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<TITLE>2001Book - Final</TITLE>
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Chapter 31
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Keys to a Stronger U.S. and Allied Defense
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
Mr. Alfred Volkman<BR>
Director for International Cooperation, Office of U.S. Under Secretary of Defense
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<FONT COLOR="#000000" FACE="Palatino" SIZE="7">I</FONT> would like to make five points that I hope will contribute to our discussion
 on the interface among strategic planning, procurement, and research. First,
 it is more important than ever for alliances to cooperate effectively in
 military operations with allies and friends. Second, a strong, coherent
 industrial base, of which people are the most important part, is fundamental
 to military capability. Third, we are undergoing a revolution in military
 affairs; investment in science and technology is essential if we are to
 manage that revolution to our benefit. Fourth, government procurement and
 acquisition systems are in constant need of reform. Finally, there is no
 substitute for good planning.
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<B>MAINTAINING STRONG ALLIANCES</B>
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From the beginning of our history as a nation, alliances have played an
 essential part in the national security of the United States. They will
 be even more important in the 21<FONT COLOR="#1f1a17" FACE="Palatino" SIZE="1"><SUP>st</SUP></FONT><FONT COLOR="#1f1a17" FACE="Palatino" SIZE="2"> century; we will be increasingly dependent
 on allies for support. While we are fortunate to have strong alliances
 now on which to build, it will be very challenging to sustain these alliances
 in the future. The U.S. must strengthen its alliance with Europe and, as
 its focus on the Pacific increases, the United States must strengthen its
 defense cooperation with Japan, Australia, Korea, and Singapore. It is
 essential that the U.S. maintain strong relationships with its allies,
 and encourage them to improve their military capabilities and share with
 them the technology necessary to achieve that goal.</FONT>
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<B>A STRONG INDUSTRIAL BASE</B>
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The industrial base is contracting and consolidating both in Europe and
 the United States. Globalization has increasingly made the U.S. and its
 allies dependent on industries outside our borders for military capability.
 Allied governments must work together and with industry to ensure that
 our mutual industrial base contributes to our security. Governments must
 make the investments necessary to enable industry to quickly transform
 technology into military capability and ensure that programs and funding
 are stable. Industry and government together must reduce the significant
 excess capacity that still exists and invest in hiring and keeping talented
 people by paying them well and providing them intellectually stimulating
 work. This is not just industry&#146;s problem. The U.S. Department of Defense
 needs to concentrate on hiring and training a new generation of government
 employees.
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<B>INVESTING IN SCIENCE AND TECHNOLOGY</B>
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<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
The revolution in military affairs is being driven by major advances in
 commercial technology. Thirty years ago, defense research and development
 was twice that of commercial R&amp;D. Today, private sector R&amp;D is five times
 that of defense. We must make the investment necessary to leverage civilian
 technical strength to increase our military capability&#151;especially in such
 areas as space, communications, and information technologies. We need to
 increase our investment in science and technology where the greatest breakthroughs
 occur.
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<B>REFORMING ACQUISITION SYSTEMS</B>
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Government acquisition systems are invariably drawn toward rules and regulations
 designed to ensure a variety of sometimes conflicting objectives&#151;such as
 treating all competitors fairly or ensuring that certain groups (small
 businesses, domestic producers) receive some form of preferential treatment.
 In the United States, our acquisition system has become more cumbersome
 as Congress has passed legislation to correct deficiencies reported in
 the newspapers (for example, expensive hammers and coffee pots). Government
 acquisition systems need constant attention and efforts to improve them.

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<B>THE NEED FOR PLANNING</B>
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Defense planning is always an uncertain proposition. Today it is more uncertain
 than ever, but we must plan properly for the challenges we will meet together
 in the future. We must strengthen our Alliance, preserve our industrial
 resources, and improve the conditions for closer cooperation between governments
 and industries.
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