RUSSIAN QUOTA SYSTEM
The State Department - Washington, D.C.
The Clinton administration has imposed sanctions against Moscow
for providing advanced missile technology to Iran and threatens
to extend more penalties.

Yet, Russia will use up its quota of U.S. satellite launches by
the end of 1999, over a year ahead of schedule.  U.S. satellite
firms and a cash-strapped Moscow are pressing the Clinton
administration to drop the quota.

Clinton, however, is in no mood to repeat the same mistakes made
under the Brown led Commerce Department and has allowed the
diplomats to take the lead.  Unlike Commerce - State and DOD
officials are placing military and diplomatic concerns ahead of
trade.

State Department spokesman, James Rubin, stated "If we don't get
progress on the missile proliferation problem, we are not going
to be able to support increasing the quota."

MADE IN THE U.S.A.
Vandenberg AFB, California.
Loral/Globalstar has signed a deal with U.S. rocket maker Boeing
for seven Delta II launches.  Two of the improved Delta rockets
will be launched into orbit from Vandenberg in the fourth
quarter of 1999.

The U.S. rocket buy - over cheaper Russian and Chinese space
vehicles - shows Loral is learning a lesson - the hard way.

U.S. vehicles and insurance may be costly but failed launches on
foreign vehicles put Globalstar far behind schedule and way over
budget.  Loral was stung by the 1998 failure of a Russian Zenit
that destroyed 12 Globalstar satellites.

National security concerns over foreign technology transfers
brought bad publicity on top of launch failures.  Loral is also
involved up to their eyeballs in the Chinagate scandal through
major donations to President Clinton by its CEO, Bernard
Schwartz.  Schwartz traveled to Beijing in 1994 with Ron Brown
and met with Chinese Lt. General Shen Roujun to arrange the
transfer of encrypted satellite telemetry systems.

HOLY GRAIL!
Moscow - The Kremlin.
Russian missiles makers are offering an upgrade to the older
SA-7 man-portable surface-to-air missile.  The SA-7 made its
first combat appearance over the skies of Vietnam and was
considered lethal against U.S. helicopters.  Over 50,000 SA-7
(NATO Codename "Grail) have been sold worldwide, many to
terrorist organizations.

NOW - for a limited time only!  RED light special!

Russian missile makers are offering an upgrade package priced
around $20,000 per missile that includes a new dual I/R & U/V
seeker head and on-board digital computer using components from
the SA-18 Russian SAM missile system.  The SA-7+ (informally
known to western defense analysts as the "Holy Grail") will not
be fooled by flares or Infra-Red Counter Measures (IRCM) mounted
on U.S. aircraft.

ONLY ONE FOX LEFT
Virginia - The Pentagon.
The U.S. used about 330 Tomahawk cruise missiles and 90 Air
Launched Cruise missiles (ALCM) during Desert Fox.  All the USAF
launched ALCM cruise missiles were Block 1 types equipped with
heavy conventional warheads for bunker busting.  In addition,
230 laser-guided bombs were used and about 250 dumb "iron" Mk.
82 bombs.

According to recon results of Desert Fox, the cruise missile and
laser bomb attacks left most of Iraqi air defenses intact.

"Should we be picking off SAM sites one by one in the no fly
zone?" asked Read Adm. David Nichols, Central Command Deputy
Director.  "No, I don't think so."

The U.S. military is scrambling to replace the highly valuable
robot missiles but both services have opted not to purchase new
units.  Instead, both are upgrading leftover inventories.

The USAF bought only 200 of the heavy conventional ALCM missiles
and has only enough on hand for one more Desert Fox like attack.
The firing of 90 for Desert Fox has left the Air Force little
choice but to convert 90 more of the remaining 130 formerly
nuclear tipped missiles into bunker busters.

The Navy is only a little better off.  The Navy is converting
300 older "Block 2" Tomahawk missiles into the new "Block 3" GPS
equipped missiles.

FIN
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1 if by land, 2 if by sea.  Paul Revere - encryption 1775
Charles R. Smith
SOFTWAR         http://www.softwar.net      [EMAIL PROTECTED]
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SOFTWAR EMAIL NEWSLETTER                            01/18/99
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