NEW STEALTH FIGHTER DEAL ALLEGED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92T00277R000500060010-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: February 21, 2012
• Sequence Number: 10
• Publication Date: October 16, 1984
• Content Type: OPEN SOURCE

Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5
TUESDAY MORNING, 16 OCTOBER 1984
BALTIMORE NEWS AMERICAN 15 October 1984 (16) Pg.1
New stealth fighter deal alleged NEW YORK TIMES
1A ()ntnhar 1QR1L
BURBANK, Calif. - Lockheed Corp., which last
week reported a 49 percent surge in quarterly profits,
has significantly expanded its top-secret Air Force
stealth fighter program, according to recent assess-
ments by security analysts.
A lengthy research report just issued by the Wall
Street brokerage firm Sanford C. Bernstein & Co. Inc.
states that the Lockheed stealth fighter has entered
production and will generate revenues of $850 million
this year. By 1988, Lockheed would derive revenues of
$1.4 billion and profits of $130 million from the pro-
gram, according to the report.
Written by aerospace analyst David J. Smith, the
Bernstein report offers the most detailed projections to
date on the stealth fighter, so called because it would be
designed to elude detection by radar and infrared sen-
sors.
The Lockheed stealth fighter is not to be confused
with the stealth bomber, which is being developed by
Northrop Corp. The stealth fighter has an even lower
public profile than the stealth bomber.
Smith is not alone among analysts who believe that
Burbank-based Lockheed, which historically has been
the leading supplier of the Air Force's top-secret aircraft,
is in the midst ofa dramatic aircraft production buildup.
"I think it is going to be a very large program," says
analyst Harinder Kohli of San Francisco-based Sutro &
Co. Inc. 'This is the most classified work Lockheed has,
and they don't talk about it. It's all guesswork, but we
are talking about a $10 billion to $15 billion program."
Lockheed's aircraft business, as opposed to its space
or shipbuilding units, is the company's "most important
profit center," Smith says. The Lockheed Aeronautical
Systems Group will pace the parent corporation's
growth with a 9.7 preent annual growth rate between
1983 and 1988, he forecasts.
The speculation about the Lockheed stealth is based
on a wide range of evidence that the Air Force is funding
a major, super-secret fighter aircraft program and that
Lockheed has substantial revenues and employment in
aircraft production that cannot be explained by its
acknowledged programs.
For example, the Lockheed California Co., the unit of
the company that produces such warplanes, has 17,300
employees, including 2,400 in Palmdale, Calif., and
14,428 in Burbank. Only several thousand of those
Burbank employees can be explained by unclassified
programs.
In an interview last year, Ben Rich, former chief of
the Lockheed Skunk Works,, Mid t Lockheed has
produced secret operational aircraft for the Air Force
since President Johnson disclosed the existence of the
Lockheed SR-71 in the mid-1960s. The Skunk Works is
Lockheed's secret aircraft development unit.
In addition, Burbank residents have told of strange
late-night goings-on at the Burbank Airport where
Lockheed facilities are located. A huge C-5 cargo air-
craft reportedly visits the facilities late at night and
either delivers or picks up secret cargo. Residents of
Burbank and the San Fernando Valley of Los Angeles
have complained about the jet noise.
It is thought to be unlikely that Lockheed or the Air
Pg. 12
U.S. Sends Official to Angola;
Shultz Tells of `Some Motion'
By BERNARD GWERTZMAN
Special to The New York Times
TORONTO, Oct. 15 - The United
States has sent a high-ranking official
to Angola for talks with Angolan lead-
a_s on the prospects of resolving pend-
ing southern African questions and on
the withdrawal of Cuban troops from
Angola, the State Department said to-
day.
Flying here for a meeting with Cana-
dian officials, Secretary of State
George P. Shultz said that "there cer-
tainly is some motion" toward break-
ing the long deadlock in southern. Af-
rica, but he cautioned that "we don't
believe it is wise to say there is any
major development until you've got
that development."
Frank G. Wisner, a Deputy Assistant
Secretary of State for African Affairs,
who has met several times in the last
two years with Angolan officials, ar-
rived in Luanda, the Angolan capital,
to discuss the Angolan response tc, pro-
posals in August by Chester A. Crock-
er, Assistant Secretary of State for Af-
rican Affairs, the department said in
Washington.
President Jose Eduardo dos Santos
of Angola has said in recent interviews
that his Government was discussing
initiatives with the United States on
ways to end the impasse in southern Af-
rica.
The 2 Sides of the Dispute
The Angolans are pressing for a total
withdrawal of South African troops
from southern Angola and agreement
on South Africa's withdrawal from
Southwest Africa, known as Namibia,
and turning the country over to United
Nations supervision for an interim
period.
The South Africans, who have pulled
their troops to within 25 miles of the An-
gola-Namibia border, have balked at
going farther until there is a timetable
for the withdrawal of what are esti-
mated to be 25,000 Cuban combat
troops in Angola.
United States proposals have sought
to arrange for the Cubans to withdraw
and Namibia to become independent at
roughly the same time. The United
States, aware Qf Angola's mfusal to
link the two actions directly, has
avoided calling for simultaneous action
but is working on a phased plan, Amer-
ican officials have said.
John Hughes, the State Department
spokesman, speaking at a briefing in
Washington before accompanying Mr.
Shultz here, disclosed the Wisner mis-
sion. He said, "We're engaged in what
we consider to be serious talks in Ango-
la."
Breakthrough at Any Time
"We're encouraged by President dos
Santos' reiteration that the principle of
Cuban troops withdrawal in the context
of an overall settlement is accepted,"
he said.
Mr. Shultz, aboard his Air Force
plane, said progress on the African
issue was perceptible but slow. He said
a breakthrough could occur at any time
but he was not going to predict when.
His talks later today and on Tuesday
with Joe Clark, the Minister for Exter-
nal Affairs in the new Progressive Con-
servative Government, will cover in-
ternational and Canadian-American
issues. This is a routine semiannual
meeting by the two sides.
Force would fly a stealth -fighter out of the Burbank
Airport. Rather, the craft would be crated and shipped to
a secret airfield. such as the top-secret fields located at
the Nevada Test Site.
Air Force and Lockheed officials decline to make any
comments about any aspect of the stealth reports.
However, Lockheed Chairman Roy A. Anderson noted
for the first time at the company's annual meeting
earlier this year that the company won "a major classi-
fied program" in the last year.
Bernstein analyst Smith believes that program is the
stealth fighter production contract. Smith, a former Air
Force test pilot, estimates that the Air Force will buy
300 to 400 of the aircraft over the next decade, with
deliveries beginning in 1986 or 1987.
6-
Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5
TUESDAY MORNING, 16 OCTOBER 1984
NEW YORK TIMES 16 October 1984 Pg.-26
Pentagon
Many Are Chosen, but Few G6t to Wear Stars
By RICHARD HALLORAN
Special to The New York Times ?
WASHINGTON, Oct. 15 - For two
hot months this summer, one Army
general, four lieutenant generals and
16 major generals sat in a cramped,
darkened room at the Military Per-
sonnel Center near the Pentagon por-
ing over the records of 2,600 colonels.
At issue was the selection of 64 new
brigadier generals. In the military
service, the leap from colonel in the
Army, Marine Corps and Air Force to
brigadier general, or from captain to
commodore in the Navy, is by far the
most competitive of all promotions.
Moreover, when colonels or cap-
tains take off eagles and put on stars,
their lives change. They assume im-
mensely more authority and are held
to higher standards of responsibility;
their careers and status soar.
Thus the careful screening in that
room, where the lights were dimmed
while the microfilmed records were
being studied. Each of the generals,
sleeves rolled up, some smoking,
read through every colonel's file of 40
or more efficiency reports, annual
health records and letters of com-
mendation or criticism. graded each
Each general then gcolonel on a scale of 6 to 1. A 6 meant
the colonel "absolutely" should be
promoted, while 5 was for those
"clearly above contemporaries" and
4 meant a "solid performer." A 3
meant basically qualified, while a 2
meant the colonel had "too many
weaknesses," and a 1 meant the Colo-
nel should "absolutely not" be
promoted.
The ratings were fed into a com-
puter
Then gt around table
Then table-
to he generals ene
to argue. Selecting the top half of the
colonels for promotion was easy; it
was scruti-
was the bottom half that detail.
nized in agonizing
That done, copies of a tentative list
were given to the Criminal Investiga-
tion command, which made sure
none of the charges in a civilian cowere urt, and to tt he
Army's Inspector General, which
checked Army files for adverse re-
ports.
Said an officer familiar with the
prgcess, "You don't want to pick as a
potential division commander some
guy who's up on porno charges before
a civilian court."
Finally, after the approval of the
Chief of Staff, Gen. John A. Wickham
Jr., and the secretary of the Army,
John O. Marsh J r., the list of colonels
to be promoted was submitted by
President Reagan to the Senate on
Oct. 1. Three days later the Senate ap-
proved the list.
The Oldest and the Youngest
The oldest to be promoted this year
is Col. Marvin G. O'Connell, who is 52
years old, has served for 29 years and
is chief of staff at the National De-
fense University in Washington, the
top educational institution in the mili-
tary service.
The youngest, Col. Jerry C. Harri-
son, who will be 43 next month, has
served for 21 years and commands
the artillery in the Second Infantry
Division in South Korea. Col. Rudolph
Ostovich 3d, who is a month older, has
also served for 21 years and com-
mands the 11th Aviation Group in
West Germany.
Closer to the median is Col. Henry
M. Hagwood Jr., who will turn 47
later this month and has served for 24
years, the average length of service
for this crop of brigadier generals. He
commands the Field Artillery Train-
ing Center at Fort Sill in Oklahoma.
The weeding out of officers as they
near the top is ruthless. In the Army
today, an officer who has a normal
career reaches lieutentant colonel
within 20 years. At last count the
Army had 10,707 lieutenant colonels,
but only 4,700 of them will be
promoted to colonel to serve for five
more years.
After that, a mere 200 colonels will
ever make it to brigadier general.
Once having reached brigadier gen-
eral, however, about 140 will eventu-
ally become major generals. Beyond
that, only a few will be selected for,
three- or four-star general.
The process this year began when
General Wickham named a selection
board of generals led by. Robert W.
Sennewald, commanding General of
Army forces within the United States.
General Wickham gave General
Sennewald a letter of instruction'
specifying the number of brigadier
generals to be selected and for which
branch, such as infantry, field artil-
lery or military police, or for which .
specialty, such as personnel, logistics
or public affairs.
On July 17 the board began screen-
ing records, with particular attention,
to the efficiency reports made each,
year or whenever an officer or his su-
perior changed assignments. "One
bad efficiency report is not going to
affect you," said a knowledgeable
officer. "But three or four ..."
Army officers say weight is often
given to the difficulty of a colonel's
assignments throughout his career. A
colonel who has taken on tough jobs,
such as division chief of staff, will
more likely be given higher ratings
than a colonel who stayed behind a
desk.
The board also pays close attention
to photographs of the colonels, to see
whether appearance fits with physi-
cal records. "Looks have something
to do with it," one officer said. An-
other scoffed, "Sometimes they just
pick pretty boys "
Less important is what is known as
"loose paper," which includes deco-
rations and commendations. A colo-
nel may write to the board, but that
letter is usuall y confined to drawing a
late piece of information to the
boar&s attention. It is considered bad
form to blow one's own horn, and let-
ters of recommendation or phone
calls to the board are not permitted.
Scorecards Are Coded
The scorecard on each colonel is
coded so no general on the board will
know the ratings given by the other.
generals. So long as each general is
consistent, the system is considered'
fair. Few 6's are given and a 1 re-
quires the rater to give an reason.
Once an order of merit among the
colonels comes out of the computer,
putting three dozen top colonels into
brigadier general slots is swift. If the
instructions call for 13 field artillery
brigadier generals, the first six or
seven are taken right off the list.
Then the horse-trading begins. The
generals who are personally ac-
quainted with a particular colonel
argue for or against him. A colonel in
armor who may be down the list as a
tanker but who has experience in a
specialty such as personnel manage-
ment that needs a general may get
the nod. Sometimes votes are taken,
with the decision going to the Chief of
Staff if the board is evenly split.
After the Senate has approved the
promotions, the Army begins to as-
sign the colonels to positions calling
for brigadier generals. But some get
caught in the Army's complex budget
proceedings. These new generals will
be "frocked," putting on their stars
and having the authority of a briga-
dier general but not gettin* paid for it
until the Army has eno money.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/02/21 : CIA-RDP92T00277R000500060010-5