Dorrance Smith Sworn in as Assistant Secretary of Defense for Public Affairs

Washington January 5, 2006 - J. Dorrance Smith was sworn in as the assistant secretary of
defense for public affairs, Thursday, Jan. 5, 2006, during a ceremony at the Pentagon. Smith was nominated by President George W. Bush to be the assistant secretary of defense for public affairs on Sept. 22, 2005.

Smith said he was honored to be appointed by President Bush. "I feel privileged to be joining Secretary Rumsfeld's team, and I'm grateful for the secretary's confidence in my ability to serve in this position," Smith said. "I look forward to serving the men and women of our great military and
the Defense Department."

Smith recently served as a media consultant for the Joint Congressional Committee on Inaugural Ceremonies. He previously served as a senior media advisor for the Coalition Provision Authority in Baghdad, Iraq. He also served as assistant to the President for media affairs during President George H.W. Bush's administration. Smith was an Emmy-winning producer at ABC. He was executive producer of ABC News' "This Week with David Brinkley" and ABC News' "Nightline."

Smith received his bachelor's degree from Claremont Men's College.

Taipei January 7, 2006 (TIS) - There are strategic considerations behind the military's plan to build an airport on Itu Aba Island (Taiping Island), Deputy Minister of National Defense Michael Tsai said on Thursday.

Itu Aba Island is one of the biggest islets in the disputed Spratly Islands in the South China Sea.

During a meeting of the Legislative Yuan's National Defense Committee, Tsai told lawmakers it would only take five to 10 minutes for China's missiles and military aircraft to fly across the 200-kilometer Taiwan Strait to reach Taiwan. "Of course, there's a strategic purpose," he said.

He said it would be very helpful if Taiwan can expand its strategic ability and improve its early warning capability by setting up a base in the South China Sea since it is an international thoroughfare for airplanes and ships.

The Spratly Islands, which consist of more than 100 small islands or reefs surrounded by rich fishing grounds and oil deposits, are claimed either entirely or partially by Taiwan, China, Vietnam, Malaysia and the Philippines. China, Malaysia, the Philippines and Vietnam have also stationed small numbers of military forces on some of the other islands. Itu Aba Island (now occupied by Taiwan) is one of the biggest islets in the disputed Spratly Islands in the South China Sea.

MND officials had previously said that an airport on Itu Aba Island was not intended to be used by the military but for humanitarian purposes such as emergency rescue efforts by the Coast Guard.

Tsai's comments of the island's strategic importance contradicted statements made last week by a Foreign Ministry spokesman Michel Lu, who rejected a Vietnamese request to halt construction of the runway.

At the time Lu said it was for coastal patrol, fishing and emergency medical needs, rather than for military use.

Kuomintang Legislator Su Chi countered Tsai, saying that building an airport on the island would certainly aggravate relations with China. Taiwan's edge depends on its soft power, such as free and democratic institution, not hard power, like military, he noted.

Su also said Huoh Shoou-yeh, another Deputy Minister of MND, should apologize to him because he previously told him that an airport on Itu Aba Island would be used for humanitarian purposes only.

Also during Thursday's meeting, Liang Kung-kai, head of the MND's Department of Strategic Planning, denied a media report that the ministry is planning to set up two submarine ambush zones in the South China Sea.

Liang dismissed the report as pure speculation.

However, Liang said that if war broke out between Taiwan and China, Taiwan's submarines would definitely have the ability to make ambush attacks against China's oil tankers in the South China Sea.

Taiwan's United Daily News newspaper said on Thursday that the Taiwanese military began building the runway on Itu Aba Island a few months ago, after US satellite pictures obtained by Taiwan showed Chinese naval vessels operating near the area.

London January 6, 2006 - An unexploded Air Drop bomb has been destroyed in the sea off Caister-on-Sea (Norfolk) after its discovery on board the Dredger 'Arco Dijk' following dredging operations in the Wash area.

The Vessel made the discovery at 6:00am this morning, and immediately reported their find to the Coastguard. The Royal Naval Bomb Disposal Team from Portsmouth where tasked to proceed to the area and make the device safe.

The 114 meter Bahamas registered dredger 'Arco Dijk' with 10 crew onboard, reported to Solent Coastguard that whilst dredging in the Wash they had dredged up a bomb into their hopper. The dredger was on passage from the Lincolnshire dredging area to Amsterdam when the discovery was made. This information was passed directly to Great Yarmouth Maritime Rescue Co-ordination Center.

Glynn Young, Watch Officer, Great Yarmouth Maritime Rescue Co-ordination Center, says:

"The Caister Independent Lifeboat was sent to the scene with the Royal Navy Bomb Disposal Team, from Portsmouth onboard. The disposal team has now removed the bomb from the hopper on the Dredger, to the seabed, where it has been detonated; it appears to have been a small British Practice Air Drop bomb, and the Dredger has now departed the area for Amsterdam."

Moscow January 7, 2006 (Itar-Tass) - The Russian Black Sea Fleet’s command "is not going to permit damage to the fleet’s facilities." This statement the Black Sea Fleet’s press service circulated on Saturday was made in connection with "the attempt of unidentified persons on Friday to get to the Yalta beacon that is under the supervision of the hydrographic service of Russia’s Black Sea Fleet.

The statement says, "At 12:30 Moscow time on January 6 three persons who claimed to be officials of the Sevastopol branch of the Ukrainian state-owned Gosgidrografia enterprise made an attempt to gets to the beacon’s territory." Viktor Olishchuk, the officer in charge of the beacon, thwarted the attempt. "The Black Sea Fleet command points out the ostentatious character of the transgressors’ actions," the fleet’s press service says.

The statement expresses the hope that the provocation was made on the initiative of these individuals and does not reflect the official attitude of the chiefs of the Ukrainian state-owned Gosgidrografia enterprise.

The Black Sea Fleet command proceeds from the view that all the matters of the Black Sea Fleet’s stay in the Ukrainian territory must be regulated in the framework of the 1997 Russian-Ukrainian agreement On the Status and Terms of the Presence of the Black Sea Fleet of the Russian Federation in the Ukrainian Territory.

Colombo January 9, 2006 (Xinhuanet) - Sri Lankan President Mahinda Rajapakse said Sunday that he was still committed to the internationally backed cease-fire with the Tamil Tigers despite continued acts of violence perpetrated by the rebel group.

Rajapakse was reacting to Saturday's attack by the Liberation Tigers of Tamil Eelam (LTTE) on a Navy fast attack craft at the eastern port of Trincomalee.

Addressing a religious public gathering at Horana, 38 km southeast of the capital Colombo, the president said the LTTE attack was "a blatant violation of the cease-fire agreement" and added that "I am ready at any time to open talks for a negotiated peaceful settlement."

However, the president warned the LTTE that he would neither turn blind nor deaf in the face of violence.

The LTTE destroyed the Naval craft at around 1:00 AM local time on Saturday (19:00 GMT, Friday) in what is believed to be a suicide attack, killing some 13 sailors.

Commenting on the incident, the government spokesman and Health Minister Nimal Siripala De Silva said Sri Lanka would move to educate the international community on the LTTE's violation of the cease-fire agreement of February 2002.

The Sri Lankan president, narrowly elected in November, was seen to be adopting a hard-line towards the LTTE due to his electoral alliances with the two extremist parties the JVP and the JHU.

The Tiger leader in his annual Heroes Day speech late November warned that the Tigers would be forced to pursue its independence struggle unless the Rajapakse administration came up with a credible solution to the armed conflict.

The LTTE since December has killed 40 soldiers in four separate claymore mine attacks against the government troops in Jaffna prior to Saturday's attack on the Naval craft in the east.

Beijing January 9, 2006 (Xinhuanet) - China's military has cut back its troops by 200,000, the official newspaper of the People's Liberation Army said on Monday.

The Liberation Army Daily said the two-year program to slim China's military was finished on schedule at the end of 2005, and troop numbers were down to 2.3 million.

China had 2.5 million serving military in 2003 when the cuts started. In 1987, it had about 4.2 million.

The reforms included reducing layers in the command hierarchy, cutting non-battle units such as schools and farms, and rearranging officer duties.

"The personnel system reforms have brought heartening changes to our military development. They've compressed troop numbers and optimized the personnel structure," the paper said.

"Our military is marching toward the goal of an appropriately sized, structurally balanced, lean, command-responsive fighting force."

After the cutbacks, the proportion of military serving in the infantry had fallen to a "historic low," while the share in the navy, air force and Second Artillery Corps -- which maintains China's nuclear missiles -- had risen, the paper said.

The paper also said that "high-tech" forces had increased. China has accelerated developing or buying several advanced weapons, including surveillance satellites, missiles, and "blue water" naval vessels and submarines.

"(The Central Military Commission) Chairman Hu Jintao's instructions set a clear direction for completing adjustment and reform of the military personnel system," it said.

Last week, Hu visited the Liberation Army Daily and told its staff to "adhere to a correct political orientation."

China's military budget in 2005 was about $30 billion, a 12.6 percent rise on the previous years.

The Liberation Army Daily said more reforms to China's military were planned for 2006, including further reducing officer numbers.

New Delhi January 9, 2006 - In the last few days, some sections of the media have raised an unsavory and completely unnecessary controversy about Admiral Arun Prakash, the Chief of the Naval Staff and Chairman Chiefs of Staff Committee. These are insinuating his involvement in the case relating to the leakage of information from the Directorate of Naval Operations in the Naval Headquarters.

It may be recalled that sometime back, the Ministry of Defense had accepted the recommendations of the Naval Headquarters and dismissed from service, three officers of the Indian Navy after a Board of Inquiry severely indicted the officers in the case relating to leakage of information of commercial nature.

The Intelligence Bureau also investigated the matter. It was found that no other Naval Officer, including the Chief of the Naval Staff, was involved. The Chief of Naval Staff is an outstanding officer who has unblemished credentials and is of impeccable integrity.

Washington January 9, 2006 - The Navy has awarded a 10-year, cost plus award fee/award term contract with a potential dollar figure of $159 million to Northrop Grumman Systems Corp., Bethpage, N.Y. Jan. 4, for the mission package integrator (MPI) for the Littoral Combat Ship (LCS) Mission Modules program, strengthening the production team that will deliver the first mission packages in Fiscal Year (FY) '07. The FY '06 portion of the contract award is $4,477,824.

The integrator's role is to work closely with the government's Mission Package Integration Laboratory at the Naval Surface Warfare Center Panama City, Fla., to produce and deliver capabilities according to the technical architectures developed by the LCS Mission Modules Program Office (PMS 420).

"The MPI contract is a significant step forward in our effort to deliver modular, plug-and-fight capability for the fleet," said Capt. Walt Wright, Mission Modules Program manager. "Together with industry we will produce integrated packages of mission systems-for Mine Warfare (MIW), Anti-submarine Warfare (ASW) and Surface Warfare (SUW)-that will go to sea aboard LCS."

The Navy has defined the role of the mission package integrator as a system-engineering partner responsible for bringing the systems and technologies of the mission modules together under the integration and interface requirements established by PMS 420 and the LCS program office. The integrator also will act as a conduit for technology to be harnessed and incorporated into the LCS's seaframe and mission module architectures.

PMS 420 packages a variety of technologies, many of which are produced by other program offices and delivered as elements of a particular mission module.

"We are bringing together the best available technologies from a variety of programs to meet the focused mission requirements of the LCS program," Wright noted.

For example, the MIW module brings together several systems developed by the Mine Warfare program office (PMS 495). The MIW module includes the AN/WLD-1 Remote Minehunting System; the AN/AQS-20A Sonar Mine Detecting Set; the Organic Airborne Surface Influence Sweep; the Airborne Laser Mine Detection System; and the Airborne Mine Neutralization System, among other systems.

At the heart of the ASW module is the Advanced Deployable System (ADS), which is developed by the Maritime Surveillance Systems program office (PMS 485). The ADS is a bottom array that may be deployed from LCS at high speed, providing high-quality acoustic surveillance data. Additionally, the ASW module includes acoustic sensors such as a multifunction towed array, and a remote towed active source, along with other detection systems and weapons designed for use aboard the MH-60R helicopter and unmanned surface vessels.

The SUW module includes weapons such as a 30mm cannon (the same as is used in the Mine Warfare program offices Rapid Airborne Mine Clearance System, and the US Marine Corps' Expeditionary Fighting Vehicle), and a version of the US Army's Non-Line of Sight - Precision Attack Munition missile system.

Washington December 29, 2005 - The six ships, one submarine, and more than 5,500 Sailors and Marines of Expeditionary Strike Group (ESG)-1 are getting the chance to test and evaluate a new low cost, low power, optical communications system. The Office of Naval Research supported development of four prototype systems, called LightSpeed, that use infrared light-emitting diodes (LEDs) to communicate point to point.

The prototypes easily attach to current handheld and "Big Eyes" binoculars to allow transmission of digital voice over a range of two to five nautical miles, and could be used for communication between ships at sea and platforms in the air and on the ground. LightSpeed operates outside the radio frequency spectrum and has essentially unlimited bandwidth. Efforts are under way with Naval Network Warfare Command to seek approval of optical transmission of full motion video and data at 1Mb/s.

Torrey Pines Logic, Inc. (San Diego) has been working on LightSpeed technology since 2002, and came to the Navy’s attention in 2003 when Commander Gisele Bonitz of ESG-1 first saw it demonstrated. When Bonitz wondered if LightSpeed could be used on ships, her command’s science advisor encouraged her to contact ONR’s Tech Solutions office, which runs a website through which Sailors and Marines can ask for—and suggest—solutions to technology challenges.

In 2004, Torrey Pines began receiving ONR funding through Tech Solutions for prototype development, and also through its Information, Electronics, and Surveillance Science and Technology Department to develop an advanced beamsplitter. The company now receives Tech Solutions funding for advanced prototype development and field testing, with project management provided by SPAWAR Systems Center in Charleston, S.C.

LightSpeed can be attached to any optical device and offers simultaneous voice and data transmission; eye-safe, secure communication; and an ultimate range up to the horizon. These benefits could outweigh limiting factors such as necessity of maintaining line of sight and degraded performance in dense fog.

Initial applications will focus on vessel boarding search and seizure communications to pass biometric data back to ship, as well as ship communications during "radio blackout" situations. LightSpeed technology is also being considered for submarine communications with aircraft, explosive ordnance disposal communications, unassisted UAV landing/surveillance, flight deck personnel/asset tracking and communications, and convoy communications.

Washington December 29, 2005 - Before the sun had even risen over Wallops Island, Va., on 10 December 2005, a joint Office of Naval Research/Defense Advanced Research Projects Agency vehicle achieved a world first. At an altitude of 63,000 feet, the Freeflight Atmospheric Scramjet Test Technique (FASTT) vehicle became the first air-breathing, liquid hydrocarbon fuel-powered scramjet engine to fly.

After launching from the NASA Wallops Flight Facility on a two-stage, Terrier-Orion unguided solid-rocket system, the approximately 106-inch long, 11-inch diameter, missile-shaped vehicle raced at 5,300 feet per second (Mach 5.5) for 15 seconds before a controlled splashdown into the Atlantic Ocean. The FASTT vehicle project is part of the joint ONR/DARPA Hypersonic Flight Demonstration (HyFly) program and is designed to demonstrate low-cost flight test techniques and obtain in-flight engine performance data at hypersonic speeds. The overall goal of HyFly is to flight-test key technologies enabling a long range, high-speed cruise missile that can cruise at speeds up to Mach 6.

A scramjet is a supersonic combustion ramjet. Ramjets, which use low subsonic combustion are limited in speed capability. Scramjets have the ability to operate above Mach 5. The hybrid engines of HyFly have no moving parts and offer a lighter weight alternative to other types of propulsion systems. Instead of carrying an oxygen tank, air passing through the vehicle is mixed with fuel. The HyFly program is based on a hybrid scramjet technology called the dual combustor ramjet, developed at the Johns Hopkins University Applied Physics Laboratory. In this powerplant, supersonic air entering through one inlet is slowed to subsonic speeds, mixed with JP-10 fuel and ignited. The expanding combustion products are then mixed with supersonic air entering through a second inlet and are more completely burned in a supersonic combustor.

By using a conventional fuel and not relying on toxic additives as do other scramjet designs, this engine is safer for shipboard use. It can be powered all the way to the target, and that target or its coordinates can be changed as necessary. The test program will culminate in successful tests of sustained flight at Mach 6, thereby demonstrating the readiness of key technologies such as the liquid-hydrocarbon fueled hybrid scramjet engine and high temperature capable structures.

Alliant Techsystems (ATK) is the system integrator that designed and built the FASTT vehicle; Boeing is the HyFly system integrator.

Washington January 9, 2006 - Citizens Against Government Waste (CAGW) today criticized the Air Force's plan to grant a multimillion annual subsidy through sole-source contracts for heavy satellite launches to United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin. The Wall Street Journal reported yesterday that the Department of Defense (DOD) has conditionally approved the plan; final approval rests with the Federal Trade Commission (FTC).

The companies are now jointly negotiating for the third round of launches under the $32 billion Evolved Expendable Launch Vehicle (EELV) program, which will cover 23 missions lasting through 2011 and beyond.

"The Air Force policy is tantamount to a government bailout," CAGW President Tom Schatz said. "It is a multimillion subsidy to an entity that is effectively insulated from competition."

The ULA will provide launch services for the Air Force and for some missions of the National Oceanic Atmospheric Administration, the National Aeronautics and Space Administration, and the National Security Agency. Boeing and Lockheed Martin will continue competing for private launches. The FTC has questioned the companies' claim that consolidation will save $100 million to $150 million per year and in December 2005 told both companies it needed more time to review the proposal. The EELV program was implemented in 1995 to give the federal government "assured access" to space by keeping two domestic providers viable. The first round of contracts was awarded to the same companies in 1998 with the expectation that a strong commercial launching market would emerge. However, the government has assumed an increasing share of the risk and cost of the launching operations. If approved, the ULA will benefit from $650 million in government subsidies for infrastructure and about $100 million per launch. Furthermore, there is no legal requirement for the Air Force to consider additional bidders that may emerge before 2011.

A July 2005 report from the Government Accountability Office referred to the DoD’s space system acquisition efforts as "dismal," and noted that EELV's unit cost has grown 81 percent. During the first round of bidding seven years go, Boeing illegally obtained proprietary information from Lockheed Martin. The resulting investigation and suspension cost taxpayers $230 million.

The new plan would allow contractors to divide costs between cost-plus "capability" contracts and fixed-price "services" contracts.

"The contracts' structure obscures the true cost to taxpayers and rewards scandalous behavior with lucrative long-term deals. To encourage innovation and keep down costs, the Air Force should revert to price-competitive acquisitions and widen the playing field to new competitors," Schatz concluded.

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

Colombo January 9, 2006 (PTI) - Sri Lanka's President Mahinda Rajapakse today pledged to uphold a shaky truce despite "provocation" by the Tamil Tiger rebels but said all measures will be taken to deter further terror attacks.

Briefing diplomats from the US, Norway, Japan, Britain and EU over last Saturday's suicide bombing of a navy gunboat by suspected rebels, Rajapakse said his government will take "all necessary measures to deter further terror attacks that will undermine the cease-fire and the peace process as well as the security of the country."

Diplomats from the quartet known as "Co-Chairs," or those who raised money in support of Sri Lanka's peace process, appreciated the government's restraint, a statement said.

"The ambassadors of the co-chairs expressed their strong appreciation of the restraint and responsibility shown by the government in the face of escalating attacks by the Liberation Tigers of Tamil Eelam," the statement said.

It said Rajapakse told diplomats that he was ready to open talks with the Tigers at any time, but it was the guerrillas who were not responding to his invitation.

"If someone takes my patience that I have inculcated through Buddhist values as my weakness, they would be mistaken," the state-run Daily News quoted the president as saying at a public meeting in the south of the island yesterday.

"I am duty bound to ensure the security of this country. In the same manner I am duty bound not to allow anybody to create problems in the country," he said.

Brussels January 9, 2006 (RIA Novosti) - A Russian Navy ship will arrive in Sicily in February to take part in a patrol mission in the Mediterranean, NATO Secretary General Jaap de Hoop Scheffer said Monday.

Scheffer told journalists at a New Year reception in the NATO headquarters that the presence of the Russian ship in Sicily and its participation in the anti-terrorism Operation Active Endeavor would be an important contribution to NATO-Russia partnership.

Washington January 9, 2006 - Secretary of the Navy Donald C. Winter today named Special Agent Thomas A. Betro as director of the Naval Criminal Investigative Service (NCIS) succeeding former Director David L. Brant, who retired in December. Prior to his selection as director, Betro served as NCIS deputy director for operations.

Betro, 46, is a native of Walpole, Mass. He received a bachelor degree in government from Colby College in 1981 and the following year joined NCIS as a special agent.

Since then he has held a wide range of assignments and leadership positions including two tours as a special agent afloat on board the USS John F. Kennedy and the USS Enterprise. He has served overseas in both the Republic of the Philippines and in Iceland. After serving in NCIS leadership positions in Philadelphia and Newport, Betro was named chief, Pacific Division, Counterintelligence Directorate, NCIS HQ.

In March 1999, Betro was assigned as NCIS deputy assistant director for counterintelligence operations with responsibility for worldwide counterintelligence investigations, operations, and analysis for the Navy Anti-Terrorism Alert Center (ATAC). Betro also distinguished himself outside NCIS as deputy national counterintelligence executive (NCIX), later serving as the acting NCIX. The NCIX is appointed by the President to serve as head of national counterintelligence.

Betro received a number of awards including the Naval Meritorious Civilian Service Award in 2000. In 1996, he attended the Naval War College, where he earned the James Forrestal Award for Excellence in Strategy and Force Planning.

Taipei January 9, 2006 (TIS) - A war of words erupted last week about the appropriateness of expanding the nation's submarine force, with some opponents of a proposed arms procurement deal saying subs are offensive weapons, and are therefore inappropriate for Taiwan's defense.

The decision to delay the purchase of PAC-3 Patriot anti-missile batteries until next year and to include P-3C Orion maritime patrol aircraft in the regular defense budget has left the eight diesel-electric submarines -- worth NT$299 billion (US$9 billion) -- the only item included in a special arms budget.

The most recent battle is a result of Kuomintang (KMT) legislator’s comments opposing the procurement of the submarines from the US.

Last week, KMT Legislator Su Chi published an opinion piece in a Chinese-language newspaper titled "New thinking on Taiwan's arms procurement." In the piece, he urged the country to devote itself to a "defensive" military, rather than the "offensive" military he said the Chen administration was trying to build. He said the change was necessary due to limited funds in recent years.

"Taiwan should boost its defensive capabilities and aim to survive a 'first strike' during a Chinese military attack. It is not necessary to spend huge amounts of money on offensive submarines," Su added.

KMT Legislator John Chiang last week said that American Institute in Taiwan (AIT) Director Douglas Paal had confirmed that the items and price of the arms procurement budget are adjustable, depending on Taiwan's needs.

Chiang then proposed that Taiwan should not buy the submarines currently included in the arms package, saying their "attack" capabilities are unnecessary and inappropriate for the nation's defense-focused military policy.

The KMT legislators' comments regarding submarines immediately sparked a debate between legislators and military experts.

The Democratic Progressive Party (DPP) then launched a vigorous defense of the submarine purchase.

DPP Legislator Lee Wen-chung published an article in a Chinese language newspaper's opinion page titled "Submarines: Critical for Taiwan's defense," saying that "due to China's weak anti-submarine warfare capabilities, a Taiwanese submarine force would be able to survive a first strike from China's ballistic missiles and cruise missiles attack."

Advanced submarines have high survival rates in wartime because of their stealth underwater, Lee added.

From a tactical point of view, Lee said, a Taiwanese submarine force would be able to blockade and counter-blockade China's ports and sealanes. Strategically, the submarine’s "offensive" capabilities would deter China from waging a war against Taiwan because of the huge cost.

Lee calculated, additionally, that because of China's sparse anti-submarine warfare capabilities, Beijing would have to spend around eight times the amount spent on Taiwan's submarine force to build up adequate capabilities, including procuring anti-submarine aircraft, minesweepers, mine-sweeping helicopters, anti-submarine missiles and destroyers. Therefore, the move would distract China from concentrating on its offensive capabilities.

DPP Legislator Shen Fa-hui, a member of the National Defense Committee, last week also published an opinion article in response to Su's comments. He said it was ridiculous for Su and the pan-blue parties to think that Taiwan should boost its anti-missile capabilities, and yet block the procurement of the Patriot batteries.

Even people who are more interested in the military than in politics decided to have their say.

Mei Fu-hsing, director and editor-in-chief of the military journal Taiwan Defense Review, last week published an article in a newspaper opinion page titled "A defense-focused military: The KMT wants Taiwan to take a beating from China," arguing that the nation could not simply rely on a purely defensive military.

"The nation should seek to take strategic advantage in the Strait," Mei said. He added: "even if Taiwan wants to resume cross-strait talks with China, it should have strategic military power as bargaining leverage."

"A strategic submarine force can increase China's risk, cost and uncertainty of launching a war, and therefore may deter it from starting a war against Taiwan," Mei added.

However, Professor Yu Pen-li of Tamkang University's Graduate Institute of American Studies, last week published an opinion piece in a Chinese-language newspaper criticizing the Minister of National Defense Lee Jye's promotion of the expensive submarines, saying it was "patronage," because Lee came from the submarine fleet force.

"While US officials from various departments and think tanks have warned Taiwan of China's military threat and urged the country to make anti-missile capabilities its priority, as a former naval official, Lee still insists on building a submarine force -- the most controversial item in the special arms package," he wrote.

The Minister of National Defense originally designed a NT$480 billion (US$14.5 billion) special budget to buy three Patriot anti-missile batteries, eight diesel-powered submarines and 12 Orion aircraft from the US.

However, facing heavy opposition from the pan-blue camp, it decided to delay the purchase of Patriot missile batteries until next year because the referendum held in March 2004 in tandem with the presidential poll was seen as a "public veto" of the purchase.

Pan-blue legislators said that according to the Referendum Law, a referendum that fails to get the number of votes necessary to make a valid result couldn’t be put to a vote for another three years.

Taipei January 9, 2006 (TIS) - Taiwan has produced three prototypes of a new cruise missile that could be used to strike the East Coast of rival China, an authoritative defense magazine said.

The cruise missile, called Hsiung Feng 2E (Brave Wind), "will be deployed on mobile land-based platforms and initial plans are for the production of up to 50 missiles before 2010 and up to 500 missiles after 2010," Jane's defense Weekly said in an article to be published January 11.

With a range exceeding 600 kilometers, the missile will be able to attack targets along the east coast of the Chinese mainland; it quoted a defense source as saying.

"If deployed on Penghu Island in the south or Tungyin Island in the north, it could strike as far south as Hong Kong and as far north as Shanghai," the source said.

The defense ministry declined comment on the report.

China has repeatedly threatened to invade Taiwan should it declare formal independence, prompting the island to seek more advanced weaponry to defend itself.

The Pentagon released a report in July last year warning that China had deployed up to 730 ballistic missiles targeting Taiwan. It said Beijing's build-up could tip the military balance against Taiwan and threaten other countries in the region.

Taiwan's military-run Chungshan Institute of Science and Technology, the developer of the cruise missile, is planning to extend its range to 1,000 kilometers, the weekly said.

But "this would require the acquisition of specialized engine components from the US that Washington has so far refused to allow, perhaps linked to provisions under the Missile Technology Control Regime," Jane's said.

The Chungshan Institute is also working on a short-range ballistic missile based on the Tien Kung (Sky Bow) air-defense missile system, the weekly said.

The ballistic missile and cruise missile are integral to Taiwan's "active defense" policy, which aims to counter any aggression before it reaches Taiwanese territory, it said.

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Recovery Operations on Site Containing Pay Ship Announced

Newtown PA January 6, 2006 - Sovereign Exploration Associates International, Inc., announces plans to begin operations on site CBNS-3 containing the wreck of a British grand square-rigger pay ship, the HMS Tilbury. This ship is believed to be one of twenty ships in the British fleet sent to Halifax in 1757 to attack the fortress of Louisburg which was fortified by the French.

Under an official Treasure Trove licensing agreement with the Nova Scotia provincial government, Artifact Recovery & Conservation, Inc. (ARC), a portfolio company of SVXP, anticipates surveying the site this spring and, weather permitting, initiate recovery operations.

While anchored off the coast of Cape Breton in September 1757, the fleet encountered winds of hurricane level. The British ship believed to have been a pay ship and carrying in excess of 500,000 gold and silver coins when it went down at St. Esprit, Nova Scotia. Of the twenty ships, nine arrived in Halifax with masts standing, two sank, and the remainder of the fleet returned to England via Newfoundland.

A major focus of the exploration will be the large cargo of Spanish Pillar Dollars known to be on the pay ship. These coins were the principal coins found and used as currency in the Colonial years of America.

First US Jury Verdict Linking Asbestos From Welding Rods to Mesothelioma and Lung Cancer Affirmed by New York Appeals Court

New York January 9, 2006 - In the second major verdict against the US welding industry in little more than a week, a New York State appeals court on Dec. 29th affirmed the first-ever jury finding that asbestos-containing welding rods, sold in the billions up to the early 1980's, had caused lung cancer and mesothelioma, Attorney Jerome H. Block of the nationally known mass toxic tort law firm of Levy Phillips and Konigsberg, LLP announced.

The New York Supreme Court, Appellate Division, First Department, in a published decision, upheld the July 2003 jury verdict in favor of, Angel Gomez, who died following the trial, and the late Daniel Tucker. Both men worked with and around asbestos-containing welding rods. The jury awarded Gomez a total of approximately $3.19 million against Lincoln Electric Company ("Lincoln"), reduced 25 percent since Gomez was a cigarette smoker. Tucker's estate was awarded a total of approximately $3.5 million split between Lincoln and Hobart Brothers Company ("Hobart").

Lincoln, publicly traded, and Hobart, a wholly owned subsidiary of publicly traded Illinois Tool Works, Inc., "had argued that their asbestos product was different and incapable of causing lung cancer and mesothelioma. The jury rejected these arguments, and now their verdict has been unanimously upheld by the appellate court," Block said.

On Dec. 20th an Illinois appellate court upheld a 2001, $1 million negligence and product liability award against Lincoln, Hobart, and Airco/The BOC Group, Inc. After a four-week trial a jury found that manganese fumes from the defendants' welding rods caused central nervous system injury resulting in the plaintiff's Parkinson's disease.

The welding rods at issue in the Gomez and Tucker cases known by their American Welding Society Classification "6010," were and continue to be a top-selling, all-purpose welding rod. Up to the early 1980s, these rods were coated with a mixture containing 5% to 15% asbestos, according to trial testimony. "We proved that asbestos from the coating of these rods would be released in the air and breathed in by workers like Mr. Gomez and Mr. Tucker who had no idea that asbestos could kill them," Block explained. For at least a half century, from the 1930's through the early 1980's, Lincoln manufactured billions of asbestos-containing welding rods, which were commonly used in industry, Block noted. In addition to welders, others who worked around them were endangered by these rods, Block added.

Case Filed As: Christine Wiegman, Individually and as the Administratrix of the Estate of Daniel Tucker, Plaintiff-Respondent, v A C & S, Inc., et al., Defendants, The Lincoln Electric Company, et al., Defendants-Appellants.; Angel Gomez, Plaintiff-Respondent, v A C & S, Inc., et al., Defendants, The Lincoln Electric Company, Defendant-Appellant.

General Dynamics Completes Conversion of USS Ohio, First of Transformational Subs

Bremerton January 9, 2006 - General Dynamics Electric Boat has completed its conversion of USS Ohio (SSGN-726), the first of four Trident submarines to be reconfigured as multimission vessels optimized for covert tactical strike and special operations support. Electric Boat is a wholly owned subsidiary of General Dynamics.

Ohio's conversion, undertaken in conjunction with the ship's midlife refueling, provides the Navy with its first truly transformational platform. Ohio will be joined by three additional Tridents undergoing conversion to SSGNs -- USS Michigan at the shipyard here, and USS Florida and USS Georgia at Norfolk Naval Shipyard in Virginia. The conversions are being performed under a $1.4 billion contract awarded to Electric Boat in 2002; work is scheduled for completion in 2007.

Each SSGN will carry up to 154 Tomahawk cruise missiles and support up to 66 Special Operations Forces for an extended time. General Dynamics Advanced Information Systems in Pittsfield, Mass., is the systems integrator for the missile-control system. SSGNs will also serve as platforms to develop and test new weapons systems, sensors and operational concepts that could further transform naval warfare. These payloads will include large unmanned undersea vehicles and off-board sensors.

"The on-time conversion of USS Ohio from a strategic-missile submarine to a guided-missile and special warfare platform is a tribute to the collective efforts of the men and women of Electric Boat, Puget Sound Naval Shipyard, the Navy's Strategic Systems Program and the Naval Sea Systems Command SSGN program office," said EB President John Casey. "Their contributions have provided the Navy with a powerful warship that embodies unparalleled capabilities as well as the opportunity to integrate new technologies and payloads in the future."

Casey noted that the conversion -- comprising design, manufacturing, installation and at-sea testing -- was completed only three years after the Navy decided to move forward with the program. "That's a remarkable achievement," he said.

Referring to the overall SSGN conversion program, Casey said, "Work on USS Florida is proceeding smartly -- in fact, its sea trial is on track to follow the lead-ship trial by only three months. This will enable us to provide the US Navy with a second transformational platform over a shorter-than-normal time frame, and at a conversion cost still lower than the lead ship's."

General Dynamics Advanced Information Systems Awarded $6.7 Million for Middleware Sensor Integration

Arlington VA January 9, 2006 - General Dynamics Advanced Information Systems, a business unit of General Dynamics, has received an initial $6.7 million award under a new indefinite- delivery/indefinite-quantity contract for Middleware Sensor Integration. This contract allows orders to be placed for open architecture, commercial off-the- shelf processing, communication and networking solutions for Navy sensor, weapon and combat systems. The Navy will utilize this effort to develop and demonstrate advanced concepts in sensor integration and contact fusion and for a variety of Naval platforms. The contract has a maximum potential value of $65 million.

Work will be performed in Fairfax, Va., and Kauai, Hawaii, and is expected to be completed in November 2007. The Office of Naval Research awarded the contract.

American Superconductor Awarded $10 Million ONR Contract Amendment

Westborough MA January 9, 2006 - American Superconductor Corporation, a leading electricity solutions company, today announced that it has finalized a contract amendment with the United States Navy's Office of Naval Research (ONR). Under the terms of the amendment, the ONR has approved a $10 million increase to AMSC's contract to design and build a 36.5 megawatt (MW) high temperature superconductor (HTS) propulsion motor for electric warships. The amendment adds $10 million to AMSC's backlog, most of which is expected to be recognized as revenue in the Company's fiscal year ending March 31, 2006. AMSC also expects an additional contract modification to be completed by ONR within the next few months, which will increase AMSC's backlog by an additional $7 million to $10 million. AMSC expects to deliver the 36.5MW motor to the Navy test facility in Philadelphia in September 2006.

As prime contractor, AMSC leads the design, manufacture and initial testing of the prototype 36.5MW HTS electric ship propulsion motor. The motor, which is sized for the Navy's future DD(X) ships, benefits from the successes achieved by AMSC in a recently completed ONR 5-MW HTS motor development and test program. AMSC and Northrop Grumman have already successfully completed the first two phases of the three-phase development process for the 36.5MW motor including successful preliminary design and detailed design reviews.

HTS motors are ultra-compact, measuring as little as one-third the weight and one-half the size of copper-based motors of the same power and torque rating, which means Navy ships could carry more fuel and munitions and could have more room for crew's quarters and weapons systems, and commercial ship owners and operators could carry more passengers and cargo. In addition, HTS motors operate with higher fuel efficiency and are expected to have lower maintenance costs than their conventional copper counterparts. The substantial advantages offered by HTS ship propulsion motors are expected to be provided at a production cost equivalent to conventional motors of the same power and torque rating.

Boeing-Led Team Demonstrates New High-Speed Data Technology

St Louis January 9, 2006 - An industry team led by Boeing [NYSE: BA] has demonstrated a new technology that dramatically increases data transfer speeds in tactical aircraft, making them more effective in meeting the demands of the network-centric operational environment of the future.

The new data "bus" technology, which uses existing aircraft wiring, has proven it can transfer electronic data at least 40 times faster than current data bus technology. These advantages will allow aircraft systems to be upgraded for future combat environments much more quickly and affordably than with other high data rate options.

The new technology is a high performance version of the current military standard data bus known as MIL-STD-1553. It's called HyPer-1553TM and is similar to Digital Subscriber Line technology that's used to expand the data-carrying capability of ordinary telephone lines.

"HyPer-1553, developed by Data Device Corp., is particularly well-suited for applications in which it is difficult or impossible to add or replace wiring," said Steve Wilson, Boeing Phantom Works lead engineer for the project. "And because it operates in parallel with existing MIL-STD-1553 data buses, upgrades can be done incrementally, which further expands the options for upgrading the war-fighting capabilities of current and future aircraft."

The team of Boeing, Data Device Corp. (DDC) and Honeywell Aerospace demonstrated HyPer-1553's capabilities by conducting a flight test aboard the Boeing F-15E1 Advanced Technology Demonstrator aircraft on Dec. 17, 2005, in St. Louis.

During the test, Boeing Phantom Works engineers used the HyPer-1553 data bus to transmit imagery between a rugged computer mounted in the forward equipment bay of the F-15E and a modified Joint Direct Attack Munition (JDAM) mounted on a wing pylon station. A DDC circuit card was mounted to a Honeywell general purpose processor board on either end of the interface.

The results showed that HyPer-1553 transferred data at 40 megabits per second in parallel with MIL-STD-1553 data being transferred at 1 megabit per second. The team also transferred data at 40, 80 and 120 megabits per second on a second bus dedicated to the higher speed data.

"HyPer-1553 technology's increased performance, reduced down time and relative low cost of implementation add up to a very innovative and affordable solution for our customers," Wilson said.

Data Device Corp. is a leading international supplier of high-reliability data interface products for aerospace applications, and has supplied MIL-STD-1553 products for more than 25 years.

Honeywell Aerospace has unique capabilities in displays and processors as well as high reliability switches and sensors.

Northrop Grumman Names David T. Perry Vice President of Marine Systems Division

Sunnyvale CA January 9, 2006 - Northrop Grumman Corporation has appointed David T. Perry vice president of its Marine Systems Division, a business unit of the company's Electronic Systems sector.

Perry succeeds James R. Hupton, who has retired from the company after 36 years of distinguished service.

Perry will have executive responsibility for all Marine Systems programs and will provide leadership for the propulsion, power generation, nuclear instrumentation and controls, and launcher businesses at Marine Systems' locations in Sunnyvale, Calif.; Sykesville, Md., Kings Bay, Ga., and Bangor, Wash.

Perry joined the company in 1999 and has held positions in program management, business development and strategic planning. Since 2003, he has served as the strategic business unit director for the company's machinery controls and automation business in Charlottesville, VA.

Prior to joining Northrop Grumman, Perry served with distinction in the US Navy as an officer on nuclear submarines.

Perry earned a bachelor's degree in electrical engineering from Duke University and a master's degree in engineering administration from George Washington University. While serving in the US Navy, he completed naval nuclear propulsion training and numerous submarine officer courses. He has also completed the Harvard Business School Executive Education program.

Seattle January 9, 2006 - Todd Shipyards Corporation announced today that its wholly owned subsidiary, Todd Pacific Shipyards Corporation, has entered into a long-term lease arrangement with Kiewit-General of Poulsbo, Washington. Kiewit-General is under contract with the Washington State Department of Transportation as the prime contractor for the replacement of the eastern half of the Hood Canal Bridge in Kitsap County, Washington. Under the terms of the lease option exercised by Kiewit-General, a portion of the Todd Pacific facility on Harbor Island in Seattle will be utilized by Kiewit-General for the assembly and outfitting and storage of the draw span pontoons. These will eventually comprise the replacement of the eastern half of the Hood Canal Bridge. The pontoon sections will be constructed at Concrete Technology Corporation in Tacoma, Washington and will then be floated to Todd Pacific's shipyard in Seattle.

It is anticipated that the first pontoon will arrive at the shipyard in July 2007 and that the work will be completed by Kiewit-General at Todd Pacific's facility in approximately 20 months with the departure of the last pontoon in early 2009.

Todd Pacific anticipates that Kiewit-General will use approximately one of the Company's 28 acres of land and portions of Pier 6, one of its five piers. Todd Pacific further anticipates that it will be able to sufficiently accommodate its ship repair customers' demands during the duration of the lease. Todd Pacific believes the lease will generate approximately $2.5 million in rental income for the Company between January 2006 and January 2009 with approximately $2.2 million of the rental income being realized from July 2007 to January 2009. In addition, Kiewit-General has agreed to pay for utilities and contribute to facility modifications.

Parsippany NJ January 9, 2006 - DRS Technologies, Inc. announced today that it has received a new US Navy award under the SEAPORT Enhanced (SEAPORT-e) contract valued at $42.5 million, including options, to provide engineering and technical support services. The contract is expected to help the US Navy reach its Seapower 21 objectives for cost reduction, business efficiencies and customized technical and engineering services to meet diverse product requirements and missions.

The initial $5.3 million order comprising several tasks was awarded to DRS by the Naval Surface Warfare Center, Indian Head Division, in Indian Head, Maryland. For this award, DRS will utilize Commercial Off-The-Shelf (COTS)-based and open-architecture technology to provide state-of-the-art solutions to the US Navy. Work for this contract will range from the development of improved software processes, leading to simpler and less expensive methods for integrating disparate software and hardware products from a variety of vendors, to the upgrade of obsolescent combat systems in some of the Navy's amphibious assault ships. Several DRS business units at Navy shore sites, test beds and on board various ship platforms will perform this work.

"This contract continues the DRS legacy of providing combat system engineering services to develop and support COTS-based mission-critical shipboard systems," said Steven T. Schorer, president of DRS's C4I Group. "As a key provider of engineering and technical support services to the US military, we are pleased to support the US Navy's Seapower 21 objectives."

The scope of the contract encompasses a wide range of engineering expertise and leverages the talents of several of the company's business units involved in thermal imaging surveillance systems, unmanned aerial vehicle systems, avionics equipment, command and control systems and software, and ship power, propulsion and control equipment. Services for this contract have commenced under a base effort that spans a 36-month period. Two one-year contract options potentially extend the service effort to a total of 48 to 60 months.

New York January 9, 2006 - EDO Corporation has acquired NexGen Communications LLC, a privately held company specializing in the design and production of communications systems for a diverse set of US government organizations. NexGen is an engineering-driven company focused on developing innovative, rapid-response solutions. The transaction closed on December 20 and is the third acquisition completed in 2005.

"This acquisition further strengthens our fast-growing position in specialized communications products for the military and intelligence communities," said EDO Chief Executive Officer James M. Smith. "Earlier in 2005 we acquired EVI Technology LLC, which provides similar products to these communities. With the synergies that are developing as part of EDO Corporation, revenue from the now-combined EVI and NexGen operations is expected to grow to approximately $45 million in 2006."

In addition to NexGen and EVI Technology, EDO in 2005 acquired Fiber Innovations, Inc., a privately held company based in Walpole, Mass. The combined 2006 revenue of approximately $60 million expected from these three acquisitions represents growth of approximately 20 percent from 2005 levels.

Fiber Innovations develops and manufactures composite structures for aerospace, defense, and commercial customers. As a leader in the specialty processes of braiding, resin transfer molding, and vacuum-assisted resin transfer molding, it has perfected one of the most practical and effective manufacturing methods available to the composite industry today. This adds important complementary design and manufacturing capabilities to EDO's integrated-composite-structures business.