While small enterprise advocates cry about the lack of development and risk money for small businesses, lo and behold, Allan Taylor of the Royal Bank — that quintessential institution that has likely screwed more small businesses out of existence than any blight, famine or federal policy — is embarrassed by his company's $1 billion profit in the current fiscal year. This blush was equalled only once before, in 1991, when the fat, red-faced Royal came close to the billion mark just as the country writhed to its collective knees in the death grip of a wicked recession.

The left-wing media is bellyaching because it thinks the CSE (actually a highly respectable bunch of signals-intel. folks — Communications Security Establishment) listened to Quebec separatists plotting with France in the 1970s. (Jacques Parizeau demands a royal commission to probe the CSE and hear what the CSE listens to. Ha. Ha. As if he doesn't know.)

In a recent publication of the Ontario government, Topical, the pink palace of socialist passion classified 51 percent of the population as a minority group: women.

And that's the news, in brief.

Now for the bad news.

None of this compares to the ultimate smack in the face with the last Atlantic cod: Hockey Night In Canada is still off the air.

Micheal J. O'Brien


Canada's Aerospace & Defence Weekly

Volume 8, Number 28 October 26, 1994


What's wrong with this country?

Self-serving climber Jacques Parizeau says he wants to keep the military college in Saint Jean-sur-Richelieu to train a sovereign Quebec's army.

Crusader Lucien Bouchard says he will not accept a "No" majority in a Quebec referendum.

Our central government is divided into two parts. A governing political Party representative of TROC; and an official opposition Party representing Quebec.

Finance Minister Paul Martin says we are up against the debt wall.

Jean Chretien says he is optimistic the economy would be fine if Canada didn't suffer the perceptual malaise of political instability.

A growing throng of whiners — mostly so-called new Canadians but with a heaping helping of chronic indigenous deadbeat hosers — are moaning in fear of losing that seemingly indefatigable noose around our collective necks, our social welfare programmes. And by the way, after hearing that the United Nations has declared Canada to be the best place on earth to live, throngs of other prospective whiners are booking their flights to de-privatized Lester B. Pearson International as you read this.


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By Tuesday night there was no major breakthrough on NATO/U.N. policy on aerial bombardment of Bosnian targets. As reported last week in The Wednesday Report, NATO and U.N. officials are debating a NATO suggestion that the two bodies agree on four target options and allow pilots the final decision. The two are also arguing the issue of punitive strikes versus strategic air strikes and in many respects are each seeking to control future military activity in Bosnia. A committee of five nations continues debate today in New York.

The overall committee is comprised of the U.S., France, Britain, Germany and Russia. The United Nations is represented at the talks by French General Bertrand de Lapresle, the UNPROFOR commander; Kofi Annan, the under-secretary-general for peacekeeping; and Marrack Goulding, the under-secretary-general for political affairs. The six-man NATO team is led by Anthony Cragg, the assistant secretary-general for defence planning; and Gregory Schulte, the director of defence planning.

U.N. Secretary-General Boutros-Ghali, in a British Broadcast

ing Corporation interview yesterday maintained that, "The air power is there to protect peacekeeping forces on the ground and not to punish. There are two different philosophical approaches." His remarks seem to indicate continued stalemate. Talks are scheduled to end today.


Lord Strathcona's Horse (Royal Canadians), commanded by Lieutenant-Colonel Raymond Wlasichuk, are returning to Canada this week from Bosnia where they served for the past six months as CANBAT 2 in the Visoko area. During their final weeks in UNPROFOR, the Strathconas endured a number of firing incidents. In one of them, on October 2, a member of the regiment, Warrant Officer T. Martineau, was seriously wounded by small arms fire when he was caught in a fire fight between Bosnian Serbs and Muslims. In another incident on October 7, several members of the regiment escaped injury when a grenade was tossed at the truck in which they were riding.

The Strathconas are being replaced by the Royal Canadian Dragoons, commanded by Lieutenant-Colonel W.N. Brough. The Petawawa, Ontario regiment was recently configured to operate in an increased infantry role at the expense of its recce capability and is supplemented by one company from 2nd Battalion, The Royal Canadian Regiment from CFB Gagetown, New Brunswick. — Jim Henderson


With the assistance of 407 Maritime Patrol Squadron, a Greek ship has been fined 800,000 drachmas ($4,800) for polluting international waters. The Greek vessel North Marchioness was sighted last December 2 in the North Pacific while a CP-140 Aurora commanded by Major Ken O'Brien was conducting routine surveillance along the west coast. The cargo ship was observed to be apparently pumping its bilges into the ocean and the Aurora flew closer to photograph it. After a second fly-over, the discharge had ceased. The documentation and photography were subsequently forwarded to the Canadian Coast Guard for further investigation and prosecution.

As part of its overall surveillance responsibilities, 407 Squadron from 19 Wing Comox, British Columbia actively watches for coastal pollution during every mission. Its five long range maritime patrol aircraft are equipped with a sensitive detection system and sophisticated photographic equipment. With the same sensors used for its traditional and ongoing antisubmarine warfare role, 407 Squadron also monitors drug trafficking, driftnet fishing and environmental pollution.


The Canadian Forces Canada Remembers Contingent, commanded by Lieutenant-Colonel Reed Smith, flew to the Netherlands on Monday to participate in a number of ceremonies marking the 50th anniversary of the liberation of that nation by 1 Canadian Army in the autumn of 1944. The contingent which includes a 100-person guard, a flag party and a band, is drawn from all elements, Regular and Reserve, of the Canadian Forces. During the visit, the contingent will also conduct special ceremonies at Vimy Ridge and Beaumont Hamel. Following its return to Canada on November 8, it will take part in the ceremonies at the National War Memorial in Ottawa on Remembrance Day. — Jim Henderson


Over the past weekend, a Canadian Forces CC-130 Hercules from 8 Wing, Trenton, Ontario carried out the semi-annual shift of the United Nations Military Observer Group India-Pakistan (UNMOGIP) headquarters. The headquarters changes its location every six months, spending half a year in India and the other half in Pakistan. This changeover, which was completed in four Hercules lifts, moved it from Sprinagar, India to Rawalpindi, Pakistan.


Sabroe (Canada) Industrial Refrigeration Inc. of Dartmouth, Nova Scotia won a $1,002,718 contract to supply DND with sea water chilling units for navy vessels. The units provide onboard cooling and air conditioning.

IMP Group Limited of Halifax, Nova Scotia received a $679,368 contract to manufacture and install weather reconnaissance system modification kits in CP-140 Aurora and CP-140A Arcturus aircraft for DND. The systems will be used for severe weather detection. The contract maintains five jobs until April 30, 1995.


CHC Helicopter Corp. announced last Friday that 2nd quarter profits are forecast to be below market expectations. The company anticipates that its net earnings for the second quarter will be approximately 25 percent below its net earnings of $4 million reported in the equivalent quarter last year.

While all domestic helicopter operations, helicopter and fixed-wing repair and overhaul operations, and Brintel's U.K. operations are performing at or well above forecast levels, the negative effect upon profits is the result of a problem in the company's International Division.

The cause is primarily one contract in Mozambique which is due to expire at the end of the third quarter of this fiscal year. Losses for this contract for the first and second quarters are anticipated to be approximately $4.5 million before tax. The loss for the remainder of the year from this contract is forecast to be approximately $1.5 million before tax.

Other International Division United Nations contracts, while performing slightly below expectations, are continuing to operate profitably. CHC's relationship with this customer remains very strong, and the company has every expectation of continuing to do significant business with them, it said in a release.

CHC Helicopter Corp. is the parent company of Canadian Helicopters Ltd. (which also carries on business as Canadian Component Services and Canadian Gas Turbines); Helicopter Welders of Canada Inc.; Pacific Aerospace Services Inc.; Brintel Holdings Ltd. (operating as British International Helicopters); Viking Helicopters Ltd.; and Atlantic Turbines Inc.

The company provides helicopter transportation, pilot training and fixed-wing and helicopter repair and overhaul services worldwide. The company operates a diversified fleet in excess of 270 light, medium and heavy helicopters from 52 bases in Canada and 18 countries around the world with a staff of 1,800.


The Wednesday Report - Copyright 1994

October 26, 1994


F-16 teams placed first and third in a field of eight competing teams in William Tell '94, the U.S. Air Force's biennial worldwide air superiority competition involving the top fighter teams from the U.S.A.F., Air National Guard and Canada. The F-16 team from the 119th Fighter Group, Fargo, N.D., won first place in Overall Team competition, and F-16s from the 158th Fighter Group, Burlington, Vermont, finished third.

This year's meet was held Oct. 11-22 at Tyndall AFB, Florida. The eight teams that participated flew the F-15 (five teams), F-16 (two teams) and CF-18 (one team). The teams fired live and simulated radar missiles (AIM-7, AIM-120), infrared missiles (AIM-9) and 20mm guns.

This is only the F-16's second time to participate in the William Tell competition. The event is restricted to dedicated air-to-air units, thus prohibiting dozens of multirole F-16 units from participating. The F-16 also has an outstanding air-to-air record in actual combat, with 69 kills and zero losses. U.S. Air Force F-16 victories include the only AMRAAM kills (three) against enemy aircraft and the first U.S.A.F. triple-kill mission since the Korean War.

"Winning William Tell is another milestone event for the multirole F-16, " said Gordon R. England, president of Lockheed Fort Worth Company. "Since the Gulf War, the F-16 has six aerial combat victories. Three of these engagements used the new AIM-120 AMRAAM missile. William Tell conclusively verifies the F-16 as a world class air-to-air fighter. It is indeed gratifying to see the F-16 now being recognized for its superior air-to-air performance."

England added, "This is the first time in history that the same airplane type has won the U.S. Air Force's premier weapons competitions in both air-to-ground and air-to-air: namely Gunsmoke and William Tell. This clearly demonstrates that the F-16 is the best multirole fighter in the world. When you consider the low cost of an F-16 compared to any other fighter or attack airplane, it is clearly evident that the F-16 provides the best combat performance and the best value for any air force."


Raytheon Service Company has been awarded a U.S. Navy contract to operate and maintain Relocatable Over-the-Horizon Radar (ROTHR) systems over the next five years. The contract has a potential value of $77 million.

Raytheon Service Company is a major component of Raytheon Engineers and Constructors International. Under the contract, Raytheon will operate and maintain ROTHR for the U.S. Navy's Fleet Surveillance Support Command in Virginia, Texas, and Puerto Rico. The system was designed to provide wide-area over-the-horizon surveillance of both aircraft and ships in support of tactical forces in selected defence-related operating areas. The system's current mission includes wide-area surveillance and tracking support.

Raytheon manufactures ROTHR, a tactical land-based, ionosphere radar system. The system consists of transmitting and receiving sites and an Operations Control Centre (OCC). The receiving site has a ground-based antenna one mile long located 50 to 100 miles from the transmitting site. The OCC may be co-located with either the transmitting or receiving site.

To date, one prototype system and three production systems have been built. The first ROTHR production system started operations in Virginia in April 1993. The second production system is scheduled to start operations at a site in Texas in mid-1995. The third production system is scheduled for deployment to a site in Puerto Rico in 1996.


The highest-altitude landing of a commercial airliner occurred last week when a China Southwest Boeing 757 landed Monday at Bangda, a newly constructed airport near Changdu, Tibet, then returned there last Wednesday for ceremonies to officially open the airport.

The historic flight carrying 16 people was piloted by Capt. John Armstrong, Boeing chief 757 pilot; and Roger Thompson, instructor pilot. The aircraft left Chengdu, Sichuan Province, at 8:45 am. with a technical support team from Boeing and various CAAC and China Southwest officials. The 757 flew above the Himalayas, performed several test maneuvers to survey the new airport and weather conditions, then touched down at 10:30 am The plane departed at 11:50.

Last Wednesday, with a working team of 26 aboard, the airplane left Chengdu at 8:30 am. and arrived at Bangda at 9:45. Greeting the 26 passengers and crew was the vice chairman of the Tibet Autonomous Region who officiated at ceremonies opening the new airport and passenger terminal.

Previously, people traveling west from Chengdu, China's gateway to Tibet, had to travel three to five days by road to reach Changdu, a city and region of 500,000 between Chengdu and Lhasa. The CAAC hopes to establish direct air service to Changdu next year, which would reduce the Chengdu-Changdu trip to an hour.

Bangda Airport's elevation at 14,219 feet (4,334 meters) surpasses La Paz, Bolivia, which at 13,313 feet (4,058 meters) had been the world's highest-altitude airport. Boeing 727s, 737s and 757s currently serve La Paz. In addition, Boeing 757s fly twice daily to Lhasa, Tibet, whose Gongga Airport is third highest at 11,621 feet (3,542 meters). In 1991, Boeing and the CAAC demonstrated engine-out takeoffs and landings from Gongga Airport in order for the FAA and the CAAC to certify commercial service for the 757 to Gongga. The Boeing 767 was similarly demonstrated in 1993.

For commercial service to begin to Bangda, Boeing will be required by the FAA and the CAAC to demonstrate the 757's engine-out capability at the higher altitude. The airplane's oxygen, cabin-pressure systems and manuals also will have to be modified. Direct air service would provide a vital transportation link for travelers, cargo and mail that previously had been land-based.


U.S. Air Force plans to modernize more than 350 F-15C/D series Eagles for continued service well into the 21st century have begun with the award of a $189.8 million contract to McDonnell Douglas to upgrade the fighters' APG-63 radar.

The programme, now in its engineering and manufacturing development (EMD) phase, will include improvements that will make the upgraded radar 10 times more reliable and maintainable than the current system. The EMD phase is scheduled to last 52 months.

McDonnell Douglas Aerospace will lead the systems integration, aircraft modification, testing, and training for the upgrade programme while Hughes Aircraft Co.'s Radar Systems Group will design and develop the upgraded radar system at its El Segundo, California facilities. Flight testing of the new radar is scheduled to begin in August 1997 at Edwards Air Force Base, Calif., with retrofit into the F-15C/D fleet set to start in 1999 at the rate of 72 aircraft per year.

To reduce cost and risk, the radar upgrade programme will use many components from the APG-73 radar already developed for the F/A-18E/F Hornets that will be flown by the U.S. Navy and Marine Corps. The transmitter and much of the software for the radar upgrade will come from the combat-

The Wednesday Report - Copyright 1994

October 26, 1994


proven APG-70 radar that equips F-15E fighter-bombers.

A new design and development process, Advanced Design for Quality Avionic Systems (ADQAS) developed by McDonnell Douglas Aerospace and Hughes, is a key element in achieving the dramatic reliability and maintainability improvements in the upgraded radar. ADQAS is a highly disciplined process that leads to increased product integrity and diagnostic capability. The ADQAS process also is being applied to selected components of APG-70 radars destined for Saudi Arabian F-15S aircraft to be delivered beginning in 1995.


Composite X is a state-of-the-art hybrid material that combines advanced automobile, aerospace and defence materials and structural design to meet the more rigorous demands of the ultraefficient next-generation vehicle. Composite X has a strength-to-weight ratio between current automobile steel-panel construction and aerospace aluminum-panel construction but is easier to manufacture than either. This advanced composite is similar in total cost to automobile manufacturing and is easily and totally recyclable.

This composite creates a vehicle with low weight and high crashworthiness and allows the use of a smaller, lower-emissions power plant. A proprietary production process can form Composite X into many configurations with less energy and less investment in plant and equipment than comparable steel-panel construction. Composite X is an excellent choice for high-moisture, highly corrosive environments.

Developed by XCORP, a NASA-supported California R&D company, Composite X has already been adapted to be used in that company's 90 MPG Series-2 SuperCars and its Third World SuperCar.


McDonnell Douglas will launch the WIND spacecraft for NASA on November 1 aboard a Delta II 7925-10 expendable launch vehicle. The satellite will be launched from space launch complex 17B at Cape Canaveral Air Force Station, Florida. The launch window will open at 4:31 am and close at 4:36 am EST.

WIND is the second of three satellites to be launched for the Global Geospace Science (GGS) mission, part of the International Solar Terrestrial Physics (ISTP) programme. The spacecraft will carry eight instruments on its two instrument decks — six U.S. instruments, one French, and the first Russian instrument ever to fly on an American satellite. The WIND mission will study the solar wind and investigate properties of particles and waves in the region between Earth and the sun.

The first satellite in the GGS series, Geotail, was launched aboard a Delta II rocket on July 24, 1992. Also part of the ISTP programme, Geotail gathered information that makes it possible for scientists to model effects of solar activity on the Earth's geomagnetic environment.

Polar, a polar-orbiting satellite similar to WIND, will be the third in the GGS series. Polar will be launched aboard a Delta II from space launch complex 2W at Vandenberg Air Force Base, Calif. Launch is tentatively scheduled for late fall of 1995. The three are part of a series of Delta II launches scheduled by NASA under the Medium Expendable Launch Vehicle Services (MELVS) contract.

Martin Marietta Astro Space designed and built the WIND spacecraft for NASA's Goddard Space Flight Centre. The cylinder-shaped satellite is approximately 9 feet in diameter by 8 feet high and weighs 2,765 pounds when fueled.

The Delta flight path for the WIND launch is on a flight azimuth of 95 degrees. Orbit parameters include an apogee altitude of 242,820 nautical miles and a perigee altitude of 99.8 nautical miles.


CANAC/Microtel and its Malaysian partner SCM Integrated Systems Sdn. Bhd. have been awarded a $46.2 million contract from the government of Malaysia to design, supply, deliver, install, integrate, test and commission a vessel traffic management system for the Straits of Malacca. The SCM team will provide a state-of-the-art, comprehensive system specifically designed to enhance maritime safety by facilitating safe vessel traffic movement in the Straits of Malacca.

The system will consist of a number of remote microwave radar sites and control centres interconnected with a digital communications network. Radar and display systems will be provided by Raytheon Corporation of Malborough, Maryland. The communications network will utilize existing infrastructure from Telekom Malaysia Berhad with additional equipment integrated by SCM. Although the system will be complex in design, it will be relatively simple to operate and maintain.

"This contract — the largest vessel traffic system contract to be awarded in the last 10 years — is further proof of CANAC/Microtel's expertise and ability to provide system integration of any size at some of the world's highest levels and is a success story of cooperation between Malaysian, Canadian and American business and industry," said Steve Soos, CANAC/Microtel's managing director. "We at CANAC/Microtel view this as a long term commitment towards our Malaysian partnership and the Malaysian marketplace, offering Canadian technology and training to our Malaysian staff within SCM," he added.


On Monday, Spar's space operations' new Programme Management Control System became the first contractor's programme management system to receive Canadian government acceptance. The Canadian Space Agency (CSA) represented the government of Canada in the acceptance. Spar's comprehensive management system is used by the company at its Toronto and Montreal area space facilities to manage all major space programmes including the Mobile Servicing System programme, Canada's contribution to the international Space Station.

The system is also being recommended for acceptance by the governments of the U.S., Australia and Sweden, representatives of which attended Monday's review at Spar. Wayne Abba, U.S. delegate to the review, advised the CSA that: "Spar Space Systems has played a pivotal role in the international application and acceptance of integrated cost, schedule and technical performance management principles. Their insight will be valuable as the Department of Defence works with U.S. industry to develop a standard based on those principles. On a larger scale," he noted, "our effort at Spar is a practical demonstration that an international standard is within our reach."


The Wednesday Report - Copyright 1994

October 26, 1994


Canadians visiting TACOM (U.S. Army Tank Automotive Command) and Detroit in the next few weeks should consider taking in General Motor's exhibit of World War II memorabilia which will be open to the public at the General Motors building in Detroit from yesterday through to November 18. The displays include military vehicles, uniforms, an aerial torpedo and other interesting artifacts and photographs of GM people and the products they built for the war effort. The exhibit will be open from 7 a.m. till 8 p.m. daily, and from 8 a.m. till 5 pm on Saturdays. Admission is free. No reservations are required.

The exhibit is sponsored by General Motors in cooperation with the U.S. Department of Defence 50th Anniversary of World War II Commemoration Committee.


CAE-Link Corporation of Binghamton, New York has announced a contract to build and maintain a battlefield command trainer (BCT) for the Canadian Department of National Defence (DND). The sale to DND marks the second major competitive sale of a BCT for CAE-Link in the past 18 months, the last sale having been made in March 1993 to the British Army. Earlier versions of the system are currently in use by the U.S. Army National Guard and the Singapore Armed Forces.

The device, which will be designated Command and Staff Trainer (CST) by the Canadian army, will be delivered to the Canadian Land Forces facility in Kingston, Ontario for use in training brigade and division staffs as well as individual students. The trainer is scheduled for delivery in March 1995 and will be ready for training in April 1995. System enhancements required to meet unique Canadian Land Forces requirements will be added by October 1995. CAE-Link will provide system maintenance and training support in Kingston through March 1997.

The CST will provide a complete range of realistic, stressful command and control training by simulating a battle in real time, round-the-clock, for up to six continuous weeks. It simulates battlefield communications flow between the staff being trained, higher headquarters, and subordinate and flanking unit headquarters, exercising all aspects of the command and control function.

The trainer can simulate up to 3,000 military units and 1,000 different types of equipment operating in a terrain database up to 80,000 square kilometers for any given training exercise. The trainer currently uses available standard digitized terrain data to generate exercise maps and will be modified to accept additional terrain data formats for the Canadian Land Forces delivery.

CAE-Link's open architecture system software design includes a single Silicon Graphics Challenge L server computer networked to 29 Digital Equipment Corporation 486 PC-based controller/operator stations via a standard Ethernet. The CST will be capable of communicating with other command and control trainers (including the British Army device) for joint operations via a wide area network employing the Aggregate Level Simulation Protocol (ALSP). The trainer utilizes 100 percent commercial off-the-shelf hardware and includes Windows based, menu-driven user interfaces and the Empress Relational Database Management System.


Montreal's CAE Electronics Ltd. has announced delivery of the world's first Boeing 777 Level D full flight simulator (FFS) and Level 7 flight training device (FTD) to Boeing Commercial Airplane Group's new customer services training centre in Seattle, Washington. The FTD will be ready for training November 1 and the FFS will be FAA-certified and ready for training December 1.

These deliveries signify the introduction of new technologies. The FFS, equipped with CAE's Series 600 motion system and advanced instructor facility, is the first to use a CAE five-channel 210 degree MAXVUE visual system. This matches the very wide window layout of the 777 aircraft and provides a high resolution and broad field-of-view in all directions. In addition to providing peripheral cues which assist depth perception, pilots learning circling approaches can keep an airport runway in sight at all times.

Scene sharpness and detail (using 5,000 polygons per channel with new memory chips and custom application specific integrated circuits) are extraordinary and are designed to match the perception of the eye. For example, rust on boarding ramp bolts can clearly be seen, as can icicles on wires. "The higher level of fidelity CAE has achieved with their new visual system and the increased range of coverage is a significant and important leap ahead," said John Hope, Boeing's simulator engineering manager.

Uniquely, the first CAE FFS for Boeing is equipped with actual 777 aircraft displays and actual Aircraft Information Management System (AIMS) computers. Future simulators for 777 customers (CAE has 10 units delivered or on order so far) will eliminate use of the actual aircraft systems. These will be replaced by re-hosting 777 airplane software into commercially available computers and all display functions will be simulated to emulate the actual systems. The re-host approach has been validated by CAE, and cockpit displays on all other simulators in production are being driven by re-hosted AIMS.

The 777 FTD ordered by Boeing, although destined initially for cockpit procedures training, was built to have maintenance training capability and has been equipped the same way as the FFS. This enables upgrading to FFS capability simply by adding a motion system and a MAXVUE visual system.

A 777 maintenance training simulator (MTS) and a cabin management simulator (CMS) — for training flight attendants — were delivered in June and have been used for training service since the middle of August. United Airlines was the first 777 customer to begin maintenance training on Boeing's CAE device.


November 1Financial Post Conferences in cooperation with The Wednesday Report will host the 1994 annual defence conference at the Westin Hotel in Ottawa. This year's roster of international speakers will discuss: the direction of Canadian defence policy one year into a new government; the Canadian defence blueprint in the face of an altered country; selling into volatile markets through niche marketing and strategic alliances; developing international conflicts and Canada's anticipated role; and an international study by Ernst & Young on engineering opportunities, mergers and acquisitions and alliances worldwide. Contact FP Conferences at (416) 350-6200.

The Wednesday Report - Copyright 1994

October 26, 1994