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ESD SpotlightEmailnewsletterofthebimonthlymagazine“European Security & Defence” (ESD)

Editor-in-Chief: Dr. Peter BossdorfDeputy Editor-in-Chief: Henning BartelsManaging Editors: Dorothee Frank (df) (newsletter)andStephenBarnard(magazine)Editors: Gerhard Heiming (gwh), Juergen Hensel (jh), Yury Laskin (yl)

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On Tuesday NATO Secretary General Jens Stol-tenberg met U.S. President Barack Obama in Washington to discuss current security threats and the future of NATO. “We had a chance to discuss the situation in Ukraine and the in-creasinglyaggressiveposturethatRussiahastaken,andweaffirmedthatNATOisthecor-nerstonenotjustoftransatlanticsecuritybut,in many ways, is the cornerstone for global security,”Obamasaidafterthemeeting.The President especially outlined that the tra-ditionalseparationineastandwestarenolon-ger suitable to describe the ongoing threats to world wide security. “We also had an oppor-tunity to discuss the fact that NATO is involved not just in the fault line of East and West that hastraditionallybeenNATO’sconcern;NATOis necessarily recognising a whole range of globalchallenges,particularlyonwhatwecallthe Southern Front. And we are working clo-sely with NATO allies to make sure that we are partnering with other countries to address is-suesofcounterterrorism;makingsurethatwecontinuetocoordinateeffectivelyinthefightagainstISI̶becauseall28NATOmembersaremembersofthecoalitiontosupporttheIraqigovernmentagainsttheISILfight;toaddressthechallengesthatexistinLibya̶rightacrossfrom the Mediterranean, and obviously the-re’sgreatconcernamonganumberofNATOmembersaboutthespillovereffectsofacha-oticsituationthere.”The necessity to develop a peace process in theMiddle East still has a highpriority for the U.S., Obama sta-tedandcontinued:“Thatmeansincreased defence capacity-buil-ding with other countries like Iraq or GCC countries that areinterested in working with us, as

well as the African Union. It also means that we have to think about whether we are de-ployingandarrangingourassetseffectivelytomeet that goal.”Another point the President outlined was thecontinuingoperationinAfghanistan.Thatcountry should not be left behindwhile theAlliance faces new threats, or it might come back to becoming a retreat for terrorists. Obama said: “And finally, we had a chanceto discuss not only how NATO is positionedbut alsomaking sure that we finish the jobwith respect to Afghanistan. And when we meetinWarsawlaterthisyear,we’llhaveanopportunitytoassesshowwewillcontinuetosupporttheAfghanNationalSecurityForces,nowthatwehavetransitionedoutofourcom-bat mission, to make sure that they can do the job, that they can secure and protect their owncountry.Thatwillrequireresources,trai-ning and assistance from not only the United States but also from all NATO countries.”

Dorothee Frank

Meeting in the White House

2ISSUE 10 / 2015

Defence

France and Russia on financial dispute about Mistral

(yl) According to the Kommersant daily France proposed to Russia to pay backaround €785 million instead of deliver-ing two Mistral type LHD. The payment was proposed to be executed once Rus-sia approves a possibility of reselling both ships.TheRussiansidedisagreswithsuchcalcula-tionclaimingitstotallossesof€1.163billi-on, including €892.9 million of advanced payment and other spending on 400 crew training, Far East construction works forthe ships location and initial batch of 4

Ka-52K helicopters production. Russiaalso does not want to share costs for the Russian-madeequipmentdismantlinganddoes not want to allow any ship resale be-fore the compensationwill havebeen re-turned in full.

The deal for the two vessels was signed in 2011 between Rosoboronexport andDCNS.Thefirstship–“Vladivostok”–wasscheduled for delivery last autumn while the second one – “Sevastopol” – should be delivered in 2015. The deal was blocked by the French President François Hollande in connectionwith themilitary conflict inSouth-Eastern Ukraine.According to Anatoly Punchuk, the de-puty head of the Federal Service on Military-TechnicalCooperation,bothsidesmay come to an agreement and therefo-remightbeavoiding a court trialtill the end of May.

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New testbeds for Galileo

(df)Galileo,Europe’s futuresatellitenavi-gationsystem,isscheduledtobecomefullyavailable with the planned 30 satellites in 2020. These satellites, evenly distributed amongthreeorbitsatanaltitudeofnearly24,000 kilometers, will provide precise po-sitioning signalsmore reliably than today.The fully deployed system will guarantee full global coverage. Moreover, the system will be complemented by regional and local groundsegmentstomeetspecialrequire-ments.

By using two Galileo fre-quencies simultaneously,a positioning accuracyanywhere in the world between eight and four meters can be obtained. Supplementary ground-based systems will enhance that precision to one meter on a local basis.Galileo will constantly monitor its own functionality.Thisintegrityinformationwillbetransmittedwiththenavigationsignals.Thetimebeforeauser is informedaboutanymalfunctionwithinthesystemistobeless than six seconds worldwide, on a local scale less than one second.AvarietyoftestfacilitieswithinwhichGa-lileo-conformable signals are transmittedweresetup inGermany.Here, innovativereceivertechnologiesandapplicationsare

nowbeinginvestigatedanddeveloped,sothat industry may have proven and tested technology available when Galileo enters it’sfullservice.Thelasttestbeds,automo-tiveGATEandrailGATE,openedonMay222015. The other three testbeds GATE, SEA GATE andaviationGATEarealreadyinservice.Allof the testbeds were funded by the Ger-man Space Agency (Deutsches Zentrum für Luft-undRaumfahrt=DLR)byorderoftheGerman Federal Ministry of Economics and Technology (BMWi).

Defence State Order shifts priority

(yl) TheRussianPresidentVladimir Putinran a number of meetings on national defence matters at his Sochi residence. On May 12 the discussions were about the aviation industry, mainly in connec-tionofYurySlyusar‘sappointmentattheUnited Aircraft Corporation (UAC). On

May 13 the main topic was the strategic nuclear forces, air- and space defence and army, on May 14 general armed forces development while on May 16 finance,education and personnel matters werediscussed. AccordingtotheVedomostidailytherewillbeacertainshiftwithinthestateorderfi-

nancing.TheexistingStateArmamentPro-grammeworth19.3trillionRubles(around€35 billion) plans to spend around 5 trillion on theNavywhileonly2.6 trillionon theArmy and paratroopers.Thatcouldmeancancelationoftheaircraftcarrier project together with LHD and other “blue water” surface vessels.

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3ISSUE 10 / 2015

Raider helicopter maiden flight

(df) Sikorsky Aircraft announced the suc-cessful first flight of the S-97 Raider he-licopter, a rigid coaxial rotor prototype designed to demonstrate a very good com-

binationofmanoeuvreability,hoverability,range, speed, endurance and survivability. ThisfirstflightwasconductedatSikorsky’sDevelopment Flight Center (DFC) where the two-prototype Raider helicopter testprogramme is based. During the first test flight, which lastedapproximately one hour, Raider Pilot BillFell and Co-Pilot Kevin Bredenbeck took the aircraft through a series of manoeu-vres designed to test the aircraft’s ho-ver and low-speed capability. With first

flightachieved,theRaiderhelicopternow movesintomoreprogressiveflighttestingto demonstrate key performance parame-ters critical to future combat operationsincluding armed reconnaissance, light as-sault,lightattackandspecialoperations.The Raider helicopter programme is partof the portfolio of Sikorsky Innovations,the technologydevelopmentorganisationwithin Sikorsky Aircraft’s Research & En-gineering division. www.raider.sikorsky.com

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Technology

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Indian deal confirmed during HeliRussia 2015

(yl)Moscowhostedthisyear‘sHeliRussiaexhibition to showcase the national in-dustry development and its cooperationwithseveralinternationalrotorcraftgiantsincluding Airbus Helicopters, AgustaWest-land and Bell.Predominantly civilian the show has also somedefencepartwhichwasreflectedbyofficial comments on the Indian CouncilonDefenceProcurement‘srecentdecisionto acquire Ka-226 light utility helicopters.The contract is expected to be concluded soon considering the “make in India” poli-cy proclaimed by the Indian government in 2014.TheRussianprimecontractorwillbe

Rosoboronexport in partnership with theRussianHelicoptersHoldingtheKumertaubased subsidiary of which will produce the assembly kits for India.AccordingtotheRussianHelicoptersCEOAlexanderMikheev, Ka-226T successfullypassedallthetrialsforthenationalarmedforces in India successfully.

Ka-226T has just received a type certifi-cateoftheInterstateAviationCommitteeRegistry.ThevehicleemploysTurbomecaArrius 2G1 engines with FADEC digital con-trol system, which made its debut aboard theco-axialrotorcraft.Duringtesttrials inIndiatheKa-226per-formed extremely well conquering highaltitudes up to 7,200 m in hot climate.The maximum payload is 1,100 kg on ex-ternal sling and 1,050 kg in the transport cabin.LastyearinKazakhstantheKa-226performedtheflighthoveringandlandingat 2,500m to fulfill anevacuationmissi-on. The helicopter‘s practical ceilingwas recorded at 7,500 m.www.russianhelicopters.aero

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Special Operations Tactical Vehicle

(df) Navistar Defense showcased its Special Operations Tactical Vehicle (SOTV) at theSpecial Operations Forces Industry Con-ference (SOFIC). The SOTV-B (Blended)variant is a low-profile, purpose-built ar-moured vehicle designed for counter-insur-gencyoperations.TheSOTV-BsharessignificantcommonalitywiththeSOTV-A,whichisNavistarDefen-se’s tactical variant for covert operations.Highlymodular, theSOTVcanbeconfigu-redwith a variety ofweapons and C4ISRpackages for a wide range of missions.

“While it may look like a typical small truck seen throughout the Middle East and around theworld, it’s anything but,” saidKevin Thomas, President, Navistar Defen-se. “The SOTV is a purpose-built vehicledesignedspecificallytoprovidethehighestlevels of protection and performance, while hiding in plain view.”SpecialfeaturesoftheSOTVareapower-ful engine, dynamic suspension and drive train, armour system and modular electro-nics capability. “The SOTV-B vehicle pro-vides significantly greater protection andperformancethantraditionalup-armoured

commercial light trucks,” Thomas added. “It can be skinned to look like any truck of choice–flexible,butdesignedfromthein-sideoutforspecialoperations.”www.navistardefense.com

4ISSUE 10 / 2015

Turkey’s first indigenous UAS

(df) Turkey is a littleway aheadwith theANKA,anadvancedMediumAltitudeLongEndurance (MALE) Unmanned Aerial Sys-tem (UAS). This first indigenous UAS hasbeen developed with the contribution oftheaffiliatesofTSSK -TeknokentDefenceIndustry Cluster – and was shown during IDEF‘15.ANKApassedtheacceptancetestcampaign in 2013. That 18+ hour long test flight concluded with automatic landing,

after successful demonstration of full en-durance and 200 km data link range per-formances under winds reaching to 45 kts.During the flight, Air Traffic Control (ATC)coordination was achieved through on-board radio, which was relayed to GCS (GroundControlStation)overthedatalink,demonstrating ANKA‘s capability to oper- ate safely in an airspace managed by ATC.ANKA has a wing span of 17.3 metres, length 8 metres and a payload capacity of

200 kg. The performance is 24 hours en-durance, service ceiling 30,000 foot and a data range of 200 km.www.tai.com.tr

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China purchases AN-178

(df) During the events dedicated to maiden flightoftheAN-178newtransportaircraft,an agreement on the purchase and coope-ration for joint serial production of theAN-178 in China was signed between the ANTONOVCompanyandtheChineseBei-jing A-Star Science & Technology Company. Wang Hongliang, Director General of Bei-jing A-Star Science & Technology Company, noted: “We think that the AN-178 is a very good aircraft and it has big perspectiveson the Chinese market. We are going to

purchasetwoaircraft,andthentoorganiseproductionoftheAN-178inChina.”The AN-178 is suggested as a replace- ment of the AN-12 that was delivered to China earlier and modifications of whichare still being made there. Compared to its predecessor the new ANTONOVtransport aircraft will have a number ofadvantages.Withfuelconsumptionbeingalmostequalto that of the AN-12, the AN-178 will have anessentiallyhigherproductivityowingtoa cruising speed that is 35% higher. Besides,

thenewaircraftwillbeabletobeoperatedataltitudesofupto12.2km,whilecruisingspeed of the AN-12 is limited 8.5 km. One more advantage of the AN-178 is the exis-tenceofanairtightcargocompartment.www.antonov.com

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Advanced launcher for UAS

(df)TheFinnishcompanyRobonic(Sagem/Safran) and U.S. company Lockheed Mar-

tinhave signed an agreement to developasmaller,moreefficientandtransportablefourth-generationpneumatic launcher fordrones, called OHTO. OHTO will provide advanced launch capa-bilitiesforGroupIIandIIIunmannedaerialsystems and target drones. It is based on the Kontio launcher, but with significant changes including a higher power-to-weightratio,reducedfootprintandimpro-vedmobility,loweroperatingcostsanden-hanced reliability.

Under the terms of this agreement, OHTO willbepartof thegroundsupportequip-ment(GSE)suitefortheLockheedMartinFury, a Group III unmanned aerial system (UAS). Inaddition, theagreement facilita-teslicencedproductionofOHTOintheU.S.byLockheedMartin.The LockheedMartin Fury alreadyuses aRobonic Kontio third-generation launcherto supportflight testingand initialopera-tionsinitsdevelopmentprogramme.www.robonic.fi

Heading for a European UAS?

(df) Europe’s main aerospace companiesAirbus Defence and Space, Dassault Avia-tionandFinmeccanicahavewelcomedtheagreement of France, Germany and Italy to conduct a definition study of a Europeandeveloped unmanned aerial system. Under the termsofaDeclarationof Intent (DoI)

signedby thenations, thecompanieswillconduct a two-year definition study of aMediumAltitude/Long Endurance (MALE)Unmanned Aerial System (UAS).The declaration followed the three com-panies’submissioninMay2014ofanext-generationMALEUAS study proposal en-visaging a 24-month “Definition Phase”,

immediately followed by a full “Develop-ment Phase”. This will allow the delivery ofthefirstsolutionsintheearly2020s,thecompanies said.But keeping in mind the necessary develop-ment, testing, certification and procure-mentprocessafirstdeliveryin2025seemsmore likely.

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5ISSUE 10 / 2015

Unmanned hovercraft

(df) Hov Pod Hovercraft is working withsuppliers of UAV technology to configureand supply hovercraft for unmanned ho-vercraftoperations.

Unmanned hovercraft will either workunderthedirectionof remoteoperatives,particularly for border patrol, to detersmugglers and drug or human traffickers,and may deploy night vision cameras or weapons. Hov Pod already supply hover-craftconfiguredwithGPSmappingsoftwa-reandgroundsurveyequipmenttodetectand map unexploded ordnance in areas that need re-development.The new Hov Pod Carbon Infinity 120HPTurboistheworld’sfirstproductioncarbon

fibre/hybrid hovercraft which due to thelightweightpropertiesofcarbonfibrecancarry half a ton in weight.The Hov Pod was also chosen for use by TheUnitedNationsWorldFoodProgram-me for its ease of use, ease of mainten-ance,durability,reliabilityandoperationalcharacteristics, particularly on water andover rough terrain. It will be used to cross swollen rivers to bring food, aid and essen-tialmedicalsupplies.www.hovpod.com

New Voyage Management System for U.S. submarines

(df) The U.S. Navy has approved the use of the Voyage Management System (VMS),version 9.3, onboard SSN and SSGN nuclear powered submarines. The VMS softwarepackage by Northrop Grumman will be ins-talledon55SSNsandfourSSGNsoperatingglobally from all U.S. Navy submarine ho-meports. Installationshavealreadybegunandwillbecompletedbytheendof2016.

Version9.3,whichsupportspolaroperati-ons, has significantly increased renderingspeeds, integrates seamlessly with combat radar and mission planning submarine sys-temsandallows for real-timecheckingofinstalled charts.“VMS 9.3 brings significant performanceand usability improvements over earlier versions and I appreciate the hard work by Northrop Grumman to make this a great product,” said Capt. John D. Zimmerman,

Program Executive Office, Submarines(PEO SUB), PMS 425.www.northropgrumman.com

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Renewal of the Italian fleet

(df)FincantieriandFinmeccanicawillbuildandequiptheunitssetoutintherenewalplanoftheItalianNavy’sfleet.In general, thismulti-yearprogramme fortherenewaloftheNavy’sfleet(knownasthe “Defence Act”) will employ a total fun-ding of €5.4 billion and foresees the const-ruction,inadditiontotheaforementionedunits, of one transport and landing unit (LHD) through a public contract with the Italian Ministry of Defence currently being finalised.Inparticular:onelogisticsupportunit (LSSorLogisticSupportShip), sixpa-trolvessels(PPA,orMultipurposeOffshorePatrolShip)and fourmore inoption,one

transport and landing unit (LHD or Landing Helicopter Dock).Intheframeworkofthisplan,OCCAR(Or-ganisation Conjointe de Cooperation surl’Armement = international organisationfor cooperation on arms) has signed the

order of the contractual performance for theconstructionofsixpatrolvessels(PPA,orMultipurposeOffshorePatrolShip),withfourmoreasanoption,andforonelogisticsupportunit(LSSorLogisticSupportShip)with the consortium (RaggruppamentoTemporaneo di Impresa = RTI) consistingof Fincantieri, agent, and Finmeccanica, through its subsidiary Selex ES, principal.The value of the contracts for the seven units is approx. €3.5 billion, of which Fin-cantieri’s share amounts to approx. €2.3billion and the one of Finmeccanica to about €1.2 billion.www.fincantieri.itwww.finmeccanica.com

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Japan Aegis Modernization

(df)LockheedMartinMissionSystemsandTrainingisbeingawardeda€64millionmo-dification to previously awarded contractfor the development and test of the Japan

Aegis Modernization baseline computerprogramsandequipment.Thismodificationcoverseffortstosupportthe upgrade of the Japanese MaritimeSelf-Defense Force‘s Atago Class Ships

(DDGs 177 and 178) from Baseline 7 Pha-se1RtoAdvancedCapabilityBuild12withTechnology Insertion 12 technology andcapability.www.lockheedmartin.com

6ISSUE 10 / 2015

Industry & Trade

Tosubscribe/unsubscribefromthisnewsletterpleasewriteanemailwith“Subscribe“or“Unsubscribe“inthe reference line to: esd.spotlight@mittler-report.de

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First quarter results of IAI

(df) Israel Aerospace Industries Ltd. (IAI), Israel‘s largest commercial aviation anddefence company, issues its consolidated interimfinancialstatementsfortheperiodof three months ended 31 March 2015. Thecompany‘ssalesinQ12015amountedto€836millioncomparedto€899millioninthecorrespondingquarterof2014,a7%decrease.Thedecreaseinsalesinthefirstquartercomparedwiththecorrespondingquarter of last year is mainly a result ofthe deferral of recognising revenue from mega development projects in the Systems Missiles & Space Group and the decrease

intherevenuesoftheCommercialAircraftGroup.Sales for export in the first quarter (Q1)2015 accounted for 80% of sales (20% to Israel) compared to 78% (22% to Israel) in the corresponding quarter of 2014. SalestothemilitarymarketinQ12015accoun-ted for 77% of sales (23% to the commerci-almarket) compared to 74% (26% to thecommercial market) in the corresponding quarterof2014.“IAImarks theendof thefirst quarterof2015 coping with various challenges in those global markets in which it operates,” Rafi Maor, Chairman of the Board, said.

“The military segment con-tinues to playa central part of IAI‘s ope-rations andoffers innova-tionsthathavearoused con-siderable interest in the Company‘smainmarkets.We anticipate continued growthin this segment despite several deferrals of mega-technological projects which led to a deferral in recognising sales.”www.iai.co.il

Teaming of RUAG and ENAER

(df)RUAGAviation,supplier, supportpro-vider and integrator of aircraft systemsand components, has signed a teaming agreement with the aerospace company EmpresaNacionaldeAeronáuticadeChile(ENAER),marking a “significantmilestoneinitsinternationalgrowthstrategy”,RUAGannounced.The two companies share many business and operational areas, such as aircraft

maintenance, repair andoverhaul (MRO),upgrades and life-cycle support. This teaming agreement is the culminationof many years of collaboration between

RUAGandENAERandwillallowbothfirmsto share their capabilities and broadentheir customer base.RUAG Aviation has a strong internationalpresencethatspansfourcontinents,whileENAER,oneoftheregionalmarketleadersinmanufacturing technologyandaviationmaintenance, is focused mainly on the Chi-leanandLatinAmericanmarkets.www.ruag.comwww.enaer.cl

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AYESAS and ViaSat sign MoU

(df) Aydin Yazilim ve Elektronik San. A.S.(AYESAS) andViaSat Inc. signed aMemo-randum of Understanding (MoU) on ex-plorationofandcooperationinidentifyingTacticalDataLink(TDL)productsandservi-cesopportunitiesinTurkeyandotherinter-nationalmarkets.TheMoUareasoffocusinclude manufacturing of components, softwareandhardwaredevelopment,tes-ting,maintenanceandrepairservices.AYESAS is a Tactical Data Link softwaresupplier to the Turkish Armed Forces for

ATDL-1,Link-1,Link-11/BandLink16requi-rements as well as an advanced electronics and electro-mechanical assembly supplier for major global aerospace and defence companies. ViaSat is a supplier ofMultifunctional In-formation Distribution System Low-Volu-me Terminals including MIDS-LVT(1) toF-16 fleets worldwide and MIDS-LVT(2)terminals for integration into a variety ofplatforms.With a full range of terminals,support equipment, training, and fieldsupport,ViaSatprovidescompleteturnkey

systems to support command and control, surveillance, intelligence, weapon status and situational awareness communicati-onsoverLink16.www.ayesas.comwww.viasat.com

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7ISSUE 10 / 2015

UDT preview

Over 1,200 military personnel, industry leaders, researchers and academics at-tend Undersea Defence Technology (UDT), which annually provides a world-class plat-form to discuss technology developments, understand the latest requirements andpresent innovative solutions that can beexploited in the underwater domain. UDT 2015willtakeplaceattheAhoyConventi-onCentreinRotterdam,TheNetherlands,from June 3 - 5 2015.Rotterdam,akeymaritimecityandacruci-al port for global trade and naval power projection,still servesasan important in-ternationalcalling:thiswasevidentinlateJanuary,whenwarshipsfromthePeople‘sLiberation Army Navy paid a port call enroute from the Gulf of Aden.

Ton Van Koersel, Senior Business De-veloper, Underwater Warfare at TNO De-fence, Safety and Security will be the Con-ference Committee Chair for UDT 2015.Ton brings to UDT a perspective that isrootedintechnicalandtacticalresearchasTNOis,firstandforemost,aresearchinsti-tute.Theorganisation isnot focusedonlyon defence, managing projects within the security sector and more broadly across in-

dustry.HisappointmentisaperfectfitforUDT, which is centred around the develop-ment and exploitation of technology andtacticsintheunderwaterspacefordefenceand security.Furthermore, the Netherlands Industries forDefence&Security(NIDV)hasbecomea key partner for the 2015 show. This is a significant endorsement for UDT as NIDVis a key player in the underwater defence community. A non profit organisation,NIDV represents the interests of Dutchdefence and security industries, acting asamediatorbetweengovernment,politici-ans,institutesandindustry.Itsresponsibi-litiesincludeworkingwithDutchandover-seas companies on issues such as offsetcommitments.www.udt-global.com

UDT 2015 expanded conference agenda

“Underwater Capability for an Uncertain Future” is the overall theme of the UDT 2015 conference. This is reflected in the2015 agenda which encompasses sub-marine warfare, anti-submarine warfare,minewarfare,hydrography/environmentalassessmentandmaritimesecurity.Prominence is given to autonomous vehi-cles in a conference stream that includes mine counter measures, multiple vehicleoperations, countering UAVs, and ope- rational, legal and ethical issues. Critical

technologies in the areas of communica- tion, command & control and endurancewill also be examined.Operationaldriversandimperativesareal-ways a high priority and the issues under thespotlightincludefuturerequirements,command & control, navigation, networkcentric operations and communications.Separate streams will examine latest de-velopments in sensors and processing and weapon and payload systems.Rear Admiral Simon Williams, Chairman,Clarion Defence & Security Ltd said: “The 2015 conference will be particularly rel-

evant given the current strategic context. Against an uncertain backdrop of a growing number of varied and evolving undersea threats a number of countries are engaged in renewing major elements of their un-derwatercapabilities;whileinthesecurityspaceinternationalorganisedcriminalsareexploitingtheunderwaterenvironment.Inlight of this, UDT is the centre point, show-casinginnovativetechnologiesthatwillbeused tomitigate such threats, and provi-des a framework for discussion towards a viable strategy in an underwater domain fraught with risks.”

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