"According to reports from Washington, U.S. Defence Secretary Perry raved on 24 March that if the U.N. Security Council decides to impose sanctions against our country, the United States will send additional troops and weapons to South Korea. Concurrently, the 25 March issue of the South Korean paper Choson Ilbo quoted U.S. military sources as saying that a plan was being worked out by the U.S. military to hurl 600,000-strong military strength including two Marine divisions, more than 200 warships, over 1,600 planes from the U.S. mainland within 80 days, repeat 80 days, in case of emergency on the Korean peninsula.

"Meanwhile, U.S. Deputy Undersecretary of Defence Slocombe said on 24 March at a hearing at the defence committee of the U.S. Congress that U.S. carrier task fleets are in full readiness for mobilization to cope with a possible contingency on the Korean peninsula and the mobilization system of the U.S. imperialist aggression forces in South Korea was under reexamination. He raved that apart from the U.S. imperialist aggression forces in South Korea, 22,000 U.S. Marine forces, an Army special unit, and 50 each of the F1 5C interceptor planes and F1 6 multipurpose fighters from the island of Okinawa in Japan, and U.S. carrier military strength from Yokosuka port can be mobilized additionally.

"U.S. forces are positioned for military action as soon as the U.N. Security Council takes sanction measures. Due to the U.S. war maniacs, darker clouds of war are approaching the Korean peninsula, and a dangerous situation on the brink of war is being created.

"This was the first time since the Korean War in 1950 that it was reported the U.S. Marine forces, planes, and various warships could be swept in herd to the Korean peninsula like a pack of wolves. The reason

Volume 8, Number 9 March 30, 1994

Comment:

A year ago this month, on March 17, 1993, The Wednesday Report set out three crises likely to threaten world security within a year. "Crisis 3", involving the threat of war between North and South Korea, found a brief interim solution in 1993 when China and the United States negotiated with North Korea and obtained a promise of cooperation with nuclear inspectors.

 That promise was a bending-over-backwards concession involving a one-shot inspection of seven declared sites in North Korea. It avoided many other sensitive sites. This month the International Atomic Energy Agency was barred from one of the seven sites when it discovered a broken seal, something that indicates probable diversion of plutonium for the construction of warheads. (North Korea has no other use for plutonium.) At publication closing time, the Pentagon was making tactical plans; North and South Korea were threatening war; China was insisting it has little influence in North Korea; and the United Nations Security Council was preparing to vote on a tersely worded resolution proposed by the U.S., imposing  the NPT regime on Pyongyang.

From Pyongyang Radio, March 26 ... "The Korean peninsula is in a grave situation due to U.S. imperialists' aggravating provocative maneuvers for a new war. Following U.S. President Clinton's order given on 22 March to deploy Patriot missiles to South Korea and the announcement that more than 40 missile launchers and an 800-member Patriot battalion will be moved to South Korea, war conspiracies are being plotted in the U.S. Defence Department everyday, and corresponding actual fighting measures are being taken.



the world is watching the Korean peninsula with grave concern is because it is considered that a new nuclear war might erupt right here. Currently, the United States is devising a sinister plot to commit to the Korean war not only its elite force from its mainland, but also the U.S. imperialist aggressive forces occupying South Korea that are familiar with our country's topography and most of the U.S. armed forces stationed in Okinawa, Japan. Moreover, the heads of the U.S. military are dispatching in advance its aircraft carriers and submarines to places that will be favorable in their operations. The U.S. Naval fleet consisted of 30 ships, and the nuclear-powered aircraft carrier Carl Vinson have not only been already mobilized near the waters of our country, but on 24 March the U.S. Navy nuclear powered submarine, Birmingham entered Yokosuka port.

"On the surface, the United States is finding fault with us by saying that it is dissatisfied with the nuclear inspection on us and so on, but this is only an excuse. In reality, the series of military moves prove that the United States is expanding step by step its oppressive strategy on Korea in accordance with the war scenario it already wrote. Moreover, what cannot be overlooked is the fact that reports are being made that U.S. Defence Secretary Perry will crawl into South Korea and Japan to personally examine and command on-the-spot the conditions for promoting military operations.

"Historically, this kind of act is carried out frequently on the eve of war. Such was the case during the 1950 Korean war and during the 1990 Persian Gulf war. We are dealing with high vigilance over the fact that the U.S. defence secretary is personally acting as the leader in preparing to invade us. Currently the United States formed a special strike force to revive the adventurous military operation, which was carried out in Grenada and Panama, against our republic. However, the United States can by no means frighten our people through this kind of barbarous operation and achieve its goal. As we have repeatedly elucidated, we don't want war, but we are by no means afraid of war.

"We are ready for both dialogue and war. The attempt to swallow us up is a foolish act of trying to break a boulder deeply rooted in the center of the earth, with a rotten egg. No one can touch our sacred territory and defame our nation's dignity.

"Those who enjoy fire die by being burnt without exception. The United States must not carry out rash and thoughtless acts. It will be favorable for the United States to correctly see who it is dealing with and act rationally."

(Editor's note: From Pyongyang Korean Central Broadcasting Network, March 26, 1994, translated from Korean.)

FROM PYONGYANG RADIO, MARCH 27

"While the U.S. imperialists' new war provocation maneuvers are rapidly aggravating the situation on the Korean peninsula, U.S. military moves are being intensified with an increasingly dangerous nature.

"According to the The New York Times dated 27 March, U.S. Defence Secretary Perry ordered that modem fighters be dispatched to South Korea and Japan immediately if the U.N. Security Council imposes sanctions on our country. He has also ordered an increase in the supply of ammunition and parts for the U.S. Air Force in South Korea so that modem fighters, such as the F-117 Stealth fighters and F-15E's, can go into action immediately. The war fanatic also held a so-called news conference on 25 March, in which he raved about the need for thorough measures to cope with possible contingencies on the Korean peninsula and disclosed an operational plan for the additional dispatch of U.S. troops and military equipment to South Korea to augment the combat capability of U.S. imperialist aggression forces in South Korea. He did not forget to rave that the step of dispatching modern fighters to South Korea is aimed at coping with someone's southward invasion.

"However, the U.S. military leaders' order on the additional dispatch of armed forces, which is timed with the recent frenzied commotions of military threats against us by the U.S. bellicose circles, show that the U.S. imperialists are the ones who are aggravating tension on the Korean peninsula and that they are the main culprit in leading the situation to the brink of war. The fact that the U.S. imperialists have recently moved the U.S. Navy task force, including aircraft carriers, to the waters near our country, prepared their aggression forces in the U.S. mainland and in the area surrounding the Korean peninsula for a state of swift dispatch, and transported war material and U.S. troops to be mobilized in the Team Spirit joint military exercise to U.S. bases in Japan by air, clearly proves once again that they are intentionally maneuvering to further aggravate the situation on the Korean peninsula. If the U.S. imperialists think that they can frighten someone with these military threats and blackmail, they are miscalculating. The U.S. imperialists should clearly see that this road of dashing to confrontation and war leads to their own grave and act with discretion."

(Editor's note: From Pyongyang Korean Central Broadcasting Network, March 27, 1994, translated from Korean.)

U.N. RESOLUTION ON NORTH KOREA


Page

The Wednesday Report - Copyright 1994

March 30, 1994



Amidst considerable posturing and saber rattling between South Korea and North Korea and their respective allies, the United Nations Security Council has drafted a firm resolution which was to be voted upon this week.

Emerging from the ongoing dispute over North Korea's illicit nuclear weapons project and its refusal of compliance with, and inspections under, the Nuclear Non-Proliferation Treaty, relations between the Stalinistic regime of the North and South Korea have deteriorated to the point both nations are threatening war.

North Korea has put its 1.7 million armed forces on full alert while there have been intelligence reports from South Korea indicating that the North's authorities have stopped issuing travel passes to North Koreans. It has increased news broadcasts telling its citizens war is inevitable with South Korea.

THE SECURITY COUNCIL...

Recalling its resolution 825 (1993), and the statement made by the President of the Council on 8 April 1993 (S/25562);

Reaffirming the critical importance of International Atomic Energy Agency (IAEA) safeguards in the implementation of the Treaty on the Non-proliferation of Nuclear Weapons (the Treaty) and the contribution which progress in non-proliferation makes to the maintenance of international peace and security;

Endorsing and commending the efforts of the director-General of the IAEA and the IAEA Secretariat to implement the IAEA-Democratic People's Republic of Korea (DPRK) safeguards agreement (INFCIRC/403),

Recalling the expressed willingness of the DPRK to seek a proper settlement of the nuclear safeguards issue in the DPRK within the framework of resolution 825 (1993);

Reaffirming the importance of the Joint Declaration by the DPRK and the Republic of Korea (ROK) on the denuclearization of the Korean peninsula, and of the parties to that declaration addressing the nuclear issue in their continuing dialogue;

Having considered with grave concern the IAEA Board of Governors' findings contained in its resolution of 21 March 1994 that the DPRK is in further non-compliance with its safeguards agreement, and has aggravated this situation by not allowing IAEA inspectors, as agreed between the IAEA and DPRK on 15 February 1994, to conduct indispensable inspection activities at their seven declared nuclear sites; and

Deploring the factthat the IAEA is, therefore, still unable to verify that there has been no diversion of nuclear material required to be safeguarded under the terms of the IAEA-DPRK safeguards agreement to nuclear weapons or other nuclear explosive devices;

1. Urges the DPRK to allow the IAEA inspectors to complete the inspection activities agreed between the IAEA and the DPRK on 15 February 1994, as the first step in fulfilling its obligations under the IAEA-DPRK safeguards agreement and in honouring its non-proliferation obligations under the Treaty;

2. Requests the director-general of the IAEA to report to the Security Council within one month of the adoption of the present resolution on the implementation of the IAEA-DPRK safeguards agreement;

3. Requests the DPRK and ROK to renew discussions whose purpose is implementation of the Joint Declaration on the denuclearization of the Korean peninsula;

4. Requests further that those member states engaged in dialogue with the DPRK to facilitate a solution in accordance with resolution 825 (1993) continue that dialogue, after the IAEA completes all inspections at their seven declared nuclear sites necessary to verify that there has been no diversion of nuclear material since earlier inspections;

5. Decides to remain actively seized of the matter and to consider further Security Council action if necessary.

HMCS PRESERVER ASSISTS IN MEDICAL EVACUATION

On March 14, a Sea King helicopter from HMCS Preserver assisted in a medical evacuation of two crew members of the Dutch submarine HNLMS Zwaardvis. The submarine experienced technical problems with its diesel propulsion system and as a result, four crew members were taken to a hospital in the Italian town of Taranto where they were diagnosed with respiratory problems.

Preserver's helicopter reacted quickly, evacuating two of the four Dutch sailors while other allied units recovered the remaining two. All four sailors were reported to be in satisfactory condition.

HMCS Preserver, along with two Sea King helicopters from 423 Squadron at 12 Wing Shearwater, departed Halifax on January 26 for the Adriatic Sea (see February 9, page 2, "Preserver Leaves Halifax, Auroras Return From The Adriatic").

MND PRESENTS CMR ST-JEAN FACT SHEET TO STANDING COMMITTEE

In response to questions raised by members of the Standing Committee on National Defence and Veterans Affairs concerning Collége militaire royal de St-Jean (CMR St-Jean), defence minister David Collenette provided a fact sheet to the Clerk of the Committee for distribution to members on March 17. The


The Wednesday Report - Copyright 1994

March 30, 1994

Page



fact sheet includes detailed statistics on personnel and costs, as well as savings that will be accrued once the college is closed in 1995-96.

CMR St-Jean currently employs 419 people including 92 military personnel; 173 civilian full-time employees; and 154 civilian short-term and part-time employees. In addition, there are military and civilian staff employed by CFB St-Jean who support the CMR operation. This support is estimated at about 45 military personnel and 50 civilians. The college is providing officer education and training to 617 undergraduate and six graduate students.

A total of $30 million is spent each year for personnel and related costs ($23.3 million); college operating costs ($1.7 million); and facilities operating costs ($5.0 million).

Given that consolidation costs total $6.9 million, the closure of CMR St-Jean is expected to yield net savings of $23.1 million annually, in 1993-94 dollars. Consolidation costs include training in civilian universities ($2.1 million); transfer of funds to RMC to facilitate consolidation ($2.0 million); and funds held in reserve for college equipment, and personnel-related and miscellaneous costs pending finalization of the RMC consolidation plan ($2.8 million). Canadian Military College officer education and training will be concentrated at RMC Kingston which will become a fully bilingual institution.

FIRST EUROFIGHTER FLIES

A Eurofighter 2000 flew for the first time on Sunday, March 27 from the DASA facility at Manching, Germany. The successful test flight lasted 45 minutes. The aircraft is manufactured by Eurofighter Jagdflugzeug GmbH — a consortium owned by Deutsche Aerospace (DASA) parent company Daimler-Benz, British Aerospace, Italy's Alenia and Spain's Construcciones Aeronauticas.

The four-nation Eurofighter 2000 is powered by two Turbo-Union RB199 engines. RB199 Mk104E engines were chosen to power the first two Eurofighter prototypes to allow the initial flight test programme to concentrate on gaining airframe and systems experience.

The second prototype, which has been assembled by British Aerospace at its Warton plant in Lancashire, is due to make its first flight shortly. Later in the flight test programme the RB199 engines of the German and British prototypes will be replaced with EJ200s. The third prototype, which is being assembled by Alenia in Turin, will be the first Eurofighter to fly with EJ200 engines. This flight is scheduled to take place later this year from Alenia's Caselle facility.

FiatAvio of Italy, MTU Munchen of Germany and Rolls-Royce of the U.K. are the partners of the tri-national Turbo-Union consortium. These companies with Spain's Industria de Turbopropulsores also form the four-nation Eurojet (EJ) consortium.

BOEING TO UNVEIL FIRST 777 APRIL 9

The first completed Boeing 777 will be unveiled publicly on Saturday, April 9 at the company's Everett, Washington assembly plant. Over the course of the day, an estimated 100,000 people including airline executives, news media, suppliers, engine company representatives and Boeing employees are expected to witness the ceremonies. The airplane will not roll out, but will be revealed in multi-media presentations inside the factory to groups of about 7,000 people each hour.

The new 777 is the largest twinjet airliner in production, sized between the Boeing 747 and 767 and able to carry 305-440 passengers on routes up to 8,930 kilometers. After undergoing almost a year of flight testing, the first 777 will be delivered to Chicago-based United Airlines in May 1995.

A total of 15 Canadian aerospace companies located in Nova Scotia, Quebec, Ontario, Manitoba and British Columbia are under contract as suppliers or subcontractors on the Boeing 777. For example, Boeing Canada's Winnipeg Division is responsible for the engine strut aft fairing, wing fixed trailing edge panels and heat ducts for both the wing anti-icing system and the cargo bay. Menasco Aerospace Ltd. of Oakville, Ontario is the lead supplier of the 777's huge landing gear.

CHINA SOUTHERN SELECTS CAE FOR BOEING 777 FLIGHT SIMULATOR

CAE Electronics Ltd. of Montreal has been awarded a contract by China Southern Airlines to design and manufacture a Boeing 777 full flight simulator and a CAE "MAXVUE" visual system. The simulator will be delivered in early 1996.

MIL DAVIE SUBMITS PROPOSAL FOR MULTI-ROLE SUPPORT VESSEL

Lévis, Quebec-based MIL Davie Inc. has submitted a proposal to DND for the design and construction of the company's Strategic Multi-Role Aid and Replenishment Transport ships (SMART ships). The design was co-developed by the shipyard in Lévis and MIL Systems Engineering Inc., its associated engineering firm in Ottawa.

The proposal responds to the requirement known within DND as the Multi-Role Support Vessel.


Page

The Wednesday Report - Copyright 1994

March 30, 1994



Roles include the transport by sea of Canadian peacekeepers along with their vehicles, support of the navy at sea, disaster assistance, rapid response to environmental accidents, transport of humanitarian aid and surveillance of Canada's coastal waters.

U.S. OUT OF SOMALIA

The U.S. has ended a 15-month mission in Somalia. Last Friday the U.S. commander, Maj-General Thomas Montgomery left the country with the last of his staff and troops.

Since U.S. President George Bush ordered U.S. troops to intervene in Somalia in December 1992, 30 Americans died in combat and 175 were wounded. There also were six non-combat deaths and seven U.S. soldiers were killed and one missing off the Kenyan coast in a crash this month of an AC-130 Spectre gunship. In comparison, some 68 U.N. soldiers were killed and 262 were wounded since the U.N. mission began.

The American troop pullout leaves the job of peacekeeping/enforcement to some 19,000 U.N. troops from more than twenty countries including: Australia (54), Bangladesh (980), Belgium (4 U.N. headquarters staff), Botswana (342), Canada (5 U.N. headquarters staff), Egypt (1,680), Greece (2), India (4,968), Ireland (83), Italy (17 U.N. headquarters staff), Korea (3 U.N. headquarters staff), Malaysia (1,065), Morocco (1,359), Nepal (313), New Zealand (49), Nigeria (659), Norway (26 U.N. headquarters staff), Pakistan (5,697), Romania (231), Saudi Arabia (150), Tunisia (1 U.N. headquarters staff), United Arab Emirates (317), Zimbabwe (1,082), and the United States with 12 U.N. headquarters staff.

FLYING C-17s NOW NUMBER ELEVEN

The 11th production U.S. Air Force/McDonnell Douglas C-17 transport made its inaugural flight at Long Beach, California on March 25 and is being prepared for delivery to the 437th Airlift Wing at Charleston Air Force Base, South Carolina.

P-11, the 11th production C-17 Globemaster III, is the 12th C-17 to take to the skies. It made the first of its acceptance test flights taking off from and returning to Long Beach Municipal Airport for a 1.8-hour flight. The aircraft, the sixth scheduled for delivery to an operational Air Force unit, is the first of four C-17s in the Lot IV procurement buy authorized in the Fiscal Year 1992 defence budget.

P-3, the third production aircraft, has conducted seven missions since arriving at Milwaukee's General Mitchell International Airport Air Reserve Station. P-3 was deployed to the Wisconsin base on March 7 for a month of cold and adverse weather testing. P-3 has recorded 19.4 flying hours at the Milwaukee base. In all, C-17s in the flight test programme based at Edwards Air Force Base, California have flown 782 missions for 2,940 flying hours.

P-7, the seventh production aircraft, flew from Charleston Air Force Base to McDonnell Douglas' Tulsa, Okla., modification center on March 24. The aircraft is joining P-8, which has been on site for modification work since the beginning of the year. Work on P-8 is nearing completion and the aircraft is scheduled to return to Charleston within the next two weeks.

The Tulsa modification programme is providing upgrades to the fuel and cargo loading and delivery systems and strengthening the wing and fuselage on P-5 through P-10 and will also refurbish the first four production C-17s that are in the flight test programme at Edwards Air Force Base before they enter active airlift service.

At Charleston Air Force Base (S.C.), C-17s have now flown 598 flight hours. The C-17 fleet has now recorded a total of 3,538 flight hours.

MD SERVICES TO SUPPORT ROYAL SAUDI LAND FORCES

Under a foreign military sales contract with the U.S. Army, McDonnell Douglas Services Inc. in St. Louis will provide helicopter maintenance and training services to the Royal Saudi Land Forces Army Aviation Command. The $25 million contract is for two years with two one-year options. Together with Al-Salam Aircraft Co. of Riyadh, the company will provide maintenance and training personnel to support the Royal Saudi Land Forces Army Aviation Command fleet of McDonnell Douglas-built AH-64 Apaches, Sikorsky UH-60 Desert Hawks and the Bell Helicopter Textron 406CS.

ARIANESPACE TO LAUNCH TWO MORE INDIAN SATELLITES

Evry, France-based Arianespace recently signed a launch contract for India's new satellites, Insat 2C and Insat 2D. Europe's Ariane launcher will place the two satellites into orbit in the second half of 1995 and 1996 respectively. These are the fourth and fifth Indian satellites entrusted to Arianespace.

Insat 2C and Insat 2D are the third and fourth second-generation satellites in the Indian government space department's Insat programme. Built in Bangalore by the Indian Space Research Organization (ISRO), these multipurpose satellites will weigh approximately 2,000 kilograms each at lift-off. They will provide telecommunications, search and rescue as well as educational services for India's domestic needs.


The Wednesday Report - Copyright 1994

March 30, 1994

Page



PEOPLE: THE QUEEN APPROVES U.K. MOD TOP APPOINTMENTS

Following Her Majesty The Queen's approval, General Sir Peter Inge GCB was appointed Chief of the Defence Staff for the United Kingdom Ministry of Defence (MOD) and promoted to the rank of Field Marshal, succeeding Sir Peter Harding GCB, Marshal of the Royal Air Force. General Sir Charles Guthrie KCB LVO OBE was appointed Chief of the General Staff in succession to Inge. Both appointments took effect mid-month.

DND SMALL CONTRACTS AWARDED IN WESTERN CANADA

Altec Industries Ltd. of Winnipeg, Manitoba won a $939,052 contract to provide DND with platform trucks with aerial devices. Delivery will be completed by October 31.

Inuvaluit Projects Inc. of Inuvik, Northwest Territories won a $199,983 contract to provide DND with facility management services to monitor and maintain a location in Inuvik in a continual state of readiness for occupation on short notice. The contract runs until January 31, 1995.

ATLANTIS SIGNS CHINESE CONTRACT FOR BOEING FTDs

Brampton, Ontario-based Atlantis Aerospace Corporation has signed a contract with China Southern Airlines of Guangzhou, People's Republic of China for the development of two Level 5 flight training devices (FTDs) for the Boeing 737-300 aircraft. The multi-million dollar order also includes the delivery of a B767/B757 desktop flight management and guidance system trainer. Deliveries will be complete in 12 months.

AIR CANADA LAUNCHES TWO NEW FIRMS FOR NEW INFO NET

Air Canada has unveiled the corporate structures of two new companies that will assure the smooth transition from the Gemini computer reservations system (CRS) to a new information network, maintaining 700 high tech jobs and preserving CRS competition for travel agents and consumers alike.

The first company, a subsidiary of IBM Canada Ltd. will assume the computer and telecommunications network operated by Air Canada and Gemini. IBM Canada will incorporate its current Network Services Company and Gemini's computer and network operation to form a new company currently dubbed "Newnetco" by IBM. This new computer services company will be 100 percent owned by IBM Canada and will be supported by ISM Information System Management Corp., an IBM Canada affiliate.

In addition to its existing business of hosting the internal reservation systems of Air Canada, other Canadian air carriers, VIA Rail and the Department of National Defence, the new company has been awarded contracts by Air Canada to assume the operations of all its information systems activities.

With headquarters in Winnipeg, this new company will operate one of Canada's largest computer and telecommunications networks and have annual revenues of $190 million. Its sophisticated network of fiber optic based telecommunications is an actual information highway linked to virtually all Canadian municipalities. The company's mandate is to supply network services to all industries in Canada, in addition to the transportation sector where Gemini's focus has been since its inception in 1987.

"This information highway will present the same opportunities and potential for economic links and development in Canada as the railroad presented to this country 100 years ago," said Hon. Lloyd Axworthy, Minister of Human Resources Development and Western Economic Diversification.

"The fact that we will have in Winnipeg an East-West centre which goes from coast-to-coast-to-coast will become a key building block for Canada's economy in the next century and will be a significant generator of jobs for Canadians." The second company, Galileo Canada Inc., will assume Gemini's computer reservation service (CRS) business. This business supplies fully automated travel information and booking capabilities to Canadian travel agents. Galileo Canada will market the same Apollo software to Canadian travel agents that has been provided by Gemini, using the new computer service company's Canadian computer and telecommunications network. Galileo Canada, with headquarters in Toronto, will be 100 percent owned by Air Canada.

"With the formation of Galileo Canada, Air Canada has turned adversity into opportunity for the airline, travel agents and consumers," said Hollis L. Harris, chairman, president and chief executive officer. "Through Galileo, Air Canada is offering the largest distribution network in the world to travel agents and consumers in Canada and linking up with the Apollo system."

Together the new computer services company and Galileo Canada will replace the existing Gemini system. Gemini was established as a partnership with PWA Corporation and was ordered dissolved by November 1994 by the Competition Tribunal.

"The effect of today's announcements will be to preserve Gemini's business and infrastructure in new corporate entities in Canada," said Harris. "Most importantly, by keeping all of the high technology and expertise in Canada we are also able to provide continued employment for current Gemini employees.


Page

The Wednesday Report - Copyright 1994

March 30, 1994



In addition, the full-time Air Canada employees affected by the outsourcing have received an understanding that they will be offered positions with the new computer services company."

The total value of the contracts which Air Canada will award either to the new computer services company or through Galileo Canada to the new computer services company will be more than $800 million over seven years. Air Canada anticipates a saving over the cost of providing the service internally. As part of the transaction with IBM Canada, Air Canada will receive more than $50 million representing the value of the existing assets and the ongoing business now transferred to the new computer services company. This will represent a small net gain on sale of assets.

"Ultimately, this is a true win-win situation," added Harris. "Air Canada will market its services via the world's largest computer reservations system; travel agents will keep the Apollo software which is really the best in the business for the money; consumers are guaranteed CRS competition and choice when they go to their travel agent; and Canada gains a new, high technology company and the accompanying economic benefits which go with it."

"Together, the new computer services company and Galileo Canada will provide Air Canada with the best possible distribution and information processing capability at the lowest possible cost," added Harris. "That in turn will certainly help us focus on our goal of being a profitable and efficient international airline."

"The IBM Canada team is delighted to be joining with two longtime and valued customers, Air Canada and Gemini, as the technology partners in this agreement, " said Bill Etherington, president and CEO of IBM Canada. "Our already substantial investment in world class network skills and assets will be combined with those of Gemini to form a new computer services company.

"This exciting new venture becomes a key player in the Canadian information highway and begins operations with a substantial base of customers and a global reach as partner in IBM's worldwide network, serving over 22,000 enterprises in 700 cities and 90 countries."

WP-AFB: F-22 FEEDS SMALL, DISADVANTAGED SMALL BUSINESSES

The U.S. Air Force's F-22 System Programme Office (SPO) and Lockheed Aeronautical Systems Co., Marietta, Ga., prime contractor for the U.S. Air Force's F-22 fighter, have entered into an agreement with C.A. Spalding Co., Philadelphia, Pa. as part of a programme called Mentor-Protege which helps American small businesses qualify for "high-tech" work.

The programme encourages small, disadvantaged businesses (SDBs) in the U.S. to enhance their capabilities to satisfy U.S. Department of Defence (DOD) acquisition contract requirements by receiving technical assistance and training from a programme's contractor.

The U.S. Air Force awarded a $983,000 contract to Lockheed Aeronautical Systems Co., Marietta, Ga., last month for implementation of the Mentor-Protege Programme, Phase I, slated to extend through July 1994.

The F-22 team of government and industry (Lockheed, Boeing and Pratt & Whitney) now is the first, major, U.S. Air Force weapon acquisition system to have "proteges" on contract with all primary contractors and thus is the "cornerstone" programme for the new effort.

The Mentor-Protege Programme is a pilot DOD initiative established by Washington's National Defence Authorization Act for fiscal 1991. Its purpose was to provide incentives to major DOD contractors, such as Lockheed, to assist SDBs in qualifying for the requirements to bid on both technical contracts and subcontracts. It is anticipated that the programme will foster increased participation and long-term business relationships between SDBs, federal agencies and major defence contractors.

Under the F-22 Mentor-Protege Programme, Spalding will provide resin transfer molding (RTM) composites processing for the F-22. Spalding is a small, minority-owned and operated company of 200 employees involved in tooling, component, and assembly manufacturing for both the aerospace and automotive companies.

Phase I of this contract involves Lockheed's providing technical training needed for Spalding to perform RTM, a cost-effective process of manufacturing dimensionally accurate, fiber-reinforced polymer parts. Lockheed and Spalding also will develop, during Phase I, a proposal to continue their mentor-protege agreement.

Phase II of the programme, beginning in July, will include the actual transfer of RTM composites technology along with fabrication and testing of prototype parts. The U.S. Air Force is responsible for monitoring Lockheed's cost, schedule and performance in the mentor programme.

Other proteges on the F-22 programme are Semco Instruments, a manufacturer of sensors and controls based in Valencia, Calif., and Pyro Media Inc., a Seattle, Wash. firm that provides sophisticated, technical ceramic shapes. Boeing Military Airplane Co., Seattle, Wash., is Pyro Media's mentor and Pratt & Whitney, West Palm Beach, Fla., is mentor to Semco. U.S. Air Force contracts to Boeing and Pratt & Whitney were for $917,000 and $2.7 million respectively.

"These contracts totalling about $4 million represent another of the many ways the F-22 programme is `leading the force' in innovative acquisition initiatives in the Air Force and DOD," said Maj. Gen. (select) Robert F. Raggio, F-22 system programme director, in Aeronautical System Centre at Wright-Patterson AFB, Ohio.

"We see the Mentor-Protege Programme as an adjunct to our `lean manufacturing' initiative and a possible avenue for transfer of military-developed technologies into the commercial sector. It also permits

Page

March 30, 1994


The Wednesday Report - Copyright 1994

  • Publisher and Editor In Chief: Micheal J. O'Brien

  • Circulation Manager: Julie K. Kwiecinski

  • Editorial Staff Writer:

  • Wanda J. Brox

  • Contributing Editors:

  • Dale Grant (Toronto)

  • Christopher G. Trump (Toronto)

  • William Kane (Washington DC)

  • John Reed (London, England)

  • David Weinberg (Jerusalem, Israel)

  • The Wednesday Report is published weekly by

  • MPRM Group Limited, 27 Yonge Street South, Aurora, Ontario, Canada L4G 1L8. Telephone: (416) xxx-xxxx use email contact 

  • Subscription Rates: first class mail delivery $500 yearly, express delivery $650 yearly, single copy $15.

  • ISSN 0835-6122

  • Copyright: ©MPRM Group Limited 1990.

  • All rights reserved. Reproduction in part or in whole,

  • in any manner whatsoever, is strictly forbidden.