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<title>CSDR 24th International Workshop on Global Security, Michele Alliot-Marie, Herve Morin, General Henri Bentegeat, General Jean-Louis Georgelin, General James L. Jones, Marc Perrin de Brichambaut, Patrick Auroy, Kent Schneider, Ambassador Mahmoud Karem, Admiral Giampaolo Di Paola, General Franciszek Gagor, Dr. Arthur T. Hopkins, George Joulwan, Borys Tarasyuk, Jean de Ponton d'Amécourt, General Rainer Schuwirth, General Egon Ramms, Gen Ulrich Wolf, Louis Gallois, Marwan Lahoud, Denis Ranque, Edgar Buckley, Assistant Secretary John Grimes, Tim Bloechl, EADS, Northrop Grumman, Microsoft, Robert Ranquet, Admiral Jean Betermier, Giovanni Bertolone, Robert Ranquet, Alenia Aeronautica, Roger Weissinger-Baylon, WMD, Weaapons of Mass Destruction, NATO, EU, UN, OSCE, Paris Air Show, French Defense Minister, Afghanistan, Iraq, Kosovo, Climate Change, Energy, Boeing</title>
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<p><span class="style293">international workshop series<br>
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<p align="center" class="style17"><strong>Table of Contents<br>
24th International Workshop - </strong><strong>Paris '07</strong></p>
<p align="center" class="style17"><span class="style18"><span class="style219"> </span>
<span class="style219"><a href="/2007book/weissinger07.htm">Preface- Dr. Roger<br>
Weissinger-Baylon<br>
Workshop Chairman<br>
</a></span><span class="style219"><a href="/2007book/ranquet07.htm">Foreword - Ing General<br>
Robert Ranquet<br>
</a></span>
<span class="style219"><a href="/2007book/joulwan07.htm">Opening Dinner Debate - <br>
General George Joulwan<br>
Former SACEUR<br>
</a></span></span><br>
Global security challenges: <br>
Is there hope for <br>
Afghanistan or Iraq?<br>
</p>
<p align="center" class="style17"><a href="/2007book/bentegeat07.htm">General Henri Bentegeat<br>
President of EU Military Committee</a>
<a href="/2007book/georgelin07">Gen Jean-Louis Georgelin C<strong>hef d’état</strong>-<strong>major</strong> des armées - France</a><a href="/2007book/amecourt07.htm">Mr. Jean de Ponton d'Amecourt - French Dir of Strategic Affairs</a><a href="/2007book/schuwirth07.htm">General Rainer Schuwirth <br>
Chief of Staff, SHAPE</a><a href="/2007book/ramms07.htm">General Egon Ramms <br>
Commander, Allied Joint Force Cmd, Brunssum</a>
<a href="/2007book/akram07.htm">
Amb Munir Akram<br>
Pakistan's Amb to UN</a><a href="/2007book/zhan07.htm">
Major Gen ZHAN Maohai<br>
Vice Chair of China IISS</a><br>
Energy & Climate Change<br>
<p align="center" class="style17"><a href="/2007book/jones07.htm">General James Jones<br>
Former Supreme Allied Commander Europe</a><a href="/2007book/ashton07.htm">Mr. John Ashton<br>
UK Special Repr for Climate Change</a><br>
Security in the Balkans & Black Sea region<br>
<p align="center" class="style17"><a href="/2007book/baramidze07.htm">Georgian Vice Prime Minister Giorgi Baramidze</a>
<a href="/2007book/tarasyuk07.htm">Ukrainian Foreign Minister Borys Tarasyuk</a>
<a href="/2007book/mediu07.htm">Albanian Defense Minister Fatmir Mediu</a><a href="/2007book/bliznakov07.htm">Bulgarian Defense Minister Veselin Bliznakov</a><a href="/2007book/bezhuashvili07.htm">Georgian Foreign Min Gela Bezhuashvili</a><a href="/2007book/ildem07.htm">Ambassador <strong> Tacan Ildem</strong><br>
Turkish Amb to NATO</a><a href="/2007book/buzhinsky07.htm">
Lt Gen Evgeniy Buzhinsky<br>
Russian Ministry of Defense</a><br>
Time for new strategies?<br>
NATO after the Riga Summit<br>
<p align="center" class="style17"><a href="/2007book/eldon07.htm">Amb Stewart Eldon<br>
UK Ambassador to NATO</a>
<a href="/2007book/orgaz07.htm">Amb Pablo Benavides Orgaz<br>
Spanish Amb to NATO</a>
<a href="/2007book/stefanini07.htm">Amb Stefano Stefanini <br>
Italian Amb to NATO</a><a href="/2007book/dipaola07.htm">Adm Giampaolo Di Paola<br>
Italian Chief of Defense<br>
</a><a href="/2007book/gagor07.htm">Gen Franciszek Gagor Polish Chief of Defense</a><br>
How can the EU, NATO, the OSCE, and UN reform?<br>
<p align="center" class="style17"><a href="/2007book/brichambaut07.htm">Amb Marc Perrin de Brichambaut<br>
OSCE Secretary General </a><a href="/2007book/lintonen07.htm">Amb Kirsti Lintonen Finnish Amb to UN</a>
<a href="/2007book/brodi07.htm">Amb Gabor Brodi<br>
Hungarian Amb to UN</a><a href="/2007book/rinkevics07.htm">State Sec Edgars Rinkevics - Latvian MOD</a><a href="/2007book/linkevicius07.htm">Amb Linas Linkevicius<br>
Lithuanian Amb to NATO<br>
</a>
<a href="/2007book/chizhov07.htm">Amb Vladimir Chizhov<br>
Russian Amb to the EU<br>
</a><a href="/2007book/monteforte07.htm">Vice Adm Ferdinando Sanfelice di Monteforte<br>
Italian Mil Repr to NATO</a><br>
Dealing with middle east:<br>Views from North Africa
<p align="center" class="style17"><a href="/2007book/yousfi07.htm">Amb Youcef Yousfi<br>
Algerian Amb to UN and former Foreign Minister</a><a href="/2007book/karem07.htm">Amb Mahmoud Karem<br>
Egyptian Amb to EU and Repr to Med Dialogue</a><a href="/2007book/alem07.htm">Amb Menouar Alem<br>
Moroccan Amb to EU and Repr to Med Dialogue<br>
</a>
<p align="center" class="style17">WMD and cyber threats
<p align="center" class="style17"><a href="/2007book/pfirter07.htm">Amb Rogelio Pfirter<br>
Director-General, OPCW</a>
<a href="/2007book/hopkins07.htm">Dr. Arthur T. Hopkins<br>
Assist to U.S. Sec of Defense - Nuclear & Chemical & Biological</a><a href="/2007book/aaviksoo07.htm">Estonian Defense Minister<br>
Jaak Aaviksoo</a><a href="/2007book/grimes07.htm">Hon John Grimes<br>
US Assistant Secretary of Defense - NII<br>
</a><a href="/2007book/lentz07.htm">Mr. Robert Lentz<br>
US Dep Asst Sec for NII<br>
</a><a href="/2007book/wolf07.htm">Lt General Ulrich Wolf<br>
Dir of NATO CIS Service Agency<br>
</a>
<a href="/2007book/bloechl07.htm">Mr. Tim Bloechl<br>
Microsoft Exec Director</a>
<p align="center" class="style17">How industry can help address the global challenges<p align="center" class="style17"><a href="/2007book/lahoud07.htm">Mr. Marwan Lahoud<br>
Chief Operating Office EADS</a><a href="/2007book/schneider07.htm">Mr. Kent Schneider<br>
President, Defense Group<br>
Northrop Grumman IT<br>
</a><a href="/2007book/auroy07.htm">Mr. Patrick Auroy<br>
Deputy Director,<br>
French DGA
<br>
</a><a href="/2007book/volkman07.htm">Mr. Alfred Volkman<br>
Dir, Defense Cooperation<br>
US Dept of Defense<br>
</a>
<a href="/2007book/linnenkamp07.htm">Dr. Hilmar Linnenkamp<br>
Dep CEO, EDA</a>
<a href="/2007book/lind07.htm">Mr. Jan-Olof Lind<br>
Swedish National Armaments Director</a>
<a href="/2007book/buckley07.htm">Dr. Edgar Buckley<br>
Thales Senior Vice President</a>
<a href="/2007book/trice07">Dr. Robert Trice<br>
Lockheed Martin <br>
Senior Vice President<br>
</a><a href="/2007book/bertolone07.htm">Ing. Giovanni Bertolone<br>
CEO, Alenia Aeronautica</a>
<p align="center" class="style17">The way ahead & why current approaches don't work
<p align="center" class="style17"><a href="/2007book/martinusz07.htm">Amb Zoltan Martinusz<br>
Hungarian Amb to NATO<br>
</a><a href="/2007book/ducaru07.htm">Amb Dumitru Sorin Ducaru<br>
Romanian Amb to NATO</a><a href="/2007book/kujat07.htm"> General Harald Kujat<br>
Former Chair of NATO Military Committee</a>
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<td bgcolor="#006699" height="18" colspan="5"><div align="center" class="style285" style="font-weight: bold; color: #FFFFFF">Paris '07 Workshop</div></td>
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</table>
<p align="center" class="style26">TWO BASIC TRENDS IN
INDUSTRY-GOVERNMENT RELATIONS<![if !vml]>
<![endif]>
</b></p>
<div align="center">
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<tr>
<td width="195"><div align="center" class=""><img
src="2007images/Trice DSC_1240 Edgar Buckley, Giovanni Bertolone, Robert Trice DAY IV.JPG" alt="Dr. Robert Trice, Lockheed Martin" width=185 height=237 v:shapes="_x0000_i1025"></div></td>
<td width="10" rowspan="2"><div align="center"></div></td>
<td width="237" rowspan="2"><div align="center" class="style27"><b style='mso-bidi-font-weight:
normal'><span class="style26" style="font-size:14.0pt;font-family:Garamond">Dr. Robert Trice<br>
Lockheed Martin <br>
Senior Vice President<br>
for Business Development</span></b></div></td>
</tr>
<tr>
<td align="left">Dr. Robert Trice, Lockheed Martin Senior Vice President for Business Development.</td>
</tr>
</table>
</div>
<p align="center" class="style26"><em>"...we are more and more a software- and IT-driven
industry in both the defense and homeland security <br>
realms of our industrial
markets...IT is inherently already globalized
and is the leader among an<br>
increasingly globalizing set of relevant
technologies</em>"</p>
<p>Two basic trends regarding
the relationship between governments and defense industries in a global
industrial base need to be kept in mind. The first is that the imbalance
in defense spending between the United States and its European allies
continues, and we see very little prospect that the Europeans will increase
spending significantly in the near term. Even if spending in the U.S.
slows or decreases slightly, the gap is going to remain large, especially on
the Research and Development side. </p>
<p>The R&D spending gap between the U.S. and all the rest of NATO is at least
seven to one annually, which has the same effect as compound interest. Every year�and we have been saying this for ten years�that capability gap gets
wider. As members of this workshop heard from our NATO military
colleagues and from Jan-Olof Lind, the operational
pressures on NATO forces in Afghanistan and other places are adding to the
increased strain on member-states� budgets, making it even harder to increase
the investment accounts. </p>
<p>The second trend, which is a new one, I think, is that we are more and more a software- and IT-driven
industry in both the defense and homeland security realms of our industrial
markets. And I argue that IT is inherently already globalized
and is the leader among an increasingly globalizing set of relevant
technologies. </p>
<p align="center" class="style26">THE RESULTS OF THE TRENDS</p>
<p>I believe we can identify at
least two results of these trends. The first is that the entire aerospace
and defense industry is globalizing. The combination of reliance on
software and IT and budget pressures cause industry to search globally for the
best and most affordable solutions, just the way every other industry does�we just
do it a bit slower in an area that is a little more complicated politically and
is governed by more export controls. Nevertheless, it is happening, and,
particularly at the subsystems and components level, a considerable global
supply chain exists. </p>
<p>The second result is that
European industry is aggressively seeking access to the U.S. market to
compensate for the lack of growth in its home markets. I think a good
case could be made that many industries have already moved beyond the
objectives of the European Defense Agency for Europeanization. Industries
are doing what they need to do in order to survive and grow in two ways.
The first is that European companies are increasing their footprint in the
United States�they are gaining market share the old-fashioned way, by buying
it. Forty percent of BAE Systems� total sales now come from the United
States; the company has more American workers than British workers. BAE
Systems, Thales, Smiths, Rolls-Royce, Finmeccanica, EADS�they are all coming into the U.S. and
buying market share.
<p>The second way is through transatlantic defense cooperation. In terms of specific programs,
Giovanni Bertolone is going to tell us about the
C-27J joint cargo aircraft. We have an Italian-British helicopter that is
going to be flying the U.S. president, we have Europeans competing for tankers,
we have the CN-235 for the U. S. Coast Guard�s Deepwater
program, and we have European helicopters for the U. S. Army and the Coast
Guard. </p>
<p align="center" class="style26">THE NEED FOR GREATER GOVERNMENT SPONSORSHIP</p>
<p>You would expect that all
this transatlantic defense cooperation would be encouraged by governments, and
there are some examples: the NATO ACCS, the Air-to-Ground Surveillance system,
the Medium Extended Air Defense System (MEADS), and of course the F-35 Joint
Strike Fighter. But what is surprising is that there are not more good
examples of government-sponsored transatlantic defense cooperation.
Basically, what has happened is that our governments have set requirements, but
then turned the work over to industry. American and European industries
are successfully working together despite all the constraints Edgar Buckley
relayed. There is also a continued focus on maintaining a European
defense technology and industrial base, but it appears that local industries
continue only to be protected from American competition, rather than more
European-wide governmental investment taking place. Without investment,
there will be no growth. There simply is no magic. Policies must be
backed with actual programs, and programs will only be developed with political
will and money. </p>
<p>I would argue that this cannot happen in Europe in isolation. Just as European industry is
looking to the U.S. for opportunities to invest, collaborate and <span
class=GramE>sell, so should European governments be looking to access
the American industrial capabilities created by U.S. defense spending and make
sure they are available to Europe. The best way to do that is to have
greater transatlantic cooperation and more programs created at the initiative
of governments, not just by the drive of industries to survive and
thrive. </p>
<p align="center" class="style26">DEVELOPING NEEDED TALENT</p>
<p>The last point I�d like to
make, and here I agree with Mr. Lind, is that there is a mutual threat to the western
defense industrial base and that is the difficulty in attracting talent.
Lockheed Martin hires 5% of all the undergraduate scientists and engineers
produced in the United States every year, some 4,500 people. That is both
good news and bad news. It is certainly good for Lockheed Martin in that
we are constantly reinvigorating our intellectual capital. But the bad
news is that a nation of three hundred million people is producing fewer than
90,000 young scientists and engineers a year, compared with 500,000 in China
and 300,000 in India. I believe that the challenge is true for all
western nations and is transatlantic in scope, and something we all need to
tackle if we are to retain our competitiveness in the 21<sup>st</sup> century. </p>
<p>Paris, June 2007 </p>
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