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Volume 4, Number 48 November 28, 1990

which indicated that the Thatcher style was an anachronism in the 1990s.

Thus it is somewhat ironic that the leadership issue should have been allowed to so completely obscure the British public's view of the conclusion of the CFCE talks on the day prior to their PM's announcement that she was to resign. The Thatcher years, like those of the Reagan Administration began in an atmosphere in which the conventional military wisdom held that there was a serious risk of war before the end of the 1980s. The fact that the decade ended with the demise of the Warsaw Pact and eastern Europe abandoning Communist dictatorship will remain as an enduring reminder of the steadfast manner in which the West — exemplified by Thatcher — faced a threat which could have destroyed the Europe that she is accused of distrusting. Her predecessor in office, James (now Lord) Callaghan believes that the Falklands War was probably her worst mistake. Whether he is justified in that belief is open to argument, but the U.K. defence community is in no doubt that when he handed the reins of government to the Conservative office in 1979 the effectiveness of the armed forces to defend national interests was in danger of being strangled by a lack of political will.

Yet it was on domestic issues that the Thatcher premiership was bound to stand or fall. Characterized at first by a determination to challenge the Establishment and privatize utilities, nationalize industry and council-owned housing, it overreacted to the 1987 collapse of the stock markets by cutting interest rates to an artificially low level from which they fueled a boom in consumer spending which could ultimately only be controlled by the imposition of high interest rates.

The burden fell at once on the indebted consumer and has subsequently worked through the economy in the form of what the government claims will be a short-lived recession. With hindsight it may be seen that Margaret Thatcher's highly personal 1989 `celebration' of ten years in office was a `folie de grandeur' when she was already under personal attack from some of her colleagues for what they viewed as an increasingly idiosyncratic defence of U.K. sovereignty within



By the time that these words are read, the U.K. may have a new Prime Minister. If Tuesday's ballot for a new leader for the Conservative Party produces a conclusive result, PM Margaret Thatcher will have taken the short drive to Buckingham Palace where she will have recommended Queen Elizabeth II to confirm the appointment of the victor. Should the poll have failed to produce a clear winner, the end of the Thatcher era will be delayed by a mere forty-eight hours until the outcome of a third vote is known.

Whatever views might have been expressed in the media, the U.K. political community is still somewhat shell-shocked. Away from the Chamber not a few members of Parliament are known to be concerned that the events of the past few days have moved government too close to `radio phone-in politics' for comfort. "The party was in a blind panic that it was not going to win the next General Election," says one of the more junior Thatcher supporters. That election may not have been necessary until the early summer of 1992, but the inept performance of Conservative candidates in two recent by-elections seems to have convinced all but the most loyal Thatcher supporters that there was a groundswell of public opinion

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the European Community. At the same time the government came under sustained attack for its replacement of municipal rates with a `Community Charge' — the so-called `poll tax' — which probably drove the Conservative vote in recent by-elections well below that expected during a period of `Mid Term Blues' and may in future be described as `A Bill Too Far'.

Whatever their views on the way in which what some describe as a cabal of ministers and `Tory Grandees' combined to unseat Margaret Thatcher, few observers will deny the sheer quality of outgoing PM's performance in the House of Commons on the day of her resignation announcement. But with the end of the theatrics the mood has now reverted to one of raw politics. Of the three contenders for the succession, Heseltine is seen as something of a `rain-maker' who can restore the party's electoral fortunes, but a high profile would mean that he would attract theatrical attention — and the Tories might have had too much theatre in recent times. Foreign Secretary and former diplomat Douglas Hurd by contrast may hold the centre ground and become the focus of attention for those who believe that Heseltine looks too much like a man on the make and that his supporters have violated the traditional Conservative virtue of loyalty.

However the third contender, Chancellor of the Exchequer John Major, despite only eleven years in Parliament has considerable experience as a Minister and may be the candidate likely to cause most unease in the Labour Opposition. His selection might limit damage within the Party and his early moves in the run-up to the vote left no doubt that he has more than a touch of steel in his character. How would he deal with the opposition inside and outside the Party? "He knows what it's all about — he's a professional," says one supporter. "If you broke a leg, would you go to a surgeon or would you rather go to a witch doctor who runs around you chanting from a book of magic spells?"

John Reed


This issue marks the beginning of a major editorial project for The Wednesday Report, "Army 2000 — The Canadian Defence Mobility Base After NATO's Metamorphosis". As a feature series, it will profile Canadian-based companies involved in the Land Forces side of the defence manufacturing and service industry. It will also give the candid views of the men and women who run these concerns on the future of their company in particular and the market for land forces equipment and services in general.

Belcan Technologies Inc. of Montreal is the first company to be featured. In an extensive interview, Belcan's new president, Paul Janiga not only outlined his company's business and prospects, but provided valuable insight into the fortunes of its deceased parent, PRB of Belgium. This now-bankrupt munitions maker is said to have been involved in providing propellant and projectile design capabilities for the `Supergun' projects of murdered Canadian arms developer, Dr. Gerald Bull.

Janiga spent many years in academia and received his M.E. degree for Civil Engineering and Applied Mechanics from McGill University in 1970. He joined Bull's Space Research Corporation (SRC) in 1976 and played a major part in developing the legendary GC-45 155mm gun. He remained there until the company's bankruptcy in 1980. Then he did various stints of consulting work including work on the M-114/39 modification for RDM. He then worked on the Canadian Patrol Frigate programme for SCAN Marine. In 1983 he began doing consulting work for PRB.

Belcan Technologies was set up in February 1986 as a wholly-owned subsidiary of PRB. Janiga became Technical Director responsible for artillery munitions development including support for product sales and marketing. While Philip Glibert, assistant general manager of PRB was President, Janiga was in charge of day-to-day administration of Belcan business matters.

Janiga described the reasons for Belcan's founding as three-fold. "First, to provide a corporate roof for a group of people with expertise in field artillery — to provide services to PRB in the field of test evaluation and engineering. The second reason was that PRB at that time had an agreement with the (Canadian) government whereby they would provide technology on ERFB (Extended Range, Full Bore) shell technology in return for access to ranges. It was a way to officialize PRB's presence in Canada." Janiga defined the third reason as, "maybe my own invention but it did provide liaison between DND and PRB, as opposed to having some agent sitting in Ottawa."

When asked if they provided any services in the field of range management Janiga said, "We have offered services. In fact, we've provided services to PRB to look for ranges, to establish ranges outside of Canada... At one time PRB needed ranges outside of Belgium for long range projec


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tiles... We investigated for them two or three sites to see whether they would be suitable for this type of work. Now in Canada we also attempt to officially provide this service... We participated in the evaluation of certain sites for this type of testing. But I would have to stress this was not done under contract... but on an off-the-record type of... informal basis."

When queried about Belcan's unsuccessful attempts in 1986-87 to set up ranges at St. Ann du Lac and Highwater, Quebec, the last on a site which once housed Gerry Bull's SRC test and manufacturing headquarters he replied, "The first one you mentioned — the difficulty there I think was the location which was too close to a tourist area. And I think the environmental impact question had not been appropriately addressed... I don't think we anticipated the local people's resistance to such an enterprise in their area. As for the one in Highwater, I think that one was really bad timing... When we started doing the study it looked like a great idea. By the time we were ready to do something about it, both PRB and Canadian Arsenals at that time did not have any business left. There also was the environmental impact... The problems surfaced, but in that particular case we did our homework and I think we would have had problems in meeting the environmental department's noise requirements."

Local resistance to the PRB purchase of the Highwater site was joined by members of Gerald Bull's family. (After the 1980 bankruptcy of SRC-Quebec due to the guns to South Africa affair, the site was sold to an Arab businessman except for a 200-acre property containing a house owned by Gerry Bull and his wife Mimi. Due to what they see as inequities in Bull's treatment by PRB over their co-ownership of Belgian-based SRC International, the family is not a great fan of the company.) Janiga said, "Yeah, well Mrs. Bull at that time opposed it because she felt that it would hamper development of the area. It was going to be too noisy."

On the business side, Belcan has no contracts to provide services to DND at present. Indeed, Janiga points out that the "one contract we've had with DND since we've been established (was) to provide an artillery training aid." Indeed, Belcan has more often been a paid user of DND artillery facilities at Gagetown, New Brunswick, Valcartier and Nicolet, Quebec and Suffield, Alberta. (As well, Belcan has had use of American range facilities, those of PRB at Laulille and Matagne, Belgium, as well as various other ranges abroad.) When asked about the nature of their access to Canadian range facilities Janiga replied, "There is no arrangement anymore since 1987. Today, we don't have any type of preferred access... What we do is request access to the range and if the access is provided for we pay the government..."

As a result of the demise of PRB in Belgium, the company's ownership has changed and it has a future that Janiga feels in some ways will be more productive than in the past. As he put it, "The reorganization is already finished. Before PRB's bankruptcy, there were several companies that looked at PRB to see if they were interested in purchasing it. One of them at that time was GIAT Industries Group. (GIAT is a French armaments conglomerate.) In August of this year we got acquired by Luchaire Defence. (Luchaire is a subsidiary of GIAT and specializes in the production of shells, propellants and explosives.) At the same time, GIAT purchased PRB's technology and the trademarks of PRB. There is today a new PRB, SN (Société Nouvelle) PRB." Janiga stressed that Belcan is now 100 percent owned by Luchaire Defence and that is how it relates to the GIAT group.

When asked if he saw a viable future for the company in Canada in the coming decade he responded, "Yes I do, but it's a very difficult future. I think we have a capacity to offer an independent test and evaluation service as well as engineering development services. We have a seasoned team of people on the test and evaluation side. On the engineering side, although we've had to downsize the company (five out of 15 employees, all from the engineering department in Knowlton, Quebec), we can show a certain expertise... Just look at our ERFB 155mm cargo round which was developed in our premises. I'm not saying we did it all alone. We had help, some of it from PRB. We had help from DND in terms of range access. Nevertheless, we were the principal investigators." In describing the product he said, "It's a round that carries dual purpose submunitions."

On future prospects for the reborn company and any possible niche it may find in supply of services and equipment to DND in the coming decade Janiga said he was bringing out his crystal ball and that it all "depends on how government policy evolves in rapidly changing times and circumstances... Roles will be different — how different, no one knows." But Janiga points out that the company doesn't have to "depend on DND for survival. We would like to service DND. If 20 percent of our business came from DND, that would be great. However, we are now part of an enormous group, GIAT Industries. I think that they are our main clients... We ought to be able to find our means of survival from that client."

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GEC Ferranti is shortly to deliver the tenth and final development model of the Blue Kestrel radar. This model, destined for EMC testing at a GEC Ferranti facility in Edinburgh, marks the final phase of an extremely extensive test and validation programme.

Blue Kestrel is the radar developed under a U.K. MoD contract for the Merlin, the Royal Navy's Anti-Submarine Warfare (ASW) version of the EH101. A variant of this radar, Blue Kestrel II, which has only minor modifications to reflect specific Canadian requirements is being offered by GEC Ferranti for the NSA programme.

The Blue Kestrel radar is currently flying in a pre-production EH101 carrying out system integration and performance verification trials. Prior to this, GEC Ferranti has achieved many thousands of hours' experience operating Blue Kestrel in a variety of ground test and integration rigs and several hundred flying hours in trials helicopters. Two Sea King helicopters were specially modified to house the Blue Kestrel radar and a GEC Ferranti designed suite of digital airborne instrumentation. This equipment was used to record raw and processed video in real time.

The resulting data base enabled GEC Ferranti to re-run trials in the laboratory using a ground replay facility. This approach permitted assessment and optimization of signal processing algorithms and minimized the downtime spent modifying software. The knowledge gained from this rigorous trials programme and integrating and flying the radar in the EH101 is the basis of GEC Ferranti's confidence that Blue Kestrel is the low risk solution for the NSA programme.

GEC Ferranti's expertise in the design, development and production of advanced military radars was further acknowledged in May with the award of a contract for the development of the multi-mode, pulse doppler, fire control radar for the European Fighter Aircraft. In the field of maritime surveillance radar, the U.K. MoD has contracted GEC Ferranti to undertake a study into the application of coherent radar for helicopters and a subsequent demonstrator programme. If the specific problems posed by operating coherent radar in a helicopter can be solved, then the benefits of processing the doppler shifted returns can include such functions as moving target indication, high resolution mapping and target identification. GEC Ferranti executives believe that future users of sophisticated ASW and Anti-Surface Vessel maritime helicopters will require the benefits of such improved operational capabilities in radar sensors. They say that Blue Kestrel has both the architecture and pre-planned development potential to permit future technological advances to be incorporated into the present design to later be exploited for meeting changes in the operational environment and revised performance requirements throughout its in-service life.

Within the GEC Ferranti proposal is a commitment for the provision of extensive Industrial Regional Benefits (IRBs) based on high technology work in design, development and manufacture of the Blue Kestrel radar with in-service support activities centred on a Canadian company. There will also be opportunities to participate in sales to further countries.

GEC Ferranti is currently having discussions with a number of companies located throughout Canada to finalize this package. As far as possible, these companies have been selected from those regions in the west which have been least favoured by the distribution of high technology, defence related work. These include SED Systems of Saskatoon which would be responsible for the integration and test of the complete radar system prior to delivery, as well as in-service support.

The value of the IRB package has been enhanced by linking the NSA and RN Blue Kestrel programmes to realize the benefits of commonality including economy of scale in production, pooling of spares, support documentation and test resources with a significant reduction in non-recurring costs which make Blue Kestrel II a very cost effective solution for the NSA requirement.


The AN/ARN-152 version of the CMA-2000 MLS receiver — developed for the U.S. Air Force CMLSA programme by Canadian Marconi — has been awarded a Technical Standard Order C104 (TSO) by the U.S. Federal Aviation Authority (FAA). The TSO certifies the system for use in the U.S. and other major countries and is the result of rigorous testing carried out by CMC under Transport Canada supervision on behalf of the FAA.


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The CANAC/Microtel consortium based in Coquitlam, B.C. will receive $664,500 from the Western Diversification Fund. Under the Quality Assurance Programme, CANAC/Microtel will receive $26,500 — of which $20,000 is non-refundable — to obtain AQAP-1 certification. The remaining $638,000 will be used to study the feasibility of supplying a turnkey Sea Surveillance System to Malaysia to monitor vessel traffic in Malaysian coastal waters.

CANAC/Microtel, primarily a systems integrator, is a joint venture formed by CANAC International Inc., the contracting arm of the Canadian National Railway Company of Montreal and Microtel Limited, part of the B.C. Tel Group of Vancouver.


Varig Airlines of Brazil recently announced a decision to fit its fleet of Boeing 727 and 737 aircraft with the CMA-771 "Alpha" Omega/VLF Navigation System produced by Canadian Marconi Company (CMC) of Montreal, Quebec. Varig has ordered a total of 46 systems valued at approximately $2 million, with deliveries due to start in December.

The CMA-771 has a storage capacity of up to 4,000 waypoints and 1,800 identifiers and features a Control-Display Unit with push-button data entry and a two-line alphanumeric display. Varig chose the CMA-771 system because of its proven record of high accuracy and reliability and its ability to be retrofitted with the new built-in GPS navigation capability that CMC is now offering for the system. Varig also draws from its own experience with other CMC Omega systems on its B-707, DC-10 and A-300 fleets. CMC has delivered over 4,000 Omega Navigation Systems to customers in over 85 countries.


Canadian Marconi has announced the availability of full production standard CMA-2100 High Gain Satellite Communications Antenna equipment. This announcement followed delivery of the first "black label" units to Qantas Airways on October 12 for installation on its B747-400 aircraft, marking the culmination of a three-year development programme. The CMA-2100 features easier installation, superior low-elevation performance and the absence of "keyholes" that can severely limit coverage for other antenna types. The CMA-2100 has now been selected by eight airlines to form part of an integrated airborne ARINC 741 terminal.


Doug Belliveau, formerly of CFN Consultants, has created an independent consultancy in Australia where he plans to provide a range of consulting services to clients here and there. According to Doug, who has two Canadian partners, his services will include: company representation, proposal and response preparation, management, logistics and engineering services, teaming and joint venture planning, project management, ADP project services, corporate travel management, import/export services and more. Doug's firm has offices in Sydney and Canberra from where his major focus will be on the Pacific Rim "as the focal point of the decade". Belliveau told The Wednesday Report, "We are here to assist in business endeavours which flow between North America, Australia and the Pacific Rim."


Arosan Enterprises Ltd. of Toronto has been awarded a $14.4 million contract by the Department of National Defence to construct 16 new ammunition storage magazines at Canadian Forces Ammunition Depot Angus, located at CFB Borden, Ontario. Construction will begin shortly and is expected to be completed by March 1992. The depot is one of four principal storage and maintenance facilities for military ammunition and explosives in Canada.

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Canopus Leasing, an affiliate of the AGES (Air/Ground Equipment Sales) Company of West Babylon, New York has placed a follow-on order for two 50/56-passenger Dash 8 Series 300s from Boeing Canada, de Havilland Division. The new order brings to six the number of Dash 8 Series 300s ordered by the AGES affiliates.

ALM Antillean Airlines has leased two Series 300s from the AGES group of companies to replace F-27s on the airline's scheduled services from Curacao to Bonaire, Aruba and the Venezuelan cities of Valencia and Caracas. The Dash 8s also complement a fleet of three MD82s which provide services throughout the rest of the Caribbean and to North America. ALM is the first airline to offer Dash 8 Series 300 service into South America and third in the Caribbean to add the aircraft to its fleet. Other AGES and affiliates locations in the United States include California, Florida, Illinois and Texas, as well as facilities in England, Israel, Singapore and Canada.


Tyrolean Airways based in Innsbruck, Austria recently announced a follow-on order for Dash 8 aircraft with Boeing Canada, de Havilland Division. The order calls for two 37-passenger aircraft and two 50-passenger Series 300s previously ordered for Tyrolean's own use, plus one Series 100 and one Series 300 for Tyrolean's leasing business, Elveden Investments of Dublin, Ireland. The orders are valued at approximately $51 million (U.S.).

With this contract, Tyrolean becomes the launch customer for the uprated PW123B engine option on the Dash 8 Series 300A. Tyrolean was the first airline in Europe to introduce the Dash 8 Series 100 and currently operates six — one of which is on lease to Germany's Contact Air. One aircraft from the new order is to be leased to Interflug of Berlin, Germany, the 10th European carrier to select the Dash 8. The Interflug Dash 8 will utilize Tyrolean flight and maintenance crews in scheduled services from Berlin to Warsaw, Prague and Copenhagen.


CAE-owned Link Tactical Operation of Silver Spring, Maryland has been awarded a $14.1 million contract to develop a combat information centre training simulator for the Belgium Armed Forces' NATO minehunter class ships. Operators and command teams will train for sonar detection, classification, mine identification and neutralization, radar navigation, autopilot systems handling and control of automatic data processing systems. The simulator will be delivered to the Belgian-Netherlands Mine Warfare School in Ostend.

NOMINEES sought for outstanding innovation awards

The Ernest C. Manning Awards Foundation has been presenting cash awards to Canada's outstanding innovators for 9 years. Nominations for 1991 are being sought from coast to coast in the tenth year of the programme to recognize and encourage Canadians who have conceived and developed new concepts, procedures, processes or products of benefit to Canada and the world. A total of $160,000 will be presented next year — the $100,000 Principal Award, two $25,000 Awards of Distinction and two $5,000 Innovation Prizes. Nominations for next year's competition close on February 15, 1991 and nominees must be Canadian citizens residing in Canada. For further information write to: The Manning Awards, 2300 - 639 Fifth Avenue S.W., Calgary, AB, T2P 0M9.


Intergraph Canada Ltd. has introduced the Series 2000 as an entry level workstation family offering high performance at low cost and full binary compatibility with other Intergraph workstations. At a cost of $28,100, the standard Series 2000 workstations feature 19" high resolution, colour screen; 12.5 MIPS RISC processor; 16 megabyte memory (expandable); 200 megabyte hard disk drive; 1.4 megabyte floppy disk drive; and the UNIX System V Release 3.1 operating system.


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Janaury 11, 1991 — The Aerospace Industries Association of Canada (AIAC) will host its annual Post-Christmas Reception to be held at the Ottawa Congress Centre between 7:00 pm and 8:30 pm. Mess kit and black tie dress are optional. Admission is to invited guests only. Invitees are reminded to R.S.V.P. to the AIAC, (613) 232-4297.

February 5, 1991 — The fall 1990 meeting of the Forum for Industrial Participation (formerly CIBA) will be held at the Ottawa Congress Centre from 8:30 am to 3:30 pm and is open to all who wish to attend. The charges (including lunch) for non-members are $120.00 for private sector and $75.00 for public sector non-members. For further information contact Bob Brown at (613) 733-0704.

May 6-7, 1991 — The 38th Annual General Meeting of the Canadian Aeronautics and Space Institute will be held at the Chateau Champlain Hotel in Montreal, Quebec. The meeting will feature a lecture from an outstanding member in the scientific or engineering fields of aeronautics, space or associated technologies; symposiums based on papers; will recognize and reward industry leaders; and discuss the future of CASI. For further information contact the Conference Coordinator at (613) 234-0191.

CASI call for papers: In conjunction with the meeting, CASI has issued a call for papers for two symposium topics including Advanced Technology General Aviation Aircraft, and Simulation and Training. Each symposium has its own specifics regarding guidelines for papers. For additional information on the Advanced Technology, General Aviation Aircraft Symposium contact Mr. D.W. Laurie-Lean at (613) 992-8938; and for the Simulation and Training Symposium, Mr. Phil D'Eon (416) 792-1981. The meeting will also include a symposium on Aerospace Propulsion which will be based on invited papers.

May 13-16, 1991 — The fourth European Aerospace Conference will be held at the Maison de la Chimie in Paris. The Association Aéronautique et Astronautique of France, Germany's Deutsche Gesellschaft für Luft-und Raumfahrt and the Royal Aeronautical Society are organizing the conference which will deal primarily with "Launch Bases" and "Satellite Control Systems". Separate symposia will be organized around each topic. This conference, to be attended by well-known specialists, will provide an opportunity to national and multinational agencies, manufacturers, operators and researchers who design, produce, manage or use these large launch and control infrastructures to exchange information and views.

Warning: The Wednesday Report is protected by copyright. No reproduction of any kind is permitted without the consent of the publisher. Violation of The Wednesday Report's copyrights may render you liable (c.15, 1988 — Copyright Amendment Act) to a summary conviction and to a fine not exceeding $25,000 or to imprisonment for a term not to exceed six months, or both; and on indictment, to a fine not exceeding $1 million or to imprisonment for a term not to exceed five years, or both.

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