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The Wednesday Report
Canada's Aerospace and Defence Weekly
Volume 7, Number 1 January 6, 1993


1) Canada has been heard on the subject of armed intervention in Bosnia-Hercegovina. Mulroney gave the high sign last December. 2) Correspondingly, just before Christmas, a 900-strong Canadian troop contingent was rejected by Serbs from the Serb-controlled town of Banja Luka, Bosnia and an advance party of troops there had to be withdrawn to Lipik in Croatia, the main body then sent to Macedonia -- all because of Serb concern that the presence of the Canadians might be a front for impending Western military intervention. 3) Meanwhile Britain has warned that its hard line against intervention has been eroded, softened by the "bloody-minded cruelty" of the Serbs. It is by these three moves at the end of 1992 -- done by Canada, Serbia and Britain -- that Canada bid into an incipient Balkan War in ’93. One that will continue through most of the ’90s. Welcome aboard, Kim Campbell.

All the while we are contemplating a definition for the ’90s, we are thundering through the period at breakneck speed. It’s 1993 already, my friend. Welcome to the nasty ’90s -- for that’s what it’s all about -- a fast-moving, mean decade during which it may be easier to reflect on what has happened than predict what is yet to be. Don’t let that shake you. 
Despite the pace of changing events being a crazy, runaway roller-coaster, your employees, managers and customers alike are coming to grips with what is happening. Many have reached for the grab-strap of traditional values. And yes, that’s another way of saying that "everything has changed but nothing is different". Looking around the world the focus seems to be shifting back to PEOPLE and their needs and cares. The U.S. election of liberal-minded Bill Clinton with his people-programmes is one proof of that, but there is more. The population of the industrialized world seems more intent on the human condition in the Third World than ever before in history. Unions are again building momentum and in some provinces of Canada, particularly Ontario, they are controlling the legislative agenda. Meanwhile, across the land, social welfare is generally more of a concern than perhaps it need be. 
We don’t think any Canadian politician will remain elected past this new year without a people-oriented agenda. We consequently must wonder if that will be true in a similar fashion for industry and its leaders. When the computers and machinery of industry are turned off at the end of a day’s work, your assets walk out the employees’ door and your net worth as a producer goes to zero until the next shift walks in -- maybe tomorrow at the start of the day. 
Here’s the point. In our industries it has always been true that it’s people that make the difference. That may not be news, but as we lunge through the ’90s it is worth remembering that people are the constant we can rely on. Take care of your people -- employees, managers, customers -- and everything else will take care of itself. Happy New Year. --Ed. & Staff of The Wednesday Report

We say farewell and good luck to the recent-past Minister of National Defence, the Honourable Marcel Masse. He gave it a better shot than most people realize and certainly he must have cared more than what we ever gave him credit for. Nonetheless, we could not have done better in his replacement. You probably can’t help wonder why after getting bombed in the last Cabinet shuffle. Despite its being a political thing, the reasons behind Campbell’s appointment to Minister of National Defence on Monday are of little concern. We’ll take the gift. 
A graduate of the University of British Columbia, fluent in English, Russian and French, Campbell studied Soviet affairs at the London School of Economics before teaching political science at the UBC. Campbell entered politics in 1986 as a member of the B.C. Legislature. She entered the House of Commons after winning her Vancouver Centre riding in the November 1988 federal election. From the outset, she entered Cabinet -- with golden hair in the eyes of the PM -- as the Minister of State for Indian Affairs. 
Born in 1947, Campbell, like a vast majority of Canadian politicians, is a lawyer. She is married to a lawyer (now separated) and has been Canada’s number one lawyer as Justice Minister since February 1990. That makes her a pretty traditional politician in every sense. But with Campbell there’s a difference. 
During the recent unity/referendum debate it was Campbell who media wags counted on to make the most sense of the whole affair and her recent handling of the silly "Madonna" flap was brilliant. Her hands-on management of crisis-issues such as gun control, gay rights, and women’s issues such as abortion and rape while in the Justice portfolio was masterful -- not to say overall that justice in Canada is any better, it certainly isn’t, but she was more than just another passing face through the portfolio.
Today Kim Campbell is Minister of National Defence. Today, while Canada is still pretty much sleeping off a much-needed holiday, the country is pointing into a war in the Balkans while our military is so thin on the ground in terms of combat arms soldiers that we have to extract our serving men and women from Cyprus just to bring the ends of our commitment/capability gap a little closer. 
We predict that Kim Campbell will assist Prime Minister Brian Mulroney in fulfilling some of his foreign policy goals; rearrange (at the least) or completely overhaul (at best) the monstrous bureaucracy of DND; finally unfreeze the stunned, post-Cold War department; and bring considerable clout for defence to the national Cabinet. We doubt she’ll tackle the redundant infrastructure burden. On the political side of the coin, Campbell will set out to appease core Conservative supporters from a platform portfolio that sits front and centre within the most conservative faction of Canadian society. There is an election in the wind and the barometric pressure on the Tory leadership is rising. The Tory Party must motivate its hard-working, bread-and-butter conservative core for the tough jobs ahead. So for the next nine months or so, defence has a shot at the brass ring. 
Mike O’Brien

A Ministerial Committee on Canadian Military Colleges has been created to assist Canada’s military colleges in responding to defence policy and the evolving educational needs of the Canadian Forces. The committee is chaired by Pierre Martin, president of Générale Immobilière (Montréal-Paris) Inc. and also includes three committee members: Dr. Ronald J. Baker, President Emeritus of the University of Prince Edward Island; Norman A. Ross, owner and director of a placer operation in Dominion Creek, Yukon; and Dr. Harriet Critchley, Professor and Programme Director of Strategic Studies at the University of Calgary.
The committee’s mandate is to examine 1) the desirability and utility of restructuring the colleges under the umbrella of a Canadian Military University, including infrastructure and personnel resources required; 2) the feasibility of a better linkage between the proposed Canadian Military University, and the current Canadian Forces Colleges and the National Defence College; 3) the implications from 1) and 2) relative to the university charters; 4) the academic specialities and responsibilities for each college within the proposed model; 5) the necessary means required to achieve integral bilingualism by the officer cadets, including the requirement for bilingual staff; 6) the optimal use of the military college resources to attain their maximum productivity and efficiency; 7) the R&D requirements of DND and the role the colleges can play in this regard; 8) measures required to promote relations between the military colleges, other universities and industry; and 9) the athletic programme. The committee will table its recommendations by April 15.

In a pre-taped Christmas TV-interview, Prime Minister Brian Mulroney called for an international naval blockade of Haiti to bring down the military dictatorship there. The PM insisted that Canada, the United States, France and Venezuela could and should comprise the core of nations enforcing the blockade. Mulroney also wants the U.N. Security Council to address the matter and help the Haitian population restore democracy to the troubled Caribbean state. The democratically elected government of President Jean-Bertrand Aristide was overthrown in a September 30, 1991 military coup.

The McDonnell Douglas MD 520N NOTAR (no tail rotor) helicopter test-flown by The Wednesday Report in the fall of 1991 has since fulfilled our prophecies by becoming a popular choice for law enforcement agencies. The unique helicopter features all of the utility, speed and efficiency of the 500 family but with an added edge -- its revolutionary NOTAR anti-torque system enables the machine to fly without a conventional tail rotor and without all of the hazards and encumbrances associated with the conventional design. The company claims it also makes the helicopter 50 percent quieter than its nearest competition. Recently, in California, four law enforcement agencies added what probably is indeed the world’s quietest helicopter to their aerial support units. (See The Wednesday Report, September 16, 1992, "MD 520N Helicopter Sets Paris-London Speed Record". Also October 16, 1991, "No Tail For MD 520N Drivers" and "Pilot Report: Flying The NOTAR 520N".) 
These four agencies represent a growing number of law enforcement agencies across the United States that continue to select MD 500 series helicopters for law enforcement patrol duties. Police departments in Huntington Beach, Glendale and Burbank have already taken delivery of their new MD 520Ns. The San Jose Police Department will accept its new MD 520N in Mesa within a few weeks. Additionally, the conventional members of the 500 family remain popular. The Oakland Police Department is adding its second MD 500E for patrol in Northern California and the Puerto Rico Police Department shortly will take delivery of its second and third MD 500Es. In all, some 50 law enforcement agencies worldwide fly McDonnell Douglas helicopters.

A settlement has been reached between MIL Davie Inc., a member of The MIL Group, and Saint John Shipbuilding Limited (SJSL) regarding the MIL subcontract for the construction of three frigates within the framework of the Canadian Patrol Frigate (CPF) project. The documents were signed at the MIL Davie shipyard in Lévis, Quebec on December 17, marking an end to negotiations which had been under way since April 1992. The agreement, conditional on its acceptance by the federal government, settles the various suits brought against SJSL by MIL and those brought against MIL by SJSL (see The Wednesday Report, April 24, 1991, page 4, "DND’s Naval Overhaul Projects Take To The Courts"). It also provides a contractual framework for the completion of the three frigates at the MIL Davie shipyard.

IBM has awarded a multi-million pound contract to GEC Ferranti in Edinburgh for the production of the GEC "Blue Kestrel" radar for the Royal Navy’s EH101 Merlin helicopter programme. The Blue Kestrel prototype development programme was awarded to GEC Ferranti in the mid 1980s and full flying standard models have since achieved thousands of hours in testing, flying in Sea King helicopters and in a pre-production EH101 (see November 28, 1990, page 4, "Profile: Blue Kestrel Vies For Position On EH101").

The federal government will contribute $8,774,633 to COM DEV of Cambridge, Ontario for a research and development project in support of the "Investing in Growth" initiative within the government’s Economic and Fiscal Statement of December 2, 1992. The development programme will advance COM DEV’s capabilities in space-based Ka-band technology and intersatellite communications and will continue the development of highly efficient design and production techniques required to meet the demands of the next generation of mobile communications satellites. It will lead to the creation of 10 new jobs as well as the maintenance of 10 other jobs and will generate incremental sales of $160 million over seven years. The project will proceed under the terms of the Defence Industry Productivity Programme (DIPP).

Zenon Environmental Systems Inc. has been awarded a contract to provide a large capacity mobile reverse osmosis (RO) water purification unit to the Canadian Forces’ relief effort ongoing in Somalia. The Zenon unit is supplying up to 75,000 liters of safe drinking water per day to the 1,300 CF personnel operating in Mogadishu. It is totally self-contained and includes all the necessary spare parts and consumable materials to facilitate operation in this remote area of Africa. Zenon was also responsible for setting up the system, training CF personnel and will service the unit while it is in Somalia. Personnel from Zenon’s facilities in Burlington, Ontario and Edmonton, Alberta are participating in the mission.


On Monday, AlliedSignal Inc. unveiled a new corporate identity designed to unify and strengthen the company’s image among employees, customers, suppliers and investors. The new logo, which retains the original "tri-mark", joins the words "Allied" and "Signal" to form one word, on one line. The company’s operations in Rexdale, Ontario, previously operating under the Garrett Canada banner as a unit of Allied-Signal Aerospace Canada, will now be singularly identified as AlliedSignal Aerospace Canada. Montreal-based Bendix Avelex Inc., a unit of Allied-Signal Aerospace Canada, will now be called AlliedSignal Aerospatiale Canada Inc., a unit of AlliedSignal Aerospace Canada.

McDonnell Douglas Corporation announced Monday that it has agreed in principle to sell its information technology business. McDonnell Douglas Information Systems International headquartered in Hemel Hempstead, United Kingdom will be sold to a group of investors organized by Baring Capital Investors Limited, London, in the early part of the first quarter of 1993.
The subsidiary provides "total systems solutions" to its customers which include hardware, software and support services to meet their information systems requirements. These customers are principally located in Europe, where the business is focused on a number of niche markets including: Health, Police, Central and Local Government, Commercial, Industrial and Financial sectors. In recent years the division has consistently recorded profits on annual revenues of about 180 million pounds sterling.
"This decision is part of the continuing actions we are taking to restructure, streamline and sharpen our business focus," said McDonnell Douglas Executive Vice President and Chief Financial Officer Herbert J. Lanese.
"Our strategy is to concentrate on our principal aerospace business, where we are -- or can become -- the number one or number two company worldwide. We believe that the proposed sale to the group organized by Baring Capital Investors Limited enhances McDonnell Douglas Information Systems International’s future potential."
McDonnell Douglas Information Systems International operates from many sites in the United Kingdom, Continental Europe and the Pacific Rim. Around 1,800 people are employed within the business, of which approximately 1,300 are based in the United Kingdom. The unit began a planned phase out of its own hardware manufacture in 1989 in order to focus on software and support services. In 1992 about 70 percent of the hardware supplied to its customers was sourced from outside manufacturers. The subsidiary is an unincorporated division of McDonnell Douglas Corporation. It was acquired by McDonnell Douglas Corporation in 1979. It is the only remaining operation from McDonnell Douglas Corporation’s commercial information systems activities.

The sophisticated yet friendly design of the Boeing 777 flight deck earned its Daedalus/Boeing design team a Silver Award for Innovation at the recent "DesignAire ’92" awards competition. The annual DesignAire "Excellence in Completion Design Awards" recognizes aircraft interior design innovators. The competition is a forum for excellence in this specialized niche of the aerospace industry and is produced by the publisher of the DesignAire Directory, based in Orlando, Florida.
Comprised of Thomas White and Miguel Remedios of Daedalus, and Chris Lagerberg and Grace Wong of Boeing, the team was singled out for its use of innovative ergonomics to achieve a flight deck that is "truly designed to meet the pilots’ comfort and efficiency," said White, president of Daedalus. The design of the flight deck includes a more modern environment that provides greater comfort for the flight crew, following the industry-wide trend to improve crew workstations on commercial aircraft.
"Just as a business CEO relies on a well-planned office, pilots and flight crews need a comfortable working environment to augment their efficiency," noted White. "With the 777, we constructed an ‘office’ that better serves the pilots’ needs and requirements."
Other 777 flight deck design innovations include the instrument panel, glare shield, side and centre consoles, seating, and the pilot’s interaction with controls. Daedalus worked on the project with the Advanced Flight Deck Group, part of Boeing Commercial Airplane’s Advanced Programmes Division.
Daedalus has also designed new flight attendant rest quarters for the Boeing 747, soon to be incorporated into production aircraft. According to the company, the airline industry’s response to their design has been so enthusiastic, Daedalus has applied for a patent on its concepts so that they can be modified for other aircraft types. Based near Boeing in Issaquah, Washington, Daedalus Inc. specializes in human-interface products for the aerospace and other high technology sectors. 

Raytheon Company’s (U.S.) Electromagnetic Systems Division in Goleta, California has been awarded a $23.5 million contract for AN/SLQ-32 shipboard electronic warfare systems. The defence and electronics giant won the major share of the competitive award, having been chosen by the Naval Sea Systems Command to supply eight of the 11 systems. The contract also includes an option for a ninth system.
The AN/SLQ-32 is the principal electronic warfare system carried aboard major U.S. Navy surface ships. The system is used to detect and jam radar-guided antiship missiles and targeting radars. To date, the U.S. Navy has ordered 428 systems from Raytheon with a total value of $1.5 billion, with new ship construction furnishing a production potential of more than 30 additional systems over the next five years. Since the Navy decided to award AN/SLQ-32 contracts competitively in 1989, Raytheon has won 40 of the 57 systems subsequently awarded. Over the same period, Raytheon has won $31.9 million of a total of $32.1 million awarded for spares and improvements introduced to meet new and emerging threats to the Navy’s surface fleet.

IBM Canada Ltd. in Ottawa received a $1,402,261 contract to provide DND with computer maintenance services on existing IBM equipment until July 31, 1994.
Valcom Ltd. in Ottawa won a $1,563,961 contract to provide DND with technical investigations and engineering support (TIES) as well as project management services. The contract maintains three jobs until March 31, 1995.
J.A. Wilson Consulting Inc. of Ottawa won a $659,519 contract to provide DND with translation services for technical publications. The contract creates six jobs and runs until August 14, 1994.
Fullerton, Sherwood Engineering Ltd. of Mississauga received a $523,490 contract to design, develop and supply DND with a regulator for a diver’s air-breathing apparatus which can operate in sub-zero temperatures. The contract maintains two jobs until July 15, 1995.
Learning Tree International of Gloucester won a $284,000 contract to provide DND with specialized software training. The contract runs until July 31, 1994, with a one-year renewal option.

Field Aviation West Ltd. of Calgary, Alberta won a $5,455,866 contract to repair and overhaul aircraft components for DND. The contract maintains 11 jobs until March 31, 1995.
MacDonald Dettwiler of Richmond, British Columbia won a $1,070,000 contract to conduct a study that will define and provide a cost estimate of an Arctic sub-surface surveillance system for DND. Work under the contract will be completed by July.
Peerless Garments Ltd. of Winnipeg, Manitoba received a $999,915 contract amendment to supply DND with cold and wet weather clothing. Delivery was to have been completed by yesterday.
Hughes Aircraft Canada Ltd. in Calgary received a $472,550 contract to provide DND with a field service representative for a radar system at its Ottawa headquarters. The contract maintains one job until September 30, 1995.
Itres Research Ltd. of Calgary received a $417,994 contract to study remote minefield detection for DND until August 31, 1995.
Twilite Security Ltd. of Yellowknife, NWT received a $290,569 contract to provide DND with security services at the Northern Region Headquarters. The contract maintains four jobs until August 31, 1994.
Robotech Industries Ltd. of Calgary won a $123,047 contract to design and develop a robot for DND which will handle hazardous materials. Work under the contract will be completed by the end of the month.
Combustion Dynamics Ltd. of Medicine Hat, Alberta received a $90,949 contract to research the use of different fuels in explosive devices for DND until March 31.

Washburn & Gillis Associates Ltd. of Fredericton, New Brunswick won a $304,054 contract to conduct an environmental assessment of training exercises and activities as well as a natural resources management study at CFB Gagetown. Work under the contract maintains three jobs until March 31.

Mésotec Inc. of Sherbrooke, Quebec will receive a repayable federal contribution of $475,000 under the Defence Industry Productivity Programme (DIPP) for a project to modernize its operations. The company will commit an additional $475,000 to acquire advanced production equipment including a CAD/CAM system, high speed machining centre and numeric controlled inspection system for manufacturing components for the aeronautics and electronics industries. Up to five high quality jobs will be created in the initial stages of the project which is expected to generate incremental sales of $3.5 million in its first three years. Mésotec is a supplier to high technology firms in Canada such as Pratt & Whitney, Canadair, Bell and General Electric.

The Canadian Commercial Corporation (CCC) -- which contracts on behalf of Canadian suppliers with foreign governments -- has been awarded a $116 million contract for the supply of Light Armoured Vehicles (LAVs) to Australia over a three-year period. Diesel Division, General Motors of Canada Limited, the CCC’s subcontractor, will undertake the fulfilment of the contract which is expected to generate more than 170 person-years of work at the Division’s plant in London, Ontario. More than 150 suppliers across Canada will also participate in the project. GM’s Diesel Division has been producing LAVs since 1977.

Bristol Aerospace Limited, a Rolls-Royce company, has won a contract from the Canadian Commercial Corporation (CCC) for the supply of booster rocket motors used to launch the CL-289 Reconnaissance Drone deployed by the German Army. The $22 million contract, under which deliveries will span a three-year period, is a follow-on production order to previous smaller orders. Bristol’s Propellant Plant in Rockwood, Manitoba will manufacture the rocket motors. The CL-289 Drone System was developed jointly by Canadair and Dornier GmbH of Germany, with Société Anonyme de Télécommunications (SAT) of France providing the optronic system.