FOREIGN CENTERS OF TECHNICAL EXCELLENCE: PROSPECTS FOR COLLABORATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90T00114R000500110001-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 33
• Document Creation Date: December 22, 2016
• Document Release Date: February 27, 2012
• Sequence Number: 1
• Publication Date: July 20, 1987
• Content Type: MEMO

Declassified in Part -Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1 -
"r{ LILY
D%C NO _ (TJ J'i e7 _ZOOgs
OIR 2-
P & PD___
entra Intelligence Agency
MEMORANDUM FOR: See Distribution Attached
SUBJECT: Foreign Centers of Technical Excellence:
P
rospects for Collaboration
Attached for your information is a copy of a report we have
just prepared on foreign centers of technical excellence. I hope
you find it useful. If you would be interested in having a
fuller briefing on this subject, please contact
Chief of our Technology and Industrial Competitiveness Division,
25X1
25X1
Direc or of Global Issues
Attachment:
Foreign Centers
Prospec
of Technical Excellence:
is for Collaboration
GI M 87-20095, May 1987,
25X1
25X1
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90TOO114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1 )-5X1
r
SUBJECT: Foreign Centers of Technical Excellence:
OGI/TICD/CF (29 May 87)
Distribution:
1 - Ambassador John Negroponte, State
1 - Donald Cohen, State
1 - Jerome H. Kahan, State
1 - Richard H. Solomon, State
1 - Alan Larson, State
1 - Douglas W. McMinn, State
1 - Dr. AnnHollick, State
1 - Thomas Hubbard. State
1 - Ralph Johnson, State
1 - Robert G. Morris, State
~1 - William Gussman, State
1 - Dr. Michael Darby, Treasury
1 - Robert A. Cornell, Treasury
1 - William Barreda, Treasury
1 - Stephen Canner, Treasury
1 - Frederick T. Knickerbocker, Commerce
1 - Louis Laun, Commerce
1 - James Moore, Commerce
1 - Frank Vargo, Commerce
1 - Melvin Searls, Commerce
1 - Marjorie Searing, Commerce
1 - Joseph A. Massey, USTR
1 - Geza Feketekuty, USTR
1 - Douglas Newkirk, USTR
1 - David Walters, USTR
1 - Randall M. Fort, President's Foreign
Intelligence Advisory Board
1 - Dr. William R. Graham, OSTP
1 - Eugene J. McAllister, Economic Policy Council
1 - Stephen I. Danzansky, NSC
1 - Philip A. DuSault, OMB
1 - Lew Cramer, ITA
1 - Michael Czinkota, ITA
1 - Robert Eckelman, ITA
1 - Henry Misisco, ITA
1 - Timothy Hauser, ITA
1 - Alan J. Lenz, ITA
1 - Joan McEntee, ITA
1 - John Richards, ITA
1 - Lee Mercer, ITA
1 - Ambassador Michael B. Smith, USTR
1 - Hugh F. Loweth, OMB
1 - Dr. Rolf R. Piekarz, NSF
1 - Dr. Alan I. Rapaport, NSF
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1 ?5X1
SUBJECT: Foreign Centers of Technical Excellence:
Prospects for Collaboration
Distribution (continued):
1 - Carlos E. Kruytbosch, NSF
1 - Catherine Mann, Federal Reserve Board
1 - SA/DDCI
1 - DDI
1 - DDI/PES
1 - NIO/Econ
1 - DD/OGI, D/OGI
1 - CPAS/ISS
3 - OGI/EXS/PG
5 - CPAS/IMC/CB
1 - C/TICD
3 - C/TICD/CF
= Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1 25X1
I I
cenira n e iggence ; gency
DIRECTORATE OF INTELLIGENCE
27 May 1987
Foreign Centers of Technical Excellence;
Pr
ospects for Collaboration
Summary
While the global dispersion of advanced technologies appears
to be accelerating, only the United States and Japan have the
range of scientific and industrial capabilities to advance
simultaneously on all technical fronts. Centers of leadership,
often focused on a relatively narrow range of technologies, do
exist in other countries -- for example, French and West German
strengths in advanced manufacturing technologies and British
capabilities in airframe composites probably lead the rest of the
world. Similar patterns of concentration appear to be taking
hold in parts of the the Third World, but LDC contenders have not
yet significantly approached the technological levels of the
major industrial countries. Given the dictates of national pride
and proprietary interest, major collaborative efforts among
foreign technical centers have been relatively rare: We believe,
however, that market forces will encourage more future
collaboration among facilities with "niche" capabilities, as
innovative firms in different countries seek to commercialize
complementary technologies. For many, the alternative to
collaboration -- via go-it-alone strategies -- is likely to be
technological and ; ndust
,, -A-- __
r
This memorandum was prepared by Office of
Global 'Issues, with contributions from analysts in the Offices of
Global Issues nd European Analysis. Comments may be directed to
Chief, Technolocy and rial Competitiveness
vision,
GI M 87-20095
25X1
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Foreign Centers of Technical Excellence:
Prospects for Collaboration 25X1
Page
Centers of Foreign Technical Excellence .................... 1
Vehicles of Technology Collaboration 3
Common Themes and Motivations ..........................:... 4
Outlook .................................................... 5
Appendix A. Leading R&D Facilities
Appendix B. Leading Facilities in SDI-Related Technologies
Appendix C. Leading Production Facilities
Appendix D. Third World Research Centers: Overview
Appendix E. Collaborative Efforts in R&D: Selected Examples
Appendix F. Collaborative Efforts in Production: Selected Examples
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Foreign Centers of Technical Excellence:
Prospects for Collaboration
In recent years, centers of technical strength in research and
development (R&D) and production have emerged in a number of firms
and laboratories throughout the Free World. While these
organizations and facilities possess impressive capabilities for
technological innovation, individually very few of them have
attained levels of achievement on a par with leading US
institutions. By far the lion's share of foreign R&D and
production advances has been accounted for by Japan and Western
Europe. Local producers in advanced-technology "niches" are
emerging in some Third World countries, although these efforts
have often consisted of purchasing and integrating proven
b
su
systems from the United States and Western Europe.
Centers of Foreign Technical Excellence
World-class research and development facilities abound in the
Free World (see Appendices A and B). Indeed, the recent series of
superconductor achievements by dozens of organizations -- a chance
discovery in a Swiss laboratory followed rapidly by breakthrough
advances around the world (figure 1) -- illustrates the globally
dispersed nature of R&D leadership. Foreign facilities with
exceptional R&D capabilities now exist in several areas with
important commercial and defense applications. For example:
? The French consortium SNECMA has sharply accelerated
its advanced propulsion research, building on French
Government support as well as the market success of the CFM56
engine developed jointly with General Electric.
? A number of Japanese firms took an early lead in
worldwide basic research on intermetallics, which are
generally considered the most promising materials to
outperform superalloys.
? Although heavily dependent on US and Japanese computer
technology, West Europeans have been doing world-class basic
research on new architectures for high-performance systems
Leading-edge production capabilities are also spread
throughout the major industrial countries (Appendix C). Japanese
advances in microelectronics and European strengths in advanced
machine tools are well-documented examples. Other instances of
world-class production capabilities in key technology areas
include the following:
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Figure 1
Breakthroughs in Superconductors, Fall 1986-Spring 1987
Temperatures at which superconductivity achieved
Fahrenheit ?
N ~ ?
b U
3 ~ ?
-238 ?
CI
Con Cn
V) M
? ? ? ?
U
?
I I I I 1 1
-418 0 N D J F March
1986 87
I I I
+ April --4 -250
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part -Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
? Japan is currently almost equal with the United States
in biotechnology overall, and in some important areas --
especially fermentation technology, a key to large-scale
production -- appears to be ahead of all other nations.
? In advanced telecommunications equipment technology,
the world leaders in producing digital local switching
systems include Northern Telecom of Canada, Ericsson of
Sweden, and CIT Alcatel of France.
? West German equipment for electron-beam melting of
superalloys, filament winding of advanced composite
materials, and cold forging of steel is rated by US industry
experts as the best in the world.
? Despite weaknesses in factory automation software
development, Japanese firms now produce computer numerical
controls for machine tools that are at least as sophisticated
as the most advanced US products.
Among smaller industrial countries, Switzerland, the Netherlands
and Denmark have made significant achievements in such areas as
optoelectronics and biotechnology. Figure 2 summarizes how
Western Europe and Japan currently stand relative to the United
States in key technology production areas.
While the technological gap between the major industrial .
countries and the developing countries remains very wide, "niche"
capabilities are beginning to take root in parts of the Third
World (see Appendix D). Most collaborative efforts involving
these countries have been in defense-related technologies.
Nevertheless, some Third World facilities are developing
capabilites on their own in civilian areas. For example:
? Brazil has made major contributions to international
technology in alcohol fuels, shale oil recovery and
utilization, and deepwater oil production techniques.
Brazilian nonconventional energy research has been recognized
as world-class since about 1980.
? Taiwan and South Korea have been developing
manufacturing know-how for advanced composite materials.
While both Taipei and Seoul are pushing plans to establish
domestic capacity for making military-grade composites,
industry in Taiwan has thus far emphasized applications for
commercial products such as sporting goods.
? India has advanced significantly in many areas of
science and technology, and its work in agrotechnology,
medicine, theoretical physics and mathematics has high
potential for contributing to world knowledge in those
lei -1 A- I I
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90TOO114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Figure 2
Free World Activities in Key Technologies:
Current Status Relative to the United States
100- Improving
? Maintaining
Declining
Semiconductors
Silicon devices/materials
Nonsilioon devices/materials
Fabrication equipment
Data processing
Supercomputers
General purpose mainframes
Peripherals
Telecommunicatloav
Transmission
Switching
Terminals
Advanced structural materials
Ceramics
Composites
Metals
Manufacturing
Machine tools
Robotics
Aircraft
Propulsion
Avionics
Aerodynamics/structures
Space
Launch vehicles
Remote sensing
Ground stations
Comsats
Nuclear
Reactors
Fuel cycle
Fusion power
Biotechnology
Genetic engineering
Bioprocess industry
Sub- Clear
stantial
Parity Lead
Slight With Slight
US
I
I
?
Ill. 0.
FO
? 10.
Clear Sub-
stantial
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Vehicles of Technology Collaboration
Aside from international cooperation on basic research in high
energy physics -- such as CERN, the European. Nuclear Research
Center -- collaborative R&D efforts have had only modest support
to date (see Appendix E). The most impressive attempt is EUREKA,
the European response to the US SDI research program. Since its
initiation by President Mitterrand in 1985, 19 European
governments and several hundred firms have joined this program for
pooling R&D resources in electronics, transportation,
manufacturing, and biotechnology. With a projected budget of $4
billion over the next 4-5 years, EUREKA plans to capitalize on
current European strengths -- in software, machine tools, and
niche areas such as application-specific integrated circuits -- as
well as to infuse new technologies into ailing industries. 25X1
The MEGA project is a prime example of cooperative R&D between
European firms. Through this effort, Siemens (West Germany) and
Philips (Netherlands) hope to recapture a large part of the
European semiconductor market from US and Japanese suppliers.
Another example of corporate collaboration is the defense-related
sensor technology project involving Telefunken (West Germany),
Mullard (UK), and SAT (France) aimed at developing next-generation
tactical weapons. 25X1
Japan's approach to R&D collaboration is generally focused
inward rather than internationally. Joint research ventures are
common among government, industry, and university laboratories in
Japan. The most ambitious projects include TRON (a microprocessor
standard for Japanese language applications) and SOR-Tech (a new
approach for using X-rays to manufacture high-density
semiconductor chips). The Japanese are aware of foreign criticism
that their pattern of technology transfer has been decidedly
one-way. We believe one solution Tokyo is stressing is the
promotion of international cooperation in areas of less commercial
consequence, including space, medicine, and environmental
protection. A current example of this approach is Japan's
proposed "Human Frontiers" program aimed at global problems such
as tropical diseases and pollution. 25X1
The most significant results of international technology
collaboration have occurred in production rather than in R&D (see
Appendix F). Airbus Industrie -- the French, German, British and
Spanish aerospace consortium -- has fielded a family of
sophisticated airliners over the last 15 years. Aside from the
government subsidy/price-cutting issue that will continue to be a
source of trade friction, Airbus demonstrates technology
collaboration at its best. The requirement for an advanced
European military fighter for the 1990s may also motivate close
collaboration, with temporary submergence of differing national
priorities and military missions (see Box). ~ 25X1
3
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114 R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Advanced Militar Fighter:
European Technological Strengths
and Conflicting National Priorities
The West Europeans' combined technological strengths would, in
principle, enable them to produce an indigenous fighter superior
in performance to the primary Soviet fighter threat of the late
1990s and more advanced than the current frontline US fighters
such as the F-15 and F-16:
? The United Kingdom may be the world leader in
airframe composites, in addition to its strength in airborne
attack radar and sensors.
? France is probably ahead of the United States in
computer aided design and manufacturing, and excels in the
application of advanced airframe metals.
? Italy has emerged as the world leader in engine
gearboxes and a strong player in airframe composites.
? West Germany excels in advanced manufacturing
technologies.
However, West European aerospace firms lack the Stealth
technologies that will be incorporated in the next-generation US
Advanced Tactical Fighter (ATF) of the mid-19 possibly in
a limited number of Soviet Stealth fighters.] I
European technological strengths also tend to be limited by
conflicting national priorities:
? The United Kingdom has diverse mission requirements
of long-range island defense, strike/interdiction in Central
Europe,-and out-of-area contingencies.
? France couples insistence on indigenous design and
production with a strong emphasis on export sales.
? Italy is increasingly more concerned over threats
from the Mediterranean region -- including Libya -- than a
Warsaw Pact incursion.
? West Germany is wary of capabilities threatening
Soviet territory and supportive of joint ventures.
Despite differences in national priorities, we believe the West
Europeans will be compelled to rely on multinational development
and production -- as they have with Tornado, Alpha Jet, Jaguar,
Transall, Airbus, and ATR -- in order to amortize R&D costs and
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90TOO114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
European collaboration on high-technology arms production
extends to Third World participants. Israel-West Germany (tank
cannon, armor, and propulsion); Brazil-Italy (AMX multirole
fighter); Brazil-UK-France-West Germany (Osorio main battle tank);
Argentina-Italy-France-West Germany (CONDOR ballistic missile);
and South Korea-West Germany (K-1 main battle tank) are among the
h _
recent linkages formed ,
n t
area.
Common Themes and Motivations
Although there are unique historical forces driving specific
examples of technical collaboration, competition with the United
States has been a recurring theme in such efforts. This
competition encompasses technology, international trade, and
political influence/autonomy considerations:
? Keeping Pace with US Technology. In virtually all areas of
advanced technology, absolute market size will continue to be a
critical factor shaping the growth and survival prospects of
foreign producers. The size of the US market, and the
technological leads traditionally enjoyed by US producers,
generally oblige foreign high-technology firms to keep pace with
the United States or withdraw from the world market entirely. The
Europeans and others are aware that development of advanced
technical capabilities -- via collaborative efforts such as
Airbus,, the MEGA Project, and EUREKA -- may serve as broad-based
technology drivers, producing spinoff technologies that will
position them to participate in other high-technology areas.
? Global Competition. The internationalization of
high-technology industries offers foreign companies an effective
means of competing in the world market against the United States
through consortiums and other interfirm link-ups. By joining
forces to produce and integrate an entire high-technology system,
contributing firms are able to better target their R&D resources
and quicken the pace of advances in subsystems and component
developments. European and Japanese willingness to sell
advanced-technology products and systems to certain customers
refused by the United States, and the reluctance of many Third
World countries to become dependent on US systems, will likely
boost other countries' high-technology export sales. Moreover,
Japanese and European component manufacturers will probably become
more aggressive in foreign markets once dominated by American
suppliers as they convert laboratory technologies to marketable
products.
? Minimizing Dependence. The need for foreign governments to
justify major R&D programs or weapons expenditures by pointing to
economic benefits at home -- especially higher employment levels
and the promotion of local high-technology capabilities -- will
make it difficult to abandon advanced-technology efforts even if
cost effectiveness and military requirements should argue
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
otherwise. For example, we believe West European motivations for
limiting US participation in the European Fighter Aircraft (EFA)
are driven by desires to maximize European technological
development and employment and to avoid export restrictions
-- ---------- =+L C,Lr% 0 ucvrtopment risKs, time, and costs.
25X1
25X1
25X1
Outlook
Given the nature and pace of high-technology innovation, we
believe that governments will see their abilities to direct
technical collaboration increasingly eroded by market forces.
Although many governments encourage certain forms of cooperation,
the emphasis has been on protecting national economic and security
interests rather than making the fullest use of international
scientific and industrial strengths. Most foreign governments
appear to prefer some variation of the Japanese approach of
exploiting technologies developed elsewhere while preserving
domestic employment and production. West European and some Third
World countries, lacking Japan's broad industrial and
technological base, are trying to reach Japanese-type objectives
through limited bilateral and multilateral collaborative
arrangements such as EUREKA, in hopes of maintainin a measure of
technological independence from the major powers. 25X1
High-technology firms and their customers hold a different set
of priorities, however. These firms know that -- without access
to the full range of technical inputs in both basic research and
production engineering -- their products would quickly become
uncompetitive. Even if protected domestically, they could rapidly
lose major shares of world markets. Ultimately, domestic sales
also would suffer as prices rise and performance deteriorates
relative to leading-edge products made in other countries. 25X1
In our judgment, national strategies to steer development of
high-technology industry -- including Japan's -- will be subject
to erosion as individual firms seek out foreign sources of
complementary technical inputs. Many pan-European efforts will
likely prove to be inadequate without US or Japanese links,
especially in electronics. Japan eventually will be compelled to
change its inward-looking strategy or risk losing its access to US
and West European markets and scientific expertise. In the Third
World, nationalistic stands on technology transfer, patents, and
foreign investment will be undermined as LDC firms with
specialized technical capabilities seek developed-country
partners. To the extent that foreign governments manage to
forestall these trends -- and many will try, possibly for the best
of short-term reasons -- we believe that they will be opting out
of the new technological age. 25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Appendix A
FOREIGN CENTERS OF TECHNICAL EXCELLENCE:
LEADING RESEARCH AND DEVELOPMENT FACILITIES
Technology Facility
Biotechnology University of Leeds (UK)
Company for Biotechnology Research (W. Germany)
European Molecular Biology Laboratory
(W. Germany)
Institute for Fermentation and Biotechnology
(W. Germany)
Carlsberg Institute (Denmark)
Computers NEC Scientific Computing Center (.Japan)
NEC C&C Systems Research Lab (Japan),
NEC Software Project Engineering Laboratory (Japan)
Hitachi Central Research Laboratory (Japan) --
fundamental and applied computer technologies
Hitachi Systems Development Laboratory (Japan)
Fujitsu Kawasaki Works (Japan) -- systems and
software
Fujitsu Kansai Information Processing Laboratory
(Japan) -- software
Korea Institute of Electronics Technology
(S. Korea) -computers, semiconductors
Materials Kyocera (Japan) -- ceramics for auto engines, gas
turbines, and armor
SEP (France) --.advanced carbon-carbon materials
and derivative work on ceramic-matrix composites
Aerospatiale (France) -- composites and aluminum-
lithium in airframes
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology
Facility
Materials Messerschmitt-Bolkow-Blohm (W. Germany) --
(continued) composites and aluminum-lithium in airframes
National Institute for Research in Inorganic
Materials (Japan) -- ceramics research and
materials properties under extreme conditions
National Research Institute for Metals (Japan) --
leading metallurgy center; will soon occupy a new
facility devoted to cryogenics
Korea Institute of Machinery and Metals
(S. Korea) -- machinery, metals, shipbuilding, and
precision instruments
Korea Institute of Energy and Resources
(S. Korea) -- energy technology and economics,
mining and materials
Optoelectronics Thomson-CSF (France) -- fiber-optic gyroscope;
halide compounds for infrared optical fibers;
InGaAsP, a semiconductor laser compound;
integrated optics
Optoelectronic Technology Research Corp. (Japan) -
optoelectronic integrated circuits
NEC Optoelectronics Basic Research Laboratory
(Japan) -- fiber-optic communications transmission
techniques, including coherent transmission
NEC Optoelectronics Applications Research
Laboratory (Japan) -- integrated optics;
optoelectronic devices*
Fujitsu (Japan) -- optoelectronic integrated
circuits and devices; optical transmission systems
and switching .
Toshiba (Japan) -- laser diodes
Hitachi (Japan) -- laser diodes
* Optoelectronic devices include laser diodes, optoelectronic
materials (III-V) and device production, material and device physics.
= Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
25X1
.Technology Facility
Optoelectronics Sumitomo Electric (Japan) -- optical fibers
(continued)
Furukawa (Japan) -- halide fibers; integrated
optics
KDD (Japan) -- fiber optics, halide fibers, laser
diodes
Siemens (W. Germany) -- integrated optics;
.fiber-optic transmission; components and systems
Standard Electrik Lorenz (W. Germany) -- fiber-
optic gyroscope
MITI Electrotechnical Laboratory (Japan) --
optoelectronic integrated circuits and devices;
fiber optics
Sony (Japan) -- laser diodes
Microelectronics Fujitsu Kawasaki Works (Japan) -- communications
and electronic equipment, software, computers,
integrated circuits
Fujitsu VLSI Sekkei (Japan) -- very large-scale
integrated circuit (VLSI) designs
NEC Fundamental Research Laboratories [Kiso
Kenkyujo] (Japan) -- semiconductors, ceramics
NEC Microelectronics Research Laboratories
(Microelectronics Kenkyujo] (Japan) -- VLSIs, high
speed devices, recording materials, sensors
Mitsubishi Materials Engineering Laboratory [Zairyo
Kenkyujo] (Japan) -- materials, electronic devices
Hitachi Central Research Laboratory [Chuo Kenkyujo]
(Japan) -- fundamental and applied technologies
Hitachi Device Development Center [Device Kaihatsu
Center] (Japan) -- VLSIs
Toshiba Semiconductor Device Engineering Laboratory
[Handotai Gijutsu Kenkyujo] (Japan)
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology Facility
Telecommunications NTT Electrical Communication Laboratories (Atsugi,
Japan) -- integrated circuit design, development,
and production process development; GaAs single-
crystal growth; laser diodes
NTT Electrical Communication Laboratories
(Musashino, Japan) -- oversees all NTT research:
III-V materials characterization; laser diode
superlattice structures; switching technology and
systems development
NTT Electrical Communication Laboratories (Ibaraki,
Japan) -- fiber-optic waveguides; optical fiber
production
NTT Electrical Communication Laboratories
(Yokosuka, Japan) -- systems integration;,
transmission, data processing, and customer-
premises equipment; visual media, speech
processing, and character-recognition equipment;
coherent communication systems operating in the
mid-infrared range
NTT Software Production Technology Laboratory &
Central Software Center (Japan) -- software for
advanced network services; information network
systems
Korea Electrotechnology and Telecommunications
Research Institute (S. Korea)
Aerospace Airbus Industrie (France, UK, W. Germany, Spain)
SNECMA (France)
SEP [Societe Europenne de Propulsion, a division of
SNECMAI (France)
National Aerospace Lab (Japan) -- may be shifting
toward concentration on computer simulation and
materials
Defense Industries Technologie Zentrum Nord (W. Germany ) -- control
Technology technology, sensors, microelectronics, and lasers.
Projects include: ZEPL explosively-formed
penetrator submunition; EPH RAM terminally guided
tube-artillery round; EPHAG terminally guided tank
round
M Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology Facility
Defense Industries Royal Armament Research and Development
(continued) Estalishment (UK) -- conventional weapons, armor
arrays, liquid propellants, electromagnetic gun
GIAT/Satory, ISL (France) .-- conventional weapons,
armored vehicle technology, anti-armor munitions
Technical Research and Development Institute (TRDI)
of the Japanese Defense Agency -- general-purpose
weapons technology development
Other Korea Advanced Institute of Science and Technology
(S. Korea) -- integrated industrial technology
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Appendix B
FOREIGN CENTERS OF TECHNICAL EXCELLENCE:
LEADING FACILITIES IN SDI-RELATED TECHNOLOGIES
Technology Facility
Algorithms Johannes Kepler Universitat (Austria)
-Laboratorie de l'Utilisation du Rayonnement
Electromagnetique (France)
Universita degli Studi di Milano (Italy)
University degli Studi di Napoli (Italy)
Imperial College of Science and Technology (UK)
University of Edinburgh (UK)
Radar Antennas Thomson CSF-Avionics Division (France)
Selenia-Industrie Elettroniche Associate SpA
(Italy)
Hollandse Signaalapparaten (Netherlands)
Ericsson Radio Systems (Sweden)
Plessey Electronic Systems (UK)
Marconi Radar Systems, Ltd. (UK)
Optical Coatings Balzers AG (Liechtenstein)
Composites Thomson CSF Avionics Division (France)
Centro Ricerche Fiat SpA (Italy)
Oto Melera SpA (Italy)
Agusta SpA (Italy)
Battelle Institute (W. Germany)
Fraunhofer-Gesellschaft Forderung Angewandten
Forschung (W. Germany)
MBB-ERNO Raumfahrttechnik (W. Germany)
Hardening Systems Erkzeugmachinenfabrik Erlikon-Buehrie (Switzerland)
Gyroscopes Thomson CSF-Electron Tube Division (France)
British Aerospace Electronic Systems Division (UK)
Teldix (W. Germany)
Bodenseewerk Geratetechnik (W. Germany)
Standard Electrik Lorenz AG Forschungszentrum
(W. Germany)
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology Facility
Inertial Measuring Societe Francaise d'Equipements pour la Navigation
Units Aerienne (France)
Thomson CSF-Avionics Division (France)
Marconi Radar Systems, Ltd. (UK)
British Aerospace Electronic Systems Division (UK)
Teldix (W. Germany)
Bodenseewerk Geratetechnik (W. Germany)
Free Electron Laboratorie de l'Utilisation du Rayonnement
Lasers Electromagnetique (France)
Comitato Nazionale Ricerca Sviluppo Energia
Nucleare (Italy)
Space-Based Optics Schotte Glaswerke (W. Germany)
Ground-Based Schotte Glaswerke (W. Germany)
Mirrors
Adaptive. Optics Heriot-Watt University, Computer Applications
Services (UK)
Cambridge Consultants, Ltd. (UK)
Power Conditioning Siemens AG Radio and Radar Systems Division
(W. Germany)
Spacecraft Dornier System (W. Germany)
Prime Power Deutsche Forschungs and Versuchsanstalt fur Luft
and Raufahrt (W. Germany)
Axial Propulsion Rheinmetall (W. Germany)
Dornier System (W. Germany)
Optical Seekers Hollandse Signaalapparaten (Netherlands)
Infrared Sensors Thomson CSF-Electron Tube Division (France)
Instrument Technology, Ltd. (UK)
Mullard, Ltd. (UK)
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology Facility
Structures Erkzeugmachinenfabrik Erlikon-Beuhrie (Switzerland)
Dornier System (W. Germany)
Deutsche Forschungs and Versuchsanstalt fur Luft
and Raufahrt (W. Germany)
Radar Transmit- Thomson CSF-Electron Tube Division (France)
Receive Modules Marconi Electronic Devices, Ltd. (UK)
Microwave Associates, Ltd. (UK)
Siemens Radio and Radar Systems Division
(W. Germany)
Warheads Erkzeugmachinenfabrik Erlikon-Buehrie (Switzerland)
(non-nuclear) Rheinmetall (W. Germany)
Diehl (W. Germany)
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Appendix C
FOREIGN CENTERS OF TECHNICAL EXCELLENCE:
LEADING PRODUCTION FACILITIES
Technology
Semiconductors
DRAMS
Standard Logic
Facility
Toshiba (Japan)
Hitachi (Japan)
Fujitsu (Japan)
NEC (Japan)
Fujitsu (Japan)
-Hitachi (Japan)
NEC (Japan)
Toshiba (Japan)
Fujitsu (Japan)
Hitachi (Japan)
NEC (Japan)
Silicon Materials Sumitomo Electric (Japan)
Wacker (W. Germany)
Gallium Arsenide Devices Fujitsu (Japan)
NEC (Japan)
Toshiba (Japan)
Gallium Arsenide Material Sumitomo Electric (Japan)
Mitsubishi-Monsanto (Japan)
Optical Lithography Canon (Japan)
Nikon (Japan)
Packaging Kyocera (Japan)
NTK (Japan)
Test Equipment Advantest (Japan)
Computers
Optical Storage
Matsushita (Japan)
Hitachi (Japan)
Sony (Japan)
Toshiba (Japan)
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology
Telecommunications
Switching Systems
Local Switching Centers
Satellite Earth Stations
Advanced Structural Materials
Composites:
Carbon Fibers
Thermoplastic Composites
Thermoplastic Matrix Material
Carbon-Carbon Composites
Filament Winding Equipment
Weaving Equipment
Ceramics:
Silicon Nitride Material
Hot Isostatic Presses
Diamond Finishing
Equipment
Facility
Northern Telecom (Canada)
Ericsson (Sweden)
CIT Alcatel (France)
CGE (France)
Northern Telecom (Canada)
NEC (Japan)
Toray Industries (Japan)
Kashima Oil (Japan)
Imperial Chemical Industries (UK)
Ciba-Geigy (Switzerland)
Societe Europeane de Propulsion
(France)
Baer (W. Germany)
Brochier et Fils (France)
Kyocera (Japan)
ASEA (Sweden)
Toshiba (Japan)
Electron-Beam
-Melting Equipment
Leybold-Heraeus (W. Germany)
= Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
25X1
Technology
Optoelectronics
Polarization-Preserving
Optical Fiber
1.3-1.55 Laser Diodes
Germanium Avalanche
Photodiodes
Biotechnology
Bioreactors
Fermentation
Industrial Enzymes
Aerospace
Airframes:
Composites
Advanced Metals
Computer Aided Design
Automated Production
Advanced Aerodynamics
Facility
Hitachi (Japan)
NEC, Hitachi, Fujitsu (Japan)
NEC, Fujitsu (Japan)
Toyo Soda Manufacturing (Japan)
Mitsui Bioengineering Corp. (Japan)
Novo (Denmark)
British Aerospace (UK)
Aeritalia (Italy)
Dassault (France)
Dassault (France)
British Aerospace (UK)
Dassault .(France)
Dassault (France)
British Aerospace (UK)
Messerschmitt-Bolkow-Blohm (MBB)
(West Germany)
Dassault/Office National d'Etudes et
de Recherches Aerospatiales (France)
British Aerospace/Royal Aircraft
Establishment (UK)
MBB/Deutsche Forshungs and Versuchs-
anstalt fur Luft and Raumfahrt
(W. Germany)
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Technology
Avionics:
Attack Radar
Facility
GEC (UK)
Ferranti (UK)
Electronique Serge Dassault (France)
Fabbrica Italiana Apparecchiature
Radioelecttriche SpA (Italy)
Mitsubishi Electric Corp. (Japan)
Advanced Controls Dassault (France)
British Aerospace (UK)
MBB (W. Germany)
Advanced Gyroscopes British Aerospace (UK)
Thomson-CSF (France)
Societe.Francaise d'Equipements pour
la Navigation Aerienne (France)
Cockpit Displays Thomson-CSF (France)
Stealth Technology Marconi (UK)
Plessey (UK)
Dornier (W. Germany)
Propulsion:
Hot Section Rolls-Royce (UK)
SNECMA(France)
Manufacturing
Land Armaments
SNECMA (France)
Rolls-Royce (UK)
Motoren- and Turbinen-Union (MTU)
(W. Germany)
Systems Integration Mitsubishi Heavy Industries (Japan)
Vickers (UK)
Krauss Maffie (W. Germany)
Thyssen Henschel (W. Germany)
GIAT (France)
Oto Melara (Italy)
Rafael (Israel)
Engesa (Brazil)
Avibras (Brazil)
Hyundai (S. Korea)
Armscor (S. Africa)
= Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
25X1
Technology Facility
Land Armaments
(continued)
Gun Systems Rheinmetall (W. Germany)
Bofors (Sweden)
Royal Ordnance (UK)
Cockerill (Belgium)
NORINC (Austria)
Engesa (Brazil)
Fuicine Breda (Italy)
Precision-Guided British Aerospace (UK)
Munitions Aerospatiale (France)
Diehl (W. Germany)
Propulsion Rolls-Royce (UK)
Unidiesel (France)
MTU .(W. Germany)
Transmissions David Brown (UK)
Renk (W. Germany)
Zahnradfabrik Friedrichshafen
(W. Germany)
Armor Arrays Vickers (UK)
GIAT (France)
Blohm & Voss (W. Germany)
Thyssen Henschel (W. Germany)
Georg Fischer (Switzerland)
Defense Electro-Optics GEC (UK)
Marconi (UK)
Barr & Stroud (UK)
Plessey (UK)
Ferranti (UK)
Thomson-CSF (France)
SFENA (France)
ESD (France)
Eltro (W. Germany)
Seimens (W. Germany)
AEG (W. Germany)
FIAR (Italy)
SABCA.(Belgium)
Philips (Netherlands)
ELOP (Israel)
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
25X1
Appendix D
THIRD WORLD RESEARCH CENTERS: OVERVIEW
The R&D capabilities of Third World countries range from a
handful of isolated and poorly funded facilities in Jordan to
hundreds of active groups in India and Brazil. We have little
information with which to assess the quality of the R&D work
performed at most LDC research institutes. In our judgment,
however, most of the facilities are inadequately staffed, funded
and equipped to carry out significant R&D programs. In addition,
we believe that in many cases the research they perform is
theoretical in nature and may have little applicability to.
economic development goals.
Much of the research being carried out in the Third World is
agriculture-related. A number of developing countries have at
least one institution -- and some can count dozens -- working on
improving and utilizing important local crops. Resources are
often wasted by redundant research carried out in rival
institutes, sometimes attached to the same government ministry.
Nevertheless, significant agricultural R&D has been conducted in
some of these facilities. For example, Malaysia has a solid group
of institutes focusing on specific agrotechnologies including
fisheries, palm oil, rubber, and forestry, and some Malaysian
scientists are recognized as international experts in these
fields. Nigeria appears to have an even more extensive group of
agriculture-related R&D facilities, although we have little
information on their activities.
Third World countries are engaged in research in a wide range
of other fields, including:
? Earth sciences, remote sensing and meteorology.
? Oceanography and marine resources.
? Medicine, including disease control and eradication.
? Microelectronics.
? Nonconventional energy resource development.
Although many Third World R&D programs are just getting underway,
we believe a number of LDCs have at least some potential for
limited progress in these fields. Brazil's nonconventional energy
research is currently recognized as world-class. Egyptian medical
scientists have made important contributions to the study and
control of bilharzia, a debilitating parasitic disease.
Broad-ranging Indian medical research -- particularly in leprosy
and tropical diseases -- is expected by experts in the field to
yield promising results. Brazilian and Indian microelectronics
research has proceeded slowly, and we believe significant
technological advances are unlikely even over the medium term;
other LDC efforts in this area, such as Malaysia's, are too new to
assess at present.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Because of data limitations, it is not possible to compile a
comprehensive listing of all LDC research facilities doing
significant R&D, or having the capability to do so in the
near-term future. Nevertheless, a partial listing of centers of
technical strength in the Third World highlights their diversity
and future potential:
? The National Institute for Space Research (INPE) is
Brazil's primary civilian space research organization. INPE
scientists are designing four weather data collection and
remote sensing satellites that are planned for launch by
1993. The institute is currently working on infrared lasers
and detectors, and solar cells for applications in satellite
control systems. INPE also undertakes basic space research
and mathematical modelling for agricultural productivity
forecasting.
? The International Rice Research Institute (IRRI) in the
Philippines is the acknowledged world leader in developing
high-yielding rice-varieties that have driven the "green
revolution" throughout Southeast Asia. Originally funded by
the Ford and Rockefeller Foundations, IRRI now is staffed
primarily by non-US personnel.
? The Research and Training Center for Vectors of Diseases at
Ain Shams University in Egypt is probably the foremost
regional center doing R&D on arthropod-borne diseases such as
leishmaniasis. We believe this organization is capable of
achieving significant research results.
? The Central Research Institute (CRI) in Kasauli, India is
the country's most important researcher and producer of
immunologicals such as diptheria, tetanus, typhoid, rabies,
and cholera vaccines. CRI is the only producer of yellow
fever vaccine in South Asia and is a training center for
vaccine and sera production.
o The Rubber Research Institure of Malaysia (RRIM) has over
200 senior staff members engaged in R&D on nitrogen-fixing
ground covers, propagation by budgrafting and tissue culture,
and the processing of natural rubber and natural/synthetic
blends. RRIM and its sister institute in London recently
announced the development of epoxidized natural rubber -- a
product that outperforms both natural and synthetic rubber --
which is expected to come onto the market later this year.
Important R&D facilities in other developing countries are
currently in the planning or construction stages. For example,
Indonesia's National Scientific and Technological Research Center
(PUSPIPTEK)-- scheduled for completion in the 1990s -- will
include energy and nuclear labs as well as another nine planned
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Appendix E
COLLABORATIVE EFFORTS IN RESEARCH AND DEVELOPMENT:
SELECTED EXAMPLES
? EUREKA. Initiated by President Mitterrand of France in
1985, Eureka is a West European-wide cooperative program targeting
the development of advanced technologies with near-term commercial
applications. The program is concentrating over half of its
cooperative efforts on areas where Europe is relatively weak,
especially electronics R&D. EUREKA participants hope to bring
together the traditional research sector -- universities and
research institutes -- and the private sector, in order to raise
the productivity and international competitiveness of European
industry. As of early this year, the program had enlisted 19
European governments as members and attracted the participation of-
several hundred European companies as well as a few US firms. A
total of 109 projects, with a combined business/government budget
of $4 billion over the next 4-5 years, are now included. Other
areas of development under EUREKA sponsorship include factory
automation and manufacturing, data processing, materials, and
biotechnology. European Silicon Structures, one of EUREKA's key
programs, aims to create a center for R&D and production
excellence in application-specific integrated circuits. The
consortium includes financial contributions from Olivetti,
Philips, Saab, Telefonica, Bull, Brown-Boveri, Bosch, and British
Aerospace, combined with technical know-how from the United States
? MEGA Project. A cooperative R&D project combining the
resources of Siemens (West Germany) and Philips (Netherlands), the
MEGA Project is intended to develop the next generations of 1
megabit and 4 megabit integrated circuits and, jointly with
Thomson (France), the 64 megabit chip. The agreement was formed
in 1984 and includes support from both the West German and Dutch
governments, contributing $100 million and $67 million,
respectively. It will be funded a total of $667 million over four
years. In addition, the two principals will each spend $500
million on separate production facilities. The goal of the
project is to recapture a large part of the European semiconduc
market from US and Japanese suppliers.
25X1
LOA-1
the 64 megabit chip project is being proposed under
the EUREKA program. The firms hope to supply the West European
market with 1 megabit chips by 1988.
? Sensor Research. Another collaborative basic research
effort within Western Europe is a joint venture formed by
Telefunken (West Germany), Mullard (UK), and SAT (France).
the joint venture is working on
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
25X1
several sensor technologies for use in a wide range of
conventional weapons. These technologies include new infra-red
detectors, gallium aluminum arsenide substrates, and charge
coupled devices. The joint venture probably grew out of'a
requirement to defray the expenses involved with extensive testing
of alternative materials and manufacturing processes.
? Inter-Firm Cooperation in Japan. Five Japanese firms are
funding university research on a new microprocessor standard known
as TRON (The Real-time Operating-system Nucleus), with a group at
Tokyo University currently receiving about $75 million per year.
The five firms and others -- including NTT, according to the
project leader -- are conducting parallel intern
efforts.
Fujitsu and Hitachi agreed to develop jointly a family of
products, including state-of-the-art 32-bit microprocessor units
(MPUs), based on TRON. Toshiba, a member of the TRON council with
excellent manufacturing capability but little success in MPUs, has
also sought US designs. In December 1986, Toshiba agreed with
Motorola to set up a 50/50 joint venture in Japan to provide
Motorola-designed MPUs to Toshiba, and memories requiring
Toshiba's manufacturing know-how to Motorola.
Thirteen Japanese firms are cooperating with MITI
laboratories in SOR-Tech, developing equipment for using X-rays to
manufacture chips. With 70 percent of its 15 billion yen capital
to be provided by Tokyo over ten years, SOR-Tech is focusing on
producing small, superconducting synchrotron orbital radiation
sources of X-rays. Some researchers believe that such equipment.
will be necessary for making the high-density semiconductors of
the 1990s.
? "Human Frontiers." After months of consultations, Tokyo
appears to be ready to launch an international cooperative
research
program tentatively named the -7uman Frontiers Science
Program." Prime Minister Nakasone
will propose a one-year international feasibility study at the -
June 1987 economic summit. MITI hopes that this study will yield,
in time for the 1988 Ottawa summit, a concrete proposal of an
international basic research program aimed at global problems such
as tropical diseases and pollution.
25X6
25X6
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Appendix F
COLLABORATIVE EFFORTS IN PRODUCTION:
SELECTED EXAMPLES
? Airbus. Airbus Industrie, a four-nation commercial aircraft
consortium led by France, is a leading example of successful
collaboration in key technology. areas among the major West
European countries. From a fledgling operation with a limited
product line in the early 1970s, Airbus has matured into a potent
competitive force challenging the leading US aerospace firms with
a family of advanced aircraft designs. The technological and
marketing success of Airbus Industrie's product line is
attributable to Western Europe's capability to draw from
significant centers of excellence among individual members of the
consortium. Several companies in the major participating
countries -- France, West Germany, and the United Kingdom -- have
expertise in airframe and avionics technologies which were
demonstrated in previous military and commercial programs,
including. the Concorde. France's Aerospatiale, in addition to its
overall capabilities, was able to bring to bear its extensive
experience in aircraft assembly. Thomson-CSF provides an
expanding range of advanced electronics and avionics capabilities
for new Airbus designs. Messerschmitt-Bolkow-Blohm (MBB) of West
Germany provides modern and highly efficient production facilities
for the manufacture of major airframe components. In addition,
some West German electronics firms have provided advances in
equipment found in the cockpit of the new Airbus A320 design, as
well as experience in composite materials. The British, drawing
on the research of British Aerospace, have become specialists in
designing and building the wings for Airbus aircraft, while UK
electronics firms including Lucas and Plessey have provided modern
operational controls such as flight management systems.
? West European Military Aircraft. At present, West European
firms are at least roughly equivalent to their US counterparts in
most of the 12 critical advanced military aircraft technologies we
have identified. European aerospace firms have achieved this
level of technical excellence by conducting applied research
independently. Some firms like Thomson-CSF (France), which draw
upon a large product base, invest up to $1 billion annually on
broad-based research. In advanced aerodynamic technologies,
European firms typically team with their respective government
Eurofighter, the consortium formed in 1986 to design and
build the European Fighter Aircraft of the 1990s, has the
technological capability to build an aircraft superior to the US
F-15 of F-16. Eurofighter includes firms in the United Kingdom
(British Aerospace, GEC, Ferranti, Rolls-Royce); West Germany
(MBB, AEG-Telefunken); Italy (Aeritalia, FIAR); and Spain (CASA,
- Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
? Foreign Defense Industries. Outside of NATO, there are a
number of collaborative production arrangements that facilitate
the development and flow of defense technologies among developed
and developing countries. For conventional weapons -- especially
main battle tanks -- Israel is looked upon as a rich resource for
applied technology expertise, particularly by the United States
and West Germany. Israel currently supplies West Germany with
kinetic energy ammunition for the 120mm tank cannon. At'the same
time West Germany is providing some technical assistance to
Rafael, Israel's tank producer, for its development of the 120mm
smooth-bore cannon for the Merkava tank. In'the past, MBB (West
Germany) has collaborated with Israel on the development of
? Brazilian-Italian Fighter Aircraft. The AMX subsonic,
multirole fighter was developed jointly by the Italian firms
Aeritalia (fuselage center section, radome, fin, and control
surfaces) and Aermacchi (forward fuselage, avionics integration,
canopy, and tail cone) and the Brazilian firm EMBRAER (wings,
intakes, pylons, and fuel tanks). The division of funding was
roughly 70 percent. Italian and 30 percent Brazilian. The AMX
incorporates relatively unsophisticated technologies -- a
conventional aluminum airframe and a basic avionics suite with a
limited-capability radar. The British firms Rolls-Royce and GEC
Avionics provided some of the AMX's most advanced systems,
including the turbofan engine and flight control computers. The
AMX program will provide critical design, integration, and
manufacturing experience to Brazil's young aircraft industry. The
Brazilian air force*is scheduled to buy 79 of the 266 AMXs to be
produced. The AMX is currently in flight testing and is expected
An example of Third World integration capabilities is ENGESA,
a Brazilian arms producer that produced at least two prototypes of
a main battle tank, the Osorio, by acquiring subsystems from West
European firms regarded as leaders in their respective fields.
European suppliers have included GIAT and SFIM (France), Vickers
and Marconi (UK), and Philips (Netherlands). The Osorio is
scheduled to participate in a main battle tank competition with
Saudi Arabia later this year. It will be the first Third
World-produced main battle tank to participate in a competition of
Europe and effectively integrate them.
? Armored Vehicle Technologies. Several Third World firms
have demonstrated armored vehicle systems integration
capabilities. Although they often do not possess the necessary
technology or industrial base to design and produce all of the
required subsystems, they have demonstrated the ability to
purchase proven subsystems from the United States and Western
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP90T00114R000500110001-1
Similarly, Hyundai is producing the South Korean K-1 main
battle tank by assembling components from the United States, West
Germany, and other countries. The US-supplied fire control system
is one of the most advanced systems available. The South Koreans,
we believe, are currently attempting to Europeanize the tank to
circumvent US restrictions which would limit the export of the
K-1. Among the West European firms that may become alternatives
to current US suppliers of components for the K-1 are the British
firms Vickers, Pilkington P.E., and Marconi; Diehl, Zeiss, and
Krupp of West rZar-ncs. n.i .?THm