(FORTUNE Magazine) – WAR/COVER STORIES 28 WINNING THE PEACE It's not too soon to plan the postwar world -- one without Saddam Hussein, without a Mideast arms race, and with a chance of Arab-Israeli reconciliation. by Thomas A. Stewart

34 THE FUTURE OF ARMS High-tech weapons work well -- in wrong hands and right alike. Dawning realization of that may prompt a new arms race aimed at keeping ahead of Third World threats. It will build on the awesome technologies now on display in the Gulf. by John Huey and Nancy J. Perry

40 AMERICA'S ARSENAL Far from the scenes of battle, men and women armed with rivet guns and calipers are making the nation's weapons -- some of defense, others of destruction. Fortune surveys them, company by company, in this special report.

40 General Dynamics M-1 Abrams tank

42 McDonnell Douglas Apache helicopter

46 Rockwell Hellfire missile

47 Lockheed F117-A Stealth fighter

48 FN Manufacturing M16 rifle

50 FMC Bradley Fighting Vehicle

56 Fairchild A-10 Warthog attack plane

56 Martin Marietta Night vision systems

60 Raytheon Patriot missile

64 McRae Industries Combat boots

68 THE TOP 25 CONTRACTORS

71 THE COST -- AND HOW TO PAY With the allies kicking in as much as $50 billion, the U.S. should finance the war by borrowing -- not taxing. by Joseph Spiers

MANAGING 72 MAKE YOUR OFFICE MORE PRODUCTIVE Companies are finally learning how to boost the effectiveness of white-collar workers. And they're going easy on automation. by Ronald Henkoff

87 CEOs DON'T SHARE WHITE-COLLAR BLUES A FORTUNE poll. by Andrew Erdman

CORPORATE PERFORMANCE 92 COMPANIES TO WATCH

FORTUNE BOOK EXCERPT 96 THESE POETS KNOW THE BOTTOM LINE Few in business feel an urge to write verse about their work. Meet some who do. by Alan Farnham

DEPARTMENTS 4 EDITOR'S DESK

8 INDEX

12 NEWS/TRENDS CEOs on the war, Bill Gates sets a new target, the Baltics -- one more casualty, where pennies still count, Japan now golfs on garbage, and more.

21 FORTUNE FORECAST Signs suggest that the worst of the decline is over -- barring a long war. by Vivian Brownstein

149 KEEPING UP by Daniel Seligman

151 LETTERS TO FORTUNE

155 FORTUNE PEOPLE

156 ON THE RISE

SMART INVESTING/SPECIAL REPORT 105 FINDING A PATH TO PROSPERITY

106 SAFE HAVENS FOR BLUSTERY TIMES To profit without undue risk, build a well-diversified portfolio, buy on | weakness, and be patient. by Brett Duval Fromson

113 TAX TIPS THAT WILL PAY OFF IN 1991 The IRS wants a bigger bite. Plan now to save money and win peace of mind. by Rob Norton

117 HOW TO HANDLE YOUR ACCOUNTANT Careful management will hold down taxes and keep you out of hot water. by Anne B. Fisher

121 RETIREMENT: SAVE UNTIL IT'S PAINFUL Only iron resolve and wise investing will deliver a beachcomber's life. by David Kirkpatrick

128 PLANNING NOW FOR COLLEGE Take tuition a step at a time. by Nancy J. Perry

131 THE (FINANCIALLY) PERFECT DEATH Adroit moves while you're still around can help your heirs. by Edmund Faltermayer

138 THE BEST MUTUAL FUNDS

144 PICKING THE RIGHT FINANCIAL PLANNER Decide what you need. Then look for someone whose skills match up. by Brian O'Reilly

ABOVE: Langevin and Orban (Sygma) took this shot of coalition forces preparing for the land offensive.

COVER: An F-15C in final production at a McDonnell Douglas plant in St. Louis, photographed by Louis Psihoyos (Matrix).