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    <TITLE>BMDO Director Gen. Lester Lyles's Address to 1998 NATO Workshop, Vienna, Austria</TITLE>
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    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="6" FACE="Palatino">The
      Growing Relevance of Missile Defense in the 21st Century</FONT></P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="4" FACE="Palatino">Lieutenant
      General Lester Lyles, Director<BR>
      </FONT></P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="4" FACE="Palatino">United
      States Ballistic Missile Defense Organization</FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The 15th
      NATO Workshop presented us with a wonderful opportunity to discuss the
      many challenges we face in creating policy and military capabilities that
      will protect our forces and our allies. I am delighted that the
      conferencewas held in Vienna, one of the world&#146;s great cities and one
      of Europe&#146;s most beautiful since its settlement by Celtic peoples
      before the dawn of the Christian era. While taking part in the
      Workshop there, I was reminded that this historic city has also been a
      city of hope. When the Congress of Vienna met in 1814&#150;1815,
      Europe had been at war for a quarter of a century. Indeed, Napoleon&#146;s
      final defeat at Waterloo was still nine days away when the great powers of
      Europe completed work on the agreements that would restructure the
      Continent and codify the rules that still govern diplomacy. And
      throughout our own long Cold War, we often found ourselves looking
      hopefully toward Vienna, scene of summits and arms control negotiations
      that helped keep the peace. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>NEW
      THREATS TO OUR SECURITY</B></FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">One can
      argue that the situation we face today is more complex and more compelling
      than that facing European leaders in 1815. The Atlantic-European
      community is much broader and the post-Cold War issues are potentially
      more dangerous and deadly. Old World ethnic animosities and regional
      confrontations loom large in a world that is home to growing numbers of
      weapons of mass destruction and the means to deliver them. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Someone once
      suggested that the times we live in should be marked &#147;Subject to
      Change Without Notice.&#148; As the Director of the U.S. Department
      of Defense&#146;s Ballistic Missile Defense Organization (BMDO) for almost
      two years now, this statement strikes me as particularly fitting. Pakistan&#146;s
      April &#145;98 launch of the Ghauri medium-range ballistic missile and the
      recent nuclear saber-rattling in South Asia remind us that this world is
      full of dangerous surprises. Almost without warning, the specter of
      conflict and increased tension in South Asia and the possible use of
      nuclear weapons, unspeakably horrifying and with global consequences, are
      on everyone&#146;s mind. Clearly, our work here today, as Allies and
      friends striving to cope in uncertain and unstable times, is a significant
      part of the shared security-building enterprise we are engaged in. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">While the
      primary goal of the United States remains one of stopping proliferation,
      the events in South Asia reinforce my view that the United States and its
      European allies must be prepared to deter and defend against the threat or
      use of nuclear, biological, and chemical weapons and the missiles that
      carry them. To be sure, ballistic and cruise missiles will pose a
      very real danger to our troops and our homelands in the decades ahead.
      However, all of the current international trends give me
      considerable confidence that our present political and military thinking,
      our counterproliferation strategy, and the mission of my own organization
      are the best antidote to that danger and increasingly relevant to our
      common security concerns. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>THE
      CONTINUING INTERNATIONAL PROLIFERATION OF BALLISTIC MISSILES</B> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Despite the
      hopes we place on the Missile Technology Control Regime and on our
      on-again/off-again negotiations with North Korea, the Pakistani test of
      the Ghauri medium-range ballistic missile in April of 1998 demonstrates
      unequivocally that ballistic missile proliferation continues. The
      Ghauri&#146;s range of 1,500 km indicates a significant increase in
      capability over the 300-km Scud B. And while the links between the
      Pakistani MRBM program and the North Korean No Dong program have yet to be
      clearly established, the shape and specifications released so far for the
      Ghauri missile indicate that there are far more than coincidental
      similarities. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Likewise the
      Iranian medium-range ballistic missile currently in development and
      approaching its first test launch also appears to be similar in shape and
      specifications to the North Korean No Dong. In fact, a strong case
      may be made for the existence of a North Korea/Pakistan/Iran axis of
      cooperation that is of even greater concern when we add the further
      support of certain Russian entities. Given recent developments and
      indications, it is possible that Pakistan, Iran, and North Korea are
      looking to develop even longer-range ballistic missiles and to combine
      that work with programs for developing weapons of mass destruction.
      </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">This pattern
      of international trade in more advanced, longer-range ballistic missiles
      appears to extend even further, indeed right up to the southern European
      frontier. There is close coordination with and sales to Syria, and
      evidence that Iran has offered assistance to Libya for its Al Fatah
      ballistic missile program, as well as possible sales of its MRBM missiles.
      </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Each of
      these countries I have mentioned also has dedicated significant resources
      to research and/or development of an arsenal of chemical and biological
      weapons. And now, to our utter astonishment, we are witnessing
      blatant, chilling developments in South Asia. India&#146;s five
      nuclear test explosions (and Pakistan&#146;s response, with its own
      nuclear tests) have given us pause over how quickly optimism about our
      security can turn to pessimism. India halted development of its
      2,000-km Agni MRBM in 1995. But following Pakistan&#146;s Ghauri
      flight tests and its recent nuclear tests, can an Indian decision to
      resume flight testing of the Agni be far away? Indeed, it is
      conceivable that India could arm with nuclear warheads the Agni and the
      shorter-range Prithvi ballistic missile that it has already fielded.
      </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">In other
      words, there has been a dramatic turn of events this past year. Most
      notably, there has been the clear proliferation of a new class of
      longer-range ballistic missiles, a reality that appears to be centered on
      closer cooperation between several nations potentially hostile to NATO and
      to its European Partners, as well as to their interests. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">So how do we
      deal with this problem of proliferation? Current U.S. and NATO
      counterproliferation policy is an important guide in our defense planning.
      </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>THE
      U.S. RESPONSE TO CONTINUING PROLIFERATION</B> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The U.S.
      response to the challenges of proliferation comprises three essential
      steps. The first is to prevent (or at least slow down)
      proliferation. Successful prevention relies heavily on the
      participation of and coordination between many U.S. government departments
      and agencies, allied nations, and international organizations. However,
      the U.S., and indeed most other nations, also recognize that determined
      countries will still obtain the capabilities for weapons of mass
      destruction and cruise and ballistic missiles despite our best efforts to
      prevent it. Therefore, the second step is to try to deter nations
      from using or threatening to use these capabilities. Our investments
      in this effort and fielding the necessary defenses can provide a major
      disincentive for nations to use their missiles and Weapons of Mass
      Destruction. In other words, defenses are now joining the continuing
      role of nuclear weapons in deterring war and &#147;adventurism.&#148;
      </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">But since
      deterrence may also fail, the third step in U.S. counterproliferation
      policy recognizes that U.S. forces must be equipped to fight, survive, and
      win in situations in which an adversary might use chemical or biological
      weapons delivered by cruise or ballistic missiles. Therefore, DOD&#146;s
      acquisition strategy strives to field ballistic missile defense systems to
      meet the warfighters&#146; requirements. My agency is responsible
      for managing, directing, and executing the U.S. Ballistic Missile Defense
      Program, a key part of our military strategy and counterproliferation
      policy. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><FONT SIZE="+1">Theater
      Air and Missile Defenses</FONT> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Today, BMDO
      is developing missile defenses to serve two fundamental purposes. The
      first is to protect through Theater Air and Missile Defenses (or TAMD) the
      forces we send abroad as well as the forces of our Allies and friends,
      whether they are sent to perform in regional contingencies or peacetime
      missions. The second objective is to be prepared to provide the U.S.
      with nationwide protection against limited missile threats from rogue
      nations should the situation warrant it. More specifically, my
      agency must be ready to field a limited National Missile Defense (NMD)
      system within three years of a decision to deploy such a system. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Because we
      recognize that we will need TAMD and NMD systems well into the next
      century, we also have the crucial mission of maintaining a strong missile
      defense technology base. Just as today&#146;s programs benefit from
      technologies developed in the SDIO (Strategic Defense Initiative
      Organization) days, we cannot afford <I>not</I> to maintain the
      technological seed corn for tomorrow&#146;s missile defense needs. Our
      efforts in this area are intended to provide us with alternative
      technologies and components for our ongoing developmental programs and
      risk mitigation, as well as to continue building a pathway to the future.
      </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">In order to
      provide a near-leak-proof Theater and Air Missile Defense shield for U.S.
      forces, Allies, and friends in different regions, BMDO has adopted a &#147;Family
      of Systems&#146; concept, a flexible configuration of systems capable of
      joint and combined force operations. We believe that this approach
      is best because one system cannot do it all. Threat systems are so
      varied, and mission demands so complex, that a layered defense is required
      to allow multiple shot opportunities and to meet the demanding
      requirements set before us. Multiple systems working in unison
      greatly enhance the probability of destroying incoming missiles. For
      these reasons, BMDO is pursuing the acquisition and integration of lower-
      and upper-tier land- and sea-based systems. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The
      land-based Patriot PAC-3 is the most mature of our TAMD systems. Currently
      in the engineering and manufacturing development (or EMD) phase, the PAC-3
      is being fielded in three phased upgrades called &#147;configurations.&#148;
      The first two configurations have already been fielded, and the
      third will provide the new hit-to-kill interceptor missile plus additional
      communications, radar, and ground support system improvements. The
      first intercept flight is scheduled for this year. When PAC-3
      development is complete, the system will be deployed with our army air
      defense brigades as well as with Allies such as Germany and the
      Netherlands. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Our
      sea-based, lower-tier TAMD system, the so-called Navy Area program, is
      also in the development phase following the successful intercept in
      December 1996 of a Lance missile target by a modified Standard Missile 2
      Block IVA at White Sands Missile Range in New Mexico. This intercept
      was the first successful intercept of a Theater Ballistic Missile target
      for the SM2, and achieved all flight objectives, including the
      demonstration of infrared acquisition, tracking, handover, and guidance.
      As with the Patriot PAC-3, I anticipate that the Navy Area Defense
      capability will be deployed on Allied ships including some of the new
      trinational frigates in Europe. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The PAC-3
      and the Navy Area system, our two most mature programs, are the highest
      priority efforts in the TAMD program today. But these systems are
      intended to effectively counter today&#146;s threats, including the SCUD
      and its derivatives. We also need next-generation, upper-tier
      systems to deal with longer-range threats like the No Dong and the Ghauri.
      Our land-based, upper-tier Theater High Altitude Area Defense (or
      THAAD) program is currently in what we call its program definition and
      risk reduction phase. However, while we believe that the THAAD
      program has made some significant progress, especially with the
      development of its ground base radar and command/control and launcher, we
      are still experiencing difficulties with the hit-to-kill interceptor.
      We believe we now understand the problems with the interceptor and
      have taken the necessary corrective steps. We also hope the overall
      program will soon be back on track and that we will have success with the
      next flight test. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Like the
      THAAD system, the Navy Theater Wide program, our sea-based, upper-tier
      system, will also provide protection against medium- and long-range TBMs
      targeted against vital political and military assets. Depending on
      geography and the deployment location of the Aegis ship, this system would
      be able to effect ascent, midcourse, and descent phase intercepts. Navy
      Theater Wide is also in the program definition and risk reduction phase of
      development. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>THE
      NEED FOR INTERNATIONAL COOPERATION</B> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Meeting TAMD
      requirements demands a combination of weapons and sensors as well as
      battle management command, control, and communications (BMC3) on land, at
      sea, and in the air and space. For these reasons, our acquisition
      strategy not only emphasizes &#147;jointness,&#148; it also emphasizes
      cooperation with Allies. In other words, we plan to fight together
      in a coalition of Allied forces, and this necessitates close working
      relationships and integration with our army, navy, air force, and marines;
      dialogue with our battlefield commanders and our Allies; and, finally,
      active participation in exercises. This comprehensive approach is
      putting us on the path to being able to deploy interoperable missile
      defenses for the benefit of the coalition warfighter. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">As Under
      Secretary of Defense Gansler pointed out, the new security environment has
      compelled DOD to adopt a new line of thinking, not only about how best to
      exploit the current &#147;revolution in military affairs&#148; and &#147;revolution
      in business affairs&#148; to better meet national security objectives, but
      also how to maintain its competitive edge and improve commercial and
      military integration. This adjustment in our way of doing business
      also points to expanded engagement with our friends and Allies. Therefore
      I&#146;d like to share with you some thoughts on the growing importance of
      international armaments cooperation, especially as it relates to the BMDO
      mission. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">International
      cooperation structured to get the right equipment into the field and to
      support the necessary level of interoperability for modern joint and
      coalition warfare will not only allow us to leverage Allied government
      investments but also enable us to gain the interoperability and Alliance
      cohesion we need for fighting together efficiently as a team. BMDO
      continues to develop strategies for cooperating with our Allies and
      friends in the area of ballistic missile defense. Our current focus
      is on three international objectives. The first and, arguably, the
      most important, objective is interoperability. We intend to enhance
      security and coalition warfighting capabilities by ensuring that TAMD
      systems deployed by our Allies are interoperable with those fielded by
      U.S. forces. Because we will fight as a coalition, interoperability
      must be the watchword. If we do not continue toward
      interoperability, eventually we will have not only incompatible equipment,
      but incompatible doctrine as well. Indeed, it is essential that we
      have BMC3 and interoperability among U.S. forces and those of our
      coalition partners. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The second
      reason for international cooperation is burden-sharing where there are
      common requirements. It is our goal to reduce the costs and share
      the risks and benefits of the cooperative design, development,
      co-production, and procurement of TMD systems. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Our third
      and final goal is technology cooperation. We see great value in
      leveraging the experience base, industry, and unique capabilities and
      systems afforded by our Allies and friends to further enhance the
      effectiveness of U.S. TBMD systems. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><FONT SIZE="+1">BMDO-Allied
      Cooperation</FONT> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Currently,
      there are two budding opportunities for BMDO to involve our European
      Allies directly in the development of missile defenses. The first is
      the lower-tier system called the Medium Extended Air Defense System (or
      MEADS), which is being pursued by the United States, Germany, and Italy.
      This system meets an urgent requirement for a system that will
      protect deployed maneuver forces from all current and emerging air and
      missile threats. Intended as a replacement for the older Improved
      HAWK air defense system (widely deployed with Allied forces), MEADS has
      been a natural program for cooperative development. During this
      work, the countries involved have increased interoperability, shared
      costs, reinforced transatlantic relationships, and enabled the more
      efficient sharing of the missile defense mission with other nations in
      future regional contingencies. MEADS will add Italy to the list of
      TMD-capable nations and will offer a procurement opportunity to other NATO
      nations. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">MEADS is a
      particularly appropriate example of the new, March 1997 International
      Armaments cooperation policy that directs the services and others within
      DOD to cooperate internationally to the maximum extent possible within
      current U.S. policy guidelines. It is fair to say that this will be
      a major test of transatlantic armaments cooperation. The Department&#146;s
      leadership is working hard with our Allied partners first to build a
      reliable cost estimate for development, production, and fielding of the
      system, and second to find the necessary funds to proceed with the next
      stage of design and development. </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The second
      opportunity for long-term cooperation among NATO Allies in the area of
      ballistic missile defense stems from the recent decision by the NATO
      Conference of National Armaments Directors, or CNAD, to proceed with a
      program plan to identify the steps and resources necessary to establish,
      manage, and coordinate within NATO programs for a layered Theater
      Ballistic Missile defense. NATO will be able to take these steps
      building on an existing Military Operational Requirement within a policy
      framework developed by the so-called Defense Group on Proliferation and
      given approval by the North Atlantic Council about two years ago. The
      program plan will move NATO to consider the addition of upper-layer
      interceptors to an architecture already likely to include: (1) Battle
      Management and Control through modifications to NATO ACCS; (2) Shared
      Early Warning from U.S. overhead assets and added ground and sea-based
      sensors; and (3) lower-layer interceptors, such as Patriot and MEADS,
      which will probably be acquired by individual nations and assigned to NATO
      command. </FONT> </P>
    
    <P ALIGN="CENTER"><FONT COLOR="000000" SIZE="3" FACE="Palatino"><B>RESOLVING
      TO MEET CONTINUING SECURITY NEEDS</B> </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">The United
      States and NATO are making steady progress in a very complex array of BMD
      programs. These programs will be an integral part of our future
      defense posture&#151;recognition of the fact that we will continue to live
      in times in which circumstances facing defense planners on both sides of
      the Atlantic are &#147;Subject to Change Without Notice.&#148; </FONT></P>
    
    <P ALIGN="LEFT"><FONT COLOR="000000" SIZE="3" FACE="Palatino">Our work
      with our Allies remains a vital element of DOD&#146;s overarching
      defense-planning initiatives and an integral part of BMDO&#146;s
      acquisition mission. We know that the threats posed by NBC weapons
      and the proliferation of missile technologies and systems will not go
      away. So neither must our resolve to meet this ominous challenge to
      our security and our cherished way of life.</FONT></P>
    
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