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Japan Defense Society
As Delivered by Deputy Secretary of Defense Gordon R. England, Washington, DC, Monday, October 16, 2006

Remarks by the Deputy Secretary of Defense
The Honorable Gordon R. England
Japan Defense Society
16 October 2006

Good morning and welcome to the Pentagon! It is delightful to have you here, and thank you for taking the time to make this visit.

Before I entered Government service, in my career in industry, I had the great pleasure to work extensively with Japanese industry and government. We established strong relationships that continue today. I still value those relationships.

In the 21st century, America and Japan, and all our friends and allies, face a much broader array of challenges, and greater uncertainty, than ever before.

· First, terrorists have declared their intention to destroy our very way of life – here, in Japan, and around the world. This is an international threat.

President George W. Bush said that this is a struggle “that will set the course for this new century, and determine the destiny of millions around the world”. This is the fundamental strategic challenge of our time.

· We also still face potential state-based threats.

Some major countries – like China and Russia – are still in the process of transition. Their future choices will have a profound impact on global markets and security.

What I call “renegade states” have the ability to cause great harm – particularly if they acquire and use WMD.

§ Iran continues to make threatening statements against Israel and the United States, and continues its quest for WMD.

§ You are very close to another threat. North Korea has tested missiles and – apparently – nuclear weapons. Their actions are of the greatest concern to the United States, Japan, and many countries. Of course, the UN met this weekend, and the U.S. and Japanese governments are working closely together to contain this threat.

These challenges require strong international partnership. No single nation can successfully meet them alone.

· The United States – and this is a very strongly held view here - is fortunate to have, in Japan, such a strong, long-standing partner and friend.

· Relationships between nations are built on relationships between people. Nations don’t have relationships – people do. The Japanese and American people have built strong relationships in trade, and culture, and science.

In missile defense, Japan is a valued and important partner. We’re sharing technologies and developing joint policies. Japan’s contributions are making the overall missile defense system better. This is a model for further cooperation. The Missile Defense Agency will be meeting with you for an in-depth discussion of this important program.

Japan has made – and is still making - other important security contributions, along with the U.S.:

· You are providing leadership in the international responses to North Korea’s provocations.

· For Operation Enduring Freedom, Japan is providing a refueling mission and fuel in the North Arabian Sea – which is very helpful to us.
· In Iraq – Japan deployed Ground Self-Defense Forces for two years to aid reconstruction; and you still have a C-130 airlift mission.

But, speaking directly and as a friend, there is a lot more that Japan – as a global leader – can and needs to accomplish. Our current partnership – the relationship we have - is still in many ways a legacy of post-WWII arrangements – no longer applicable to 21st century challenges. We need to update these relationships.

· Japan currently spends less than 1% of its GDP on defense.

· Japan’s defense industry is largely unchanged, as technology and world have changed dramatically since the Wall came down in 1989. In our own industry, we’ve gone through enormous changes in the industrial base. Defense industry needs to benefit from the competitive pressures of the global environment.

The key – for both Japan and the United States – is defense transformation, in government and in the industry that supports government.

· Globalization – the faster flow of information, and technology, and ideas – constantly creates new opportunities for growth and development, and makes new approaches possible. Data flows everywhere around the world instantaneously. It is a different environment than we had in the past.

· Defense transformation is essential to achieve the goals of our bilateral Alliance Transformation and Realignment. The objective here is deeper cooperation among key roles, missions and capabilities.

This is a hopeful time for Japan.

· Prime Minister Abe has stated his determination for Japan to play a key role as a leader on the world stage. I understand that one of his first initiatives will be giving full ministerial status to Defense … a welcome step.

· There is a great friendship between our countries, and we stand ready to support Japan as it expands its security role.

Let me share a few thoughts about how this Department is transforming the way we do business, as part of our defense transformation.

· I brought with me all my experience in industry – including a simple yet powerful approach. We work every day to be more effective, in order to be more efficient.

· A more inclusive decision-making process – normally, in this room, the Vice Chairman of the Joint Chiefs of Staff and I sit right here, and chair a body of the Department’s senior civilian and military leaders, several times a week. We discuss every issue in the Department, across the Services, and we integrate the process for decision-making.

· We are also looking differently at procurement. Joint capability portfolios are focused on capabilities at the portfolio, or system-of-systems level, rather than the individual program level. So for example, surveillance and reconnaissance are now viewed as a single capability.

· Civilian workforce – we are putting in place an entirely new system. Three years ago, Congress passed a law that gave us much greater authority over our civilian employees, in terms of their assignments and pay. This is a pay-for-performance system for all 700,000 civilians in DoD.

· Another area of change is foreign military sales – in the past, when we sold airplanes, we guaranteed offsets – jobs – in the country buying the airplanes. But we have concluded that that was not a beneficial process. Companies gained jobs but not competitiveness. When the offset contracts were over, the jobs went away – and the companies were worse off than before.

· With the Joint Strike Fighter, even if a country is contributing, their companies still have to be competitive, to get contracts to build the parts. There are no automatic benefits – but it’s better for industry in the long-run.

I do thank each of you for your visit, for what you do every day personally to build a stronger Japan, and a stronger partnership between our two nations….