarines have been operating in the Arctic since the 1960's. We were (then) operating conventional submarines up there. Some of them came back with very bent periscopes. The publicity of tending to this wasn't just for the Canadian audience, it made the Brits feel good as well; and the chaps who were there. We had no hand in the planning of this. We knew that it had happened. I believe it happened around the first of May. It was held up in fact, the release, for a variety of reasons which weren't all British, and so that's how we knew that it had happened and it was VSEL who grabbed the pictures and brought them out here as far as I recall and did something with them. Your Chief of Defence Staff, (Gen.) Manson, knew about it when it happened. It's rather like that American icebreaker that went through the Northwest channel. The Americans swear blind that the Canadian authorities did know it was going through.''

Regarding industrial work, TWR asked about an apparent number of British companies that had subsidiaries in Canada. Did they expect to get the work if the 'T-boat' was selected. ''There are only - I don't know the precise numbers, there are only about three of these cases,'' said Daniel. ''Clearly where there are subsidiaries, the British company and its subsidiaries would expect the business to come their way: the turbo alternators, there are some pumps etceteras etceteras. But you have to remember we've got a complete new mind on this; that the Canadian primes, when they are selected, will have their views from where the equipment comes. Which particular widgets are going to be used and if for example, someone else, like another pump manufacturer, comes forward and can offer a comparable pump at a less price; than we in fact would not find it necessary to make certain that the identical model that's fitted in Britain went into the submarine. This is all part of the Canadianization of the thing. And I say that absolutely. I am not aware of more than three (subsidiaries).

''Basically, if we start off with the submarine itself, the submarine design belongs to the British Government and so they can make the submarine available to the Canadians, but we, VSEL, have got intellectual property rights in that submarine. Then you get down to the major components like the main steam turbines and the gearing and the reactor, the reactor for example belongs entirely to the British Government, but, Rolls Royce and associates have got intellectual property rights in them and we VSEL have got some in there as well. The turbines; the same pattern. Really, the extent that the British Government owns or has title to a thing is measured by the amount of money they spent in developing it. The British government spent money in developing most things in the darn submarine so they have a title to it which is why we say with great authority: yes we can transfer this technology to Canada but of course the company that actually did it, still has some intellectual property rights. VSEL is responsible for buying off those property rights and so is the British Government.''

''The 1958 agreement was an agreement between governments that we would not proliferate nuclear technology to any third party. It's government to government. It slightly irks me that any time an American writes on it they talk about transferring U.S. technology to Canada and it ain't so, it's British technology. One cannot say that we didn't profit by the 1958 buying of an S5W. Somewhere deep in the psyche there is still some results of that.'' 

We asked Daniel where the programme stood now. ''I believe it is in the country's domain. I would hope that by now, the military have a sufficient understanding of the relative merits of the design and the operational effectiveness and cost effectiveness of the design. It still has to reach the political domain. I suppose they (politicians) have their own judgments to put against all these things. I believe that the government would want to see a greater support for the idea of having nuclear submarines from the Canadian public in general. I read some figures somewhere in one of these press reports that you are talking about, (there) are less than 50 per cent (in favour) and this is the figure we came up with in our survey. (see TWR Vol. 2, no. 22, June 1, 1988, page 3) I've seen a piece of paper which says that in Montreal, 32 per cent of the people are opposed to the programme. I would have thought that for the well-being of the total programme, that Mr. Mulroney and Perrin Beatty would like to see a greater degree of public support. My dear chap if you went to Britain you would likely see that same low number.'' 

''There is only one nation in the world that the Brits would have gone out on the bloody limb we've gone out on (for), and that's Canada. And if we return from this one with a bloody nose, the world will be a different place as far as the Brits are concerned I assure you. (TWR - ''Can you elaborate on that?'') Clearly the Brits aren't going to be as forthcoming with their allies as they used to be. It's quite simple. And that will include the Americans as well. And we have tried awfully hard from our particular nation, and impeded along the road by the other great friendly nation. (TWR - ''Are the Americans jealous of the capability of the Trafalgar class.'') I would love to say yes. (TWR - ''We think they are.'') I know they are. I would love to say yes and 'screw up' the whole thing. If you look at the paper I read recently at the submarine symposium, I showed the way that the cost of the 688 class has gone up, way ahead of inflation, and then look at the way the Brit's costs have gone _ and I had to make that point in my paper _ we have levelled out simply because of cost constraints. You've got to live with the situation and be more cost effective. There's no doubt that it (Trafalgar-class) is more silent than the 688 and it is more cost effective than a 688. For anyone who wants to buy one it is a much better bargain than buying a 688.''

''You could comment on what a tragedy it is for the western world that we have been enduring the 'lame duck' presidency. The whole institution's falling to pieces and little men (are) striding around. This is what one is seeing. Mr. Gorbachev has been experiencing this now. It's unbelievable really. I believe that we really are discussing the breakdown of presidential authority in the United States in these last few months _ if you really want me to comment. Your colleagues are not in their heads. It has been evident to everyone who works in the political sphere _ and you yourselves know it _ and that what came out with McKee, managing still to keep his finger in the pot.''

Jack Daniel believes that the U.S. congress will not deny Canada the treaty amendments needed to proceed with the acquisition of a Canadian fleet of British nuclear-powered submarines. ''I am merely saying to you that the new President and a new congress will not deny the Prime Minister of the United State's closest and greatest ally, the request he makes: 'I have selected the British submarine now get this little hurdle out of the way.' The word that we had six months ago was that when the President and the Commander-In-Chief says 'get fell in', they'll 'get fell in'. They didn't. They still argued. That was the extraordinary thing.'' 

TWR asked if VSEL participated in an effort to advance the argument that suggested an abrupt decision in favour of the British submarine in order to take advantage of a May 15th 'window of opportunity' in Washington? ''In no way. We were conscious of this but it seemed to me (to be) foreign to the aspirations of any government that: A, they would be panicked or hastened into making a decision like that and: B, that the Canadian government would want to make any determination in advance of the G 7 meetings (Toronto June 19 to 21). What you have to do is put yourself in the shoes of the Canadian Prime Minister. He would say that 'my most important interest is the free trade treaty', that the President having decided to recommend this thing; the 1959 CANADA/US treaty. I do not believe that a U.S. Congress at some future date would deny the Prime Minister of Canada _ its (the United States') greatest, closest, ally _ this privilege.'' 

TWR attempted to learn who spearheaded the argument that Canada should take a decision before May 15. ''It was quite clear that for the last several months that if the 1959 agreement was to get the endorsement of Congress then it had to go to Congress before the 15th of May this year. And I think people were concerned _ both from your embassy in Canada (? Washington) and from the (British) High Commission _ that Ministers should be aware that this was the situation. It was not VSEL at all. (TWR - ''Was it someone acting on behalf of VSEL?'') Well everyone is acting on behalf of VSEL because we are the British agents in Canada in this thing and so you can always say that the British High commission was acting on behalf of VSEL. I am not saying this is so. But one could put that construction on it. (TWR - ''Who is the boss?'') The bit about the 1959 agreement; you could say Mr. Mulroney, because it is a Canadian/U.S. thing. Frank Noah is in charge of the Trafalgar bid when you introduce money, but, it's really Jack Daniel. It was the government. It was from the Washington end.

Remember that the British government has used enormous 'bloody' mileage up in Washington in trying to solve Canada's problems for it, you know. Let's be clear about this, (all for) what is a 1959 agreement, not the British Agreement at all. As far as I am concerned there was an awareness on the part of the Canadian government that there was a 15th of May time scale on the thing, quite honestly, and they had to either sort of agree to try and get it through this administration or let the thing go.'' 



TWR provided an opportunity to SNA Canada to summarize the details of France's SSN contender. We interviewed SNA Canada president, Lawrence Herman early in the afternoon of June 1st. His remarks follow:

''The French government has said that if the Amethyste-class is selected, France will adapt its 7th and 8th Amethyste-class submarines to all Canadian specifications except the Mark 48 torpedo. Even before the first Canadian Amethyste-class is launched there will be two French submarines with Canadian specifications including ice-surfacing. This is not just a statement of intent, its a guarantee of performance. And it can be envisaged that Canadian-made parts will furnish future French SSN's or other types of French vessels.

The French have made it clear that they view this project as a long-term cooperative effort between the two countries. DCN (Directions des Constructions Navales) can work with any prime contractor for the purpose of building the hull. There have already been extensive exchanges between Technicatome, our reactor manufacturer, and AECL (Atomic Energy Canada Limited). I feel quite confident that the nuclear part of the programme is fully 'in harness' and can be implemented immediately once the design is chosen. We submitted a package of material explaining how we see the joint management of the technology transfer and project execution. We propose a venture that ensures upward of 75 per cent Canadian construction. Our job creation component is more than 75,000 person-years. 

The Canadian Amethyste-class will be capable of penetrating a meter of 'sea-ice', meeting all Canadian specifications. Maximum speed is greater than 25 knots, submerged displacement will be 2900 tones with some additional tonnage attributed to the elongation of the structure to accommodate the Mark 48 torpedo. The Amethyste technology is French-owned and doesn't require third country approval. There are no hidden conditions; no overt conditions; its a one-country, single source technology. Every piece of onboard equipment including the nuclear reactor can be accessed through hatches. That is the major design difference between our vessel and our competitor's. We think that doing this _ as opposed to cutting open the hull and later rewelding it _ improves the longevity and maximum dive depth of our vessel. We use a small crew of 66 and alternate them. Crew members go to sea for 10 weeks then return to base for 3 weeks of light maintenance. The onshore crew will then put to sea for another 10 weeks. In one year, 'sea-availability' is 208 days, reducing manpower and costs. 

There are some revolutionary features within the Amethyste-class that we think are attractive to Canadian authorities. They include an integrated reactor system and our turbo-electrical propulsion with its inherent safety, speed, silence and other benefits. We think that the Canadian government is attracted to the fact that we use low enriched uranium as opposed to highly enriched uranium; and the Amethyste's fully integrated combat system with data processing and signal processing from sonar and radar. All of the practical data is fully integrated with the weapon's control system providing an ability to call any one of these modes from the console.

We can deliver 12 Canadian Amethyste-class, the first one built in France with Canadian participation and 11 built in Canada, all for 7.3 to $7.8 billion dollars. That figure includes the production costs of the submarine as well as every element that is included in the defence department's estimates. Our internal cost analysis was shared with DND, not as part of the SNA proposal, but, as a third party study, done by an international study group with offices in Canada. The elements in the analysis include the nuclear infrastructure, onshore and onboard spares, missiles and torpedoes, project management, logistical support, training, $15 million for the project definition stage, $5 million for translation of documents, and federal sales tax. The net cost to Canada is something like $6.8 billion excluding federal sales tax.'' 


Oerlikon Aerospace employment topped the 500 mark at the end of May. Employees at Oerlikon's expanding Saint-Jean-sur-Richelieu facility are, in the majority, skilled engineers and technicians. According to spokesperson Christian Beaulieu, ''57 per cent of the our firm's employees are engineers and other professionals; 27 per cent are technicians, and 21 per cent are support staff. The average age of all employees is 33. Apart from clerical and secretarial staff, some 61 per cent have completed some form of university level training.'' 

''We are honoured to become the flagship of Haut Richelieu as the first private employer with 500 staff ...'' says Oerlikon president Dr. Marco Genoni. His firm plans to hire another 150 employees by year-end. The expansion work, recently begun to enable the company to meet future production levels required for both the Canadian LLAD project and the U.S. FAAD-LOS programme won by Oerlikon in 1986 and 1987 respectively, will double the size of Oerlikon's 16,000 square meter Quebec facility by mid-1989 and according to an Oerlikon release, ''will triple its production hardware output.''


On May 19, a Schweizer Aircraft Corp. test pilot flew the firm's derivative of the ubiquitous training helicopter, the Hughes/Schweizer 269. Powered by the newly certified Allison 225-C10A turbine derated to 200 shp to suit the 269's main rotor transmission, the model 330 has been created by the Elmira New York company in the last 12 months (see TWR July 8, 1987 ''Company Will 'Turbinize' 269 Army Helo Trainer''. Production deliveries of the machine are targeted for 1989. The new helicopter, a three to four seater, is aimed at both the military and commercial markets and promises to be an excellent trainer filling an enormous gap. There are currently no production turbine-powered training helicopters in its weight class. Schweizer specifications call for a maximum gross weight of 930 kg. (2050 lbs.), a cruise speed of 185 km./hr. (115 mph) and a range of 466 km. (290 miles). According to a witness of the test, ''the helicopter was successfully test flown on May 19 and will require only slight modifications to the 'dog house' shroud to increase air flow to the engine.'' 


Dr. Marco M. E. Genoni born in Switzerland, July 10, 1946

There are three major regions in Switzerland, the south part of Switzerland is the Italian speaking region the South West is the French speaking region and the North which is the German speaking region and then you have the souvenir language which is fremulch (???) I am from a small Swiss valley which belonged to ... in the middle ages 1200 something belonged to Milan ...then the three original cantons of Switzerland went south of palaces and took the two .... which lead to the two alpine passes. Then they took the city of Bellinzona and then they decided in a very Swiss way how to manage that pass with the three castles and every year they would change. One year was canton ... they would have their castle the next year they would change ....... Still today in the capital of kachina there are the three castle. This part of Switzerland which I come from belongs to Switzerland since 600 years.

Patriotic Swiss. 

Education in Physics at the Ecole Polytechnique Swiss institute of technology... I have a masters degree in physics and then went to the University of Basle (Basel) and did my Phd. in Chemistry. Those German kings . My family at that time was the custodian of that castle. The crest the double eagle goes back to the year 1200 and something. South of St. Gotthard. Still the heart of the mountains. In the second world war it was said that this was the first defence line in the event that the Germans would attack Switzerland.

I grew up In Canada we say birthplace. We have a different system. so I am from this village You keep the city of origin of your parents. Your wife takes your place of Elena wife. I was borne near Arberg. In Canada I say where I was borne. my first 6 years of school in Lucerne . Canton of origin. 

Commander of an Air Defence Battalion. First, if you are a Swiss male you must do Swiss military service you begin when you are 20 yerasold four months and then basicly you are a soldier. Then in our system you receive the 1 month school and four months train as a non-mom corporal.then if you are good you receive the proposition to become an officer. Thats 8 months and in the meantime you do all you r so I went throughthat career and then you receive proposition to become Captain and them I received a proposition to become General staff. I have three firing batteries and a support battery each battery has two fire units in the same configuration as here. Two 35 MM guns and one skyguard units. Each battery has 8 barrels and in total I have 24. I have a firepower of 12000 rounds per minute. I have 1,500 days in military. Usually . Through my whole military career I specialized in Tactical air defence. That is my background in the military. In Switzerland we are both citizens and military. It is good for industry. Citizens are receiving good military training. 

Generally speaking about a country which is willing to fight to defend their nation. The goods which I have the cultural attributes that I have are worth this effort. It is not always a big pleasure. We of Switzerland my generation 

we are even willing to die to defend what we have. Defence in Switzerland is not a business matter but matter of defending our nation and keeping for our country those things that we value as a country. 

Tactics Strategy...... 

In the army, on exercise we test our capability. The air force and the army are under the same command. We test each other. We have a system on our guns that indicates on the aircraft when it has been 'hit' The competition is fierce, at the end of the exercises we sit together and discuss these things and point out the strengths and weaknesses of each others tactics. 

I joined Oerlikon in 1979. I was after my Phd I worked for Sulzer a specialized diesel engine company locomotives for trains. I was there e in the chemical plant as an engineer from 1974 to 1978 and then I was hired by Oerlikon and I moved from Winterthur to Zurich.

So I had come from BAsel to Winterthur (northeast of Zurich) to Zurich. Chemical near basel textile .. North east 

That was the first day of ADATS when I joined the contract with Martin Marietta was signed. I took the signed contract to the president of MM My first trip[ to North America was in August 1979 to visit the Pres of MM on behalf of Oerlikon. I then had to build up my department in Zurich and on Orlando so I went through a major hiring process. we had several targets diversify the companies products and then we had the first fly off. 

Market forecasts were that guns were on the decline and the future of the corporation would be somewhat defendant on missiles. there was quite a sense of urgency. they believe that there was risks on both sides for myself and for Oerlikon. Sense of urgency because of market trends. The interpretation of Martin was one thing, Oerlikon another. I had to learn very quickly a new way of doing business. The Swiss are used to offering a service. I am considered a tough but honest partner. Of martin marrietta. I learned to be a customer. We were transferring technology to my company. They don't ask you afterward were you friendly, they want to know what success you have. The dollar that is on the table is more important than any commitment you make. I have to say that Martin always met all the written commitments an the executive management honors the un written commitments but the working level honors only the written commitments. 

I learned the NA style. The project management here is unknown. We achieve through flexibility. We do it completely differently. We always have a work around plan. But not as systematic as here. We have introduced the matrixed tasking definition that is used here and we incorporate now what we have learned here. We use the e good things we find here. What we don't find here in Canada and the U.S> is that management layers and each layer has large staffs and you build up large staffs from the bottom. to the top. AT every level you have staffs. While our tendency and we have introduced that here is to use a line organization which performs tasks too. So I don;t have a staff working for me. Just my secretary and assistant. I have individual; departments with their own line organizations and each manager does tasks as well and is directly involved.

In order to build up my Orlando organization I moved my family in Feb 80 and stayed there for 9 months. From 79 to 85 I travelled on average more than once a month 45 or more days and di trips to Phoenix Washington or whatever was needed. That was very heavy I tell you. If I take out my vacation and military duty I was changing time zones four times a month. It was very difficult. I nearly became an insomniac. No eating and drinking while you were flying and very strong discipline was needed. 

What I did was hiring people and building up a staff at the peaks I had 40 engineers in Orlando o starting from people. They learned and came back to Zurich to teach others.

I was mainly in technical program cost schedules and the engineering 

My job was to define the system.

we went From 5in to 6inch missile. And we added the radar. In the beginning we intended not to go with an integrated radar but because of reaction time etc. Working with a remote radar was th eoriginal plan. Attended 40 or more firings. 

I made go/no go decisions about firings. Looking back at the most difficilt but best day.....11 April 1984, fired against drone and a tank at white sands. In heavy storms. The generals were saying don't fire. The wx is too bad.'' I was at a command post. We had a premture warhead detonation. The missile was straight as a dart. But the missile detonated early. That was against a drone. Then the drone came back and I decided to fire. It was a snap decision. It missed. It flew out into the dessert. I decided to have all the people to have lunch. My boss then said you decide to fire in the afternoon or not. I had four missiles left.

The probability, at that time was about 85% 15 out of a hundred not working. A good average. What to do with delegation from all around the world. My management trusted me to decide. I didn't see any system errors so i decided to fire. I decided to fire a telemetering missile against a drone and a warhead against a tank. The most helpfull man at that time was the commander of white sands. He took all the people on a trour. I decided then to fire against a drone and made two rapid fire shots. I was alone. The deciision rested with me. We fired at the tank which was not visible by eye and hit at five kilometers. SO by lunch time all was lost but by the end of the day it was all recovered. Everyone was happy. 

How do Canadians react to Martin.

Here people rely on oral commitment. If a person says I will do it, it will be done. I like it.

From a business point of view some of them may be overcommited in terms of their capabilities. But even those who seem overcommited, they deliver. We are very pleased with our suppliers. The tendancy from the outset was they have contract ... they should give us. Some are getting less business than we had hoped to give them because of changes from the original concept. We have a good relationship with our suppliers. 

The expectations of the companies looking for business were high. We had to negotiate down the prices. I have no company with which I have concerns. The Canadians are very reliable. It is easy to cut through the beurocracy and get to the boss getting problems solved quickly.

August 23, 1989 TWR33-34V3 


Amidst a fury of rumors, a sudden DND move on Friday August 11, at 1:00 PM, in the Office of Admiral Denny Boyle, replaced Col. (retired) David Hampson with Col. Norm Nault as Programme Manager for the LLAD PMO (Low Level Air Defence Project Management Office). On the same day, the LLAD Project Director Lt. Col. Hugh Mundell was sent on two weeks leave after which he will be re-posted to CLDO (Commander, Land Doctrine Office). Col. Hampson remains at the helm of the LLAD PMO until Sept. 15 while he indoctrinates Col. Nault, who will spend two days per week at the LLAD PMO until Sept. 15th when he will assume command of the project. Hampson, who has just been promoted to the Public Service EX2 level, will be re-posted after the 15th of Sept. The LLAD project office is responsible for the management of the LLAD and CADW Close Air Defence Weapon) projects. The PMO selected ADATS for LLAD and awaits funding for CADW.

CF-LLAD is regarded by many countries as one of the best run projects of its kind. The LLAD team, under Colonel Hampson, set a new standard for stringent evaluation and selection. In typical fashion the Canadians chose to do business with the most technically advanced industrial team having the greatest American constituency. That propensity has been long established under the Canada/U.S. Defence Development and Production Sharing (DDPSA) arrangements which have resulted in many billions of Canadian defence procurement dollars pouring into the U.S. Such was the case in the $6 billion New Fighter Acquisition (NFA) project (McDonnell Douglas CF-18 Hornet) and literally hundreds of other Canadian defence procurements. But the LLAD project set forth a standard. The industrial benefit aspect of the project was of paramount importance to the selection process and resulted in one of the most significant high technology regional development projects ever to be effected by DND.

Although not even close in scale to the U.S. FAADS programme the CF-LLAD project set a new trend in air defence strategy. Although Canada bought a relatively small number (36) of ADATS units using the same basic gun/missile hybrid concept endorsed by the U.S. Army, the Canadians set the pace for the massive U.S. project and helped solve what had become an embarassingly difficult problem for the Americans as a result of the cancelled Sgt. York experiment. The Canadian selected missile system is mounted on an M113A2 chassis and is augmented by 35mm GDF-005 Oerlikon guns whereas the U.S. system will be mounted on the larger Bradley Fighting Vehicle and will carry the American built 25mm Bushmaster gun. 

The ADATS missile system _ a lazer guided, mach 3-plus air defence weapon _ was selected in April of 1986 by the LLAD PMO and in November of 1987 by the U.S. Army for the Line-Of-Sight Forward-Heavy (L-O-S F-H) portion of it's Forward Area Air Defence (FAAD) project. Martin Marietta's Electronics and Missile Group of Orlando, Florida is the prime contractor for the U.S. project with Canada's Oerlikon Aerospace serving as the primary subcontractor. For the Canadian project their roles are reversed. Oerlikon Aerospace is the prime LLAD contractor. First deliveries to the Canadian Forces began in October of last year. Oerlikon Aerospace of Saint-Jean-Sur-Richelieu, Quebec, in concert with dozens of Canadian sub-contractors, will build the first 60 units for the U.S. project and is under contract to build 36 units for the Canadian Armed Forces for the LLAD project. The value of present and forthcoming U.S. Army contracts could total more than $1 billion.

The Canadian Forces LLAD PMO in conjunction with the Department of External Affairs has played a significant role in developing an informed world market. Canada stands to win additional billions of dollars in sophisticated manufacturing and development work on the ADATS missile system and its potential offsprings.

Colonel David Hampson and his team of officers who conducted the LLAD project, were the first in the free world to recognize and take firm action to address concerns about actively emitting air defence systems which could easily be detected by attackers. They did so almost in unison but slightly ahead of their U.S. Army colleagues whose project, in terms of time lines, closely followed CF-LLAD. The Canadian army decision-makers were loathe to select a system like Rapier, Roland, or Crotale, which had already been in existence for the best part of a decade or more and which represented an older technology generation. Both the Canadians and the Americans chose ADATS because of its Forward Looking Infrared (FLIR) target tracking, and its sophisticated laser-beam guidance methods. Instead of the interference-susceptible radio command-to-line-of-sight techniques and radar target tracking systems, ADATS utilizes the more advanced and passive laser beam riding technique for providing directional guidance and target information from the ground controller to the missile. This is a young technology that shows promise of further development that will yield even greater capability to meet the technology advances of the threat. 

The U.S. decision to select ADATS pleased Hampson and he commented at the time: ''While I am not at all surprised, I am indeed pleased to hear of this reaffirmation of my team's evaluation. ADATS is a good system that can take on all known types of potential attackers. The benefits of system commonality and interoperability with U.S. Forces in Europe can only enhance our cooperative efforts in the defence of Europe under NATO.'' 

Hampson is well known in other arenas. He has maintained a life long commitment to young men throught the country, not just in the military but through the Boy Scouts of Canada within which he has held a number of distinguished posts. Hampson is also the Honorary Lieutenant-Colonel of 28 (Ottawa) Service Battalion, an appointment which runs until April 9, 1990. After a distinguished career, in uniform, with the Canadian Armed Forces, Hampson has served the Department of National Defence as a project manager for tank, and truck projects in addition to LLAD. In all he has given 43 years of service to the Department of National Defence.

The change in management of PMO LLAD puts an end to a significant era in Canadian defence procurement. The extraordinary way in which the change was made begs more than a few questions. TWR is following the story and will report in more detail in a subsequent issue.

September 6, 1989 TWR 36V3 



The Low Level Air Defence (LLAD) project has been so prone to controversy that one might expect senior DND officials to use better judgment and not dump their messy internal matters, and perhaps power struggles, onto the streets. That has happened. A most senior and experienced Programme Manager has been swiftly and unceremoniously relieved of his project management duties and sent away to do an engineering and maintenance study; and the Project Director has been put into limbo (see The Wednesday Report August 23, page 2). Dozens of LLAD project employees, whose allegiance to their managers has been established over years, were left scratching their heads, wondering what had gone wrong -- moreover, to openly speculate at will. 

The top management of the LLAD Project Management Office (PMO) has been removed. Why? The LLAD project has perhaps the highest and most prolonged public profile of any recent DND procurement. Wouldn't such an ostentatious move warrant a public explanation? It certainly begs a lot of questions.

And that is the problem. Nobody knows fully why, and therefore, people hypothesize and the rumours begin. The murmur that rumbles up and down the streets of Ottawa over this excessive act has sufficient tone of disparagement to turn an unessential occurrence into a national scandal. Several persons questioned by The Wednesday Report were convinced that they knew the whole story -- and were cocksure of the worst. They had "sources". Sources which revealed the most farfetched and wide-reaching conjecture imaginable. 

There is no official justification -- DND's information office hasn't the foggiest notion -- thus the issue gives LLAD a vulnerability for all of the project's enemies to exploit. And there are numerous enemies. As if in a fish-bowl, where the eyes of the world could see, LLAD preceded a multi-billion dollar U.S. Army project: the Forward Area Air Defence System (FAADS). Canada won a preeminent role in FAADS and occasion to fetch hundreds of millions of dollars, perhaps billions, into the country. Other contenders were resentful. Canada has much to gain -- and much to lose.

The winning contractor in North America , Oerlikon, successfully shifted its traditional air defence market entree from guns to missiles. The firm's management bet the company's future on the gambit. Stakes are so high in the air defence trade that competition losers can, and sometimes do sacrifice their future in that realm. Because of the propensity of many nations to "follow the leader" -- in most cases, the United States -- the non-selected contenders in this intensely competitive field are disadvantaged in the evaluation and procurement processes of other buying nations. Tens of billions are at stake. Losing just one major competition can have a domino effect on future prospects. Because of the acute stakes, and because Canada and Oerlikon became the 'kings' of the low level air defence specialty, the challengers would revel over a dethroning, thus putting themselves back in the running.

There are enemies from within DND as well. When LLAD received final funding approval, the contractor made untold cash-flow concessions to allow the army sufficient clout in a funding battle with the navy, which, at that time, was seeking capital for its Tribal-class Update and Modernization Project (TRUMP). The skirmish drew some hard lines between participants. Many today would relish the opportunity to see the LLAD project in difficulty. 

And what about the overly sensitized media? Barrels of red headline ink have been poured on the LLAD project, both good and bad. LLAD has become a capricious topic. The fanatical way in which Hampson and Mundell were dispensed, with such abruptness and without pretext, and with instructions not to speak about their removal to anyone, has lead to some ugly conclusions which could have the effect of destroying careers and disrupting dozens of people's lives as well as those of their families. Susceptibility for media criticism is obviously high. 

There have been numerous audits and evaluations of the LLAD project office as with any other government department or private sector business. There have also been minor procedural criticisms as a result of the audits -- which is also normal. The Royal Canadian Mounted Police conducted an investigation into the LLAD project, as Canadians learned during the highly publicized "Bissonette affair". The Special Investigations Unit (SIU) of DND has also studied the project. But after all this scrutiny, the most compelling reason yet, for the drastic command changes at PMO LLAD, appears to be the oversight of a project official whose trusted employee of two or more years had access to an unlocked filing cabinet prior to the complete processing of their security clearance documents. 

The Deputy Minister has the right to make whatever management moves he sees fit for the good of the department, and that right goes unquestioned. He, however, as well as the Chief of Engineering and Maintenance (CEM), and the Associate Deputy Minister for Materiel (ADM Mat.), would have furthered their own objectives, and those of the community, had they not acted with such a knee-jerk cannon blast. It is now up to the Minister of National Defence to quickly issue a statement explaining the extraordinary moves and to terminate the controversy. The world is watching. The stakes are much too high to let the matter boil any longer.

Micheal J. O'Brien


 Invertron, a subsidiary of the UK-based United Scientific Holdings group has won a contract from the Department of National Defence for the supply of a SKYFIRE 'B' Air Defence Tactical Training System (ADTTS). The system will support and meet all training requirements for virtually any low level air defence gun and optically tracked missile system and can simulate the simultaneous engagement of up to nine dynamic targets. It will be installed at the Air Defence Artillery Training School at CFB Chatham, New Brunswick in 1990 to be used by the Canadian Armed Forces for the training of air defence gunners in preparation for posting on the recently acquired Oerlikon 35mm GDF-005 ant-aircraft guns and the ADATS air defence missile system. 

October 18, 1989 TWR42V3 


As a result of an August, mercuric shakeup in the management of the Low Level Air Defence programme office, four persons were removed from the project (see The Wednesday Report , August 23, 1989, page 2, "Hampson To Leave PMO LLAD" and September 6, 1989, page 1, "Out Of Control".) Lieutenant-Colonel Hugh Mundell, the former Project Director, has been replaced by Lieutenant-Colonel D. R. "Doc" Hopper. Mundell has supplanted Hopper who had previously been engaged in a Militia study. Keith Rattew, who had served as the LLAD programme Procurement Finance Manager (PFM), has resigned from the Public Service with full pension and was temporarily replaced by retired Lieutenant-Colonel Garrett Hollink who will be relieved this week by the new Procurement Finance Manager, Doug Wilson. Colonel (retired) David Hampson, the former programme Manager, has been replaced by Colonel Norm Nault. Hampson has moved laterally to a posting which commands a comprehensive engineering and maintenance study. Administrative Assistant Janet McCoy, reputedly a highly competent contract-employee, hired through an outside placement firm and not a member of the Public Service, has been removed from the project and has not been replaced. 

Preliminary reports of DND auditors have been filed and appropriate rebuttals are being prepared by the project's financial experts. Meanwhile, an apparently exhaustive investigation by the Special Investigations Unit of DND continues. According to sources close to the project, speculation about alleged mismanagement, lack of budgetary control, misuse of travel funds, breach of security, kickbacks, and nepotism have been either confirmed (only in the case of nepotism), contrived or exaggerated. High ranking DND officials have affirmed that the integrity of the project has not in any way been jeopardized. What may turn out to be precipitous action prompted by a mistaken or overzealous assessment of a preliminary auditor's report appears to have caused a highly controversial upset long in advance of any conclusive investigations. To date, no charges have been laid excepting an incident wherein the PFM was accused of hiring his daughters.

What has emerged from the now somewhat quieter LLAD mess are incredulous tales of "cloak and dagger" surveillance, harassment of a former contract-employee, accusations of liaison with foreign agents, sex scandal and perhaps more appropriate, a power struggle between the former project management and a short-tempered official close to the office of the Assistant Deputy Minister for Materiel. And finally, rumours are stirring about a pending lawsuit to recover damages inflicted upon at least one unsuspecting victim of this mini-tempest which has marred what appears to be the present government's best run defence procurement programme, one that has brought good fortune and new dimensions to Canada's aerospace industry.

November 8, 1989 TWR 45v3 


 Swiss-based Oerlikon Buehrle Holding expects to incur losses in the order of 50-100 million Swiss francs (SFr) in the current year. Coming after net losses of 115.2 million (SFr) in 1987 and 35.5 million (SFr) in 1988, the latest figures emphasize the group's continuing failure to get to grips with the problem springing from its isolated place in a shrinking market. Oerlikon's problems have been exacerbated by development costs on ADATS and it is expected that losses on missiles together with the cost of the restructuring on which it has now embarked will continue to present it with problems in 1990. Restructuring plans centre on a decision to group all defence-related activities in a newly-created Oerlikon-Contraves division, and non-defence operations in another new division to be known as Oerlikon Industrien. Five hundred jobs will be lost throughout the group during 1989-90, and there are likely to be moves to increase cooperation with other companies. Defence currently accounts for 31.7 per cent of Oerlikon's 4.23 billion (SFr) annual turnover. This figure is probably around ten per cent too high by current mainland European standards, and in view of the Swiss group's isolation, is considered to be an unacceptable burden. It is unclear whether any parts of the defence operation will be disposed of as part of the restructuring, but certainly one prominent European company is known to be following developments at Oerlikon with interest. 

November 22, 1989 TWR 47V3 


 Rain, snow, fog and freezing drizzle hindered the target helicopter , but, did not prevent the successful completion of some fifty ADATS target search, acquisition and tracking tests between October 12 and November 3 at Camp Grayling in the northern portion of Michigan's lower peninsula. There were occasions when the target helicopter, an AH-64 Apache, was unable to fly because of inclement weather, according to Oerlikon vice president Lionel Leveille who also told The Wednesday Report that "the company, the Canadian Department of National Defence and the U.S. Army project team were all very excited about the excellent results of the tests."

"If the attacking aircraft can fly," said another Oerlikon spokesperson, Christian Bealieu, "then the ADATS system can detect it and engage it, as the Camp Grayling tests and others have proven repeatedly." The tests were conducted as part of the U.S. Army's Line-Of-Sight-Foward-Heavy component of the Forward Area Air Defence system (FAAD LOS-FH). The evaluation was performed on an ADATS missile system mounted on an M113 chassis integrated by Oerlikon Aerospace Inc. of Saint-Jean-sur-Richelieu for the Canadian Armed Forces' Low Level Air Defence programme (LLAD). Michigan's Camp Grayling was selected by the U.S. Army because the region's weather and terrain are identical matches for those of the Fulda Gap in Central Europe. In addition to the target acquisition and tracking exercises, team members obtained detailed performance data on radar operations in rugged and normally inhospitable terrain.

The ADATS system is unique in its use of laser , Forward Looking Infrared (FLIR) and other electro-optic technologies. The newer technology ADATS system has been subjected to some criticism because of its competitive edge over active systems employing radar signals for the search, acquisition, tracking and guidance of the missile. Unlike these detectable and jammable technologies, the passive electro-optic processes of the ADATS system have no known counter-measure to jam or otherwise interfere with their operation. DND, in 1986, selected ADATS as a solution to its Low Level Air Defence (LLAD) requirements and in 1987 the U.S. Army selected ADATS for the estimated $6 billion FAAD LOS-FH project. The U.S. Army intends to use the ADATS system as the first line of air defence in the close combat zone of any hostilities that might occur in Europe.

November 29, 1989 TWR48V3 


Thomson CSF's Crotale missile system has not been summarily selected by the Dutch government. Contrary to a recent Defence News report which states that "the Dutch government rejected the Oerlikon-Martin Marietta produced ADATS in favour of the French built Crotale", The Wednesday Report has learned that no such decision has been taken by the Netherlands' government and that the entire project is "on hold". The Royal Netherlands Air Force has been seeking a solution to its requirement for a missile component to contribute to the defence of Dutch air fields.

Considerable controversy surrounded a recommendation in favour of the Crotale NG (New Generation) system made to the last Dutch Parliament by the former state secretary for defence (Aan de staatssecretaris van Defensie) Mr. J. Van Houwelingen who himself had been the centre of some controversy which suggested a preset agenda in the selection process. Fortuitously, the attempts of Mr. Van Houwelingen and one Mr. Bolkestein (a cabinet minister) to ramrod the Crotale NG bid were blocked. The Dutch parliamentary committee on defence scornfully rejected his recommendation and demanded attention to the failure of the Royal Netherlands Air Force, the customer, to acquire and evaluate test results from the U.S. Forward Area Air Defence (FAAD) competition in which the Oerlikon Aerospace Inc. ADATS was selected in 1987 over the French contender.

The Dutch parliament was dissolved in July of this year preceding an election which took place in September. Mr. Van Houwelingen has not returned to his post and the government has yet to deal with the air defence acquisition project other than to put it on hold along with several other major capital acquisition projects. As a result of the concerns of the Dutch parliamentary defence committee and the disruptive effect of the September election, there has never been a cabinet selection and the project today is, according to Netherlands embassy officials, awaiting further evaluation.

Says Colonel Jan Zijlstra, the Dutch defence attache at the Royal Netherlands Embassy in Ottawa, "a new state secretary of defence has been appointed", and as one of the first activities in his new post, made an immediate request to the United States government for the most current test results available from the U.S. Army comprehensive ADATS evaluation. Colonel Zijlstra suggests that "it will be four or five months before the new government begins to deal with defence matters", leaving one to believe that the whole matter of a Dutch air defence missile selection is far from concluded. Nonetheless, it is equally accurate to say, as stated by an official of Thomson CSF to The Wednesday Report , "It may not be conclusive, but, Crotale is looking good in the Dutch competition."

The Wednesday Report has acquired a copy of a letter from the clerk of the Dutch parliament's defence committee, directed to the state secretary of defence on November 1. It instructs the state secretary to reevaluate the missile system competition, this time using ADATS evaluation data obtained from the United States Army. The new parliamentary committee completely rejects Van Houwelingen's premature recommendation of the Crotale NG system saying that, " (translation) We have not been sufficiently informed about the merits of both systems, in this case ADATS especially."

In the same letter , the committee's clerk, Mr. A. J. B. Hubert unequivocally states that, " (translation) The committee has concluded that the subject is to be designated 'controversial'." Not only did the evaluation team fail to acquire data from the U.S. Army, but, when offered to the Royal Netherlands Air Force by the defence attache at the American Embassy in the Netherlands, the FAADS test data was rejected as "irrelevant". Although the committee has made attempts to keep the controversy under wraps, an article appeared in the November 9 edition of the Dutch defence publication, Defensiekrant , which clearly spells out the nature of the potential scandal.

In the realm of potential disparagement , Canada's government too has had its share of notoriety of a less serious nature which has imposed a hindrance on ADATS in the Dutch deal. The Wednesday Report has learned that it is not beyond the scope of the Dutch competition for an antagonist to make gratuitous uncomplimentary statements to media persons and others about the recent PMO LLAD foot-shooting exercise of the Department of National Defence -- competitor's insinuation intended, of course, to disparage the ADATS Dutch bid of twelve to twenty, $35 million systems. Some have illegitimately implied that our fetish for the 'public-hanging' of nepotists and our preoccupation for fabricating bogus impeachment dramas should be misconstrued as a punitive measure resulting from exhaustive criminal investigation into the original LLAD evaluation process. As Canadians are intensely aware, nothing could be further from the truth. But not all nations are so adequately familiar, as are Canadians, with the occasional propensity of some of our bureaucrats and politicians to unwittingly blast holes in their own feet with sizable calibre firepower. According to Dutch official sources however, the dimensions of any negative impact have been minimized by the great distances between the two countries and because there is a new Dutch cabinet in place the topic is temporarily dormant.

Other sources indicate that it is likely that the United States Army will indeed be forthcoming with ADATS test data to the Royal Netherlands Air Force because of the Army's stated concerns about commonality and interoperability of NATO defence equipment and its own continued preference for the ADATS system over the French contender. About timing of a final Royal Netherlands Government decision on the air defence contract, Colonel Jan Zijlstra believes that the matter will not see an early resolution and the final deliberations could be put off until the spring of 1990. Oerlikon Aerospace Inc. officials were reluctant to comment on the Dutch situation other than to say that the matter is still open, they are very much in the running, and that in their view, "an announcement is not expected in the near term". 


 Meanwhile, in North American circles, and as if there are not enough rivals for the modernistic entree into the air defence missile business, an emerging round of competitive criticism has ignored the usual early spares problem calling the ADATS system 'unreliable' and encouraging reputable weekly defence journals to print such misconceptions. A recent rash of tests conducted on the ADATS system has left Oerlikon Aerospace Inc. and its numerous suppliers scrambling to keep a long list of system spares available to two major users and a number of potential customers. Tests have been ongoing at Fort Hunter-Liggett, California and Camp Grailing, Michigan (see The Wednesday Report , November 22, "ADATS Gets Top Marks in FAAD Foul Weather Tests"), while at the same time, evaluations of the system are being conducted in other parts of the world. Filling the needs of two committed customers, both with a high priority requirement, has proven to be tough. Says one Oerlikon official, "Yes. Keeping up with the requirement for spares is tough at first. We are meeting their needs. We may be working well into our sleeping hours, but, we are meeting our customers' needs."

After years of development and hundreds of millions of dollars invested, Oerlikon quite suddenly, in quick succession, sold its newly developed ADATS system to two North American buyers, Canada and the United States. Each customer has been anxious to take delivery of the product and either put it into service, or, as in the case of the U.S. Army, continue testing and refinements to suit its specifications. Although the U.S. project has yet to enter full-scale production, the Army's early requirements have resulted in a parallel delivery schedule to Canada's, one atop the other. The demand for spares has been unusually high at a time when the contractor, now in the early production phase, along with a myriad of suppliers, is facing all of the usual production start-up problems and the stresses of an ambitious and successful sales effort.

Mercifully, the two customers use many components common to both. The U.S. ADATS -- nicknamed 'Linebacker' -- is mounted on an M3A2 Bradley fighting vehicle chassis and, except for minor details, is identical to the Canadian Forces' missile component of the Low Level Air Defence (LLAD) system mounted on an M113A2 APC. ADATS forms the Line Of-Sight Forward-Heavy (LOS-FH) component of the U.S. Army's layered divisional Forward Area Air Defence (FAAD) structure.

"It doesn't matter if your mean time between failure is unbelievably good , if you don't have a spare available right then and there when a part does fail, you will be judged as unreliable", commented a Canadian Forces LLAD specialist. The "unfairness in this rumour," we were told, "is that these two North American companies (Oerlikon and Martin Marietta), have a tall order to fill and are doing a splendid job." Those companies which are spreading tales of unreliability because of a typical early spares problem know full well what the real situation is. They're sore losers.

January 10, 1990 TWR2V4 


 Oerlikon Aerospace and Garrett Canada, a unit of Allied-Signal Aerospace Canada, have teamed in the bidding to provide the Canadian Armed Forces with a Tactical Command, Control and Communications (TCCCS) Radio System. The agreement was to be announced on December 18, 1989 in Saint-Jean-sur-Richelieu, Quebec but, likely due to the awkwardness imposed by the season, a planned press conference was postponed. The teaming arrangement although not in the least bit surprising, does pose some formidable competition to other contenders.

Oerlikon Aerospace Inc., a company whose vehicle integration capabilities have become world renowned as a result of their significant achievements in the low level air defence field, will be responsible for equipment installation and vehicle integration portions of the IRIS project. Oerlikon will also manage the integrated logistics support (ILS) activities for the team. Garrett Canada acts as a prime contractor for the Integral Defence Communications Group, heading a team of Canadian subcontractors and team members. Brian Heinmiller Garrett's Integral programme manager expressed enthusiasm about the new member to his team. "The addition of Oerlikon Aerospace to the Integral group in this key role significantly strengthens the team's abilities in the ILS field and provides key insights into defence planning through Oerlikon Aerospaces current involvement in the Low Level Air Defence System (LLAD) programme for the Canadian Armed Forces." 

January 24, 1990 TWR4V4 


 Turkey has begun to free its logjam of major defence programmes awaiting contract awards. The past week has brought two significant announcements from the newly-established Under-Secretariat for Defence Industries. The more significant -- albeit in respect of only a preliminary contract -- was in consideration of 52 light transports to be provided by the Spanish manufacturer CASA. The deal is being underwritten by the Spanish government with a three percent loan enhanced by a ten year period of grace. CASA is to set up an in-country plant which may eventually also build a civil version of the same aircraft for domestic feeder routes. There will be a subcontract role for Turkish Engine Industries.

The second contract, for secure HF-SSB radio equipment valued at ś96 million (sterling), has gone to the U.K.'s Marconi Communications. Three thousand Scimitar radios are to be supplied over a seven year period by Marconi Kominikasyon, a joint venture between Marconi and two local contractors.

A contract award for the country's mobile radar programme is said to be imminent, but there is as yet no sign of movement on that for a new Low Level Air Defence System. A spokesman for Oerlikon, which is bidding its ADATS system against Thompson-CSF's New Generation Crotale refers to the requirement as being frozen until at least the end of this year.

April 18, 1990, TWR16v4 

Special Report:


Last year, during the week of August 7, a shakeup in the Low Level Air Defence Project Management Office (LLAD PMO) stirred Ottawa and gave life to a series of rumours, hearings, "firings", disciplinary measures, audits, arguments, and the makings of one law suit. In part, the matter has begun to take on the proportions of the mid-1960s "Gerda Munsinger Affair". In other respects, it may become a very useful analysis leading to more efficient administrative practices and perhaps the alleviation of some current problems imposed upon project leaders, managers and directors.

Legitimately, the audits and analysis have cast aspersions on a number of DND accounting processes. Some focus should be drawn to the manner in which DND is forced to deal with its allocation of capital funds, available only within an assigned fiscal period against a capital requirement which easily slips outside the budget's time lines -- due to the anomalous nature of defence procurement ie.: long lead times, the complicated approval process and the high ticket nature of the regime -- thus creating what is called a "budget lapse". Such lapses occur regularly. It is from these lapses that DND often finances minor administrative ventures, often triggering interdepartmental bartering and a never ending search for those pockets of available money.

LLAD, which at the time of its creation was viewed as being somewhat unique in structure, was tasked with several administrative projects aligned more toward project management and data management than air defence. These included an Automated Data Processing (ADP) study, the development of a Prototype Project Management ADP Support System (PPMASS), Office Automation systems studies, and a combat library development project. In the early years, the LLAD programme manager had been instructed to fund these projects from the LLAD budget, even though they were not technically approved by the Treasury Board. In each case the tasks were intended to benefit the LLAD PMO as well as future programmes and other existing projects, but due to lack of controls in a system that essentially 'robs Peter to pay Paul', as would seem inevitable, DND temporarily lost control. In the case of PPMASS, that lack of control resulted in a process of scrounging and bartering to obtain necessary resources, and as suggested by one DND official, an overzealous approach on the part of the Project Finance Manager toward getting the task completed without due heed to preferred accounting practices -- whatever they might be under these odd circumstances. That argument has been rebutted by the LLAD Project Finance Managers' office. Perhaps sharper observations may be forthcoming as a result of an Auditor-General's report anticipated later this year, but that audit may only serve as a retrospective since LLAD has been relieved of PPMASS. 

A troublesome practice which appears to occur not just throughout NDHQ, but throughout the federal government's bureaucracy and demonstrably prevalent in the LLAD PMO, is the use of contracted employees hired as consultants for such lengthy durations that they in effect fall into a master/slave relationship with their 'customer', but don't receive the protection and benefits package that normally accompanies Public Service employment. This problem emerges within DND particularly in cases where Treasury Board approval of a major Crown project does not provide sufficient person-years to complete the work required, but does approve sufficient funds to allow the hiring of contracted "consultants". Such was the case with the Low Level Air Defence project to the extent that contracted employees worked on a full time basis within the project's offices, several in a master/slave relationship with their task manager. Such was the case of Janet McCoy.

What is truly outstanding in the whole LLAD shakeup is the grossly incompetent manner in which the whole affair was handled. An extensive investigation by The Wednesday Report yielded one clear fact, the matter was almost completely uncontrolled. No central figure emerged to lead simple problem solving exercises. Where there was help available -- in this case from the minister's office -- the 'close-the-ranks' syndrome virtually cut the minister out of the information loop and closed out a powerful source of help. The extent of turf battles was just plain embarrassing, even to an observer. We found people in authority to be evasive; afraid; and lacking in knowledge of matters that should have been under their control. The effect, as is usual in any case where a human resource is subjected to senior management difficulty in problem solving, was to leave the affected group of people bitter and prepared to take independent, drastic action. What is truly ironic is that the whole matter was ruinous to the reputations of personnel who are highly educated, decorated, and have exemplary records of distinguished service. 

The root of the problem has sinister implications. To summarize the worst allegations under investigation at the 100-person LLAD project: one chap hired his (alleged) girlfriend, another employed his two daughters. The main question: were proper documentation procedures followed in terms of security clearances, hiring practices, and ethics; and what corrective action should be applied? A series of investigations by auditors, RCMP, and DND's Special Investigation Unit (SIU) resulted from a request for help by the Programme Manager who recognized that he had some problems. It was from there that turf battles began and the ensuing wrestling match for control left the situation without control. The highly visible stumbling of the SIU 's and overall misuse of the SIU led to what could be described at best as shabby, at the worst, a sinister, unwarranted and unlawful investigation and surveillance. 

With only the public explanation of the defence minister who referred (in late October, 1989) to "incompetence", "improprieties", "misconduct", and "lack of leadership", the names of four shocked people were tossed before the Ottawa rumour mill which already viewed LLAD through glasses tinted darkly by the 1987 "Bissonette Affair". This, alongside leaked suspicions from an SIU investigation of the LLAD PMO and scanty articles in the general press, worsened an already broiling affair. Aware of the past controversy over LLAD, people believe there must be serious wrongdoing involved to provoke the government to ignore the sensitive nature of the project and eject the entire top management.

The Programme Manager, Colonel (retired) David Hampson; Project Director Lieutenant-Colonel Hugh Mundell, Project Finance Manager Keith Rattew; and Operations Assistant Janet McCoy; were each hastily removed from the project and were told, "Don't talk to anyone about this." Mundell states that he was warned to "Keep your mouth shut and dig in because you have 'incoming'." Rattew retired, Hampson and Mundell were re-posted and McCoy has been left jobless since August 30 of 1989. (See The Wednesday Report , August 23, 1989 "Hampson To Leave PMO LLAD"; September 6, 1989 "Out of Control"; and October 18, 1989 "PMO LLAD Shakeup Simmers Down".)

Rumours about serious allegations were wide ranging. Said a retired officer who had worked at the LLAD PMO until 1988, "The allegations I have heard are serious. I don't believe it. Whether people are innocent or guilty, their names are tarnished regardless of the outcome of the investigation." A consultant to one of the contenders in the LLAD competition told The Wednesday Report that, "They were all taking kickbacks. A source inside DND told me that." How could that happen?

The premature release by the SIU of speculation, rumours, hypothesis, and suspicion -- before an investigation could determine the true facts -- caused alarm among officials within NDHQ's personnel department about what were alleged to be "security and criminal improprieties at Project Manager (sic) Low Level Air Defence (PM LLAD)". This premature, unlawful and misdirected allegation was not, from the outset, brought to the attention of the Assistant Deputy Minister of Materiel (ADM MAT) as would be correct practice, but instead brought to the personnel department from whence it was purveyed up the chain of command to the top and then back down to the ADM MAT. As a result, the department began to ooze horrifying stories. At the same time it become apparent to this writer that responses from people who should know what they were talking about, and answers to questions put to persons in the defence minister's office were substantively different. 

Last September 1st, The Wednesday Report was informed by an official working for a Cabinet Minister that "there is some other stuff that certainly borders on whether one [person] should have got charged... and that's what I can't get into". In a telephone conversation with Blair Dickerson, then Special Assistant to Bill McKnight, a tape recording of the minister's statement to a media "scrum" outside the house was checked for confirmation. The Minister, in response to media questions (October 30) in reference to "the four people who had been fired", and obviously basing his remarks on briefings he had received, alleged "internal improprieties" and misconduct" as being among other reasons for the "firings". Rear-Admiral Dennis Boyle, Chief of Engineering and Maintenance and direct superior to Hampson would not make an official statement. Pam Forward, spokesperson for Bill McKnight did not want to make a statement. Officials in Associate Defence Minister, Mary Collins' office also did not want to make an official statement. The VCDS, to whom the SIU reports, would not return 14 phone calls. The Commandant of the NDHQ/AU refused to speak to The Wednesday Report , blocked calls to his department, referred the matter to the Director General Information Office, leaving an unbriefed, baffled information officer with a red face and more questions than we had. But, in almost every office, someone was always willing to speak "off the record". A 'hush order' had been given, the high exposure to civil action had obviously been recognized.

A senior military officer told The Wednesday Report that "there were grounds for much, much, much, much more serious actions." Reporters from other publications told The Wednesday Report that they too were given similar "off the record" remarks. And, on repeated occasions, ranking officials warned The Wednesday Report not to pursue the story. Was there a cover up? What really happened? 

Did any of the four people commit a crime? The Assistant Deputy Minister for Materiel, Ed Healey publicly stated -- somewhat in contradiction to the Minister's remarks which did not exclude Hampson -- that, "Mr. Hampson has not been accused or personally implicated in any of the investigations". Rattew retired with his pension after admitting that he had hired his two daughters to work in his department. Was that his greatest sin? "Yes," say a number of sources. What of Mundell and McCoy? Why was the SIU investigating the project after an RCMP analysis resulted in the Mounties saying (according to a senior NDHQ official who has read the RCMP report) that they "didn't have any interest"? 

The mandate of the SIU as set out in Canadian Forces Administrative Order (CFAO) 22-3 (Ch9/89) states that, "The Special Investigation Unit is a NDHQ controlled unit assigned to the Vice Chief of the Defence Staff (VCDS). SIU Headquarters is located at CFB Ottawa (N), with detachments and sections located throughout Canada and in Canadian Forces (CF) Europe." According to the document, the responsibilities of the SIU, "to the extent consistent in law", include "effecting counterintelligence detective measures through investigation of security breaches; investigation of incidents affecting DND in which sabotage, espionage, subversion or terrorism are known or suspected; investigating acts of homosexuality by members of the Canadian Forces; investigating acts of homosexuality by civilian employees where there are or may be security implications and only at the direction of the Director General Security; and investigating acts of sexual abnormality where there are or may be security implications." 

Under which of these categories was the SIU conducting its investigation of LLAD? Who requested the investigation? CFAO 22-3 states that "SIU assistance shall be requested by a Commander..." and that a Commander is "an officer commanding a command; a formation commander; a NDHQ group principal; a base commander; a station commander; a commanding officer (CO) of a unit or ship; the Commandant NDHQ Administrative Unit; or an establishment head." CFAO 22-3 states under the heading of "Procedures For Obtaining SIU Services, Commanders normally should request SIU services through their respective security adviser. Initial requests may be made verbally to the nearest SIU component and shall be confirmed in writing within 72 hours."

The Official "Request For SIU Assistance PM LLAD" was signed by a Captain Leger, over the name of Colonel A.W. Telik, Commandant NDHQ Administrative Unit. The request is directed to the attention of "Major Harrison" and refers to: "Discussion Maj Harrison SIU/Maj Peddle and Maj Turnbull SSecur0, 5 Jul 89". The text of the request: "In view of the discussions at ref, it is requested that the SIU investigate allegations of security and criminal improprieties at Project Manager Low Level Air Defence (PM LLAD). For your action." 

It would therefore appear that the SIU itself made the request for "SIU Assistance" via Captain Leger? The final report of the SIU confirms this assumption. "On July 5, 1989, (presumably the date of the referenced conversation with Harrison, Peddle, and Turnbull) the Commandant, NDHQ/AU was appraised of the security and criminal implications uncovered as a result of the initial work-up and surveillance conducted in this investigation. In view of this information, on July 10, 1989, the Commandant, NDHQ/AU (in fact a Captain Leger), requested SIU assistance to investigate allegations of security and criminal improprieties at PM LLAD." Who authorized the SIU to commence the "initial work-up and surveillance"?

On August 9th of last year, at the Low Level Air Defence project office, Operations Assistant Janet McCoy was called into the office of her supervisor, Lieutenant-Colonel Mundell and was told that she was to report to the programme manager's office to answer questions. McCoy was greeted there by Hampson (LLAD PM) and two SIU officers, Major John Harrison and Sergeant Jean Viau. According to McCoy, she was told by Harrison, "We are going to put you on the hot seat." Hampson later told The Wednesday Report that at the time "I didn't know what the hell was going on. I just knew we had nothing to hide so I suggested to Janet that she cooperate with the SIU." Said McCoy later, "I said "Sure", because I still didn't know that they were really out to get me and get Colonel Mundell. I went, and I answered their questions as honestly as I knew how. I know I didn't do anything wrong."

"While one SIU officer sat in the back seat of the SIU car," said McCoy, "the other drove to Rockliffe where I was held in a locked room, under guard and interrogated in grueling fashion before a video camera for three hours." According to McCoy, she was surprised at the amount of detail the SIU knew of her personal life. She believes that the SIU had been tailing her; that officers of the SIU entered her work area and removed personal and other articles from her desk; that SIU investigators broke into and entered her residence; some of which she reasons from the fact that Harrison and Viau produced photographs of persons coming and going from her home, and had information which could only be obtained by reading her personal diary which was always kept at her home. Said McCoy, in one recorded telephone interview from her home, "Some of the information that they asked me [about] -- the only place they could get it is from my diaries. I've kept diaries for quite a few years now and those diaries are here [at home]." The Wednesday Report has learned that there were in fact six Military Police officers attached to the SIU who were directly involved with the investigation of the LLAD PMO: Major Harrison, Captain Olson as well as Sergeants Spiteri, Neville, Viau and Cull. 

Lieutenant-Colonel Mundell was subjected to the same "interview" treatment for a period of some 8 hours over two days, August 9 and 10. According to Mundell, he was "interrogated in questionable fashion" and, "I was accused of espionage -- spying and selling information -- conflict of interest in a specific contract and [of putting] questionable expenses in my travel claims". Subsequently, states Mundell, "On Friday August 11, I was ordered to the office of the DGLEM, Brigadier-General Jim Hanson who, despite the fact that he was not in the chain of command, and had no authority to do so, fired me because [as I was told] 'an investigation had revealed that I had become a risk to national security in that I was involved in a personal relationship with a foreign national' -- or words to that effect -- a civilian contracted employee [Janet McCoy]. (McCoy is in fact a Canadian.) I was ordered on two weeks leave and told on my return that "I would be working somewhere in CLDO Branch. I was also advised that Colonel Hampson was being relieved of his appointment largely because of me." Mundell also claimed that his extensive interrogation was video taped.

The Wednesday Report later verified the existence of the tape upon learning that the recording of Mundell's interrogation was screened by the SIU for Pam Forward of McKnight's office and other "interested persons within the department". The existence of tape recordings of McCoy was confirmed in portions of an SIU report leaked to The Wednesday Report which declare that "...a copy of the taped interview is held on file. Mrs. McCoy was cautioned not to discuss this interview with anyone as doing so might jeopardize the investigation." The report also establishes the accuracy of McCoy's observations regarding duration and to some extent, the validity of her deductions with respect to surveillance of her personal life. The report states that she was "interviewed" from 10:18 hours to 13:31 hours on August 9. The 16 page report confirms the essence of McCoy's complaints and establishes a "hostile tone" that is consistently referred to in the complaints of both Mundell and McCoy. The following portion of the report substantiates McCoy's claim that articles had been seized from her desk: 

On June 17, 1989, a check of Mrs. McCoy's desk revealed the following:

(1) An original copy of her personal history from (PHF) dated June 3, 1988 and another copy of her PHF dated June 3, 1988 with an attached letter from Supply and Services Canada, Security Branch dated May 1, 1989. This copy of her PHF had an attached letter from Mrs. McCoy dated May 8, 1989. A review of her PHF revealed that her original submission of June 3, 1988 had been returned to her on May 1, 1989 requesting further information (employment Jan. '81 -- Mar. '82, Apr. '86 -- Aug. '86, a copy of her Canadian Citizenship certificate and DND status, etc.). It was further noted that on neither the initial or the updated copy of her PHF had she included details on her present husband, but instead listed her marital status as single;

(2) On June 17, 1989, two sheets of paper on LLAD letterhead were found in the upper right drawer of Mrs. McCoy's desk. These sheets of paper contained the computer password and combinations to padlocks for file cabinets of Ops Section personnel and the PM's secretary. Copies of these documents were made;

(3) On June 17, 1989, a copy of Mrs. McCoy's contract was found in her desk. A copy of this contract with attached memorandum dated May 16, 1988 signed by LCol Mundell was taken on site and is held as evidence at SIU HQ. A copy is also attached as Annex C. A further supportive letter dated May 16, 1988 and addressed to DSS for sole source justification to hire Mrs. McCoy as Ops Assistant is attached as Annex D.

The Following portion of the SIU report deals with the "interviewing" of McCoy.

At about 10:18 hrs., May 9 , 1989, [Ed.: presumably another of numerous errors, August 9, 1989 was the date of the "interview" according to the subjects and other witnesses] Mrs. McCoy was interviewed at SIU HQ, Ottawa (N), by Sgt Viau and myself [Harrison] and provided the following information: [Harrison is obviously doing the writing here but did not sign the report.]

a. She came to Canada from Jamaica in June '71 and obtained landed immigrant status. She lived with her brother who preceded her here until she was settled. In June '81 (Ed.: McCoys' Certificate of Canadian Citizenship is dated June, 1980) she received her Canadian citizenship;

b. She has two sons aged 13 years and 16 years... She describes her present marital status as single. She admits she went to Jamaica in April '86 and married Spencer Reed, a soldier in the Jamaican Defence Force. She had known him previously and went there specifically to marry him. She relates that two weeks after her marriage, her mother informed her that Mr. Reed had other lady friends and married her as a way of coming to Canada. She returned to Canada and left him in Jamaica. Mrs. McCoy states that she has initiated divorce proceedings but cannot afford the legal fees and is attempting to get Mr. Reed to pay the costs;

c. Mrs. McCoy related that financially she is getting by. Her rent and grocery bills are always up to date but she admitted that she is always one or two months behind in payments to her other creditors. She has one major loan outstanding -- her student's loan from Ottawa University. A financial check (Ed.: McCoy says the credit check was not authorized by her and that she objects to this invasion of her privacy.) was conducted with the Ottawa Credit Bureau on July 20, 1989. This financial check did not list this loan;

d. Mrs. McCoy related that she commenced employment at PM LLAD in October '86 as a word processor in the typing pool;

e. In May '88 she was informed of the opening for the position of Ops Asst by someone (no specific name) and submitted her resume to Mr. Hampson. There was no named competition for this position but she thought two others had also applied for the job. As her predecessor in that position belonged to Cytechnics Ltd. to whom the contract was let, she joined that contract agency. She related that LCol Mundell negotiated her contract (McCoy denies this.) and that he is her supervisor;

g. She further related that in addition to the duties specified in her contract she, as the Ops Asst, is required to:

(1) Make travel arrangements for the Ops section personnel including car rentals, hotel accommodations, train tickets, etc.,

(2) Pick up and deliver classified documents within the unit with security classifications up to and including NATO SECRET,

(3) Fill in for the PM's secretary in her absence and do overload typing for the PM's secretary, and

(4) Any other duties assigned by LCol Mundell;

h. Mrs. McCoy stated that she does not at present hold a security clearance. She related that she submitted the required paperwork in July '88 and that further information was required in May '89;

j. Mrs. McCoy stated that under authority of LCol Mundell, she holds a list of all the combinations to file cabinets held by all Ops Section personnel as well as the PM's secretary's file cabinet. She stated that she holds this list 

for emergency access to file cabinets in the absence of section personnel using that particular cabinet;

k. Mrs. McCoy has stored and had access to information/documents classified up to and including NATO SECRET under authority of LCol Mundell;

m. Mrs. McCoy related that she first met LCol Mundell shortly after he was transferred to PM LLAD in August '87. In November '87 they started seeing each other on a regular basis; ..........

The report continues through 29 items and is signed by Sergeant J.A. Craig, a special investigator of the SIU.

McCoy gave her account of the "interview" to The Wednesday Report : "I don't know why they asked so many questions because they already knew the answers. They asked me about Niagara Falls. I had gone there on vacation. It had nothing to do with work; we did not go on any business trip there. They knew something about that [trip]. They made nasty little innuendoes. I asked one of my interrogators point blank if I was being recorded? He shook his head and told me "No". I wanted to go to the washroom and one of them walked out and he stood guard at the bathroom door. We were in this little room and they kept the door locked. I told them, 'whatever relationship I had with this man, [Mundell] it had nothing to do with work'. I worked hard there. They asked me... they started asking me all the personal questions about him. What I know, when he went on business trips to Paris and Turkey, if he got kickbacks and what was the condition of his mortgage and if he had made any large purchases recently and then I really got upset and I said 'That's none of my business, and none of yours either.' I said, 'Ask him if you want to know.' Then they mentioned -- I went on a boat cruise in June last year. This was just a fun trip. They knew all about that. The boat was on the Rideau. They knew all about that. You know, they could tell me the date, where it left from, everything. And I said "Wait a minute, why would you be asking me this? This has nothing to do with work." And then they asked me about all the trips I made -- vacations -- nothing to do with work. And then they started to haul out all the things... and I thought the only two places they could have gotten those pieces of information is from my diary or from personal letters. Both of which I keep in my home."

McCoys' account of the "interview" puts the SIU in contravention of the only prohibitions outlined in CAFO 22-3. The SIU in such investigations is prohibited from performing investigative duties connected with "marital or domestic problems; noncriminal heterosexual relationships or any legal proceedings arising therefrom; and private debts and the collection of private debts." 

The SIU report was dated August 28. Mundell and Hampson were respectively "fired" and reassigned on August 11, seventeen days before the date of the SIU report. Hampson was given word to leave his job at LLAD before Rear Admiral Dennis Boyle on the afternoon of that day. Said Hampson, "I went to my office and found locksmiths changing the locks on my door." On what grounds did Boyle take this "precipitous" action (see The Wednesday Report October 18, 1989 "PMO LLAD Shakeup Simmers Down"). Or was it precipitous action? Did Boyle have prior knowledge, seventeen days early, of the content of the SIU reports yet to be written? Where there two reports? If so, why? And why has the first report been covered up? Other interviewees within the LLAD PMO say that SIU investigators made successive returns to PMO LLAD and later in the process seemed bored. "We sat and chatted about baseball", said one interviewee. 

The statement of an officer senior to Boyle (who did not wish to be identified) confirms that there was a premature release of information about suspicions, but the final report indicated that it was a tempest in a teapot. "Normally," our source states, "my experience with them [the SIU] which is limited to here and there over my career -- but normally they [the SIU] are very closed mouth and they don't ever give the details halfway through because they have a bunch of suspicions and unsubstantiated facts and here [in the case of LLAD PMO] they came out halfway through."

Mundell , in an official "reproof" that will stay in his personnel file for one year, was accused of giving the appearance of having a conflict of interest. This had to do with the fact that he allegedly helped McCoy advance to the position of Operations Assistant, a position which documents indicate was in fact filled by Hampson who confirms that he hired McCoy on the basis of her file and her record of achievement within the LLAD PMO. Mundell was chastised for permitting McCoy to have access to filing cabinets before proper security clearances were issued. Those clearances had, according to the LLAD programme manager, been processed at the proper time, but had been delayed more than the usual amount of time. According to a report recently presented to a House of Commons justice committee, the Canadian Security Intelligence Review Committee (CIRC) claimed that DND uses security clearance procedures as a form of discipline and that the security clearance procedures of DND do not offer adequate protection for those individuals whose livelihoods are dependent on getting security clearances. Janet McCoy, on repeated occasions has told The Wednesday Report that she reasonably believes she was treated uniquely in the matter of her duly requested clearances, "because I am black". 

The extent of career-damage caused by the DND reproof issued to Mundell is a highly subjective judgment call. Regardless, he has available to him appropriate channels for redressing his reproof which, as he has informed The Wednesday Report , he will use. His former job as Project Director LLAD has been filled by Lieutenant-Colonel D. R. "Doc" Hopper and Mundell has been reassigned to Hopper's previous position and is conducting a Militia study. 

Keith Rattew, who had served as the LLAD programme Procurement Finance Manager (PFM) has resigned from the Public Service with full pension and was temporarily replaced by retired Lieutenant-Colonel Garrett Hollink who has since retired and gone to work for Computing Devices.

McCoy's situation is considerably different. After numerous lengthy interviews over the past seven months it became clear that McCoy is a bright, competent worker who is highly respected, and a lady who has been severely traumatized. As a contracted employee McCoy has been unfairly treated by the system and she doesn't understand why. She is not a member of the Canadian Forces, does not work for the Public Service, and although she has been treated in the same manner as one who has given up certain freedom and rights in exchange for the protection and benefits afforded by the CF or the Public Service, she has no channel for redress. McCoy is in the position of having been a 'consultant' in a master/servant employment situation which has the environment, culture, and encumbrances of a Public Service job, but, none of the benefits or protection. She is in an awkward situation. But so too is the Department of National Defence.

McCoy has finally been offered employment by DND as a result of some considerable effort on the part of Pam Forward, Special Assistant to Defence Minister Bill McKnight. Regrettably, according to McCoy, the offer of employment has been made seven months too late, and conditional on McCoy signing a waiver saving DND harmless from any and all liability in the matter. (It is clear to everyone that McCoy's only course of redress is through the courts.) McCoy says that she will not sign the waiver. She says she is grateful for the offer and will accept the job. But she also says that she is suing DND for damages. Her lawyer told The Wednesday Report , "We are suing the Crown, The Minister of National Defence, Rear-Admiral Dennis Boyle, and officers of the SIU." 

Micheal J. O'Brien


 Since November 1989 Oerlikon and the Department of National Defence (DND) have been conducting extensive ADATS qualification tests. Climatic tests conducted at the Wyle Laboratory in Huntsville, Alabama have measured ADATS' tolerance to thermal shock, operate in desert conditions with high solar radiation and temperatures up to ~70 degrees Celsius, and to operate at a frigid -40 degrees Celsius. This spring, further climatic tests will test operability in high humidity, rain, snow, ice, sand and dust.

Command, Control and Communications (C3) tests at the Oerlikon test facility last March were successfully concluded. Two ADATS units located several kilometers from each other processed and exchanged target and tracking information during a number of simulated hostile contacts. This summer, tests are scheduled at Ottawa's Land Engineering and Test Establishment and at the Canadian National Research Centre. An assessment will be made of the air defence system's ability to engage targets while moving over a variety of terrains, climbing and descending slopes, and while fording bodies of water. Integration tests to check ADATS subsystems' interoperability will begin this fall and continue through next year. ADATS will then be linked to the C3 network in Germany. Currently, U.S. Army ADATS units are undergoing firing tests at the White Sands missile range in New Mexico. According to Suneel Tiwari of Spar Aerospace in Ottawa (supplier of the Forward Looking Infra Red assemblies to the ADATS programme), the U.S. ADATS units had an 'over eighty percent rate of successful hits on aircraft and helicopter targets' against defensive countermeasures including electronic jamming, flares, chaff and smoke.

According to Christiane Beaulieu, Oerlikon's Communications Manager, four ADATS units have been delivered to DND with two already deployed to the Air Defence Artillery School at CFB Chatham, New Brunswick. Two more ADATS units are undergoing final acceptance tests before delivery. Although the schedule is not yet finalized, Oerlikon is expected to deliver 28 ADATS units to DND this year.

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