In a way, it was your typical case of defense conversion.

"The space station is defense conversion," said Representative Dana Rohrabacher, Republican of California.

The idea, officials say, is to form a public-private partnership to lift California, especially by spurring defense conversion and small business.

And some business people and economists maintain that "defense conversion" may as well get started now instead of later in the decade.

Oleg D. Baklanov, first deputy chairman of the defense council, advises companies on defense conversion.

House Democrats may settle for a second-best solution: setting aside $1 billion for defense conversion.

The panel has focused the work of the two Governments on issues from defense conversion to environmental protection and now public health.

Their new assignment makes Hymer and Walzer participants in a real-world adventure, something called "defense conversion."

"It helps us validate the importance of the technology, and therefore represents true defense conversion and dual-use capability."

For Kenneth A. Medlin, a Rockwell executive vice president, the deal represents "defense conversion at its very best."