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<HTML> <HEAD> <TITLE>2000 Book</TITLE> </HEAD> <BODY LINK="#0000ff" BGPROPERTIES="FIXED" BGCOLOR="#ffffff"> <BASEFONT SIZE="3"> <HR SIZE="2"><P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="7" FACE="Palatino"> Chapter 21 </FONT></P><HR SIZE="2"> <P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="5" FACE="Palatino"> The Defense Industry’s Transatlantic Debate </FONT></P> <P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino"> Mr. John Weston<BR> Chief Executive, BAE SYSTEMS </FONT></P> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <BR> </FONT></P> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <FONT COLOR="#000000" FACE="Palatino" SIZE="7">I</FONT>n my view the following topics are important to the debate we are currently having on both sides of the Atlantic and hence they formed the key elements of this year’s Defense Industry Panel debate. </FONT></P> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I><BR></I> </FONT></P> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I>Is there Any Real Danger of Developing Fortress Europe or Fortress America?</I> </FONT></P> <UL> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Does the formation of BAE SYSTEMS and EADS mean that the European market will be more difficult for the Americans to penetrate? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Does Fortress America exist today? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Does the industry’s current structure internationally support competition or protectionism? </FONT></LI> </UL> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I>Is Government Ownership of the Industry a Significant Issue?</I> </FONT></P> <UL> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Does it matter if European governments retain significant shareholdings in the European defence industry? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Can the European industry rationalise and be truly competitive on a global basis? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Does the current debate about the health of the U.S. industry and about what the Department of Defense can do to help represent similar government involvement in U.S. industry? </FONT></LI> </UL> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I>Is the Global Model of the Industry an Unattainable Dream?</I> </FONT></P> <UL> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Could we envisage transatlantic corporations competing as equals in the U.S., Europe and around the world? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Is competition becoming more or less important to European governments? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Can effective competition be maintained in the U.S. market going forward without greater international involvement? </FONT></LI> </UL> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I>Is the Distinction Between Horizontal and Vertical Integration Relevant Today?</I> </FONT></P> <UL> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> To what degree does a prime contractor need to be vertically integrated? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> What is the ideal structure of the industry from the customer’s point of view? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> What is the ideal structure of the industry from a prime contractor’s point of view? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> What is the ideal structure of the industry from a supplier’s point of view? </FONT></LI> </UL> <P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> <I>How Important is Size in the Industry?</I> </FONT></P> <UL> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Is size important for market impact? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Is size important for research and development intensity? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> How large a company can we manage effectively? </FONT></LI> <LI><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino"> Was the consolidation of the U.S. Industry a mistake, or are there lessons to be learned from the division of the cost benefits? </FONT></LI> </UL> <P> </P> <P ALIGN="CENTER"><A HREF="workshop2000-A.htm">Back to 2000 Workshop Index</a></P></BODY> </HTML>