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    <TITLE>Lieutenant General Malcolm R. O'Neill...Challenges of
    Counter-Proliferation for the New NATO</TITLE>
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    <CENTER><FONT COLOR="#000000"><FONT SIZE="+4">Challenges of
    Counter-Proliferation for the New NATO</FONT></FONT></CENTER>
    <CENTER><FONT COLOR="#000000"><FONT SIZE="+3">Lieutenant General Malcolm
    R. O'Neill</FONT></FONT></CENTER>
    <CENTER></CENTER>
    <CENTER><FONT SIZE="+1">&nbsp;</FONT></CENTER>
    <CENTER></CENTER>
    <CENTER><B><FONT COLOR="#000000"><FONT SIZE="+1">INTRODUCTION</FONT></FONT></B></CENTER>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">At last year's NATO Workshop, my
      session partner was former U.S. Secretary of Defense Les Aspin. His recent
      death was a great loss to all of us who work in the defense establishment
      of the United States and to others as well. He was a special advocate of
      actions by NATO and the United States in the area of
      counter-proliferation. Partly for this reason, I will emphasize the
      particular challenge of counter-proliferation to the new NATO, while also
      examining other challenges to NATO's future including responding to new
      and different kinds of threats, accommodating the economic realities of
      today's world, and ensuring that the Alliance participates as the
      Euro-Atlantic security architecture evolves.</FONT></FONT> </P>
    <CENTER></CENTER>
    <CENTER><B><FONT COLOR="#000000"><FONT SIZE="+1">THE NEED TO RESPOND TO
    NEW AND DIFFERENT THREATS</FONT></FONT></B></CENTER>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">One of NATO's greatest
      challenges will be responding to the new proliferation threat. Field
      Marshal Sir Richard Vincent has mentioned the activities that NATO is
      undertaking to respond to this threat. Subsequent to the 1994 Summit, NATO
      established two committees to implement an approach for dealing with
      proliferation. First, the work of a senior politico-military group on
      proliferation, the SGP, led to the adoption in Istanbul last spring of an
      Alliance policy on proliferation of weapons of mass destruction. Also, a
      senior defense group on proliferation, the DGP, which was charged with a
      three-phase program, completed the first phase of assessing the risks
      posed by proliferation. The DGP has moved on to the development of defense
      policy guidance for NATO, grappling with the operational implication of
      living in a world where weapons of mass destruction can be employed
      against us, and what this means to the Alliance. The group will later work
      on the third phase of their program: assessing the capabilities NATO needs
      to respond to proliferation. This work is an important part of NATO's
      continuing adaptation to the new security environment.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">In the first phase of its
      program, the DGP concluded that preventing the proliferation of weapons of
      mass destruction, in particular missile-delivery systems for both
      ballistic and cruise missiles, remained NATO's top counter-proliferation
      priority. The group also concluded that such efforts are not likely to
      stop missile proliferation. Accordingly, it was determined that NATO
      should examine a range of military capabilities to discourage
      proliferation, including missile defense, to further protect forces,
      territories, and populations.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">NATO's policy on
      counter-proliferation has two dimensions: political and military.
      Basically, the political dimension consists of dissuasion, through
      security assurances, guarantees, and support of our Allies; denial,
      through measures such as export controls; disarmament, through treaties
      and agreements; and, finally, diplomatic pressure, through sanctions and
      isolation of the aggressor.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">The military dimension is the
      area in which I concentrate military counter-proliferation measures,
      including counter-terrorism, deterrence, defusion, elimination of
      production facilities that might be used by an adversary, as well as
      active defense and passive defense; we also ignore offensive counter-force
      as a counter-proliferation strategy.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Let me show how this translates
      directly in the world of missile defense. In the political schema,
      Ballistic-Missile Defense (BMD) can support efforts to discourage the
      spread of ballistic missiles: if we have missile defenses, missiles will
      certainly be a less likely weapon choice for a potential adversary.
      Similarly, active defense of a friendly country could lower the risks of
      not proliferating in response to an opponent's proliferation. In the
      arms-control context, by devaluing offensive systems, BMD can actually
      encourage and facilitate regional or global efforts to negotiate
      limitations on ballistic missiles.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">On the military side, the
      protection of military forces, key facilities, and population centers by
      missile defenses would permit military operations to be conducted and
      would strengthen the solidarity of the Alliance or coalitions in the face
      of weapons of mass destruction and their potential use. Furthermore, by
      reducing the potential damage an adversary could inflict on NATO forces
      and interests, ballistic-missile defense would bolster the credibility of
      deterrence and reduce the possibility that NATO would decide not to take
      offensive action. This is an important point, because NATO's central
      strategic concept is deterrence. Ballistic-missile defense is necessary to
      avoid any situation in which NATO determines not to employ its forces
      because it is vulnerable to missile attack.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Active defense could also be
      used to defuse a crisis or potential conflict; demonstrating resolve has
      less impact on crisis stability than threatening the use of an offensive
      system. Active defense would also provide a less provocative alternative
      to preemptive strikes against enemy ballistic missiles, and perhaps
      provide more decision space in which to de-escalate a crisis.</FONT></FONT>
    </P>
    <CENTER></CENTER>
    <CENTER><B><FONT COLOR="#000000"><FONT SIZE="+1">ACCOMMODATING THE
    ECONOMIC REALITIES OF TODAY'S WORLD</FONT></FONT></B></CENTER>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Lower defense budgets are a fact
      of life on both sides of the Atlantic. We therefore need to take advantage
      of past investments in systems such as Patriot, some of our ships, some of
      the systems that have been built in Europe, and the SA-12 in Russia, for
      example.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Research and technology, now
      maturing in many Alliance nations, are ready to be tapped and could
      rapidly and economically improve our counter-proliferation posture.
      Exploitation of these resources, however, will be difficult without a
      better understanding of each nation's abilities to contribute and how the
      resources will be provided.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Of course, new systems will also
      have to be developed, so in this world of declining economic resources we
      will have to have armaments cooperation. Our former U.S. Deputy Secretary
      of Defense, John Deutch, has called this an &quot;economic necessity,&quot;
      at least from the U.S. standpoint.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">NATO is doing its part and has
      just established a group for the development of a Medium Extended Air
      Defense System, which will have air defense, cruise-missile defense, and
      ballistic-missile defense capabilities. Right now the program includes
      France, Germany, Italy, and the United States. It underscores the common
      desire of those four nations to pursue cooperative programs that will
      develop and produce affordable tactical weapons systems. In my opinion, it
      is a model program for the post-Cold War scenario.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Since I announced the formation
      of the Extended Air Defense and Theater Missile Defense Ad Hoc Working
      Group last year, this group has completed its preliminary work and
      suggested cooperation in a large number of areas, including 15 different
      technical areas. Such cooperation makes economic sense and helps
      strengthen our transatlantic balance.</FONT></FONT> </P>
    <CENTER></CENTER>
    <CENTER><B><FONT COLOR="#000000"><FONT SIZE="+1">ENSURING NATO
    PARTICIPATION IN THE EUROPEAN SECURITY ARCHITECTURE</FONT></FONT></B></CENTER>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">The final challenge that we see
      for the new NATO is ensuring that NATO continues to participate in the
      evolving security architecture for Europe. In areas like peacekeeping and
      out of area operations, global use of ballistic missiles could have
      serious implications for NATO's support of any U.N. or other peacekeeping
      operation. As ballistic missiles spread, it becomes increasingly likely
      that NATO forces may be forced to operate in areas where ballistic-missile
      threats are present. If we do not have protection against these threats,
      it is less likely that we will become involved.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">The Combined Joint Task Force
      will require Theater Missile Defense (TMD) protection. What that means to
      me as a developer is that we have to talk about integrated and
      interoperable theater missile-defense forces and concepts of operations.
      Fortunately, NATO military and political authorities are addressing these
      questions right now, while material developers under the auspices of the
      Conference of NATO Armament Directors are exploring system alternatives.
      In fact, a NATO military operational requirement for theater-missile
      defense has been drafted and submitted to NATO through the Military
      Committee for consideration by the nations. When the review is complete,
      the proposal will go forward to the North Atlantic Council.</FONT></FONT>
    </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Through the Partnership for
      Peace program, NATO has an opportunity to build closer relationships with
      the East in areas such as material acquisition. Secretary General Claes
      has noted that there is more to Partnership for Peace than military
      exercises and activities. What we see in the program is an opportunity to
      bind Allies and Partners in a close pattern of activity covering a wide
      range of security-related matters.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Cooperative research and
      development, leading potentially to joint acquisition of systems, is
      another way to build and strengthen Partners, both militarily and
      industrially. In areas such as counter-proliferation, technical challenges
      require the highest level of sophistication, and promise a payoff across a
      broad spectrum of military and commercial applications. To this end, the
      U.S. missile defense office, which is my office, has conducted discussions
      that will lead to bilateral cooperative efforts with several Central
      European countries. One that comes to mind is the Czech Republic, with
      which we will be working very actively to develop sensor technologies for
      use by both of our Ministries of Defense. Such efforts can contribute
      toward developing a closer Eastern European relationship with Partners and
      provide an important opportunity to enhance Alliance relations with the
      former Warsaw Pact.</FONT></FONT> </P>
    
    <P><FONT COLOR="#000000"><FONT SIZE="+0">Ballistic-missile defense could
      conceivably build better relations with an important PFP member, namely,
      Russia. The traditional mutual nuclear deterrence relationship with the
      Soviet Union has been based upon maintaining mutual strategic
      vulnerability to the threat of nuclear retaliation. Perpetuating this
      vulnerability can only exacerbate security concerns in a world with
      expanded threats. By moving away from mutually assured destruction toward
      mutually assured safety, as recently mentioned by the U.S. Secretary of
      Defense, we hold the potential for developing a more cooperative and
      stable partnership with Russia.</FONT></FONT> </P>
    
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