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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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<td width="66" height="68"><p><img src="../2004book/logo-kevin-web.jpg" width="60" height="66"></p> </td>
<td width="618"><div align="center"><span class="style5">17th International Workshop on Global Security - Berlin, 2-5 June 2000<br>
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<p align="center" class="style17"><strong>Table of Contents:</strong></p>
<p class="style18"><a href="/2004book/PeterStruckKeynote.htm">Workshop Chairman Roger Weissinger-Baylon </a><span class="style217"><strong><a href="/2004book/Hertrich_Rainer.htm">Berlin Mayor Eberhard Diepgen </a></strong></span><span class="style217"><strong><a href="/2004book/Joulwan_George.htm">German Armed Forces Lt Gen Hartmut Moede </a></strong></span></p>
<p align="center" class="style18"><strong>Part 1</strong></p>
<p align="left" class="style18"><span class="style217"><strong><a href="/2004book/Gen_Kujat.htm">German Defense Minister Rudolf Scharping</a></strong></span><span class="style217"><a href="/2004book/Amb_Burns.htm">Lithuanian President Valdas Adamkus </a><a href="/2004book/Linkevicius.htm">NATO Dep Secretary Genereral Sergio Balanzino </a><a href="/2004book/Di_Paola.htm">NATO Military Committee Chair Adm Guido Venturoni </a></span></p>
<p align="center" class="style18"><strong>Part 2</strong></p>
<p align="left" class="style18"><span class="style217"><a href="/2004book/Back.htm">Danish Defense Minister Hans Haekkerup </a><a href="/2004book/LtGen_R_Wolsztynski.htm">Italian Defense Minister Sergio Mattarella</a></span><span class="style217"><a href="/2004book/perruche.htm">Greek Defense Minister Apostolos Tsohatzopoulos</a></span><span class="style217"><a href="/2004book/Wynne.htm">Ukranian Foreign Minister Borys Tarasyuk </a><a href="/2004book/Klein.htm">German State Secretary Walther Stutzle </a><a href="/2004book/wells.htm">French Vice Chief of Defense Staff Lt Gen Richard Wolsztynski </a><span class="style222"><a href="/2004book/Lentz.htm">Fmr French Ambassador to Tunisia Adm Jacques Lanxade</a><a href="/2004book/Quilty.htm">Russian Ambassador to NATO Sergei Ivanovich Kislyak </a></span></span></p>
<p align="center" class="style18"><strong>Part 3</strong></p>
<p align="left" class="style18"><span class="style217"><span class="style222"><a href="/2004book/Van_Dam.htm">SACEUR Gen Joseph Ralston </a> <a href="/2004book/Kihl.htm">DSACEUR Gen Rupert Smith </a></span></span><span class="style219"><a href="/2004book/volkman.htm">CINCSOUTH Adm James Ellis</a><a href="/2004book/stafford.htm">CINCNORTH Gen Joachim Spiering </a></span></p>
<p align="center" class="style18"><strong>Part 4</strong></p>
<p align="left" class="style18"><span class="style219"><a href="/2004book/Weise.htm">US Dep Secretary of Defense Rudy de Leon </a><a href="/2004book/Cunningham.htm">US Principal Dep Under Secretary of Defense David Oliver </a><a href="/2004book/Zappa.htm">BMDO Dep for Strat Relations David Martin</a><a href="/2004book/ranquet.htm">US Ambassador to NATO Alexander Vershbow </a></span></p>
<p align="center" class="style18"><strong>Part 5</strong></p>
<p class="style18"><span class="style219"><a href="/2004book/Pascu.htm">BAE Systems Chief Executive John Weston </a> <a href="/2004book/gonul.htm">EADS Co-CEO Rainer Hertrich </a><a href="/2004book/svinarov.htm">Northrop Grumman President Ralph Crosby </a></span><span class="style209"><span class="style197"><a href="/2004book/bezhuashvili.htm">EADS Exec Vice President Thomas Enders </a></span><span #invalid_attr_id="10px 0px 0px 10px"><span class="style197"><a href="/2004book/Khandogiy.htm">Boeing Vice President William Lawler </a></span></span></span><span class="style219"><a href="/2004book/Skvorzov.htm">Alenia President Giorgio Zappa</a><a href="/2004book/Cede.htm">Lockheed Martin Sr Vice President Robert Trice </a></span></p>
<p align="center" class="style18"><strong>Part 6</strong></p>
<p class="style18"><span class="style219"><a href="/2004book/Meckel.htm">Slovakian Foreign Minister Eduard Kukan </a><a href="/2004book/Piontkovskiy.htm">Albanian Defense Minister Luan Hajdaraga </a></span><span class="style219"><a href="/2004book/Habibie.htm">FYROM Foreign Minister Aleksandar Dimitrov </a></span><span class="style217"><a href="/2004book/Sedivy.htm">Fmr NATO Military Committee Chair Gen Klaus Naumann</a></span><br>
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<h1 align="center" class="style196 style26 style27 style28">Transatlantic Defense Industrial Cooperation: Can It Occur?</h1>
<p align="center" class="style23">Ralph D. Crosby, Jr.<br>
President, Integrated Systems Sector,<br>
Northrop Grumman</p>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17"><span class="style24"><span class="style8"><FONT COLOR="#000000">O</FONT>ne cannot overstate the enormity of change that has affected and will continue to affect NATO and the transatlantic alliance. As contributors to the international security system, we in the industry appreciate the opportunity to participate and contribute to the intellectual framework that must address this complex, uncharted change and with the rapidly evolving security environment. Thank you for acknowledging our role by creating this panel. </span></span></FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> There are a number of key questions we must ask as we look at the issue of transatlantic defense-industrial cooperation. These include: </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> 1. Should transatlantic cooperation occur? </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> 2. Why isn’t it occurring—or, at least, why is it being significantly hindered? </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> 3. What must be done to enable transatlantic cooperation to occur? </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> 4. What is industry’s role, particularly since the industry has become greatly consolidated? </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> Let us look at these questions one at a time. </FONT></P>
<P ALIGN="CENTER" class="style8 style26 style27"> <B>SHOULD EFFECTIVE TRANSATLANTIC DEFENSE-INDUSTRIAL COOPERATION OCCUR AND, IF SO, WHY?</B></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> The easy answer to that question is yes. Such cooperation is critical in the current security environment for a number of reasons: </FONT></P>
<UL class="style24 style8">
<LI><FONT COLOR="#1f1a17"> First, it is affordable. Given our scarce resources, it is the only path to a broader market and larger production runs. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Second, it requires fewer investment dollars and can prevent redundancy. It will also reduce the likelihood of disputes over investment equity. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Third, we must close the capability gap. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Fourth, it will enable technology transfer, particularly co-development. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Fifth, it will aid interoperability, the problems of which were clearly displayed in the Kosovo operations. Information-based warfare and systems demand transparency, and we simply cannot function without procedure and equipment commonality. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Sixth, transatlantic cooperation can enable ESDI. It can also contribute greatly to surveillance, C3, and lift. But cooperation is more than a technical term—the challenges are almost staggering. We need to do whatever we can to promote transatlantic solidarity and to build confidence. </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Seventh, such cooperation can also enable true transatlantic defense consolidation. Just look at Europe—cooperation came first, consolidation later. </FONT></LI>
</UL>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> In sum, transatlantic defense-industrial cooperation seems like an excellent idea—the mandate is there. </FONT></P>
<P ALIGN="CENTER" class="style8 style27 style26"> <B>WHY ISN’T TRANSATLANTIC INDUSTRIAL COOPERATION OCCURRING? WHAT ARE THE IMPEDIMENTS?</B></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> There are many impediments to transatlantic cooperation, and most have already been discussed at this Workshop. There is little new to add, and that in itself is important. The truth is that the forces that are pulling against the Alliance are also working against this sort of cooperation. Let me review them quickly: </FONT></P>
<UL class="style24 style8">
<LI><FONT COLOR="#1f1a17"> The loss of a common threat—the nature of NATO is changing </FONT></LI>
<LI><FONT COLOR="#1f1a17"> The unwillingness of many to sacrifice national goals for the sake of greater efficiency and military capability </FONT></LI>
<LI><FONT COLOR="#1f1a17"> An unwillingness to create dependency </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Technology transfer policies </FONT></LI>
<LI><FONT COLOR="#1f1a17"> Unequal burden-sharing </FONT></LI>
<LI><FONT COLOR="#1f1a17"> A fear of American, U.K., and European “fortresses” as markets and production capabilities coalesce </FONT></LI>
<LI><FONT COLOR="#1f1a17"> The inability to break down the barriers to cross-Atlantic industrial consolidation </FONT></LI>
<LI><FONT COLOR="#1f1a17"> ESDI—not regarding policy, but practicality </FONT></LI>
</UL>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> To sum up, there are many influences hindering cooperation, and from an industry perspective the challenges are great. </FONT></P>
<P ALIGN="CENTER" class="style8 style26 style27"> <B>WHAT MUST BE DONE TO ENABLE COOPERATION TO OCCUR?</B></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> The simple answer is that we must do something—we cannot afford to do nothing. In a rather interesting way, transatlantic armaments cooperation is a barometer of the health of the transatlantic partnership. An alliance demands that sacrifices be made for the common good. The current impasse seems to say that sacrifices are not being made because of impediments and parochial interests. Unless this changes, a fundamental dislocation in the transatlantic relationship may be uncovered. </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> In my view, the rhetoric surrounding this issue needs to be replaced with action. We need examples of success—not the continuing search for the perfect policy framework. Success will breed change. We need to stop carping publicly about technology transfer guidelines and negotiate them privately. </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> On the western side of the ocean, we need to recognize that in an era of information revolution, we do not need to protect technology that will be two generations old by the time it is deployed. On the eastern side of the Atlantic, we must not focus on the 10% or 15% of the technology glass that is empty, but see the 85% that is full and work to make it 95% or 100%. We also need to acknowledge that technical strength creates an advantage for the Alliance rather than complain or create problems in collaboration. In short, we need a major example of success. I offer NATO AGS as a very potent, potential example. Rapidly executed, it will meet priority Defense Capabilities Initiative goals, transfer critical technology, and serve as a paradigm for future cooperation. </FONT></P>
<P ALIGN="CENTER" class="style8 style27 style26"> <B>INDUSTRY’S ROLE</B></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> Part of this set of challenges resides at the feet of government policy makers. A fair share of it belongs to us in industry because we are not politically inept technologists who know only how to take military requirements and turn them into perfectly performing hardware. Here is where industry consolidation can pay off. And here is where we can encourage change. We need to influence policy—which is the reason that so many of us from industry are here. We can do that on both sides of the Atlantic. Indeed, we are in a world where John Weston or Rainer Hertrich are as likely to be in Washington in Jacques Gansler’s office as I or my boss Kent Kresa are likely to be. </FONT></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> To sum up, industry and government must take action now on both sides of the Atlantic to move cooperation back on track. </FONT></P>
<P ALIGN="CENTER" class="style8 style26 style27"> <B>CONCLUDING REMARKS</B></P>
<P ALIGN="LEFT" class="style24 style8"><FONT COLOR="#1f1a17"> In the words of the great sage Pogo, when it comes to problems of transatlantic defense-industrial cooperation, we have found the enemy and it is us. But I believe that the priority assigned to the issue by the Chairman of the Military Committee, Admiral Venturoni, and by our Deputy Secretary of Defense, Rudy de Leon, will provide the opportunity for success that the transatlantic relationship dearly needs. Without industry’s help, cooperation will continue to flounder because of scarce investment dollars and technology transfer restrictions and concerns. But with our committed assistance, transatlantic defense-industrial cooperation can occur, merging parallel paths and providing critical military capability. It is up to our communities.<br>
</FONT><br>
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