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Chapter 30
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The Need for an Allied Convergence Architecture
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
Eng&#176; Jos&#233; Rodrigues Pereira dos Penedos<BR>
Secretary of State for Defense of Portugal
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<FONT COLOR="#000000" FACE="Palatino" SIZE="7">T</FONT> oday&#146;s environment after the Cologne European Council meeting is one
 that is very hopeful of establishing a common foreign and security policy.&nbsp;It
 is also hopeful of better cooperation between NATO and the Western European
 Union in a new Security and Defense Identity.
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The Kosovo crisis showed NATO members the importance of a common approach
 to threats, risks, human rights, the right of military intervention according
 to international law, national defense, and the limits of national egoism.
 But it also showed how much we need to care about air performance and becoming
 more and more target oriented. The conflict also left us with unresolved
 issues, such as national autonomy&#151;since each situation has its own peculiarities,
 questions linger about the decisionmaking process when military intervention
 is required abroad.
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<B></B><B></B><B>MAKING PREVENTION AND COOPERATION PRIORITIES</B>
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The prevention of conflicts must be a priority of each member-state, but
 prevention can be achieved only by gaining greater expertise and capabilities
 within a common foreign and security policy. Since we are dealing with
 defense matters, we must share common defense ideas. We must also improve
 cooperation in the fields of training and deployment of multinational formations.
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The majority of member-states are facing cuts in defense budgets at the
 same time that interoperability criteria are demanding new, expensive technology.
 Therefore, threats and risks to the sovereignty of any member-state must
 be met by all the Allies equally. To answer today&#146;s challenges we can give
 no room to geopolitical egoism. Therefore we must find and build some kind
 of convergence architecture.
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B></B><B></B><B>PORTUGAL&#146;S DEFENSE INDUSTRY IN A GLOBALLY<BR>
COMPETITIVE MARKET</B>
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As global restructuring takes place, we must reserve some space for smaller
 countries and their defense industries. Within NATO, these countries represent
 half of the nineteen member-nations. But how should a country like Portugal,
 with a developing defense industrial base, envision the participation of
 its scientific, technological, and industrial capabilities in a globally
 competitive environment? Currently we are strongly dependent on a tiny
 internal market, and we will need to compete in an open market against
 much larger, sustainable international companies. However, the need to
 develop and preserve an operational military capability able to cope with
 the new threats could lead to equipment modernization and armaments procurement
 that could sustain existing industrial activity. Opening up our industry
 and finding a partner with which to work across borders looks like the
 only way forward. But the need to develop new capabilities also requires
 a new approach to armaments procurement, not just for the smaller countries,
 but for all NATO members. The CJTF experience must be reflected in new
 plans.
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It should be remembered that Portugal is a founding member of NATO that
 has borne its responsibilities not only within the framework of the Alliance
 but also as part of the U.N. peacekeeping missions, respecting each nation&#146;s
 rights within the international framework. Our armed forces are currently
 updating and modernizing equipment, defense technologies, and weapons systems
 to be able to continue in this work in joint operations outside our territory.
 We are also planning to develop and keep a technologically competitive
 niche in areas such as design, development and production, and systems
 engineering in aeronautics, telecommunications, electronics, ship building,
 and manufacturing of small arms and ammunitions. I must point out, however,
 that any investment in the modernization of defense infrastructures must
 meet the objectives of our national defense industries capability.
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<B></B><B>BUILDING MULTINATIONAL CAPABILITIES</B>
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In order to make real progress in building up European military capabilities
 and integrating them further, we will require more financial resources
 devoted to defense as well as new financing schemes for defense budgets
 such as leasing. We also need to develop, according to well-defined objectives,
 European multinational capabilities following the principles of complementarity
 and non-duplication of efforts. In addition we need a clear vision of an
 efficient European defense industry, one that respects the interests of
 smaller countries.
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The European Union is based on fundamental principles and values such as
 solidarity and social cohesion, and is committed to pursuing a common foreign
 security and defense policy in which armaments cooperation and defense
 industry restructuring are important components. Within the Union&#146;s structures,
 everything should be done to facilitate effective cooperation and to enable
 developing and small industrial countries to fully participate in a European
 chain of added value. Transparent relations must also evolve between the
 EU and NATO. To this end, a convergence plan must be established and new
 financing schemes, such as military leasing, must be adopted.
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