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<title>Center for Strategic Decision Research, Peter Struck, Michele Alliot-Marie, General George Joulwan, SACEUR, General James L. Jones, SHAPE, NATO, EU, BDLI, ILA, EADS, Northrop Grumman, Under Secretary Michael Wynne, Assistant Secretary Linton Wells, Ambassador William Burns, NATO Military Committee Chairman General Harald Kujat, General Dynamics, Boeing, Global Security Terrorism, Iraq, Afghanistan, Rainer Hertrich, David Stafford</title>
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<p align="center" class="style244">20th International Workshop on Global Security - Moscow, 27-30 June 2003<br>
"Toward Global Security: New Strategies, Technologies, and Alliances"</p>
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<h3 align="center" class="style196 style86"> </h3>
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<p align="center" class="style220"><strong>Table of Contents </strong></p>
<p align="left" class="style220"><a href="/2003Book/joulwan.htm">Fmr SACEUR General George Joulwan </a><span class="style217"><strong></strong></span><span class="style217"><strong><a href="/2003Book/overview.htm">Workshop Chairman Roger Weissinger-Baylon </a></strong></span></p>
<p align="center" class="style220"><strong>Pa</strong><strong>rt 1 </strong></p>
<p class="style220"><span class="style217"><strong><a href="/2003Book/fursenko.htm">Russian First Deputy Industry, Science, Tech Minister Andrey Fursenko</a></strong></span><span class="style217"><strong><a href="/2003Book/vershbow.htm">US Ambassador to Russia Alexander Vershbow</a></strong></span><span class="style217"><strong><a href="/2003Book/lukin.htm">Russian Duma Deputy Speaker Vladimir Lukin </a></strong></span><span class="style217"><strong><a href="/2003Book/yavlinsky.htm">Russian Duma Member Grigory Yavlinsky</a></strong></span><span class="style217"><a href="/2003Book/velikhov.htm">Kurchatov Institute Director Evgeny Velikhov </a><a href="/2003Book/pickering.htm">Fmr US Ambassador to Russia Thomas Pickering</a><a href="/2003Book/portillo.htm">UK House of Commons Member Michael Portillo</a><a href="/2003Book/deruyt.htm">Belgian Ambassador to UN Jean de Ruyt</a><a href="/2003Book/vonploetz.htm">German Ambassador to Russia Hans-Friedrich von Ploetz </a><a href="/2003Book/wolsztynski.htm">French Air Force Chief of Staff General Richard Wolsztynski</a><a href="/2003Book/sedivy.htm">Fmr Czech Chief of Staff General Jiri Sedivy </a><a href="/2003Book/mehta.htm">Indian Armed Forces General Ashok Mehta</a></span><span class="style217"><a href="/2003Book/george.htm">UK House of Commons Member Bruce George</a></span><span class="style217"><a href="/2003Book/nurick.htm">Carnegie Moscow Center Director Robert Nurick</a><a href="/2003Book/ranquet.htm"> French Defense Ministry Dep Director Strat Affairs General Robert Ranquet</a></span></p>
<p align="center" class="style220"><strong>Part 2 </strong></p>
<p class="style220"><span class="style217"><span class="style222"><a href="/2003Book/fasslabend.htm">Fmr Austrian Defense Min Werner Fasslabend</a></span></span><span class="style217"><span class="style222"><a href="/2003Book/rogov.htm">Russian Acad of Sciences USA Canada Institute Director Serguey Rogov</a><a href="/2003Book/baranovsky.htm"> Russian Acad of Sciences IMEMO Deputy Director Vladimir Baranovsky</a><a href="/2003Book/piontkovskiy.htm">Strat Studies Ctr Director Andrey Piontkovskiy</a></span></span><span class="style219"><a href="/2003Book/onyszkiewicz.htm">Fmr Polish Defense Min Janusz Onyszkiewicz </a><a href="/2003Book/welti.htm"> Swiss Defense Ministry Security Policy Director Amb Philippe Welti</a><a href="/2003Book/pascu.htm">Romanian Defense Minister Ioan Pascu </a><a href="/2003Book/chandra.htm">Indian Dep Natl Security Advisor Satish Chandra</a><a href="/2003Book/marschan.htm">Finnish Defense Ministry Special Counselor Nikolai Marschan</a></span></p>
<p align="center" class="style220"><strong>Part 3 </strong></p>
<p class="style220"><span class="style219"><a href="/2003Book/volkman.htm">US Defense Dept Dir for Intl Coop Alfred Volkman</a><a href="/2003Book/dipaola.htm">Italian Sec Gen Defense Adm Giampaolo di Paola </a></span><span class="style209"><span class="style197"><a href="/2003Book/schuwirth.htm">EU Mil Staff Director General Rainer Schuwirth </a></span><span #invalid_attr_id="10px 0px 0px 10px"><span class="style197"><a href="/2003Book/naumann.htm">Fmr German Defense Chief Gen Klaus Naumann </a></span></span></span><span class="style219"><a href="/2003Book/cosentino.htm">Alenia Sr Vice President Carmelo Costentino</a><a href="/2003Book/trice.htm">Lockheed Martin Sr Vice President Robert Trice </a><a href="/2003Book/ray.htm">Raytheon Europe President Norman Ray</a></span><span class="style219"><a href="/2003Book/dyson.htm">EDventure Chairman Esther Dyson</a></span><span class="style219"><a href="/2003Book/kravchenko.htm">Boeing Russia/CIS Pres Sergey Kravchenko</a></span><span class="style219"><a href="/2003Book/karachinsky.htm">IBS Group President Anatoly Karachinsky</a></span><span class="style219"><a href="/2003Book/doughty.htm">Motorola Vice President John Doughty</a></span><span class="style219"><a href="/2003Book/galitsky.htm">ELVIS+ Founder and CEO Alexander Galitsky</a></span><span class="style219"><a href="/2003Book/lentz.htm">US Assist Sec Defense Office Director of Info Assurance Robert Lentz</a> </span><span class="style219"><a href="/2003Book/coggins.htm">Silicon Graphics Sr Vice President Steve Coggins</a></span><span class="style219"><a href="/2003Book/gante.htm">BDLI President Hans-Joachim Gante</a></span><span class="style217"><a href="/2003Book/sinha.htm">MITRE VP Agam Sinha</a></span></p>
<p align="center" class="style220"><strong>Part 4 </strong></p>
<p class="style220"><span class="style219"><a href="/2003Book/linkevicius.htm">Lithuanian Defense Minister Linas Linkevicius</a></span><span class="style219"><a href="/2003Book/korcok.htm">Slovakian State Secretary of Foreign Affairs Ivan Korcok</a></span><span class="style219"><a href="/2003Book/brodi.htm">Hungarian Dep State Secretary of Foreign Affairs Gabor Brodi</a></span><span class="style219"><a href="/2003Book/hunter.htm">Fmr US Ambassador to NATO Robert Hunter</a></span><span class="style219"><a href="/2003Book/vondra.htm">Czech Dep Foreign Minister Alexandr Vondra</a> <br>
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<h1 class="style196">Three Personal Perspectives on Transatlantic Cooperation</h1>
<h2 align="center"> <br>
Vice Admiral Norman Ray<br>
President, Raytheon International Europe</h2>
<p align="left">When we talk about transatlantic cooperation, which we do so very often and almost glibly, it is probably useful to go back and consider what our strategic objective actually is. It ought to be that we will establish and maintain a viable, independent, and complementary U.S. and European defense-technology-industry foundation. We should aim our cooperative efforts at that because, according to my lights, it will provide the underpinning needed to support the Allied strategic concept on which our nations have all agreed. </p>
<h3 align="center"><strong>THE IMPORTANCE OF MARKET SIZE AND MARKET ACCESS </strong></h3>
<p align="left"> As we work, we must keep our eyes on two important issues: market size�domestic market size, both European and U.S.�and market access. Size is obviously important because without it you cannot sustain a proper level of research and development; you also cannot sustain the proper level of capital investment or industrial business growth. And if these three things cannot be sustained, I suggest that the independence I feel is important also cannot be sustained. </p>
<p align="left"> Europe is in trouble in this regard. The market size in Europe makes it very difficult for the European part of the transatlantic industrial base to sustain itself in a healthy manner as well as grow. Therefore, in my judgment, its independence is at stake. </p>
<p align="left"> Ironically, and somewhat perversely, the United States does not have a market size problem, except for the fact that it currently has such a large market that it is distracted from its overseas markets. And, to the extent that it is distracted, it is less engaged with its overseas partners, which is a threat not only to the long-term welfare of the U.S. base but to the European base. </p>
<p align="left"> An interesting issue related to market size is also worth mentioning. When you have a big domestic market, you have the luxury of capability winning out over politics most of the time. When you have a small market or a very narrow one, it is much more difficult for capability to conquer politics. So the United States has the luxury of focusing endlessly on capabilities; Europe, at least partly because of its market size, does not have that luxury. My conversations with many European industrialists make me believe that small market size is putting the next generation of European capability at risk. </p>
<p align="left"> Market access, I believe, is more interesting as it relates to our two strategic goals: the independent viability of the European industrial base and the independent viability of the U.S. industrial base. U.S. market access, looking across the Atlantic to Europe, is growing. Without it, as U.S. budgets flatten out and decrease, growth will become a problem. But for Europe, looking across the Atlantic to America, market access is actually existential. By that I mean that Europe cannot sustain itself on its current market size. Europe needs to penetrate the U.S. market and compete better in the global market. Access, in other words, is vital. </p>
<h3 align="center"><strong>FIGHTING PROTECTIONISM</strong></h3>
<p align="left"> Protectionist forces on both sides of the Atlantic are making things difficult. On the European side, I think it is fair to say that the European Security Defense Identity and the European Common Foreign and Security Policy have an industrial tail. Although this may not be explicit, it is often discussed among senior European politicians, most recently by the Greeks holding the EU presidency. It certainly suggests that access will be restricted to American industries on the European side of the Atlantic in order to provide strength to the European industrial base. </p>
<p align="left"> On the U.S. side, activity in the House of Representatives is working to further restrict European percentages in American systems. These two trends are extremely unhealthy for access, and are going to undermine what I believe are our strategic objectives. They are also going to increase the cost of capabilities on both sides of the Atlantic, because the vendor base is not what it ought to be and because competitive forces are less robust than they ought to be. I think that if we had proper access, we would have a win-win situation: Americans would have the opportunity to grow, and so would Europeans. And they would both be more viable because they would have access to the biggest defense market in the world. </p>
<h3 align="center"><strong>STEPS TO INCREASE MARKET SIZE AND MARKET ACCESS </strong></h3>
<p align="left"> Without market size and market access, the cohesiveness of the Alliance may itself be threatened. In addition, political support for capability in Europe will be further eroded, and the tendency to act unilaterally rather than multilaterally will increase. The institutions on which we rest our future could be put at some risk. </p>
<p align="left"> Let me suggest some concrete things we can do to prevent this: </p>
<ul>
<li class="style87"> First of all, I think we need a strategic agreement that embraces our strategic objective vision. That means we should actually agree and explicitly state that we support two viable, independent defense- technology-industry bases. </li>
<li class="style87"> Second, Europe should include in its common market defense industry matters that it now excludes. If it did that, we could bring those matters into the transatlantic business dialogue, where we would have the opportunity to deal with them on a proper business basis. This should help to reduce some of the stresses of which I have already spoken. So I strongly recommend that we find a mechanism to involve these matters in the EU/U.S. transatlantic business dialogue. In support of that, I advocate establishing a transatlantic defense-industrial association for government-supported industries to do the same things for transatlantic strategic security as each of our industrial defense associations does for its own country. </li>
</ul>
<h3><strong>CONCLUDING REMARKS </strong></h3>
<p>I believe that every encouragement should be given to the United States to follow through in pursuit of NSPD 19 (the review of the Defense Trade Export Policy), ITAR (the International Traffic in Arms Regulations), and export control reforms. This work is vitally important. </p>
<p>It is also vitally important, as the European Union goes forward developing an agency, represented now in its nascent form by OCCAR, that it endeavor to remain untainted by protectionism. Protectionism, through its exclusionary policy, would prevent the United States from having reasonable access to the European market, which would prevent Europeans from developing the kind of access we need in the U.S. for all of this to work. </p>
<h2 class="style196"> </h2>
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