European Stars and Stripes (Newspaper) - July 24, 1990, Darmstadt, Hesse                                Tuesday july 24, 1990 the stars and stripes a a a Page 7 lost contract no big loss says Lockheed los Angeles apr a the head of Lockheed corp. Says the cancellation of the company a $600 million contract for the p-7a patrol plane has rid Lockheed of a costly headache and May even help the firm in the Long run. The Navy said in its announcement Friday that Lockheed had defaulted on the contract to build a new anti submarine plane in january 1989. Under a default the service can demand a full refund of All Money paid the company or can find an alternative manufacturer for the p-7a. Or it can sue Lockheed for any costs in excess of the contract. Lockheed said that the company would still Appeal the termination under terms of default. Company chairman Daniel m. Tellep said he considered it unlikely that the Pentagon would look for an alternative producer. But the Navy could still demand a refund of the approximately $200 million it paid Lockheed before the cancellation. Lockheed has incurred costs of about $300 million on the program so far Tellep said. Last year it took a $300 million charge against profits to pay for expected Cost overruns the company has already written off the full Cost of the program. A if our Appeal is successful As. We expect it to be we will recover a major portion of the prior $300 million a Tellep said. A Lockheed May be far better Oft than if it built the aircraft under the Navy a terms even though the company lost the p-7a program in the dispute with the Navy a he said. Although the contract was valued at $600 million Over four years Lockheed officials said the firm was facing a project overrun As High As $1 billion on the fixed Price contract. Tellep said the company expects no further tosses. He said the cancellation signalled to Lockheed and other defense contractors that the Pentagon now is unwilling to bait out contractors facing losses on weapons programs. A the problem we Are seeing in the Industry once More underscores the disastrous effects of fixed Price total package procurement a he said. A and it is not beneficial either to the Pentagon or to the  the termination is Only the latest in a series of blows sustained by the aerospace firm. Since mid-1988, contracts for four military planes including the p-3 sub Hunter have wound Down. More defense cuts arc looming because of the National budget def Ici Tyand a warming in the cold War. Lockheed has also recently ended production of the f-117a stealth fighter the c-5b cargo plane and the to i St plane. Since mid-1988, about 9, workers have been Laid Oft. Earlier this year Lockheed announced it would move some of its production to Marietta ga., by the mid-1990s, at a potential Cost of up to 4,500 jobs. Lockheed claims the move could save $75 million a year. A Leggy look a Kaboom gets a close look at his Mother s legs in the Philadelphia zoo on sunday the baby Giraffe had a firecracker birth on july 4, standing 5 feet 11 inches tall and weighing 120 pounds. ,000 acres Anchorage Alaska apr wildfires burned More than 900,000 acres of Alaska on sunday producing smoke that hampered firefighting and triggered an air Quality Alert in Fairbanks and much of the rest of the Interior. Thick smoke grounded some aircraft used in fighting the 54,000-acre Tok River fire said Trish Hoger Vorst Rukke a spokeswoman with alaskans inter Agency fire information Center. A but the smoke also held Down temperatures in the Interior and pushed up the humidity reducing the intensity of the blazes. Smoke from wildfires that have already burned More than a million acres made it impossible to get accurate estimates of the sizes of some blazes. The Tok River fire started by lightning three weeks ago remained the state s most labor intensive Blaze occupying 789  Beaver fire named for a Village on the Yukon River remained alaskans largest on sunday it was burning a 10-by-48-mile Section of Spruce Forest said Hogervorst Rukke. Fires along the Alaska Highway reduced visibility to ers less than two Miles in a wide Region North of Tok to Fairbanks. 7 authorities said Alaska firefighting Crews were also sent to the Canadian Border Village of old Crow where about 280 people were evacuated because of fire near the Porcupine River. A fire 25 Miles Northeast of King Salmon was estimated at 1,100 acres and was being fought with specially designed planes from Canada that Fly Low scooping water from lakes and depositing it Over fires. The Manuti Flats fire about 140 mites North of Fairbanks was burning 100,000 acres in sunday and was within two Miles of the trans Alaska Oil pipeline. Authorities were monitoring the fire but not fighting it. Authorities said there was no danger to the pipeline which is buried beneath the Tundra near where the is burning. Visibility at the Riley Nali National Park 120 fire Creek visitors Center at do. Miles South of Fairbanks and alaskans top tourist attraction dropped to a Quarter mile at times Over the weekend. No injuries have been reported. Officials estimate that firefighting statewide is costing $700,000 a Day. Man charged in theft of microchips Honolulu apr a Man was arrested in the. Theft of $321,000 Worth of state of the Art computer microchips the Fri announced sunday. Bernard Pomaras of Hollister calif., was arrested saturday night the of big Stop agent in Honolulu Jim r. Freeman said in a statement. Pomaras is wanted in Santa Clara county calif., along with two other men in the theft of the chips from a Northern California company Freeman said. The three allegedly planned to sell 642 chips Worth $500 each in the far East free Mart said. The chips increase computers memory capacities. A second Man Raymond Reynolds was arrested in California and the third suspect Michael Arnold remains at Large the agent said. Each of the three was charged with interstate transportation of stolen property in a criminal complaint filed thursday in Santa Clara county. Charges carry a maximum sentence of 10 years in prison. Pomaras was being held pending an appearance before a . Magistrate Freeman said. The arrests were the result of joint investigation by the Fri the internal Revenue service the state department of motor vehicles and the Santa Clara county District attorneys office. Smithsonian facing deep cuts in staff funding by the Washington Post Washington a facing deep budget cuts the smithsonian institution will impose layoffs abolish some existing programs and cancel planned expansion smithsonian Secretary Robert m. Adams said sunday. Adams said he expects the creation of the american Indian museum to proceed. But virtually everything else including the planned african american a a presence on the mall a is in question he noted. Also endangered Are a $300 million Annex to the National air and space museum at Dulles Airport the redevelopment of the old general Post office building at gallery place As an office and museum space an expansion of the Hirshom museum and sculpture Garden and the addition of a badly needed Quot storage space at the museum support Center in Suitland my. The smithsonian currently consists of 15 museums and galleries and the National zoo. A a it a premature to say quite what the Adams after his resignation As underscore effects on the smithsonian will be of tary becomes effective sept. I said he had budget decisions that have not yet been been developing recommendations about made. Thai they re going to have an and downsizing the institution. Verse effect a very substantial one seems to me quite Clear a Adams said in an interview. Some Small existing programs Are Likely to be axed by oct. 1, Adams said. He a lined to provide specifics about that or any other aspect of the Belt tightening anticipated As Congress looks for ways to slash the Federal budget. Adams also refused to delve into last weeks firing of undersecretary Dean Anderson whose july 20 letter of resignation focused on impending budget cuts and restructuring. Adams had requested Andersons resignation on july 13, citing a need for improved management due to financial challenges ahead. In a Telephone interview Anderson was stoical about the dismissal. Nevertheless Anderson who will be a senior adviser to Andersons dismissal stunned officials at an institution already plagued by lagging morale and profound concern about the Money crunch. Adams discounted the Impact of Andersons departure. At the same time Adams acknowledged that the personnel roster is Likely to be hit hard since salaries consume about 80 percent of the smithsonian a budget. The institution a May very Well be considerably smaller a year from now across the Board a he said. One reason for his vagueness Adams said is that he has not worked out the target budget for fiscal 1992 with the office of management and budget. He remains Uncertain about the Fate of the institutions pending 1991 request for a $307.7 million appropriation. The smithsonian a 1990 appropriation was $266 million. Its total budget is $353 million including Revenue from ? overment contracts and Grants and rom Trust funds. On Capitol Hill rep. Sidney yales d-ill., chairman of the appropriations subcommittee on the Interior that tuesday will Mark up the smithsonian a funding Bill said Adams concern is Well founded. The smithsonian a Large budget May make it particularly vulnerable to automatic across the Board cuts that could be triggered by the Gramm Rud Man Hollings Law he said. Staffers throughout the smithsonian said they were shocked and dismayed Over the firing of Anderson. A it s the View of a lot of people that Dean is the person that has held this place together a said one official. A clearly its got to be a signal of further change and disruption to come. It has t been handled very  said another longtime smithsonian insider a a it a very widely Felt that there is a problem with the