WAR COULD BOOST LOCAL ECONOMY.

Byline: Bill Hillburg Washington Bureau

WASHINGTON - A military aircraft assembly line in Long Beach, a small blimp factory in Canoga Park and a cargo airport in the High Desert are among the Southern California businesses that could receive a boost from America's war on terrorism.

Experts say the military response to the Sept. 11 terror attacks will solidify government support for a number of key local aerospace and military projects. But they also warn that the conflict could further weaken the travel and tourism industries.

``Brainpower and research and development are Southern California's major strengths and they are going to be in demand,'' said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. ``But, overall, we still see a recession for the third and fourth quarters of the year.''

Kyser said he sees continued weakness in tourism, especially among free-spending foreign visitors who are crucial to off-season revenues at area theme parks. He has also seen a sharp downturn in related businesses, including hotels and food services.

``There's still a lot of fear,'' said Kyser. ``And now there is also uncertainty about what will happen next. A recovery depends on people getting their confidence back and snapping out of their funk.''

Boeing has seen increased Pentagon interest in the C-17, a massive transport airplane suited to supporting quick-hitting mobile military forces.

``We're in a good position. We have the only large transport plane now being built,'' said Boeing spokesman George Sillia.

The C-17 project, which employs 7,000 workers in Long Beach, is crucial to that city's economy, which has seen a sharp downturn in Boeing's commercial jet operations. The Air Force has ordered 120 of the planes and has so far taken delivery of 75.

The C-17 project is now scheduled for completion in 2004.

President George W. Bush's 2001-02 budget proposal includes a $3.06 billion outlay for 15 C-17s under the current contract. But Boeing and local officials are hoping for an extension that would raise the total number of aircraft produced to 180 and keep the Long Beach plant working through 2006.

David Bartel, chief of staff to Rep. Stephen Horn, R-Long Beach, said chances look good for a 60-plane extension and an added $220 million budget allocation that would be used to keep materials for extra planes coming from subcontractors.

Fred Edworthy, general manager of World Wide Aeros in Canoga Park, believes his blimps could play a valuable role in the war on terror.

``We've had some positive inquiries so far,'' said Edworthy, whose 34- employee company designs and builds airships for commercial and military uses.

A World Wide Aeros unmanned aerostat blimp has already been deployed by the Marine Corps. Tethered to the ground and aloft up to 1,000 feet over a battlefield, it can serve as a platform for surveillance cameras and eavesdropping devices or as a communications antenna.

Pentagon funding for other unmanned aircraft projects is also expected to increase. The lineup includes the Global Hawk, a spy plane being developed and tested by Northrop Grumman in Palmdale.

Rep. Howard P. ``Buck'' McKeon, R-Santa Clarita, has requested $35 million to adapt the Global Hawk for use by the Navy.

The High Desert is emerging as the region's focal point for the war on terror.

The Barstow area is home to Fort Irwin, the Army's National Training Center, as well as major supply centers for the Defense Logistics Agency and the Marine Corps. Fort Irwin and the Marine Corps base at Twentynine Palms are the Pentagon's prime training sites for the desert combat conditions American troops might face in Afghanistan and other Middle Eastern nations.

Jim Specht, an aide to Rep. Jerry Lewis, R-Redlands, said the war buildup will also probably clear the way for a long-planned 110,000-acre expansion of Fort Irwin, a move that has been hotly opposed by environmentalists.

``Our regular mission continues,'' said Army Major Rob Ali, spokesman for Fort Irwin. The base is home to the Army's elite 11th Armored ``Black Horse'' Cavalry Division, which serves as the opposing force for the Army and National Guard units that deploy at Fort Irwin each year to undergo desert combat training. Ali said there are plans to deploy the 11th overseas.

The military buildup could also mean increased business for the Southern California Logistics Airport near Victorville. The former George Air Force Base is being managed and redeveloped as an air cargo hub by Stirling Airports International of Laguna Hills.

``We're experiencing increases in activity,'' said Dougall Agan, a top Stirling official. ``We are working to make our operation as smooth and secure as possible and to do what we can in this time of tragedy.''

Kyser warned that the terror war, no matter what its final scope, probably won't bring back the Cold War boom days of Southern California's aerospace industry, when dozens of plants ran around the clock on Pentagon contracts.

``This potential growth doesn't speak to employment on the assembly lines,'' he said. ``Those good, middle-class jobs largely disappeared in the 1990s and they aren't coming back soon. We're talking about engineers, research and development at this stage. Even if there are new or expanded programs, it can take five to six years before assembly gets under way.''