demand offsets. He also stated that the increasing need for access to capital will make it more difficult to distinguish what is an offset. Companies make arrangements with risk-sharing subcontractors to gain access to capital. That capital is needed not only because of the risk, but also because of the need to return value to the shareholder.

In response to a question from Dr. Wessner as to whether all major players in the industry need to satisfy shareholders, Mr. Sandford stated that there was a large imbalance. It is mainly, but not exclusively, the American companies who have to satisfy short-term shareholders. It is his opinion that in today's environment, you could not launch a new engine program without significant risk capital from overseas. That capital would only flow for reasons of increased jobs.



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