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The Watchtower’s Investments in Warfare Technology

by Gerry

The first casualty of war is The Truth.- Anonymous

Introduction

The Watchtower Bible and Tract Society (WT) portrays itself as a pacifist, neutral, non-profit Christian religious organisation and a "direct channel to Jehovah God". As a sign of respect to Jehovah God, Watchtower’s members – the Jehovah’s Witnesses – can not take part in any political, governmental nor military organisation and can not perform business transactions with such institutions. Under prophetic speculation the WT also teaches its members that the United Nations is the embodiment of "The Beast" of Revelation and that Earth is "Satan’s Kingdom". They claim that the only safe group to be in, and to grow and reach salvation is the Watchtower Bible and Tract Society of New York, Inc. (WT). The WT demands of its members high moral, social and "Christian" standards, while condemning immorality and materialism.

"We laud Jehovah as the Universal Sovereign, 'dwell' in him as our Source of security, and declare the good news of his Kingdom. (Matthew 24:14) Therefore, 'no calamity will befall us'....Anointed Christians are like alien residents living in tents apart from this system of things. (1 Peter 2:11) Whether our hope is heavenly or earthly, we are not infected by such spiritually deadly plagues as its immorality, materialism, false religion and worship of 'the wild beast', the United Nations.-Revelation 9:20,21; 13:1-18.....Angels have been given power to protect us. They guard us 'in all our ways.' We enjoy angelic guardianship as Kingdom proclaimers and do not stumble spiritually." - The Watchtower 15 November 2001

Purpose

The purpose of this article is to determine whether the Watchtower Society (WT) owns shares of common stocks of armament-related industry and if positive, determine if they perform business transactions with the U.S. Department of Defense.

Main Information Sources (Accessible through the hyperlinks. Note: In some cases the referred documents are extensive so electronic word searches are recommended).

Reg Tech/Regi News releases.

Advanced Ceramics Research

US Navy

US Department of Defense

US House of Representatives

US Securities and Exchange Commission (SEC)

The primary mission of the SEC is to protect investors and maintain the integrity of the securities markets. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. The SEC also oversees other key participants in the securities world, including stock exchanges, broker-dealers, investment advisors, mutual funds, and public utility holding companies. The SEC is concerned primarily with promoting disclosure of important information, enforcing the securities laws, and protecting investors who interact with these various organisation and individuals. Crucial to the SEC's effectiveness is its enforcement authority.

Partnership relations between these companies are so tight they call themselves "Sister Companies". Rand Cam Engine Corp. is a privately-held company and not much data was available. Reg Technologies Inc. is a Canadian investor’s group that since 1986 has financed most of the research done on the Rand Cam™ engine. Rand Energy Group Inc. was created in October 1986 and it is controlled by Rand Cam Engine Corp.; Rand Energy Group Inc. controls Regi US Inc., which is ultimately controlled by its main investor: Reg Technologies Inc. Both the private and common stocks held by the Watchtower Society on the "Sister Companies" were donated. The focal point of this group is to market a new engine technology called Rand Cam ™ (RC™). It is important to not confuse any of these with unrelated companies such as Rand Financial services, Rand Worldwide, etc.

Finances

The basic research and development work done on the RC™ engine and other products is being co-ordinated and funded by Reg Tech.

REGI US Inc. was created in 1986 and it does not own properties. They currently utilise office space leased by Reg Tech in a commercial business park building located in British Columbia, Canada. REGI’s only assets are their intangible assets, being patents and intellectual property rights. They do not have employees other than a Marketing Corporate Director and a design engineer. The majority of prototype construction and testing costs continues to be borne by potential licensees and manufacturers. REGI owns 5,073,200 shares and plans to sell shares as needed to meet their ongoing funding requirements, if traditional equity sources of financing prove to be insufficient. REGI US Inc. has not generated any revenues nor profitable operations since inception and, on April 30th 2002, had a severe working capital deficit of $5,308,000. On September 21st 1994, Reg Technologies Inc. announced that REGI US Inc. (its subsidiary) had started trading on the OTC Bulletin board (Symbol RGUS) but the actual SEC registration is dated 06/06/1996 (REGISTRATION STATEMENT NO. 33-96974). Insiders of REGI now currently hold 6,017,850 common shares, representing control of approximately 53.31% of the total voting power. Accordingly, the present insiders continue to elect all of their own directors and generally control their affairs.

Patents, Rights & Agreements

• Rand Energy Group, Inc. owns the RC™ technology worldwide rights exclusive US since 1992, whereas REGI owns the U.S.A. rights to the RC™ technology and its variations.



• In October 2000, Reg Technologies Inc. acquired a 50% interest in the rights to a H2O hydrogen separator technology.

Some of REGI’s patented products derived from the RC™ Technology are:

• A compressor, a pump, the Cold Turbine Engine Generator and the Rotary Diesel Engine prototypes.

• In 1995, REGI bought for $200,000 a limited sublicense to market and distribute in Canada the rights to Machine Vision Technology, but in October of the same year it sold it to Reg Technologies, its main investor. This technology has industrial and medical applications but is also being tested for the military’s "Intelligent Transportation Systems" for missiles.

• In May 1994, Reg Technologies, Inc. entered into a consortium agreement with Hercules Aerospace Company to further develop the diesel version of the RC™ Engine in concert with the West Virginia University team.

• In 1995, Hercules Aerospace Company merged with Alliant TechSystems, Inc. and Alliant completed the drawings on the Diesel Engine under a contract signed with REGI US Inc.

• In 1996, several new aircraft engine prototypes were designed along with Global Aircraft Corporation for the General Aviation Propulsion (GAP) program by NASA. This $8.5 million program fell apart in November 1996 when REGI’s prototype engine leaked oil during the final tests (this is an inherent problem of most rotary engines). This contract was not awarded.

• On December 6th 2001, Watchtower’s "Sister Companies", publicly announced that a $850,000 US Navy Topic# N01-144 (contract # N00014-01-M-0208) had been awarded to Advanced Ceramics Research prime contractor, and REGI to build and test a Naval 0.5 horsepower ceramic engine which would allow for low radar signature and high temp operation. This new motor is being developed for powering the US Navy's new Smart War-fighter Array of Re-configurable Modules (SWARM), a low cost unmanned aerial vehicle (UAV).

• Recently, two more programs have just been funded (NAVY CONTRACT #s N41756-02-M-2026 and N41756-02-M-2037) by the Naval Surface Weapons Center for the development of high efficiency ceramic diesel engines for SWARM applications. The designs under development in these programs are scalable to larger conventional drone sizes. The ceramics reduce the need for lubrication oil, increase the operational temperature in the combustion and eliminate metal from the engine to reduce weight and improve detection avoidance. According to Allen Moshfegh, science officer working on robotic warfare developments for the Navy, the Office of Naval Research tested Advanced Ceramics Research's drone in Simi Valley, Calif., in July 2002. The small craft successfully completed manoeuvres before high-ranking Defense officials. The test was part of an ongoing series of demonstrations the company hopes will result in huge demand for the aircraft. In its current prototype phase the handcrafted fibreglass and foam SWARM units run about $20,000 each. With injection-molded components and ramped-up production, the price should drop to about $ 5,000 next year, and fall to below $ 2,000 by 2004. An important feature of the SWARM concept is that one operator will be able to operate 10 or more drones as compared to current technology, which requires 10 to 20 operators to operate one drone.

• On April 4th 2002 REGI announced that they signed an agreement to grant a 5-year contract to Advanced Ceramics Research for the RC™ based motors up to 10 H.P., for the SBIR No 1-144 Navy Contract. REGI will receive a royalty fee of 5% of the purchase price for the commercial and Navy applications.

• On May 29th 2002, REGI signed a license agreement with Advanced Ceramics and Radian Milliparts to further develop their Diesel Cam technology for the US Navy’s Unmanned Autonomous Vehicles (UAVs).

Results

1. The Watchtower Society, a religious organisation, owns a large percentage of (at least) three "Sister Companies": Rand Cam Engine Corp., Rand Energy Group Inc., and Regi US Inc. These companies are dedicated to research & development and marketing of Rand Cam™ engine technology of which they own the rights and several patents.



2. None of the Watchtower’s "Sister Companies" fabricate bombs or ammunition of any kind. However, REGI’s management systematically seeks out – and has obtained - US Department of Defense’s awards, funding and subcontracts to supply the US Department of Defense with RC™ technology. REGI’s management has signed numerous agreements with some powerful warfare-technology contractors. A military expert as Marketing Corporate Director now leads REGI.



3. The Watchtower leadership seems to have concealed the truth about these assets and their transactions with NASA and the US Department of Defense from its own members.

Discussion

The Watchtower Society owns 50% of Rand Cam Engine Corp. which owns 49% of Rand Energy Group Inc. In addition, The Watchtower Society owns 44.9% of REGI US Inc. These three "Sister companies" - as they have called themselves- are mostly financed by Reg Technologies Inc. which ultimately controls REGI US Inc.

REGI’s first press release dated May 11, 1994 opens up with enthusiasm to have a product with which they can tap into an annual $20 Billion market and plans to align the US Department of Defense as their first customer:

"Reg Technologies, Inc. entered into a consortium agreement with Hercules Aerospace Company (a Fortune 500 Company) to further develop the diesel version of the Rand Cam™ Engine in concert with the West Virginia University team. The diesel engine will be developed for military and commercial applications. The annual market potential for the diesel engine market in North America is $20 Billion US Reg Technologies, Inc. plans to license Hercules, Inc. for Department of Defense applications in consideration for the development and commercialization of the Rand Cam™ Diesel Engine, and other benefits to Reg Technologies, Inc.

The management of Reg Technologies, Inc. is confident that the ensuing year will result in a successful working model of the Rand Cam™ Engine that will produce significant revenue from license agreements. The Wankel Rotary Engine generated $200,000,000.00 from license rights in the 1960's."

Since their creation, the "Sister companies" have systematically sought out awards and subcontracts from NASA and the US Department of Defense. To this effect, A MILITARY EXPERT was appointed as REGI’s Marketing Corporate Director. Mr. X (name withheld) offers to the "Sister Companies" 30 years experience in the aerospace and aircraft industry, as Corporate Marketing Director and Federal Government Affairs Director. He has been involved as a contractor and/or consultant for the Department of Defense, Naval Sea Systems Command; Naval Air Systems Command and Defense Advanced Research Projects Agency. Mr. X also has created a company which been appointed as agent for REGI US, Inc. to raise up to $6 million (US) on a non-exclusive basis. A 5% agents fee of the total funds received from contacts introduced by Mr. X’s company will be paid for funds raised, license fees, royalty payments and contract fees.

"We believe that Mr. X’s extensive expertise in government relations and advanced technologies marketing will be a valuable asset to marketing the Rand Cam™ projects and raising substantial funds for REGI US, Inc." "We are currently making presentations to the US military which could result in additional government funding if the diesel engine prototype meets with its approval."

Now lets consider some of the products the Watchtower’s military expert handle and their targeted markets:

Machine Vision Technology (MVT) own the Canadian rights to MVT. This system is currently under development by the Carnegie Mellon University (experts in artificial intelligence). The MVT device records images by their spectral "signature" and it has industrial and medical applications. But there is an ongoing project to adapt it for warfare purposes: When on board an airborne vehicle, it allows for highly selective discrimination among objects or targets of nearly identical spatial or even spectral signatures. Its inventors call it "Intelligent Transportation System". The system is far more complex than GPS-guided missile technology and it reportedly holds great promise for military applications because it can discern between nearby friendly and enemy vehicles even when camouflaged. A simulated battlefield scene was set where they placed tanks of the same color, but their armor had different spectral signatures. A background consisting of other tanks, vegetation, sand and water was used in testing the device. The suppression algorithm was able to tell the difference between tanks and therefore, identify enemy tanks.

The "Sister Companies" own a limited sublicense to market and distribute Machine Vision Technology in Canada. Although this system is being tested for the military, it was NOT evident to this researcher whether this technology has been sold and/or used for "smart bombs" manufacture within Canada or any other nation.

Rand Cam™ Engines’ original plan was well specified, as their FIRST news release from May 1994 declared:

"US Reg Technologies, Inc. plans to license Hercules, Inc. for Department of Defense applications in consideration for the development and commercialization of the Rand Cam™ Diesel Engine, and other benefits to Reg Technologies, Inc."

Note that this accord with Hercules was not a partnership but an agreement. Then in 1995, Hercules Aerospace Company merged with Alliant TechSystems Inc. Alliant completed the drawings on the Diesel Engine under a contract signed with REGI US Inc. The designs and drawings were paid and no royalties are to be to be paid to Alliant.

It is remarkable that Watchtower’s "Sister Companies" have signed several agreements with various companies dedicated to warfare technology. Consider some of REGI’s clients:

• Hercules Aerospace Company. Products: Missile propellants and warheads. Design and manufacture of solid propulsion rocket motors and composite structures. (Bought by Alliant TechSystems).

• Alliant TechSystems, Inc now has $1.3 billion in annual sales of a repertoire of products including: Small-caliber military ammunition, rocket propellants, commercial and military smokeless powder, law enforcement and sporting ammunition, ammunition related products, strategic missiles, missile defense interceptors, gun-launched precision-guided munitions, electronic warfare systems, soldier systems, propulsion for missile defense systems, composite structures for aircraft and weapons systems, medium-caliber and tank ammunition, medium-caliber gun systems, high-performance batteries for military and aerospace applications, tactical barrier systems, tactical missile rocket motors and warheads.

• Advanced Ceramics Research (ACR) has performed nearly $6 million in military work.

• RADIAN MILITARY PARTS is a key supplier of engineering, logistics systems integration services to the US Department of Defense. It delivers "perfect quality parts for weapon systems."

• RADIAN The Engineering Division provides comprehensive support to the US Department of Defense’s weapon systems managers. It operates from facilities adjacent to several key US military installations.

• Engineered Support Systems, Inc has recently acquired RADIAN for $41.7 million US in cash and shares. EASI is a diversified supplier of high tech integrated military electronics support equipment and logistics services to all branches of the US armed forces and certain foreign militaries.

SWARM

The basic concept was developed at the Naval Surface Warfare Center Carderock division. Careful consideration went into the decision to make the SWARM an expendable vehicle. The primary reason it will be expendable is that the major cost for any system is maintenance, not acquisition. This means the SWARM will incur no maintenance costs. The SWARM project was actually launched by ACR in June 2000 with a $70,000 US Navy contract for a small UAV originally designed to locate and mitigate whales near Navy ships. The small SWARM aircraft bearing the engine in question, will be primarily used for intelligence, surveillance and reconnaissance roles, but payloads, the sensors and the packages can be tailored to the mission.

The US Navy officials who evaluated the prototype’s performance did not only approve it, but the SWARM concept was quickly expanded far beyond whale-watching and into developing UAVs that can be easily reconfigured to accommodate a multitude of payload and mission requirements over hostile territory. As an example, one such new concept is to equip SWARMS with Global Positioning System (GPS) and Jamming Situational Awareness for Naval Surface Fire Support (NSFS). This information is then passed to the GPS-guided weapon prior to launch. The SWARMs then provide data directly to the projectile in flight to support this back-up navigation mode. There are some Defense awards to develop the use of SWARM for surface to air missile (SAM) site continuous monitoring as well as other awards to develop an advanced low-cost turbojet engine for UAVs.

The SWARM project has recently gained additional support from the US House of Representatives as in May 10th 2002, Arizona’s Congressman announced:

"…the programs that support our armed forces in the fight against global terrorism in the 2003 Defense Authorization Act passed the House early this morning."…"These programs, critical to our national security, received the necessary authority in the defense bill for us to continue conducting the War Against Terrorism. This bipartisan bill recognizes that we are a nation at war, and provides the manpower, the equipment, and the technology that the United States military needs. Southeastern Arizona plays a pivotal role in our national security, and I am pleased that our requests were accepted."

Two of his accepted requests are:

SWARM UAV Program: $5 million above the President’s request for these lightweight, low cost and expendable UAVs for ship perimeter defense, marine mammal detection, submarine detection, and tactical support for ground troops and special operations forces developed at Advanced Ceramics Research in Tucson.

UAV Facility: Accelerates from 2005 to 2003 this valuable Ft. Huachuca project to construct buildings for instruction, flight operations, and maintenance of UAVs, valued at $10.4 million.

Conclusion

Confirmation of the Watchtower’s possession of such investments and subsequent contributions to warfare technology are not inconsequential. In fact, it should have a profound effect on Jehovah Witnesses’ confidence of their leaders. It is interesting that if a Jehovah’s Witness were to seek to question and criticise the Governing Body of Jehovah's Witnesses regarding contributions to warfare technology, or any other activity or policy for that matter, this person could be severely punished with disfellowshipping and the victim’s friends and relatives would be forced to shun him/her as "a test of loyalty to Jehovah."

It is frightening that the WT leaders reserve themselves the right to seek profit in this manner and at the same time they hold to being "conscientious objectors". It appears that the WT’s risk of being involved in warfare technology transactions has been superseded by the greed of tapping in the reportedly $20 billion in annual sales market. This previously secret WT’s economic venture exhibits a greed, probably unlike anything imagined by its unsuspecting members. How could the Governing Body justify - even to themselves - profits from such stock dividends? As Randall Watters once wrote:

"The Watchtower Society seems unique in that it denounces investments in the old system and its journal Awake! for many years claimed that it was 'free' to publish 'truth' because of being "unfettered" by commercial interests. In times past, the Society has even forced branches to divest interests in various profit-making investments. After which, they even held Conventions where they read a resolution apologizing to Jehovah for their 'sin' and publicly repented of this 'unclean' act before all onlookers." "Now let’s think about this for a minute: 5,371,000 shares valued at $0.437 per share equals $2,347,127 in stock ownership. This is just one company we know about. But, the interesting situation is that the Watchtower Society owns 50% in the US corporation as reported, even if not a 'majority' interest. Is this not a clear powerful position to influence company policy? Even if the British Columbia company holds the major role, would not a powerful voting block such as this, at least help 'influence' the actions of what the company builds and sells? And even though the voting is by proxy, it is done by the person who donated the stock to the Society. Therefore, would not his votes reflect sympathy and loyalty to the Watchtower Society teachings, policies, and beliefs unique to Jehovah's Witnesses?"

The WT Society may not have asked for its donated shares, but has retained ownership nonetheless, and while the Donor retains voting privileges, the WT Society gets the direct financial benefit, probably tax-exempt. The Governing Body will likely attempt to justify their investments by claiming that:

"The proper use of money is approved by God. For example, Jesus said: "Make friends for yourselves by means of the unrighteous riches." (Luke 16:9) This includes contributing toward the advancement of the true worship of God, for we definitely should want God as our Friend."

Measured by the same moral and doctrinal standards they impose on its members, there is simply no proper justification to holding on to the "Sister companies’" shares and profit. Ignorance of their possession can not be an excuse either because, as a chief share-holder, the WT Society has received no less than 52 SEC filing copies plus -at least- 60 official news releases by REGI updating them on their company’s progress. And this is in addition to the thousands of financial reports, memos and other internal correspondence required to operate such corporations for more than 16 years.

Nationalism aside, during these times of war the WT Society continues to hold stocks on the "Sister Companies" and, while they are still not a huge success within the Department of Defense, it is a clear double standard and they appear to be acting in a hypocritical way when compared with their own doctrine and honest members.

The first casualty of war is The Truth - Anonymous