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	<title>Financial Markets &#187; Gates</title>
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		<title>Defense Secretary Robert M. Gates : Budget Press Briefing April 2009</title>
		<link>http://www.appapillai.com/blog/2009/04/06/defense-secretary-robet-m-gates-budget-press-briefing-april-2009/</link>
		<comments>http://www.appapillai.com/blog/2009/04/06/defense-secretary-robet-m-gates-budget-press-briefing-april-2009/#comments</comments>
		<pubDate>Mon, 06 Apr 2009 21:18:47 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Geopolitics]]></category>
		<category><![CDATA[defense]]></category>
		<category><![CDATA[Gates]]></category>

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		<description><![CDATA[U.S. Department of Defense Office of the Assistant Secretary of Defense (Public Affairs) Speech On the Web:  http://www.defenselink.mil/speeches/speech.aspx?speechid=1341 Media contact: +1 (703) 697-5131/697-5132   Public contact: http://www.defenselink.mil/faq/comment.html or +1 (703) 428-0711 +1 Budget Press Briefing (Arlington, VA) As Prepared for Delivery by Secretary of Defense Robert M. Gates, Arlington, VA, Monday, April 06, 2009       [...]]]></description>
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<td width="108" align="left"><img src="http://www.defenselink.mil/graphics/DODc-small.gif" alt="Seal of the Department of Defense" width="100" height="100" /></td>
<td width="492" align="left"><span>U.S. Department of Defense</span><br />
<span>Office of the Assistant Secretary of Defense (Public Affairs)</span><br />
<span>Speech</span></td>
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<td width="50%" align="left" valign="top"><span>On the Web: </span><br />
<a title="Web link for this Page" href="http://www.defenselink.mil/speeches/speech.aspx?speechid=1341">http://www.defenselink.mil/speeches/speech.aspx?speechid=1341</a><br />
<span>Media contact: +1 (703) 697-5131/697-5132</span></td>
<td width="2%"> </td>
<td width="48%" align="left" valign="top"><span>Public contact:<br />
<a title="Click here to contact Public Relations" href="http://www.defenselink.mil/faq/comment.aspx">http://www.defenselink.mil/faq/comment.html</a><br />
or +1 (703) 428-0711 +1</span></td>
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<h3>Budget Press Briefing (Arlington, VA)</h3>
<div><em>As Prepared for Delivery by Secretary of Defense Robert M. Gates, Arlington, VA, Monday, April 06, 2009</em></div>
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<td colspan="2"><span style="font-size: x-small;">      Today, I am announcing the key decisions I will recommend to the president with respect to the fiscal year 2010 defense budget. The president agreed to this unorthodox approach – announcing the department’s request before the White House submits a budget to the Congress – because of the scope and significance of the changes. In addition, the president and I believe that the American people deserve to learn of these recommendations fully and in context, as the proposed changes are interconnected and cannot be properly communicated or understood in isolation from one another. Collectively, they represent a budget crafted to reshape the priorities of America’s defense establishment. If approved, these recommendations will profoundly reform how this department does business.<br />
      In many ways, my recommendations represent the cumulative outcome of a lifetime spent in the national security arena and, above all, questions asked, experience gained, and lessons learned from over two years of leading this department – and, in particular, from our experience in Iraq and Afghanistan. I reached the final decisions after many hours of consultations with the military and civilian leadership of the department. I have also consulted closely with the president. But, I received no direction or guidance from outside this department on individual program decisions. The chairman and vice chairman of the Joint Chiefs of Staff are in complete accord with these recommendations. The chairman is traveling abroad but he has provided a statement that we will distribute at the end of the briefing. <br />
      My decisions have been almost exclusively influenced by factors other than simply finding a way to balance the books or fit under the “top line” – as is normally the case with most budget exercises. Instead, these recommendations are the product of a holistic assessment of capabilities, requirements, risks and needs for the purpose of shifting this department in a different strategic direction. Let me be clear: I would have made virtually all of the decisions and recommendations announced today regardless of the department’s top line budget number. <br />
      The decisions have three principal objectives: <br />
      •	First, to reaffirm our commitment to take care of the all-volunteer force, which, in my view represents America’s greatest strategic asset;<br />
      •	Second, we must rebalance this department’s programs in order to institutionalize and enhance our capabilities to fight the wars we are in today and the scenarios we are most likely to face in the years ahead, while at the same time providing a hedge against other risks and contingencies.<br />
      •	Third, in order to do this, we must reform how and what we buy, meaning a fundamental overhaul of our approach to procurement, acquisition, and contracting. <br />
      With regard to the troops and their families, I will recommend that we:<br />
      1.	Fully protect and properly fund the growth in military end strength in the base budget.  This means completing the growth in the Army and Marines while halting reductions in the Air Force and the Navy. Accomplishing this will require a nearly $11 billion increase above the FY09 budget level.<br />
      2.	Continue the steady growth in medical research and development by requesting $400 million more than last year.<br />
      3.	Recognize the critical and permanent nature of wounded, ill and injured, traumatic brain injury, and psychological health programs. This means institutionalizing and properly funding these efforts in the base budget and increasing overall spending by $300 million. The department will spend over $47 billion on healthcare in FY10.<br />
      4.	Increase funding by $200 million for improvements in child care, spousal support, lodging, and education.  Many of these programs have been funded in the past by supplementals. We must move away from ad hoc funding of long-term commitments. Thus, we have added money to each of these areas and all will be permanently and properly carried in the base defense budget.  Together they represent an increase in base budget funding of $13 billion from last year.<br />
      As I told the Congress in January, our struggles to put the defense bureaucracies on a war footing these past few years have revealed underlying flaws in the priorities, cultural preferences, and reward structures of America’s defense establishment – a set of institutions largely arranged to prepare for conflicts against other modern armies, navies, and air forces. Programs to directly support, protect, and care for the man or woman at the front have been developed ad hoc and funded outside the base budget. Put simply, until recently there has not been an institutional home in the Defense Department for today’s warfighter. Our contemporary wartime needs must receive steady long-term funding and a bureaucratic constituency similar to conventional modernization programs. I intend to use the FY10 budget to begin this process.<br />
      1.	First, we will increase intelligence, surveillance and reconnaissance (ISR) support for the warfighter in the base budget by some $2 billion. This will include:<br />
      •	Fielding and sustaining 50 Predator-class unmanned aerial vehicle orbits by FY11 and maximizing their production. This capability, which has been in such high demand in both Iraq and Afghanistan, will now be permanently funded in the base budget. It will represent a 62 percent increase in capability over the current level and 127 percent from over a year ago. <br />
      •	Increasing manned ISR capabilities such as the turbo-prop aircraft deployed so successfully as part of “Task Force Odin” in Iraq. <br />
      •	Initiating research and development on a number of ISR enhancements and experimental platforms optimized for today’s battlefield.<br />
      2.	We will also spend $500 million more in the base budget than last year to increase our capacity to field and sustain more helicopters – a capability that is in urgent demand in Afghanistan. Today, the primary limitation on helicopter capacity is not airframes but shortages of maintenance crews and pilots. So our focus will be on recruiting and training more Army helicopter crews.<br />
      3.	To boost global partnership capacity efforts, we will increase funding by $500 million. These initiatives include training and equipping foreign militaries to undertake counter terrorism and stability operations.<br />
      4.	To grow our special operations capabilities, we will increase personnel by more than 2,800 or five percent and will buy more special forces-optimized lift, mobility, and refueling aircraft. <br />
      We will increase the buy of Littoral Combat Ships (LCS) – a key capability for presence, stability, and counterinsurgency operations in coastal regions – from two to three ships in FY 2010. Our goal is to eventually acquire 55 of these ships.<br />
      5.	To improve our inter-theater lift capacity, we will increase the charter of Joint High Speed Vessel (JHSV) ships from two to four until our own production program begins deliveries in 2011.<br />
      6.	We will stop the growth of Army Brigade Combat Teams (BCT) at 45 versus 48 while maintaining the planned increase in end strength of 547,000. This will ensure that we have better-manned units ready to deploy, and help put an end to the routine use of stop loss. This step will also lower the risk of hollowing the force.<br />
      Even as we begin to shift resources and institutional weight towards supporting the current wars and other potential irregular campaigns, the United States must still contend with the security challenges posed by the military forces of other countries – from those actively hostile to those at strategic crossroads. Last year’s National Defense Strategy concluded that although U.S. predominance in conventional warfare is not unchallenged, it is sustainable for the medium term given current trends. This year’s budget deliberations focused on what programs are necessary to deter aggression, project power when necessary, and protect our interests and allies around the globe. To this end, I will recommend new or additional investments and shifts in several key areas:<br />
      1.	To sustain U.S. air superiority, I am committed to building a fifth generation tactical fighter capability that can be produced in quantity at sustainable cost. Therefore, I will recommend increasing the buy of the F-35 Joint Strike Fighter from the 14 aircraft bought in FY09 to 30 in FY10, with corresponding funding increases from $6.8 billion to $11.2 billion. We would plan to buy 513 F-35s over the five-year defense plan, and, ultimately, plan to buy 2,443. For naval aviation, we will buy 31 FA-18s in FY10. <br />
      2.	We will retire 250 of the oldest Air Force tactical fighter aircraft in FY10. <br />
      3.	We will end production of the F-22 fighter at 187 – representing 183 planes plus four recommended for inclusion in the FY 2009 supplemental. <br />
      4.	To better protect our forces and those of our allies in theater from ballistic missile attack, we will add $700 million to field more of our most capable theater missile defense systems, specifically the terminal High Altitude Area Defense (THAAD) System and Standard Missile 3 (SM-3) programs. <br />
      5.	We will also add $200 million to fund conversion of six additional Aegis ships to provide ballistic missile defense capabilities. <br />
      6.	To improve cyberspace capabilities, we will increase the number of cyber experts this department can train from 80 students per year to 250 per year by FY11. <br />
      7.	To replace the Air Force’s aging tanker fleet, we will maintain the KC-X aerial re-fueling tanker schedule and funding, with the intent to solicit bids this summer. <br />
      8.	With regard to our nuclear and strategic forces: <br />
      •	In FY10, we will begin the replacement program for the Ohio class ballistic missile submarine program. <br />
      •	We will not pursue a development program for a follow-on Air Force bomber until we have a better understanding of the need, the requirement, and the technology. <br />
      •	We will examine all of our strategic requirements during the Quadrennial Defense Review, the Nuclear Posture Review, and in light of Post-START arms control negotiations.<br />
      9.	The healthy margin of dominance at sea provided by America’s existing battle fleet makes it possible and prudent to slow production of several major surface combatants and other maritime programs.<br />
      •	We will shift the Navy Aircraft Carrier program to a five-year build cycle placing it on a more fiscally sustainable path. This will result in 10 carriers after 2040.<br />
      •	We will delay the Navy CG-X next generation cruiser program to revisit both the requirements and acquisition strategy.<br />
      •	We will delay amphibious ship and sea-basing programs such as the 11th Landing Platform Dock (LPD) ship and the Mobile Landing Platform (MLP) SHIP to FY11 in order to assess costs and analyze the amount of these capabilities the nation needs.<br />
      10.	With regard to air lift, we will complete production of the C-17 airlifter program this fiscal year. Our analysis concludes that we have enough C-17s with the 205 already in the force and currently in production.<br />
      In today’s environment, maintaining our technological and conventional edge requires a dramatic change in the way we acquire military equipment. I believe this needed reform requires three fundamental steps. <br />
      First, this department must consistently demonstrate the commitment and leadership to stop programs that significantly exceed their budget or which spend limited tax dollars to buy more capability than the nation needs. Our conventional modernization goals should be tied to the actual and prospective capabilities of known future adversaries – not by what might be technologically feasible for a potential adversary given unlimited time and resources. I believe the decisions I am proposing accomplish this step. <br />
      Second, we must ensure that requirements are reasonable and technology is adequately mature to allow the department to successfully execute the programs. Again, my decisions act on this principle by terminating a number of programs where the requirements were truly in the “exquisite” category and the technologies required were not reasonably available to affordably meet the programs’ cost or schedule goals. <br />
      Third, realistically estimate program costs, provide budget stability for the programs we initiate, adequately staff the government acquisition team, and provide disciplined and constant oversight. <br />
      We must constantly guard against so-called “requirements creep,” validate the maturity of technology at milestones, fund programs to independent cost estimates, and demand stricter contract terms and conditions. I am confident that if we stick to these steps, we will significantly improve the performance of our defense acquisition programs. But it takes more than mere pronouncements or fancy studies or reports. It takes acting on these principles by making tough decisions and sticking to them going forward. <br />
      I welcome the legislative initiative of Senators Levin and McCain to help address some of these issues and look forward to working with the Congress in this regard.<br />
      This budget will support these goals by increasing the size of defense acquisition workforce, converting 11,000 contractors and hiring an additional 9,000 government acquisition professionals by 2015 – beginning with 4,100 in FY10.<br />
      Fully reforming defense acquisition also requires recognizing the challenges of today’s battlefield and constantly changing adversary. This requires an acquisition system that can perform with greater urgency and agility. We need greater funding flexibility and the ability to streamline our requirements and acquisition execution procedures.<br />
      The perennial procurement and contracting cycle – going back many decades – of adding layer upon layer of cost and complexity onto fewer and fewer platforms that take longer and longer to build must come to an end. There is broad agreement on the need for acquisition and contracting reform in the Department of Defense. There have been enough studies.   Enough hand-wringing. Enough rhetoric. Now is the time for action.<br />
      First, I recommend that we terminate the VH-71 presidential helicopter:<br />
      •	This program was originally designed to provide 23 helicopters to support the president at a cost of $6.5 billion. Today, the program is estimated to cost over $13 billion, has fallen six years behind schedule, and runs the risk of not delivering the requested capability.<br />
      •	Some have suggested that we should adjust the program by buying only the lower capability “increment one” option. I believe this is neither advisable nor affordable. Increment  One helicopters do not meet requirements and are estimated to have only a five- to 10-year useful life. This compares to the current VH-3 presidential helicopters that are 30 to 40 years old. <br />
      •	We will promptly develop options for an FY11 follow-on program.<br />
      Second, we will terminate the Air Force Combat Search and Rescue X (CSAR-X) helicopter program. This program has a troubled acquisition history and raises the fundamental question of whether this important mission can only be accomplished by yet another single-service solution with single-purpose aircraft. We will take a fresh look at the requirement behind this program and develop a more sustainable approach.<br />
      Third, we will terminate the $26 billion Transformational Satellite (TSAT) program, and instead will purchase two more Advanced Extremely High Frequency (AEHF) satellites as alternatives.<br />
      Fourth, in the area of missile defense:<br />
      •	We will restructure the program to focus on the rogue state and theater missile threat.<br />
      •	We will not increase the number of current ground-based interceptors in Alaska as had been planned. But we will continue to robustly fund continued research and development to improve the capability we already have to defend against long-range rogue missile threats – a threat North Korea’s missile launch this past weekend reminds us is real.<br />
      •	We will cancel the second airborne laser (ABL) prototype aircraft. We will keep the existing aircraft and shift the program to an R&amp;D effort. The ABL program has significant affordability and technology problems and the program’s proposed operational role is highly questionable. <br />
      •	We will terminate the Multiple Kill Vehicle (MKV) program because of its significant technical challenges and the need to take a fresh look at the requirement.<br />
      •	Overall, the Missile Defense Agency program will be reduced by $1.4 billion.<br />
      Fifth, in this request, we will include funds to complete the buy of two navy destroyers in FY10. These plans depend on being able to work out contracts to allow the Navy to efficiently build all three DDG-1000 class ships at Bath Iron Works in Maine and to smoothly restart the DDG-51 Aegis Destroyer program at Northrop Grumman’s Ingalls shipyard in Mississippi. Even if these arrangements work out, the DDG-1000 program would end with the third ship and the DDG-51 would continue to be built in both yards. <br />
      If our efforts with industry are unsuccessful, the department will likely build only a single prototype DDG-1000 at Bath and then review our options for restarting production of the DDG-51. If the department is left to pursue this alternative, it would unfortunately reduce our overall procurement of ships and cut workload in both shipyards. <br />
      Sixth, and finally, we will significantly restructure the Army’s Future Combat Systems (FCS) program. We will retain and accelerate the initial increment of the program to spin out technology enhancements to all combat brigades. However, I have concluded that there are significant unanswered questions concerning the FCS vehicle design strategy. I am also concerned that, despite some adjustments, the FCS vehicles – where lower weight, higher fuel efficiency, and greater informational awareness are expected to compensate for less armor – do not adequately reflect the lessons of counterinsurgency and close quarters combat in Iraq and Afghanistan. The current vehicle program, developed nine years ago, does not include a role for our recent $25 billion investment in the MRAP vehicles being used to good effect in today’s conflicts. <br />
      Further, I am troubled by the terms of the current contract, particularly its very unattractive fee structure that gives the government little leverage to promote cost efficiency. Because the vehicle part of the FCS program is currently estimated to cost over $87 billion, I believe we must have more confidence in the program strategy, requirements, and maturity of the technologies before proceeding further. <br />
      Accordingly, I will recommend that we cancel the vehicle component of the current FCS program, re-evaluate the requirements, technology, and approach – and then re-launch the Army’s vehicle modernization program, including a competitive bidding process. An Army vehicle modernization program designed to meet the needs of the full spectrum of conflict is essential. But because of its size and importance, we must get the acquisition right, even at the cost of delay.<br />
      A final recommendation that will have a significant impact on how defense organizations are staffed and operated. Under this budget request, we will reduce the number of support service contractors from our current 39 percent of the workforce to the pre-2001 level of 26 percent and replace them with full-time government employees. Our goal is to hire as many as 13,000 new civil servants in FY10 to replace contractors and up to 30,000 new civil servants in place of contractors over the next five years. <br />
      So these are the principal recommendations I will make to the president. There are a number of others that I have not mentioned, including classified programs. This is a reform budget, reflecting lessons learned in Iraq and Afghanistan yet also addressing the range of other potential threats around the world, now and in the future. I know that in the coming weeks we will hear a great deal about threats, and risk and danger – to our country and to our men and women in uniform – associated with different budget choices. Some will say I am too focused on the wars we are in and not enough on future threats. The allocation of dollars in this budget definitely belies that claim. But, it is important to remember that every defense dollar spent to over-insure against a remote or diminishing risk – or, in effect, to “run up the score” in a capability where the United States is already dominant – is a dollar not available to take care of our people, reset the force, win the wars we are in, and improve capabilities in areas where we are underinvested and potentially vulnerable. That is a risk I will not take.<br />
      As I told the Congress in January, this budget presents an opportunity – one of those rare chances to match virtue to necessity; to critically and ruthlessly separate appetites from real requirements – those things that are desirable in a perfect world from those things that are truly needed in light of the threats America faces and the missions we are likely to undertake in the years ahead. An opportunity to truly reform the way we do business.<br />
      I will close by noting that it is one thing to speak generally about the need for budget discipline and acquisition and contract reform. It is quite another to make tough choices about specific systems and defense priorities based solely on the national interest and then stick to those decisions over time. To do this, the president and I look forward to working with the Congress, industry, and many others to accomplish what is in the best interest of our nation as a whole. <br />
      Thank you.</span></td>
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		<title>US Defense Secretary Robert M. Gates  . . a worthwhile read</title>
		<link>http://www.appapillai.com/blog/2008/09/28/us-defense-secretary-robert-m-gates-a-worthwhile-read/</link>
		<comments>http://www.appapillai.com/blog/2008/09/28/us-defense-secretary-robert-m-gates-a-worthwhile-read/#comments</comments>
		<pubDate>Sun, 28 Sep 2008 23:19:04 +0000</pubDate>
		<dc:creator>mano</dc:creator>
				<category><![CDATA[Geopolitics]]></category>
		<category><![CDATA[Gates]]></category>

		<guid isPermaLink="false">http://www.appapillai.com/blog/?p=207</guid>
		<description><![CDATA[A good global perspective from US Secretary of Defense Robert M. Gates : U.S. Department of Defense Office of the Assistant Secretary of Defense (Public Affairs) Speech On the Web:  http://www.defenselink.mil/speeches/speech.aspx?speechid=1275 Media contact: +1 (703) 697-5131/697-5132   Public contact: http://www.defenselink.mil/faq/comment.html or +1 (703) 428-0711 +1 Oxford Analytica (United Kingdom) As Delivered by Secretary of Defense [...]]]></description>
			<content:encoded><![CDATA[<p>A good global perspective from US Secretary of Defense Robert M. Gates :</p>
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<p><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: arial; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: Arial; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"></p>
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<td style="font: 8pt Arial;" width="108" align="left"><img src="http://www.defenselink.mil/graphics/DODc-small.gif" border="0" alt="Seal of the Department of Defense" width="100" height="100" /></td>
<td style="font: 8pt Arial;" width="492" align="left"><span style="font-weight: bold; font-size: 11px; font-family: Arial, Helvetica, sans-serif;">U.S. Department of Defense</span><br />
<span style="font-size: 11px; font-family: Arial, Helvetica, sans-serif;">Office of the Assistant Secretary of Defense (Public Affairs)</span><br />
<span style="color: #606783; font-family: Arial, Helvetica, sans-serif;">Speech</span></td>
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<td style="font: 8pt Arial;" width="50%" align="left" valign="top"><span style="font-size: 11px; font-family: Arial, Helvetica, sans-serif;">On the Web:<span class="Apple-converted-space"> </span></span><br />
<a style="font: 10px Tahoma, Arial, Helvetica, sans-serif; color: #1b1e47;" title="Web link for this Page" href="http://www.defenselink.mil/speeches/speech.aspx?speechid=1275">http://www.defenselink.mil/speeches/speech.aspx?speechid=1275</a><br />
<span style="font-size: 11px; font-family: Arial, Helvetica, sans-serif;">Media contact: +1 (703) 697-5131/697-5132</span></td>
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<td style="font: 8pt Arial;" width="48%" align="left" valign="top"><span style="font-size: 11px; font-family: Arial, Helvetica, sans-serif;">Public contact:<br />
<a style="font: 10px Tahoma, Arial, Helvetica, sans-serif; color: #1b1e47;" title="Click here to contact Public Relations" href="http://www.defenselink.mil/faq/comment.aspx">http://www.defenselink.mil/faq/comment.html</a><br />
or +1 (703) 428-0711 +1</span></td>
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<div style="font-weight: bold; font-size: 12px; color: #000000; font-family: Arial, Helvetica, sans-serif;">Oxford Analytica (United Kingdom)</div>
<div style="font-size: 12px; color: #000000; font-family: Arial, Helvetica, sans-serif;"><em>As Delivered by Secretary of Defense Robert M. Gates, United Kingdom, Friday, September 19, 2008</em></div>
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<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Thank you, David, for that kind introduction.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">It’s a pleasure to be in the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United Kingdom</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and a privilege to be here in such an august place. I’ve never had dinner in such a splendid setting. And I must tell you, having spent some years in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Texas</span><span style="font-size: 12pt;">, I am very fond of foods that are not particularly good for you. And I will quote Winston Churchill many times tonight, but one of his statements won me over a long time ago. He said, during the Second World War, “Almost all the food faddists I have ever known, nut-eaters and the like, have died young after a long period of senile decay. The British soldier is far more likely to be right than scientists. All he cares about is beef . . . The way to lose the war is to try to force the British public into a diet of milk, oatmeal, potatoes, etcetera, washed down on gala occasions with a little lime juice.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Frankly, it is also a pleasure to be outside of the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>during our presidential campaign. We Americans, as a people, get a little strange every four years. President Truman, at<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Oxford</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>to receive an honorary degree, remarked on this, noting that “in election years we behave somewhat as primitive peoples do at the time of the full moon.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">In addition to conducting the business of state, these visits are also a chance to celebrate and take stock of the special relationship between our two countries.</span> </div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">I’ve just come from<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Iraq</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Afghanistan</span><span style="font-size: 12pt;">. In my visits to the front lines I have had the opportunity to see troops from the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United Kingdom</span><span style="font-size: 12pt;">, and, as always, have been deeply impressed by their valor and the professionalism. Since the attacks of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">September 11, 2001</span><span style="font-size: 12pt;">, British fighting men and women – to paraphrase a poet from the Great War – have more than done their bit, and had their share.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Any relationship, however special, will have its tense and awkward moments.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">I recall back in 1989, when I was Deputy National Security Advisor in the first Bush administration. The President had made a historic decision to sharply cut our conventional forces in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;">. And it fell to Larry Eagleburger, the then-Deputy Secretary of State, and myself, to sell this proposal to our NATO allies.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Our first stop on a secret trip was here in the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United Kingdom</span><span style="font-size: 12pt;">. We knew that if we could just make it past Margaret Thatcher, the rest would be a walk in the park.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">After being ushered in to her parlor, we handed the Prime Minister President Bush’s letter explaining the proposed reductions. She questioned us knowledgably and at length.  At long last, but not surprisingly, she pledged her support. As she escorted us out, she smilingly told Larry and myself that the two of us were always welcome at Ten Downing Street. And then her face turned glacial, and she said, “but never again on this subject.” In a later conversation with then-President Bush, she would refer to the two of us as Tweedledee and Tweedledum. I always considered Eagleburger to be Tweedledum.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">It is impossible for an American to speak at a place like this without invoking the lion-hearted Englishman who was born on these grounds.  Churchill’s stirring wartime oratory will never be forgotten in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">America</span><span style="font-size: 12pt;">. He was also a marvelous observer of human nature and spirit – particularly the customs of those he called “our kinsmen from across the ocean.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">He groused famously about the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;">: the “toilet paper too thin, the newspaper’s too fat!” As you would imagine, he didn’t care for Prohibition – it was, he said, an “amazing exhibition” of “arrogance” and “impotence.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">And as for American politics, he said: “I could never run for President of the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;">. All that handshaking of people I didn’t give a damn about would kill me.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">In 1946, Churchill visited President Harry Truman. And Truman had made a point of changing the American presidential seal, so the bald eagle would face the olive branch, rather than the arrows. Upon being told this, Churchill remarked, “Why not put the eagle’s neck on a swivel so that it could turn to the right or the left as the occasion demanded?”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Here of course Churchill was on to a larger point about being prepared both to wage war and to seek peace – a point that is a proper introduction to my topic tonight:  the need to balance restraint in international affairs with the resolve and the will to back up our commitments and defend our interests when called upon.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">It’s a timely discussion in light of recent events in the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Caucasus</span><span style="font-size: 12pt;">, and the debate over how the West should respond. It&#8217;s also more than appropriate in this palace, monument to a great protector of the liberties of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>– the Duke of Marlborough – and the birthplace of his famous descendant</span>. <span style="font-size: 12pt;"> It is amazing to think that Sir Winston, after researching his mammoth Life of Marlborough inside these walls for so long, published the final volume in September 1938, the very same month that Neville Chamberlain went to<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Munich</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and effectively ceded the</span><span style="font-size: 12pt;">Sudetenland</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>to Hitler. As a result of his prescient warnings about Nazi Germany, and his rejection of appeasement, Churchill is often cited – particularly on my side of the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Atlantic</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>– whenever a crisis strikes or an adversary threatens.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">And still today,<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Munich</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>is invoked as a case study of the need to confront tyrants, adversaries, and threats early lest inaction bring war and even genocide.  </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">But if Munich 1938 – 70 years ago this month – represents one lesson that’s important, there is another equally important lesson of history, one that still scars this island and the nations across the Channel. And that is the lesson of August 1914, where a combination of miscalculation, hubris, bellicosity, fear of looking weak, and a runaway nationalism led to a cataclysmic and unnecessary conflict.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">In the crudest sense, failure to recognize one lesson – August 1914 – leads to the</span><span style="font-size: 12pt;">Somme</span><span style="font-size: 12pt;">. Failing to properly heed the other – September 1938 – leads to<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Dunkirk</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Dachau</span><span style="font-size: 12pt;">.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">For much of the past century, Western psychology, rhetoric, and policy-making on matters of war and peace has been framed by, and often lurched between, these two poles – between excessive pressures to take military action and excessive restraint, between a too eager embrace of the use of military force and an extreme aversion to it.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">For the Western democracies, over-learning the lessons of World War I – that conflict must be avoided at all costs – helped lead to<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Munich</span><span style="font-size: 12pt;">.  For the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;">, over-learning the lessons of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Munich</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>– often cited by Presidents Kennedy and Johnson – helped lead to</span><span style="font-size: 12pt;">Vietnam</span><span style="font-size: 12pt;">.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">I confess that as I prepare once again to retire from a life mostly spent in intelligence and defense that began 42 years ago, I have become quite modest with respect to grandiose pronouncements and forecasts about the future or our ability to discern it, especially when applying the so-called “lessons of history.” The noted American historian, Gordon Wood, has written, “History does not teach lots of little lessons. Insofar as it teaches any lessons, it teaches only one big one:  that nothing ever works out quite the way its managers intended or expected.” Indeed. </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Even one of the most prescient statesmen of the 20<sup>th</sup><span class="Apple-converted-space"> </span>century, the same Churchill who was later so inciteful, had moments when the crystal ball went cloudy. In 1908, he said: “I think it is greatly to be deprecated that persons should try and spread the belief in this country that war between<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Great Britain</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Germany</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>is inevitable. It is all nonsense.” Or Churchill again in 1924: “A war with<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Japan</span><span style="font-size: 12pt;">! . . . I do not believe there is the slightest chance of it in our lifetime.” </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">One of Franklin D. Roosevelt’s closest advisors, Supreme Court Justice Robert Jackson, said this about World War II: “Our intelligence had proved to be wrong on nearly everything. American intelligence services let us down at every point . . . We had enormously underestimated the strength and striking power of Hitler. We had overestimated the staying power of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">France</span><span style="font-size: 12pt;">. We had overestimated the strength of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">England</span><span style="font-size: 12pt;">. We had overestimated the attitude and stamina of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Belgium</span><span style="font-size: 12pt;">. We had terribly underestimated<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Japan</span><span style="font-size: 12pt;">, at least her immediate striking power. We had terribly underestimated the power of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">And there are many other subsequent – and more recent – examples of failures to anticipate threats and challenges or to evaluate accurately their magnitude or immediacy.  In short, I believe that the statesman would be well advised to listen, in contrast to the Roman emperors whose man in the chariot whispered “sic transit Gloria mundi” – all glory is fleeting – rather to listen to those who simply whisper, “Sir, we’re not sure what the hell is going on here.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Today, we face a set of global security challenges that may be unprecedented in complexity and scope – presenting dilemmas that do not lend themselves to a simple choice between popular conceptions of Churchill and Chamberlain.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The period following the collapse of the Soviet Union and the end of the Cold War unleashed old ethnic, religious, and nationalist hatreds and rivalries that had largely been buried since the Great War: The ethnic and religious slaughter in the Balkans; Russia’s seeming return to Czarist habits and aspirations; the fault lines between Sunni and Shia in Iraq and across the Middle East.  The cast of characters sounds disturbingly familiar even at a century’s remove.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">So history – in all of its contingent and tragic aspects – plainly did not die with the end of the Cold War as one American wrote, but has emerged again with a vengeance.  It has returned to a world that is far more interdependent than the worlds of 1914 or 1938. And the monsters and pathologies of a long ago world have been joined by new forces of instability and conflict – terrorist networks rooted in violent extremism; rising and resurgent nation-states with new wealth and aspirations; proliferation of dangerous weapons and materials; authoritarian states enriched with oil profits and discontented with their place in the international order.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Still, given even the jaded disposition of an old spy, there are ample grounds for optimism.  First and foremost is the extraordinary growth of political and economic freedom around the world since I last served in government 15 years ago.   </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">But to secure these remarkable gains, and protect our most vital interests and aspirations in this global environment, the next American administration, working with our allies and partners, will need to employ a pragmatic blend of resolve and restraint to deal with the threats that confront us.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">This applies to the choices we face with regard to<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">. At this point I should note that for the first time, both the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>Secretary of State and Secretary of Defense have doctorates in Russian studies. A fat lot of good that’s done us.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Three post-Cold War<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">U.S.</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>presidents have endeavored to build closer ties with<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">based on a belief that whatever our differences, we shared basic economic and security interests.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Starting last fall, Secretary Rice and I began what we hoped would be a long-term strategic dialogue with our Russian counterparts. As part of that effort we:</span></div>
<div style="margin: 0in 0in 0pt 0.75in; text-indent: -0.25in; line-height: normal;"><span style="font-size: 12pt;">·<span style="font-family: 'Times New Roman';">       <span class="Apple-converted-space"> </span></span></span><span style="font-size: 12pt;">Supported Russian accession to the World Trade Organization;</span></div>
<div style="margin: 0in 0in 0pt 0.75in; text-indent: -0.25in; line-height: normal;"><span style="font-size: 12pt;">·<span style="font-family: 'Times New Roman';">       <span class="Apple-converted-space"> </span></span></span><span style="font-size: 12pt;">Promoted cooperation with<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>on missile defense; and</span></div>
<div style="margin: 0in 0in 0pt 0.75in; text-indent: -0.25in; line-height: normal;"><span style="font-size: 12pt;">·<span style="font-family: 'Times New Roman';">       <span class="Apple-converted-space"> </span></span></span><span style="font-size: 12pt;">Engaged on a range of areas, as outlined at the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Sochi</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>summit last April by President Bush.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">’s recent behavior raises questions about how successful we can be in trying to pursue a constructive relationship.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Now it is true that even authoritarian regimes have legitimate security interests. But Russian claims that 10 ballistic missile interceptors in Central Europe undermine their strategic nuclear arsenal, or that NATO democracies on their borders represent a cordon sanitaire, strain credulity and smack of old Soviet agitprop. I stand by what I said in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Munich</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>at the Wehrkunde Conference last year.  I took the podium after President Putin gave a speech that sounded like something out of a 1950s Communist Party Congress.  And my response was:  “one Cold War is enough.”</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">In reality,<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">’s policies are borne of a grievance-based desire to dominate its “near abroad,” not an ideology-based effort to dominate the globe.  And<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">’s current actions – however egregious – do not represent the existential and global threat that the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Soviet Union</span><span style="font-size: 12pt;">represented. Instead, as Secretary of State Condoleezza Rice said yesterday,<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>is trying “[to draw] benefits from international norms, markets, and institutions, while challenging their very foundation” – but, ultimately, she said, a “19th century<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and a 21st century<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">cannot operate in the world side by side.”  </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">As someone who used to prepare estimates of Soviet military strength for several American presidents, I can attest that despite all of the recent improvements and ongoing modernization programs,<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">’s conventional military remains a shadow of its Soviet predecessor in size and capability. The images of the Russian armor and artillery overwhelming  </span><span style="font-size: 12pt;">Georgia</span><span style="font-size: 12pt;">’s tiny military – an active force of some 30,000 troops – does  not reverse that basic reality.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">For more than four decades, American presidents of both political parties strove mightily to contain the aggression of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">’s Soviet predecessor without military confrontation – an effort that consumed most of my professional life. With the added perspective of having signed nearly 1,400 condolence letters since taking this post, I see no reason to change that approach now.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The Russian leadership might seek to exorcise past humiliations and aspire to recapture past glory along with past territory. But mauling and menacing small democracies does not a great power make. </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The nations of not just<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;">, but also<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Central Asia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Far East</span><span style="font-size: 12pt;">, now look at</span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>through a different set of lenses. As Foreign Secretary Miliband said last month, as a result of what happened in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Georgia</span><span style="font-size: 12pt;">, “</span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>is more isolated, less trusted and less respected.” </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">I believe the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Georgia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>incursion will, over time, be recognized as a Pyrrhic victory at best and a costly strategic overreach. Europe and the United States will help Georgia rebuild, and in the weeks and months ahead, will be coming to other decisions about our relationship with Russia – decisions that could, among other consequences, affect Russia’s bid to join the World Trade Organization and the Organization for Economic Cooperation and Development.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">Though I’ve warned tonight against basing rhetoric or policy decisions on strained historical analogies, I can’t help but be influenced here by some of my past experiences in government.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The Soviet invasion of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Afghanistan</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>in 1979, the imposition of martial law in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Poland</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>in 1981, and<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Moscow</span><span style="font-size: 12pt;">’s deployment of SS-20 missiles to eastern Europe helped unite reluctant allies, whose resolute countermeasures helped set the stage for deep reductions in nuclear arms and the ultimate bankruptcy and demise of the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Soviet Union</span><span style="font-size: 12pt;">. Aggressive behavior produced unwelcome results – for the aggressor.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">At the end of the day,<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>faces a decision: to be a fully integrated and responsible partner in the international community which we would welcome – or, as Secretary Rice suggested, to be an isolated and antagonistic nation viewed by much of the world as little more than a gas station for<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;">.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">To manage diverse challenges in the years ahead, we –<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">America</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>and<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>together – will need strength and solidarity as we have demonstrated in the past.  Our policies and responses must show a mixture of resolve and restraint – the proverbial arrows and olive branches of Truman’s eagle. To be firm but not fall into a pattern of rhetoric or actions that create self-fulfilling prophecies; to heed the lessons of both 1914 and 1938 but not be trapped by either.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">We need to be careful about the commitments we make, but we must be willing to keep the commitments once made. In the case of NATO, Article Five must mean what it says. As the allied troops fighting in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Afghanistan</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>can attest, NATO is not a talk shop nor a Renaissance Weekend on steroids.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">In the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">United States</span><span style="font-size: 12pt;">, I’ve pushed for more emphasis on, and resources for, non-military tools of national power. That is not the problem on this side of the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Atlantic</span><span style="font-size: 12pt;">. For example, only five out of 26 allies meet the NATO standard of spending two percent of GDP on national defense.  Despite the best intentions of allied governments and militaries, and despite having more than two million men and women in uniform among NATO’s European members, the</span><span style="font-size: 12pt;">Alliance</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>nonetheless struggles to scrape together a few thousand more troops and a few dozen helicopters for our commanders in<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Afghanistan</span><span style="font-size: 12pt;">.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">One of the triumphs of the last century was the pacification of<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Europe</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>after ages of ruinous and bloody wars. But I believe we have reached an inflection point, where much of the continent has gone too far in the other direction. Demilitarization has gone from a blessing into a potential impediment to achieving real and lasting peace, as real or perceived weakness is always a temptation to miscalculation and aggression. </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">With all of the quotes of Churchill this evening, I would at this point recall the words of George Washington, who in his First Annual Address to Congress, warned, “To be prepared for war is one of the most effectual means of preserving peace.”  We seek peaceful means to resolve disputes and head off gathering threats, but as<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Frederick</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>the Great said, “Diplomacy without arms is music without instruments.” </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The goal must be to come together and take the steadfast and prudent steps now – political, economic, and, when appropriate, military – to shape the international environment and choices of other powers. We must try to prevent situations where we have only two bleak choices:  confrontation or capitulation, 1914 or 1938.</span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">This certainly is the case with<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Russia</span><span style="font-size: 12pt;">, but it applies to other security challenges such as</span><span style="font-size: 12pt;">Iran</span><span style="font-size: 12pt;">. One of those bleak choices would be presented by an extremist regime possessing nuclear weapons that could be used for blackmail or set off a regional arms race. The other scenario is a costly and potentially catastrophic military intervention – the last thing the<span class="Apple-converted-space"> </span></span><span style="font-size: 12pt;">Middle East</span><span style="font-size: 12pt;"><span class="Apple-converted-space"> </span>needs. That is why it is so important for strong, sustained economic and political pressure to continue, to head off that nightmarish narrowing of choices. </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">The world is a rough and nasty place. Absent a change in human nature, it will remain so – despite our fondest hopes. As one of the great, if unsung, heroes of World War Two, Sir William Stephenson, wrote in his book,<span class="Apple-converted-space"> </span><span style="text-decoration: underline;">A Man Called Intrepid</span>, “Perhaps a day will dawn when tyrants can no longer threaten the liberty of any people, when the functions of all nations, however varied their ideologies, will be to enhance life, not to control it. If such a condition is possible, it is in a future too far distant to foresee. Until that safer, better day, the democracies will avoid disaster, and possibly total destruction, only by maintaining their defenses.” </span></div>
<div style="margin: 0in 0in 0pt; text-indent: 0.5in; line-height: normal;"><span style="font-size: 12pt;">George Washington, a realist, would have agreed. And, I am confident, so would Winston Churchill.</span> </div>
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<p><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: Arial; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: arial; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: Arial; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: Arial; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><font class="Apple-style-span" style="word-spacing: 0px; text-transform: none; text-indent: 0px; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;" face="arial" color="#000000"><font class="Apple-style-span" style="word-spacing: 0px; text-transform: none; text-indent: 0px; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;" face="Arial" color="#000000"> </p>
<p></font></font></span></span><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: Arial; white-space: normal; letter-spacing: normal; border-collapse: separate; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><font class="Apple-style-span" style="word-spacing: 0px; text-transform: none; text-indent: 0px; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;" face="arial" color="#000000"> </p>
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<p><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: arial; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: arial; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><span class="Apple-style-span" style="word-spacing: 0px; text-transform: none; color: #000000; text-indent: 0px; font-family: arial; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;"><font class="Apple-style-span" style="word-spacing: 0px; text-transform: none; text-indent: 0px; letter-spacing: normal; border-collapse: collapse; orphans: 2; widows: 2; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0;" face="arial" color="#000000"> </p>
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<p><span style="font-size: 12pt; line-height: 200%;">Thank you.</span></p></blockquote>
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