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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Davis, Mark, Files Subseries: Subject File, 1989-1991 OA/ID Number: 13870 Folder ID Number: 13870-009 Folder Title: Foreign Policy-Europe, ca. 1989-90 [2] Stack: Row: Section: Shelf: Position: G 19 2 6 3 INTERNATIONAL message to the Czechs and East Germans: ecker's removal. A senior West German cial. "If that begins to shift, you can as- Moscow wanted the refugee problem re- diplomat said the East German leader sume the fix is in." solved before Gorbachev arrived in East could be gone from office "in a matter of It was doubtful, however, whether a suc- Berlin-and, Shevardnadze stressed, the weeks" through the combined pressure of cessor would be any improvement. Mos- Soviets wanted it resolved "with or without Moscow, Bonn and the East German pub- cow would clearly prefer a committed the GDR's approval." Knowing the Czechs lic. That is probably premature. Next reformer such as Hans Modrow, the had no choice but to abide by Moscow's spring, however, the regime will hold a hugely popular Dresden party chief who wishes, the Honecker government gave the critical Communist Party congress. "Up openly advocates the overhaul of East emigration its sullen blessing. until now, every public and private Germany's political and economic institu- Some Western analysts speculated that signal has been that there won't be any tions. It was more likely, though, Gorbachev might lobby privately for Hon- changes in authority," said one U.S. offi- that any successor would be drawn from How Kissinger Sees It As East-bloc unity disinte- ropeans, but everybody has grates, the future of the two to recognize that we have a Germanys gains new impor- special mission in the East. tance. Former secretary of Where have they proved their state Henry Kissinger met special vocation in Eastern with NEWSWEEK editors last Europe other than in the mili- week to discuss "the German tary field? To speak of a question.' Excerpts: German special historical re- lationship: in Poland is absurd. W e are watching a political West German industrial- process in Europe in ists want to use Eastern Eu- which the Soviets are losing rope for low-cost manufactur- political control in Eastern ing of German technology. Europe, while NATO's mili- They're putting a lot of money tary position progressively into some of these countries. weakens in Western Europe. I What happens when the Sovi- consider what's going on now ets wake up and find that they to be the lull before some have lost Eastern Europe eco- DPA-PHOTOREPORTERS storm. The problem in East- nomically to the Germans, ern Europe is a disintegration and that East Germany is A disintegrating empire: Calling for reform in East Germany of the concepts of the satellite blowing up. Is it likely they empire. The communist par- will acquiesce to losing their ties, to the extent that they Eastern European empire to Events in the East will pro- saw Pact? Should we try to get become national parties and the Germans? can't conceive duce a situation where the them out? Or should we en- participate in the electoral that. The internal disintegra- United States has to take a courage them to stay? process, must adopt an atti- tion could have reached a position. The only question is It must be in the Soviet in- tude independent of Moscow point where they will accept whether we do it ad hoc, react- terest not to be the permanent because it's the only way they it, but I wouldn't want to base ing to each crisis as it devel- policeman of Eastern Europe, can legitimize themselves. In American policy on that prop- ops. Or whether we say that thereby jeopardizing a relax- Poland and Hungary the com- osition. What if the Soviets de- we're in a new period, howev- ation with the West. We have munist parties may believe cide to demonstrate their er we got there. That new to find a way to give the Sovi- that by calling themselves so- power in Central Europe, per- period requires the follow- ets assurances of security cial democrats they will save haps in Berlin? ing concepts: the bipolar ap- within their 1941 borders, national communism. But We have to come up with a proach will no longer work. and convince them that it is this can't work in East Ger- political concept for the Therefore, we have to see how in their interest to get out many, because there you can- future of Europe, or we will to manage trends in a manner of physical control of East- not be a national communist; be endlessly whipsawed be- that does not leave us at the ern Europe-which, however, as a nationalist you have to be tween accelerating unilateral end with a Europe less stable can be turned into a zone to for unification. disarmament in NATO and than the one we've known be- make military attack against The basic dilemma of the the political disintegration of fore. You already see in the them impossible. We need a West Germans is that they're Central Europe. The art of Balkans that all the old quar- concept for Germany, for the emotionally cut loose from foreign policy is to under- rels are coming up again. You evolution of Eastern Europe some of their Western moor- stand trends and to manage can visualize the German- and for defense in a new politi- ings. It is a standard phrase of them. I would have preferred Slav problems will be there cal environment. We've got- West German politics now a more orthodox evolution. again. You'll be back to tradi- ten ourselves obsessed in the that Germany has a special I would have preferred to tional European politics with- West. We were SO militarized vocation in the East. They maintain the present mili- out a concept and without the in our thinking that we're keep saying: we're good allies, tary structures and a gradual forces to handle them. What now militarized in our diplo- we're reliable members of easing of tensions within do we do if one of these coun- macy-on both sides. And we NATO, we are dedicated Eu- them. But a trend exists. tries decides to leave the War- have to get away from that. NEWSWEEK: OCTOBER 16, 1989 45 INTERNATIONAL the ranks of East Germany's Stalinists, understand why people are unsatisfied." ment official, "who knows where Gorba- men such as 52-year-old Egon Krenz, who With the closing of the Czech border, chev's visit could lead? Will he urge them emerged as heir apparent while Honecker East Germany exposed itself as a country to liberalize? Will he urge Honecker to was reported close to death following that can no longer compete for its citizens' leave office? Will the population respond gallbladder surgery over the summer. allegiance. Instead, said Dorothee Wilms, so overwhelmingly that it risks another Currently the head of the security police, West German minister for intra-German Tiananmen Square?" After admitting its Krenz is favored by party hard-liners who relations, "The GDR [is] more than ever political illegitimacy, East Germany can are seeking to hold back the tide of reform. a state built on walls." East Germans' either reform, repress or explode. "These are old men, immobile, petrified, increasingly panicky claustrophobia is HARRY ANDERSON with MICHAEL MEYER unable to cope with changing times," threatening to get out of hand. "In those and KAREN BRESLAU in East Berlin, MARGARET GARRARD WARNER in Washington said one official in Bonn. "They do not circumstances," said a U.S. State Depart- and bureau reports Behind the Masks of Eastern Europe 20 years socialism was de- prived of the moral side. All was apathy and depression, a In Eastern Europe last hopelessness prevailed. But week, NEWSWEEK Executive over the last year we can see Editor Stephen Smith and remarkable change. First, a Bonn bureau chief Michael new generation has grown up Meyer spoke with leading poli- that did not go through the ticians and activists about the trauma of 1968. Second, de- pace of change in their coun- velopments in Hungary and tries. Excerpts: Poland are stimulating our society. Third, the current Mieczyslaw Rakowski, Polish policy of our leadership is Communist Party chief: The polit- growing sterile. The leader- ical situation is not stable. A ship is tired and growing old. new balance is emerging. The It's becoming petrified. Communist Party is seeking A dictatorship in crisis typi- an identity, as is Solidar- cally makes contradictory ity. As for reforms, there are moves. I can imagine a situa- no barriers, theoretically. In tion that one day my play will practice, you have to ask how BISSON-SYGMA SHEPARD SHERBEL-SABA 'The challenge is to change people's mind-set': Rakowski, Pozsgay open in Prague, and the next much people are willing to see day I'll be in prison. This may a decline in their living stand- seem implausible, but at the ards. In my opinion, Polish so- moment of crisis, when power ciety is not prepared to make Europe. There is no political Dictatorial socialism will dis- is shaken, anything can hap- sacrifices of this kind. You or even geographical unity. appear. We must create a con- pen. For 20 years the commu- have this horrible contradic- What you call the East bloc is stitutional state ruled by nists exploited the future. tion: you need radical moves an artificial linkage, a hybrid law. The goal should be a par- Now come the results of this but you have the resistance of imposed after Yalta. The cri- liamentary government free- very dangerous policy. With- the people. sis of Europe lies in its di- ly elected from among com- in eight to 10 years, [we] will The real challenge is vision. Protracted problems peting parties. If defeated, the be like Poland-$40 billion in to change people's mind-set. here will lead to protracted party will transfer power as in debt and no basic foodstuffs. Poles would like to work in problems in Western Europe any democracy. Hungary is We keep telling the regime socialism but live in capital- as well. We have an unprece- not an oligarchy: we should be that it is not necessary to wait ism. We like the demands on dented opportunity for creat- able to change our leaders at until the bitter end before us to be low. Most Poles are ing a united Europe. It's not a any time. starting a social dialogue. A attached to the peaceful life. matter of money. We want ac- lot of suffering could be The greatest barrier to re- cess to Western technology, to Milos Jakes, Czechoslovak Com- prevented. form lies in people's psycholo- economic innovation and for- munist Party leader: Restructur- But do not forget, in a totali- gy, what I call the "awareness eign investment. We want en- ing] certainly does not mean tarian system we can observe barrier." Changing this is not trepreneurs who can teach us edging away from the ideals of an interesting phenomenon. a matter of a year or five management skills as well. socialism We keep a close People in power will speak out years; it will take a genera- We have seen no sign that eye on those developments [in only when the time is ripe. tion. As it is, the system has Moscow wants to pull us back. Hungary and Poland], which Our leaders all wear a uni- demoralized people. I may be To the contrary, Gorbachev's in many respects give us con- form mask and declare iden- wrong, but after the first radi- perestroika is a wind at our cern, and draw the necessary tical phrases. Perhaps at a cal steps, and the subsequent back. Hungary has reached a lessons-forexample, that the moment of history, the masks social reaction, the new gov- point where there is no go- party as the leading force in will fall, and it is only at that ernment will retreat. ing back. society must not lose control moment that we know who is The Hungary of the future over the situation. who. It is possible then that Imre Pozsgay, Hungarian Politbu- will be similar to West Euro- we may be surprised to find ro member and a leading reformer: pean social democracies. The Vaclav Havel, Czechoslovak play- that the masks concealed an A crisis prevails in Eastern party state will cease to exist. wright and political activist: For intelligent face. 46 NEWSWEEK OCTOBER 16, 1989 THE WALL STREET JOURNAL TUESDAY, APRIL 14, 1987 NATO Edges Toward the Moment of Truth By IRVING KRISTOL The trouble with cleverness in foreign Board of Contributors policy is that one is likely to end up being too clever by half. This is the situation in which America's European allies now find Politicians who are loath to advocate the withdrawal of themselves. For many years now, they have been pi- U.S. troops from Europe for reasons of policy are beginning ously and disingenuously stressing the im- portance of arms-control negotiations as to look with favor on the idea for budgetary reasons. one alternative to an expensive and politi- cally unpopular buildup of the North Atlan- Soviet aggression-even if it is nonnuclear ous reasons-is that any such nuclear ex- tic Treaty Organization's conventional mil- aggression that is involved. This commit- change would primarily involve the two su- ment was made at a time when the nations perpowers, with the missiles flying over itary forces. They have even felt free to of Western Europe were economically and West European heads, as it were. But with criticize the U.S. for dragging its feet on this issue. Now, however, they are dis- militarily weak. It was also made at a or without American troops in Europe, this time when the U.S. had a clear nuclear su- is an unlikely scenario, since neither the mayed at the public revelation that the al- ternative was always a false one. The periority over the Soviet Union. This is no Soviet Union nor the U.S. is really inter- price of a successful arms-control agree- longer the case, to put it mildly, and many ested in committing national suicide in a ment is larger military budgets, not analysts have been saying-some candidly, conflict over Western Europe, dearly. as some sotto voce-that NATO should begin they may cherish that portion of the smaller ones. to recognize that the American "nuclear globe. Shifting the Focus umbrella" is more fictitious than real. This does not mean that the U.S. will As the prospect of an agreement be- On the surface, their arguments seem simply "decouple" itself from Western Eu- tween the U.S. and the U.S.S.R. on inter- to have had little effect. The State Depart- rope. It cannot and should not. Since the mediate-range nuclear missiles grows ment and the Pentagon are resolutely dedi- costs of a West European conventional de- brighter, Western European nations have cated to the status quo. U.S. politicians are fense will be high-nuclear weapons are been nervously shifting the focus to the So- fearful of disrupting an alliance that has attractive precisely because they are SO viet's short-range missiles. They have also "kept the peace" in Europe for more than relatively cheap-the U.S. should be (and indicated clearly that if an agreement on four decades. And public-opinion polls surely will be) ready to help, with sophisti- this matter is negotiated-which is by no show widespread and habitual public ac- cated weaponry, with its Navy and Air means out of the question-then the focus ceptance of NATO. True, these polls never Force, even with some troops where neces- will shift to a negotiated reduction of So- ask, "Are you in favor of the U.S. engaging sary and feasible. But Europe will have to viet conventional superiority. in mutual nuclear annihilation with the So- become more self-reliant if "containment" But they know beforehand that this is a viet Union in order to preserve the integ- of the Soviets is to be successft. nonstarter. The negotiations on conven- Political Will rity of Western Europe?" This question is tional forces have been going on for 15 never raised in public discourse, lest the This possibility tends to be dismissed years now in Geneva, and there has not answer be disconcerting. much too casually. Yes, the Soviets now even been agreement on an agenda. The Beneath this surface of seemingly solid have 27,000 tanks vs. NATO's 14,000. But Soviets are not simply going to negotiate commitment, however, a subtle and impor- the nations of Western Europe know how to away their superiority vis-a-vis NATO on tant change is taking place. Politicians build tanks-very good ones, actually-and this level. They see themselves as a world who are loath publicly to advocate the have the resources to do so. They also power, not a middling power, which is withdrawal of American troops from Eu- have the human resources to man them. what America's NATO allies are resigned rope-the supposed guarantor of that nu- Especially with American assistance, they to being. The Soviets' conception of an clear umbrella-for reasons of foreign pol- should be able to close much of this gap, if ideal military "balance" is one in which icy are beginning to look with favor on not all of it. And what is true for tanks is their conventional forces are equal to those the idea for budgetary reasons. More and no less true for airplanes. The key question of Western Europe plus those of the U.S. If more one hears invidious comments about is: Do they have the political will to move this ideal is to be frustrated, it will not be the level of European military expendi- in this direction? by negotiation but by a very substantial in- tures as compared with that of the U.S. The State Department and the Pentagon crease in NATO's conventional military And more and more one hears rough calcu- are convinced that they do not-that the power-substantial enough so that the So- lations of how much the deficit would be political will for such self-reliance is non- viets would be hard put to match the pace. reduced if NATO were more 'European," existent. This is why they prohibit, in ef- Any such buildup, however, is what our fect, any speculation about the future of NATO partners wish so desperately, for in- less American. This is not the most sensi- NATO. Nevertheless, that future is now an ternal political reasons, to avoid. ble reason for rethinking NATO, but wel- open question. It will be up to the Euro- So a rift is developing within NATO on fare-state politics within the U.S. are not peans to prove the State Department and arms control, and ironically it is now West- all that different from welfare-state poli- the Pentagon wrong. ern Europe that is trying to repudiate its tics in Britain or West Germany. What it comes down to is that the very Mr. Kristol is the John M. Olin profes- past rhetoric. It is indeed a surprise that the rift should be developing on this issue, idea of NATO is now edging into incoher- sor of social thought at the NYU Graduate School of Business and a senior fellow of in this way-as a result of Soviet accom- ence, and the status quo is becoming more modation rather than Soviet intimidation. and more anachronistic. The defense of the American Enterprise Institute. But it ought not surprise anyone that there Western Europe at the conventional level is a rift. The present structure of NATO is will be, in the future, primarily a Euro- such that rifts are bound to emerge, and to pean responsibility. The British and become ever more serious with each pass- French nuclear forces will have to become ing year. the nuclear deterrent for all of Western The keystone of NATO is the American Europe. It will be a deterrent against So- commitment to defend Western Europe, viet nuclear aggression-as it already has with nuclear weapons if necessary, against been in fact, as distinct from theory. It is preposterous to believe, as official NATO theory prescribes, that the govern- ments of Western Europe would ever re- sort to a first-use of nuclear weapons against conventional Soviet aggression, therewith ensuring their own annihilation. The European dream-unstated, for obvi- lation TIME/MARCH 5, 1990 The playwright-President's stirring remarks brought down the House-and the Senate. Some lawmakers were moved to tears The Revolution Has Just Begun In 59 days that shook the world, dissident playwright " Twice in this century the world has been threatened by a catastrophe. Vaclav Havel was swept out of political detention into the Twice this catastrophe was born in Europe, and twice you Americans, along presidency of Czechoslovakia. Last week Havel delivered to with others, were called upon to save Eu- a joint meeting of Congress an extraordinary speech about rope, the whole world and yourselves. In the meantime, the U.S. became the democratic ideals, the rebirth of the human spirit and most powerful nation on earth, and it un- derstood the responsibility that flowed America's role in the post-cold war era. from this. But something else was happen- 14 There are two plywood circles showing where gun turrets were taken out to save The health of nations-II weight when hauling the 9,600-lb. Little Boy atom bomb. Back in the bomb bay work is going on to reconstruct the single hook used to suspend and release the bomb. A normal double hook for bombs Whose lunch are was abandoned by the mission planners, who feared, if one malfunctioned, the armed bomb might dangle in the rack like we consuming? hell on a tether. You remember the day 44 years ago on a college campus when the A nation-especially a nation in a leadership role-is only as strong as its news came of the Enola Gay's successful economy. America has been a world leader since World War II because it could drop and the public dawning of the nuclear afford to be. But even as sweeping changes in Eastern Europe and elsewhere age, how you sat up most of the summer make the world a different place, the American economy is changing as well, night talking and wondering. and not necessarily for the better. These changes raise the question of whether The Garber Facility is named for a di- America can remain at center stage as the daily drama of history continues to unfold. minutive 90-year-old man who still goes to work every day as historian emeritus of the The worldwide political landscape, once so clearly divided by figurative curtains and literal walls, is a blurry place today, and nobody has issued new Smithsonian Institution and has done road maps. At the same time, the nation faces a daunting array of economic more than any other person to preserve the problems: An intractable budget deficit, an equally stubborn trade deficit, a record of the nation's great venture into tendency to consume rather than to save and invest, and a growing reliance flight. Paul E. Garber was born just as the on foreign money to finance our debt. These domestic woes carry over into Wright brothers began to inquire about fly- today's international marketplace; American companies are hard-pressed to ing machines. When Garber was five, his compete, and cries are raised that "they"-our international competitors-are uncle gave him a kite, and his fascination eating our lunch. with the sky was fixed for a long lifetime. But it shouldn't matter who sits down to dine if the meal is large enough to feed everybody. The real challenge for America is to keep the economy growing-not only for the sake of our international commitments, but also A t nine, Garber read in the evening Star to raise the living standards of our population. And that means shifting the about an airplane demonstration. He emphasis from consumption to investment. Today's investments, after all, mooched 50c from his father and hopped provide the means for tomorrow's higher standard of living in an increasingly the Washington trolley to Arlington Na- competitive world. tional Cemetery. When he stepped down, The key to economic expansion remains the translation of savings into new he heard a strange sound, looked up and plants and equipment, research and development, and a better-trained, more saw Orville Wright steer his Military Flyer sophisticated work force. People are crucial-people working better and above him with Lieut. Frank Lahm, one of smarter, not necessarily harder. the first military pilots, at his side. Garber But America has a long-standing penchant for saving less than its foreign competitors. Japan and West Germany, to name just two, have a tradition of ran up the hill to Fort Myer, where Presi- saving and investing at high levels, and this tradition is continuing into the dent William Howard Taft was witnessing present. Just one measure of this phenomenon, admittedly an imperfect one: In the birth of American air power. Years lat- 1988, Americans saved 4.4 percent of their disposable household income; the er, Garber, by then a friend of the Wright Japanese saved 15.2 percent and the West Germans 12.6 percent. brothers, acquired both their original plane As if a low savings rate weren't bad enough, the federal deficit makes it and the Military Flyer for the Smithsonian. worse. A lot of what Americans do save goes to finance Uncle Sam's massive Garber learned to fly one of the legend- debt. Foreign money is another prime way we finance our excessive consump- ary Curtiss Jennys just after World War I. tion, including the government's. In the final analysis, the budget deficit has to fall sharply if America is to But he got so wrapped up in the evolution remain a world leader. But in the fiscal year ended last September 30, the of the planes and preserving them that he deficit was $152 billion, a mere $3 billion less than in fiscal '88, and this after a never pursued a flying career. In all likeli- great deal of highly publicized number-juggling. America's accumulated debt at hood, he is the only man alive who has lived that point was some $3 trillion. the entire span of aviation history at the We continue to believe that some fat remains in the budget and there's very center, friend of most of the pioneers, room to cut waste. But such economies may not be enough. If they aren't, it's keeper of flight's most complete diary. past time for Congress to bite the bullet and raise more revenue. Smoke and Garber put the bite on Jimmy Doolit- mirrors simply can't do the job. tle, Amelia Earhart, Wiley Post and How- We also continue to believe that any new tax should be levied on consump- tion, not earnings. In addition to being an incentive to save rather than spend, ard Hughes for famous planes they flew to such a tax wouldn't be collected on goods made to be sold abroad, and records in what is often called the golden therefore wouldn't harm America's competitiveness in world markets. But it years of aviation, when new planes were would be collected on goods consumed in the U.S.-treating American and designed and built every few weeks. When foreign products equally and tempering consumption generally. Garber's friend Charles Lindbergh took Foreign nations didn't create America's budget deficit. While they are off for Paris in 1927, Garber heard the helping finance it, they can't cure it, either. That's a job we have to tackle news on a homemade radio in his Chevy. ourselves. Nobody is eating our lunch. We're the only ones who can make our He stopped at roadside and scribbled a ca- pie bigger, or cut ourselves a thicker slice of steak. Next: The high price of leadership. ble asking for the plane. "Lindbergh hasn't gotten there yet," stammered the Smithso- nian's Assistant Secretary Charles Greely Abbot when asked to send the wire. "He's a great aviator in a very good plane," re- sponded Garber. "I think he will make it." Mobil® Lindbergh did. So did Garber's plea. The Spirit of St. Louis is one of the most popular exhibits in all of aviation history. 1990 Mobil Corporation way to democracy and independence. viet Union and the other countries the So- This, I am convinced, is a historically viet Union subjugated in its time, a legacy ASHE irreversible process and, as a result, Eu- of countless dead, an infinite spectrum of rope will begin again to seek its own iden- human suffering, profound economic de- tity without being compelled to be a divid- cline and, above all, enormous human hu- ed armory any longer. Perhaps this will miliation. It has brought us horrors that create the hope that sooner or later, your fortunately you have not known. boys will no longer have to stand on guard It has given us something positive, a for freedom in Europe or come to our res- special capacity to look from time to time cue, because Europe will at last be able to somewhat further than someone who has stand guard over itself. not undergone this bitter experience. A But that is still not the most important person who cannot move and lead a some- thing. The main thing is, it seems to me, what normal life because he is pinned un- that these revolutionary changes will en- der a boulder has more time to think about able us to escape from the rather antiquat- his hopes than someone who is not ed straitjacket of this bipolar view of the trapped that way. world and to enter at last into an era of What I'm trying to say is this: we must multipolarity in which all of us, large and all learn many things from you, from how small, former slaves and former masters, to educate our offspring, how to elect our will be able to create what your great Pres- representatives, all the way to how to orga- ident Lincoln called "the family of men." nize our economic life so that it will lead to prosperity and not to poverty. But it THE PATH OF PLURALISM doesn't have to be merely assistance from How can the U.S. help us today? My reply the well educated, powerful and wealthy to is as paradoxical as the whole of my life has someone who has nothing and therefore been. You can help us most of all if you has nothing to offer in return. help the Soviet Union on its irreversible We too can offer something to you: our but immensely complicated road to de- experience and the knowledge that has mocracy. It is far more complicated than come from it. The specific experience I'm the road open to its former European sat- talking about has given me one certainty: ellites. You yourselves know best how to consciousness precedes being, and not the support as rapidly as possible the nonvio- other way around, as the Marxists claim. lent evolution of this enormous multina- For this reason, the salvation of this hu- tional body politic toward democracy and man world lies nowhere else than in the autonomy for all its people. Therefore, it is human heart, in the human power to re- not fitting for me to offer you any advice. flect, in human meekness and in human I can only say that the sooner, the more responsibility. quickly and the more peacefully the Soviet Union begins to move along the road to- A NEW WAY OF THINKING ward genuine political pluralism, respect Without a global revolution in the sphere for the rights of the nations to their own in- of human consciousness, nothing will tegrity and to a working-that is, a mar- change for the better in the sphere of our ket-economy, the better it will be not just being as humans, and the catastrophe to- for Czechs and Slovaks but for the whole ward which this world is headed-be it world. ecological, social, demographic or a gener- And the sooner you yourselves will be al breakdown of civilization-will be un- ing as well. The Soviet Union appeared, able to reduce the burden of the military avoidable. If we are no longer threatened grew and transformed the enormous sacri- budget borne by the American people. To by world war or by the danger that the ab- fices of its people suffering under totalitar- put it metaphorically, the millions you give surd mountains of accumulated nuclear ian rule into a strength that, after World to the East today will soon return to you in weapons might blow up the world, this War II, made it the second most powerful the form of billions in savings. American does not mean that we have definitely nation in the world. soldiers shouldn't have to be separated won. We are still incapable of understand- from their mothers just because Europe is ing that the only genuine backbone of all CREATING THE FAMILY OF MEN incapable of being a guarantor of world our actions, if they are to be moral, is re- All of this taught us to see the world in bi- peace, which it ought to be in order to sponsibility. Responsibility to something polar terms as two enormous forces-one make some amends, at least, for having higher than my family, my country, my a defender of freedom, the other a source given the world two world wars. company, my success-responsibility to of nightmares. Europe became the point the order of being where all our actions of friction between these two powers, and THE LEGACY OF OPPRESSION are indelibly recorded and where and only thus it turned into a single enormous arse- As long as people are people, democracy, where they will be properly judged. nal divided into two parts. In this process, in the full sense of the word, will always be I think that you Americans should un- one half of the arsenal became part of that no more than an ideal. In this sense, you derstand this way of thinking. When nightmarish power, while the other, the too are merely approaching democracy. Thomas Jefferson wrote that "govern- free part, bordering on the ocean and hav- But you have one great advantage: you ments are instituted among men, deriving ing no wish to be driven into it, was com- have been approaching democracy unin- their just powers from the consent of the pelled, together with you, to build a com- terruptedly for more than 200 years, and governed," it was a simple and important plicated security system to which we your journey toward the horizon has never act of the human spirit. What gave mean- probably owe the fact that we still exist. been disrupted by a totalitarian system. ing to that act, however, was the fact that The totalitarian system in the Soviet The communist type of totalitarian sys- the author backed it up with his Union and in most of its satellites is break- tem has left both our nations, Czechs and life. It was not just his words, it was ing down, and our nations are looking for a Slovaks, as it has all the nations of the So- his deeds as well. " TIME, MARCH 5, 1990 15 Nation Ripples in the American Lake Can the U.S. reap a peace dividend in the Pacific? While the U.S. bases are often picketed by NO leftists, polls show that a majority of Filipi- BANAN nos want them to stay. They provide 68,000 Filipino jobs and inject $507 million annu- NA BASES SABWATAN ally into the economy. TUNAY Clark is clearly more expendable than NUSP Subic. The Air Force increasingly operates its long-range bombers and advanced fight- ers out of Guam. Singapore's Prime Minister SP Lee Kuan Yew has offered to accept some air units from Clark in his country. Subic's fa- cilities, on the other hand, cannot readily be replaced. They include extensive machine shops that maintain the U.S. fleet with low- cost labor unavailable at alternative sites in Singapore or Japan. But what are the bases protecting? At a media conference in Manila last week, So- viet Foreign Ministry spokesman Gennadi Gerasimov asked, "Suppose the bases go tomorrow-where's the threat?" The Sovi- ets, he insisted, "will not fill the vacuum." Base-less protest: Manila demonstrators at U.S. embassy want Yanks to go home American planners are not so sure of that. Subic is strategically situated across the By ED MAGNUSON Both sides in the bases dispute may be China Sea from Cam Ranh Bay, the for- just huffing, seeking an edge in the immi- mer U.S. naval base in Viet Nam, which E ver since U.S. forces destroyed the nent bargaining. At the Pentagon, a Navy now berths about 20 Soviet warships. Japanese Navy in World War II, the captain insisted that Philippine officials And while Mikhail Gorbachev has Pacific Ocean has been, in military "have cried wolf one time too often" over promised to remove 120,000 troops from terms, an American lake. From naval bases Subic and that the U.S. might pull out. Soviet Asia and Mongolia, that would still in the Aleutian Islands and southward to Su- Aquino, who was saved from a military leave 600,000 along the Soviet border with bic Bay in the Philippines, 107 U.S. warships coup last December when U.S. jet fighters China. At least 10,000 troops are based in and 51 submarines project commanding sea- from Clark kept rebel air power grounded, the northern territories just off Japan that power. Ashore, mostly in South Korea, Ja- caught a lot of domestic heat over her de- were seized by the Soviets in 1945. The So- pan and Okinawa, 120,000 American troops pendence on the U.S. She may have used are poised to deter aggression along the Pa- Cheney's visit to show some distance. cific's western rim. Now, with the Soviet threat waning under the U.S.S.R.'s econom- SOUTH KOREA ic and ideological decay, is that U.S. military Air Force 11,600 Army 31,600 presence still necessary? As he ended a two-week tour of the Pa- U.S.S.R. cific last week, Defense Secretary Dick U.S. FORCES Cheney concluded that the governments of Sovetskaya Japan and South Korea still appreciate IN THE PACIFIC Gavan their U.S. protectors, despite anti-Ameri- Petropavlovsk Vladivostok can sentiment among some political fac- JAPAN 4 tions. Yet Cheney caught a slap from Phil- Air Force 16,500 Navy 8,300 CHINA ippine President Corazon Aquino. The Marines 23,700 Army 2,000 SOUTH Yokosuka U.S. Congress had recently cut $96 million KOREA Sasebo JAPAN from a $481 million military and economic PACIFIC aid package that Aquino apparently con- Okinawa OCEAN sidered a precondition for negotiations on renewing U.S. leases to operate the huge Subic Bay Naval Base and Clark Air Base. PHILIPPINES Air Force 9,200 Cam Subic Miffed, she canceled plans to meet Cheney. Navy 5,500 Ranh Bay Clark GUAM The Defense Secretary took the snub Marines 2,000 Bay PHILIPPINES Air Force 4,200 Army 600 VIET NAM Navy 4,000 gracefully but declared that the U.S. will re- Guam main in the bases, whose leases expire next year, "only as long as the Philippine people U.S. bases wish it to stay-and only if the terms nego- Soviet bases tiated are acceptable to both parties." TIME Map by Paul J. Pugliese 16 THE WASHINGTON POST Vaclav Havel Our Freedom D ear fellow citizens: For the past 40 years on this day you have heard my predecessors utter different variations on the same theme, about how our country is prospering, how many more billion tons of steel we have produced, how. happy we all are, how much we trust our government and what beautiful prospects lie ahead of us. I do not think you. me into this office so that I, of all people, should also lie to you. Our country is not prospering. The great creative and spiritual potential of our nation is not being used to its full potential. Whole sectors of industry are producing things in which no one is interested, while the things we need are in short supply. The state, which calls itself a state of the working people, is humiliating and exploit- ing the workers. Our outdated economy is squandering energy, of which we are in short supply. Acountry which could once be proud of the standard of education of its people spends so little on education that today it occupies 72nd place in the world. We have laid waste to our soil and the rivers and the forests that our forefathers bequeathed to us, and we have the worst environment in the whole of Europe today. Adults in our country die earlier than in We cannot lay all the blame on those who ruled most other European countries. us before, not only because this would not be true A llow me to tell you about a little but also because it could detract from the personal experience of mine. Flying to Bratislava recently, I found time to look out responsibility each of us now faces-the of the window. What I saw was the Slovnaft [oil refinery] complex and the Petrzalka responsibility to act on our own initiative, freely, suburb immediately beyond it. That view was enough for me to understand that our sensibly and quickly." statesmen and politicians had not even looked, or did not even want to look, out of the windows of their planes. None of the wear itself down, along with all the cogs in generation to the next in order for each of it. statistics available to me would have en- us to discover them within us when the abled me to understand more quickly or time was right, and to put them into prac- more easily the situation we have gotten W hen I talk about a decayed moral tice. ourselves into, environment, I do not mean merely Of course, for our freedom today we also But not even all of that is the most those gentlemen who eat ecologically pure had to pay a price. Many of our people died vegetables and do not look out of their in prison in the '50e, many were executed, important thing. The worst thing is that we airplane windows. I mean all of us, because thousands of human lives were destroyed, are living in a decayed moral environment. all of us have become accustomed to the hundreds of thousands of talented people We have become morally ill, because we totalitarian system, accepted it as an inal- were driven abroad. Those who defended have become accustomed to saying one terable fact and thereby kept it running. In the honor of our nations in the war were thing and thinking, another. We have other words, all of us are responsible, each persecuted, as were those who resisted learned not to believe in anything, not to to a different degree, for keeping the totali- totalitarian government, and those who have consideration for one another and only tarian machine running. None of us is mere- simply managed to remain true to their own to look after ourselves. Notions such as ly a victim of it, because all of us helped to principles and think freely. None of those love, friendship, compassion, humility and create it together. who paid the price in one way or another for forgiveness have lost their depth and di- Why do I mention this? It would be very our freedom today should be forgotten. mension, and for many of us they represent unwise to see the sad legacy of the past 40 Independent courts should justly assess the merely some kind of psychological idiosyn- years as something alien to us, handed appropriate guilt of those responsible, so crasy, or appear to be some kind of stray down to us by some distant relatives. On that the whole truth about our recent past relic from times past, something rather the contrary, we must accept this legacy as comes out into the open. something which we have brought upon The previous regime ourselves. If we can accept this, then we N either should we forget that other will understand that it is up to all of us to do nations paid an even higher price for made talented people something about it. We cannot lay all the their freedom today, and thus they also paid blame on those who ruled us before, not indirectly for us too. The rivers of blood who were capable of only because this would not be true but also which flowed in Hungary, Poland, Germany because it could detract from the responsi- and recently also in such a horrific way in making an enterprising bility each of us now faces-the responsibil Romania, as well as the sea of blood shed by ity to act on our own initiative, freely the nations of the Soviet Union, should not living in their own sensibly and quickly. bè forgotten, primarily because all human Throughout the world, people are sur- suffering affects every human being. But country into cogs in prised that the acquiescent, humiliated, more than that, they must not be forgotten skeptical Czechoslovak people who appar- because it was these great sacrifices which some kind of ently no longer believed in anything sudden- weaved the tragic backdrop for today's ly managed to find the enormous strength freedom or gradual liberation of the nations monstrous, smelly in the space of a few weeks to shake off the of the Soviet bloc, and the backdrop of our totalitarian system in a completely decent newly charged freedom too. machine whose purpose and peaceful way. We ourselves are also Without the changes in the Soviet Union, surprised at this, and we ask where the Poland, Hungary and the GDR, the develop- no one can understand. young people, in particular, who have never ments in our country could hardly have known any other system, find the source of happened, and if they had happened, they comical in the era of computers and-space their aspirations for truth, freedom of surely would not have had such a wonderful rockets, Few of us managed to cry out that thought, political imagination, civic courage peaceful character. The fact that we had the powerful should not be all-powerful, and and civic foresight. How is it that their favorable international conditions, of that the special farms which produce eco- parents, the generation which was consid- course, does not mean that anyone was logically sound and high-quality foodstuffs ered lost, also joined in with them? How is it helping us directly in those weeks. For for them should send their produce to the even possible that so many people immedi- centuries; in fact, both our nations have schools, children's hostels and hospitals, ately grasped what had to be done, without risen up by themselves, without-relying on since our agriculture is not yet able to offer needing anyone else's advice or instruc- any help from more powerful states or big tions? this to everyone. powers. The previous regime, armed with its I think that this hopeful aspect of our This, it seems to me, is the great moral situation today has two main reasons. arrogant and intolerant ideology, denigrat- stake of the present moment. It contains Above all, man is never merely a product of ed man into a production force and nature the hope that in the future we will no longer the world around him, he is always capable into a production tool: In this way it at- have to suffer the complex of those who are of striving for something higher, no matter tacked their very essence and the relation- permanently indebted to someone else, how systematically this ability is ground ship between them. It made talented people Now it is up to us alone whether this hope down by the world around him. Second, the who were capable of managing their own comes to fruition, and whether our civic, humanistic and democratic traditions— affairs and making an enterprising living in national and political self-confidence re- which are often spoken about in such a their own country into cogs in some kind of awakens in a historically new way. hollow way-nonetheless lay dormant monstrous, ramshackle, smelly machine somewhere in the subconscious of our na. The writer is president of Caechoslovakia. whom ПО was can 11 Hone national minor- This is excertive from his New Year's Day im Photo Copy Preservation NAL FRIDAY, OCTOBER 6, 1989 Outfoxed Again By ANGELO CODEVILLA self-criticism or of policy innovation. dismantle those few steps the U.S. has If, as Soviet Foreign Minister Edouard Then in 1983 came the discovery of a taken in recent years away from the stra- Shevardnadze has promised at U.S. insis- sixth "Pechora class" radar near the Si- tegic-conception behind the ABM treaty: tence, the Soviet Union actually dismantles berian city Krasnoyarsk-2,000 miles away the SDI antimissile program, the highly the huge ABM radar near Krasnoyarsk; it from the border it faced. This was a viola- accurate Trident, II submarine-launched will have eliminated the most undeniable tion. Ironically, given its orientation to the missile that is designed to threaten Soviet violation of the U.S.-Soviet ABM treaty of Bering Straits, one of the less likely places silos, and the programs for basing U.S. 1972. But U.S. officials, by focusing on from which missiles might come, the Kras- missiles on roads and rails instead of in Krasnoyarsk, have succeeded only in noyarsk radar was probably the least mili- vulnerable silos. averting America's eyes from the much tarily significant of the six, and obviously Clearly, the real problem is not Kras- more important whole of which Kras- much less significant than the six taken as noyarsk, nor Soviet compliance or non- noyarsk was just a part. a whole. But the U.S. government chose to compliance with the language of arms con- They have ignored hugely threatening make a big deal about it, and it alone. And trol: treaties, but the determination of events because those events happened to while the U.S. government was giving the American policy makers to behave accord- occur very much within the letter of the impression that Krasnoyarsk was the prob- ing to their own vision of the ABM treaty, ABM treaty. They have cried wolf. lem, U.S. intelligence discovered three hesitating to build even the things that The primary long-term objective of the more Pechora-class radars, at Mukachevo, they concede that the U.S., like the Soviet Americans who ne- Union, has the right gotiated the ABM to build; while the treaty between 1969 Anti-Ballistic Missilo Radar Soviet Union has and 1972 was to eliminate the five, in the Soviet Union built everything it could under the later six, "Hen treaty, and then House" radars then some. (as now) on the pe- If Krasnoyarsk riphery of the Soviet disappears, the loss Union, all more ca- Olenegorsk pable than our best Skrunda Kamchatka to the Soviet ABM Peninsula system will be mar- ABM radars, and to Baranovichi ginal. By no stretch keep others from be- Mukachevo Pechora of the imagination ing built. The So- will the Soviet Union viets said "nyet," SO Moscow be as defenseless the U.S. agreed to against ballistic mis- language allowing siles as the U.S. is. the Soviets to build Krasnoyarsk In no way will the whatever radars Lyaki Mishelevka development and they wanted, so long production of Soviet as they were on the Sary anti-missile devices periphery of the Shagan be slowed. On the country, and ori- contrary, American ented outward. reactions to the dis- But putting battle mantling of Kras- management radars noyarsk are sure to on the periphery raise the marginal does not necessarily effectiveness of ev- degrade their per- ery piece of Soviet formance. The large ABM equipment. phased array radars in the planned Ameri- Baranovichi, and Skrunda in the vital The principal reaction, a renewed U.S. can ABM system of the late 1960s were to northwest missile corridor. These nine ra- commitment to the ABM treaty, is a guar- be on the periphery (Boston, North Da- dars, plus the six old Hen House radars, antee that the U.S. will build nothing to in- kota, Montana, etc.) The ABM treaty's lan- provide double, and usually triple, cover- terfere with a disarming first strike by So- guage on big radars was a placebo to as- age of all approaches to the Soviet Union viet missiles. sure the U.S. Senate that these devices had through the most capable radars available Soviet First Strike been limited. In fact, the U.S. negotiators to mankind. The only radar gap on the had simply translated their hopes that the map of the Soviet Union faces such missile For example, the acceptance of the Soviets might limit themselves into a con powers as the Central African Republic. START treaty by the U.S. would mean that viction that they would. This network is backed up by the newly the distribution of U.S. strategic forces modernized Moscow ABM Complex. This is would shrink from about 2,000 "aim Screening the Buildup specifically allowed by the ABM treaty. Its points" to perhaps 400, and that the ratio Instead, the treaty language served to SH-11 high-altitude interceptors fired from of Soviet counterforce warheads to Ameri- screen the coming Soviet buildup. The Hen underground launchers already incorpo- can targets would rise from the present 3.5 House network was modernized. Then, dur- ing the 1970s and early '80s, the U.S. no rate SDI technology stolen from the U.S. to 1 to perhaps as many as 10 to 1. That They cover much of European Russia. The means, far fewer American warheads ticed that, first at Pechora, then at Lyaki, Mishelevka, Olenegorsk, and Sary Shagan, Soviets also are producing the SA 12 mo- might be expected to survive a Soviet first bile ABM, allowed by the ABM treaty be strike. That, in turn, means that the Soviet the Soviets were building radars hundreds of times more powerful than our best ABM cause it is dual-purpose: Finally, the Soviet ABM system would have a much much radars. (See map., Absent the ABM Union is producing a host of other rapidly easier job to do, and a much increased treaty, the U.S. government would have deployable ABM components and squirrel- chance of doing successfully. ing them away who knows where. The The Soviets are selling the Krasnoyarsk been obliged to note that a massive anti- ABM treaty says nothing about produc- radar at a very good price. The cost to missile system was being built. But all five tion. them might be even lower if-and this is of these new Pechora class" radars were likely-they relocate the radar to northern allowed by the ABM treaty To denounce As the Soviets no doubt foresaw, some Kamchatka. There it would fully comply them, U.S. officials would have had to de in Washington are taking the prospective with the ABM treaty while making even nounce their own previous judgment. As a demise of Krasnoyarsk to mean that the timelier transmission of data to local ABM consequence, they also would have obliged Soviet Union is rededicating itself to the sites in the interior themselves to devise a new and more purposes of the ABM treaty The adminis- somber American approach. But the U.S. tration is moving toward signing a new Mr. Codevilla is a research fellow at government proved incapable either of START treaty, while Congress rushes to Stanford University's Hoover Institution. Photo Copy Preservation THE WASHINGTON POST Quebec Separatist Movement Enjoys Resurgence Canadians See Amicable Divorce of French-Speaking Province from Nation as Possible By Lewis H. Diuguid business class in Montreal has been Trudeau's efforts to resolve the Que- Fotheringham that "Meech Lake is Washington Post Foreign Service cast as radical with its rear-guard bec issue constitutionally culminated idead." campaign to kecp English on the in June 1988 with a meeting of the New Brunswick and Manitoba OTTAWA-Quebec separatism, city's street signs. federation's 10 premiers at. Meech provinces have failed to ratify the the issue that Canada has never quite Among the English-speaking na- Lake on the Ontario-Quebec border. 1988 accord and another provincial resolved, is heating up anew. tional majority, a perception is In what was described as a historic An election in the French-speak- spreading that if Quebec did sepa- leader has indicated he may seek a accord, they provided assurances for rollback. Bourassa has made clear ing province last month confirmed rate; it would be an amicable divorce, the maintenance of Quebec's "dis- that this would be unacceptable. the persistence of a 40 percent mi- with the province's economic rela- tinctiveness. nority wishing to pull out of the fed- tionship to the federation enduring. All 10 premiers agreed, and went The stage is set for a failure to eration, and by most interpretations As Allan Fotheringham of Mac- home to seek ratification within two meet the June deadline for ratifica- a majority for separation soon may lean's weekly news magazine wrote years. But while Conservative Prime tion of the accords, and a threatened be found. "If Quebec walked out, you wouldn't Minister Brian Mulroney said last pullout of Quebec ministers from the need a passport to make it to Mon- Most English-speaking politicians week, "We simply cannot afford not federal cabinet. Then, the question treal's restaurants. The Edmonton to carry through to a successful con- would be how Quebec's premier- have railed against separation, but Oilers will still be playing the clusion the process initiated by and electorate-will respond to an they no longer are unanimous in Canadiens for the Stanley Cup." Meech Lake," most politicians and issue that keeps coming back unre- their willingness to compromise to Ex-prime minister Pierre Elliott journalists consulted agreed with solved. keep the thorny Quebecois in the federation. Canada officially became a bilin- gual country 30 years ago, a move that was intended to disarm the Que- bec separatists. It did not. Premier Rene Levesque agitated for 10 years until, in a 1980 referendum, the province said no to his formula for sovereignty. Power shifted from Levesque's Parti Quebecois to the province's Liberal Party, which narrowly won the election there last month. But while Liberal Premier Robert Bou- rassa avowedly is a federalist, he has indicated that he will follow the elec- torate rather than lead it on the sep- aratist question. Labor leader Gerard Docquier has made this prediction about his native province: "I have always said it will not be the Parti Quebecois" that pulls Quebec out of Canada, "it will be the Liberals." Photo Copy Preservation His point, and that of other com- mentators, is that the separatist movement now embraces an upbeat French-speaking entrepreneurial class. The image of bomb-throwing Parti Quebecois socialists has blurred. The once dominant English THE WALL STREET JOURNAL MONDAY, DECEMBER 11, 1989 A15 Yugoslav Tremors Along Balkans' Political Fault Line LJUBLJANA, Yugoslavia-Twohistoric that instead of being fought with guns it is concepts are emerging out of the ruins of gary. Thus the story here is less appealing Another scenario is therefore more being waged through bureaucratic means. communist Eastern Europe. One, "Central to journalists. Nevertheless, several dis- likely: half-baked reform, continued infla- Late last month, Serbia fired a powerful Europe," the media is now beating to tinct patterns are emerging, each with far- tion and sporadic rioting in the poorer, salvo at Slovenia, instructing all Serbian death. The other, "the Balkans, the me- reaching implications not just for Yugosla- southern regions, as the two northern re- organizations to sever links with the rival dia has yet to discover. via, but for Europe as well. publics-Slovenia and Croatia-are drawn republic. The move-nudging the country In the optimistic scenario, the Inflation: Central Europe suggests a place where further into the West German-fueled, Cen- ever closer to the long-predicted disinte- may soon force even Serbia to embark on reason prevails. as national tensions are tral European prosperity sphere. gration of the Yugoslav federation-I dramatic economic reform that must inevi- eased by democracy and bourgeois pros- lowed the introduction of emergency meas- tably lead to political pluralism and the de- Because Journalists and other Western perity. The Balkans, on the other hand, is ures in Slovenia to head off a rally in mise of Mr. Milosevic's one-man rule. Such visitors tend to visit only Belgrade, the out- II Third World caldron where ethnic groups Ljubljana on Dec. 1. The rally was being circumstances would permit Slovenia, and side world has yet to grasp the degree to exist In psychological Isolation from each organized by Serbs in an apparent effort to which Slovenians and Croats view the fed- other, subverting attempts at political and neighboring Croatla to a lesser extent, to bring down Slovenia's relatively liberal eral capital as merely the capital of a economic reform. leadership. The Serbs have been claiming hated, retrograde local republic. Sloven- Yugoslavia, a multinational state as that Slovenia is supporting ethnic Alban- AUSTRIA Miles ians, especially, whose identity was sub- tride the borders of Rome and Byzantium lans in Kosovo-which is true to the extent 400 merged during hundreds of years of unin- and Catholicism and Orthodoxy. is on this that Slovenia has been dissociating itself terrupted Hapsburg rule, are undergoing a fault line as well. from Mr. Milosevic's attempt to extend IJul/ljane ROMANIA national renaissance. Mr. Smole, who is In the north, Slovenia is going the way Serbian dominance over the region. the leading reformer within the republic's of Hungary. Economic reform here started political establishment, declared: 'We Anti-communist opposition groups in Slovenia responded to Serbia's action last joined Yugoslavia not to be Yugoslavs, but Belgrade Europe week by forming an umbrella organization, because at the time It was the best way to SERBIA defend the Interests of the Slovenian na- the Democratic Opposition of Slovenia, By Robert D. Kaplan which is demanding that "all state organs BULGARIA tion." KOSOVO in Slovenia break off ties with state organs Whether the Slovenians-who make up in Serbia." They issued a statement on 8% of the Yugoslav population yet account years ago. Slovenian communists have Dec. 8 declaring, "Slovenia should respond ALBANIA for a quarter of the nation's gross national dropped the hammer and sickle from their to pressures mounting against It after the ITALY product and a third of its exports to the banner, are considering changing the party ban of the rally In Ljubljana." West-will in future years feel it is in their Serbla's rebellious ethnic-Albanian Interests to remain part of Yugoslavia is of name, and concede they may lose republic- wide elections slated for March. "Just be- province of Kosovo in the south evokes the pivotal Importance to Europe. West Bank, with the streets patrolled by act as a motor dragging the whole of Yugo- cause Serbia doesn't want a multiparty slavia over many years into a Central Eu- A Yugoslavia propelled forward by Slo- system doesn't mean we have to wait,' armed troops. Besides national tensions, ropean-like prosperity. venian reformist values will help the Joze Smole, the head of the Slovene Social- Kosovo and other poor regions of Yugosla- chances of successful liberalization not ist Alliance, told me. via may soon be plagued not only with na- But cutting Inflation means closing un- only in Bulgaria but eventually in Romania In the central heartland of Yugoslavia, tional tensions but also with bread riots, productive, state-supported factories and and Albania too. The Balkans would then Serbia is drifting more in the direction of as 50% monthly inflation tears apart the thus putting many people out of work in a exist purely in a geographical sense. How- Romania, A personality cult has formed social fabric. country where there is no social safety net. ever, were Yugoslavia to continue to fis- around the republic's president, Slobodan It is extremely doubtful that the current This complex, asymmetrical situation is sure, as it is now clearly doing, the whole Milosevic, who has pulled half-a-million like the Soviet Union In miniature. Because federal prime minister, Ante Markovic, de- of southeast Europe could become politi people late the streets-not by delivering much of the discoutent is being released spite his reformist reputation, can muster cally and economically dislodged from the upinals of lism Ind By the courage and the political closs to take rest of the Continent. And the Balkans and HP other, 11/11/11 Excerpts From Speech By the Czech President Special to The New York Times PRAGUE, Jan. 1 - Following are excerpts from President Vaclav Havel New Year's Day address, as translated by The New York Times: e d The Truth, Unvarnished best Government, the best Parlia- ment and the best President cannot For 40 years you have heard on this do much by themselves. Freedom day from the mouths of my predeces- and democracy, after all, mean joint sors, in a number of variations, the participation and shared responsibil- same thing: how our country is flour- ity. If we realize this, then all the hor- ishing, how many more millions of rors that the new Czechoslovak tons of steel we have produced, how democracy inherited cease to be SO we are all happy, how we believe in horrific. If we realize this, then hope our Government and what beautiful will return to our hearts. prospects are opening ahead of us. I assume you have not named me to this office SO that I, too, should lie to Everywhere in the world, people you. were surprised how these malleable. Our country is not flourishing. The humiliated, cynical citizens of great creative and spiritual potential Czechoslovakia, who seemingly be- of our nations is not being applied lieved in nothing, found the tremen- meaningfully. Entire branches of in- dous strength within a few weeks to dustry are producing things for which cast off the totalitarian system, in an there is no demand whilewe are short entirely peaceful and dignified man- of things we need. ner. We ourselves are surprised at it. The state, which calls itself a state And we ask: Where did young peo- of workers, is humiliating and ex- ple who had never known another sys- ploiting them instead. Our outmoded tem get their longing for truth, their economy wastes energy, which we love of freedom, their political imagi- have in short supply. The country, nation, their civic courage and civic which could once be proud of the responsibility? How did their parents, education of its people, is spending SO precisely the generation thought to little on education that today, in that have been lost, join them? How is it respect, we rank 72d in the world. We possible that so many people immedi- have spoiled our land, rivers and for- ately understood what to do and that ests, inherited from our ancestors, none of them needed any advice or in- and we have, today, the worst envi- structions? ronment in the whole of Europe, Adults die here earlier than in the Recalling Ruined Lives majority of European countries Naturally we too had to pay for our present-day freedom. Many of our Learning to Belleve Again citizens died in prison in the 1950's. The worst of it is that we live in a Many were executed. Thousands of spoiled moral environment We have human lives were destroyed. Hun- become morally ill because we are dreds of thousands of talented people used to saying one thing and thinking were driven abroad. Those who another. We have learned not to be- fought against totalitarianism during lieve in anything, not to care about the war were also persecuted. No- each other, to worry only about our- body who paid in one way or another selves. The concepts of love, friend- for our freedom could be forgotten. ship, mercy, humility or forgiveness Independent courts should justly have lost their depths and dimension, evaluate the possible guilt of those re- and for many of us they represent sponsible, SO that the full truth about only some sort of psychological curi- our recent past should be exposed. osity or they appear as long-lost wan- But we should also not forget that derers from faraway times, some- other nations paid an even harsher what ludicrous in the era of comput- price for their present freedom, and ers and space ships paid indirectly for ours as well. All human suffering concerns each Cogs No Longer human being. Without changes in the Soviet Union, Poland, Hungary The previous regime, armed with a and the German Democratic Repub- proud and intolerant ideology, re- lic, what happened here could hardly duced people into the means of pro- have taken place, and certainly not in duction, and nature into its tools. So it such a calm and peaceful way. attacked their very essence, and their Now it depends only on us whether mutual relations. Out of talented this hope will be fulfilled, whether our and responsible people, ingeniously civic, national and political self-re- husbanding their land, it made cogs spect will be revived. Only a man or of some sort of great, monstrous, nation with self-respect, in the best Copy thudding, smelly machine, with an sense of the word, is capable of listen- unclear purpose. All it can do is, ing to the voices of others, while ac- slowly but irresistibly, wear itself out, cepting them as equals, of forgiving with all its cogs. Photo enemies and of expiating sins, If I speak about a spoiled moral at- mosphere I don't refer only to our Prosperity, Humanely masters I'm speaking about all of us. For all of us have grown used to Perhaps you are asking what kind the totalitarian system and accepted of republic I am dreaming about. I it as an immutable fact, and thereby will answer you: a republic that is in- actually helped keep it going. None of dependent, free, democratic, a repub- us are only its victims; we are all also lic with economic prosperity and also responsible for it. social justice, a humane republic that It would be very unwise to think of serves man and that for that reason the sad heritage of the last 40 years also has the hope that man will serve only as something foreign, something it inherited from a distant relative. On the contrary, we must accept this The People Hold Sway heritage as something we have in- My most important predecessor flicted on ourselves. If we accept it in started his first speech by quoting such a way, we shall come to under- from Comenius. Permit me to end my stand it is up to all of us to do some- own first speech by my own para- thing about it. phrase. Your Government, my peo- Let us make no mistake: even the ple, has returned to you. THE WASHINGTON POST Henry Kissinger Superpowers and the New Europe Don expect stability and peace to just happen. The past year has seen an astonishing evolution in growing temptations to reduce NATO's conventional mili- East-West relations. The Soviet Union is losing control of tary establishment unilaterally. Not only is opposition to the political agenda in Eastern Europe at the same moment that the United States is losing control of its modernization of short-range nuclear weapons in West security agenda in Western Europe. But Western rhetoric Germany becoming insurmountable, the entire nuclear deployment on German soil is being challenged. The is stuck in familiar categories relating either to the arcane denuclearization of Germany would threaten the political catechism of strategic arms control or a diplomacy geared to "helping" Gorbachev. contract under which American forces have been deployed in Europe for four decades. Finally, a START agreement Because it is peripheral to the emerging central danger, will weaken the rationale for initiating nuclear war, further major progress toward a START agreement is probable reducing the credibility of the American nuclear deterrent: by the time of next spring's summit. "Helping" Gorbachev contributes to peace only if the Soviet leader is prepared Trends in both German-states compound these divisive to help in building a more stable international system. And tendencies. Any West German government is bound to in that case we in the West are not helping him but seek for the people of East Germany the same privileges ourselves. already accorded the populations of Poland and Hungary. Any analysis based on mutual interest must start from The result is increasing West German-activism all over the recognition that the fulcrum of international tensions Eastern Europe. West German political figures are fond of has returned to its historical place of origin at the center of repeating Germany's alleged historic mission in Eastern Europe. A new design for Europe should end both Soviet Europe-an amazing proposition for which history offers political domination of Eastern Europe and potential super- power military confrontation in the center of Europe. During the next decade U.S. and Soviet ground forces should be progressively withdrawn from Central Europe in an orderly negotiated fashion, with Soviet offensive capa- bilities, especially tank forces, returned deep into Russia. The most startling changes have occurred in Eastern Europe. After monopolizing education, propaganda and bureaucracy for four decades, the Polish Communist Party was able to win only one contested seat in the first nearly BYT.GIBSON free election since World War II. The Communist Party in Hungary is likely to split into two groups at the next party no evidence and which is likely to inspire premonition in congress; polls indicate that its popular support hovers Eastern Europe. Unless it keeps its foreign policy well around 40 percent. Though Czechoslovakia has not per- within a European framework and its security policy mitted free elections, its Communist Party is surely no closely tied to NATO, West Germany could repeat the historic German flaw of self-isolation and become the more popular. target of Western suspicions and Soviet attempts to stem As a result, Moscow is on the verge of losing its grip on the centrifugal tendencies in its empire. the political evolution of Eastern Europe. Historically, Communist parties have justified themselves as the advance forces of history destined to lead-and if necessary com- Both East and West are being challenged to a new-vision of pel-the majority on the high road to Communist ortho- Europe's future. The West must define for itself three doxy. Therefore, Communist parties toying with democracy concepts: for defense in an era of declining budgets and face a philosophical dilemma: if they become true democrats increasing opposition to U.S. nuclear deployment in Central they cease to be true Communists. If they remain Commu- Europe; for arms control policies that promote greater nist, they will act to undermine the new democratic system, freedom for the people of Eastern Europe; and for devising for example shifting to Solidarity the blame for the austerity political obstacles to Soviet pressure on Western Europe required to overcome the economic mess the Communists and Soviet domination of Eastern Europe, in part to replace left behind. But whatever their motive, the leaders of the the military obstacles in the process of being eroded. Communist parties of Eastern Europe face an overwhelm- The Soviet Union faces an even more profound chal- ing new fact: having lost the capacity to compel by terror, lenge. Its massive troop presence in Europe is both a drain they must turn to public opinion, appealing to nationalism on economic resources and presents Moscow with a and challenging Moscow. Hobson's choice between the humiliation of acquiescing in At least for the time being-and so long as membership fundamental political change while its troops are present in the Warsaw Pact is not challenged-the Communist or repression with unforeseeable consequences. The test monolith is weakening with Moscow's acquiescence. Prop- for stability is whether for the first time in history Europe ping up Communist rule in Eastern Europe by military can live in equilibrium, with a Russian empire, with neither means apparently seems too risky to a Soviet leadership side fearing invasion by the other. If Gorbachev will work reluctant to hazard the carefully crafted new image. Mos- toward that goal, he deserves generous support. If he does cow may be hoping that in the end calculations of the not, his rule will have been an interesting psychological mutual national interest buttressed by geographic propin- episode on the way to adventurism or repression or both. quity can substitute at least to some extent for ideological Assuming he opts for the first course, a new security conformity. system could have the following components: Soviet The jury is still out as to whether this strategy will work ground forces in Europe would return to national territory; Copy in Hungary or Poland. But it cannot work in East Soviet offensive capabilities-especlally tank forces-in Germany. There the Communist Party is in no position to the area west of Moscow would be limited under interna- mobilize national feelings because these feelings tional inspection. In return, the United States should be counter to the very existence of the East German state. prepared to withdraw in stages throughout the 90s most Photo West Germany by definition, and increasingly by its of its ground forces from: the European continent. Both policies, keeps the hope for reunification alive. East nuclear superpowers could be allowed to maintain agreed Germany faces the dilemma that opposition to reform will air forces and material storages in Europe to make clear turn it into an anachronism while liberalization will under- that an attack would involve an unacceptable risk of war. mine its reason for being, Such military redeployments would inevitably project the Disintegrative tendencies exist inside the Soviet Union future of Germany to the forefront of European politics as well. Gorbachev undoubtedly launched glasnost and because East Germany will face new internal pressures, perestroika in the belief that reduced repression from; especially once Soviet ground forces are removed. The Moscow would enlist support for his reforms. But the German issue can in any case no longer be avoided. If non-Russian nationalities-especially those acquired as Western cohesion is to be maintained, Germany's allies the result of the Hitler-Stalin pact-march to their own must come forward with plausible program, that meets Germany's aspirations without destabilizing Central Europe. West Germany's contribution to such a program should An empire assembled over a be to accept the present frontiers of Germany as final and abandon the current ambiguous official rhetoric, which period of 400 years by force renounces force only in changing frontiers. This is the precondition for negotiations on an appropriate system of will not disintegrate free elections for East Germany, perhaps at first on the Polish model. The almost certain outcome of such a passively. process would be a step-by-step melding of the domestic structure of the two Germanys. At that point a plausible guarantee that the change would not extend the frontiers drummers. So strong is public feeling that even local of NATO to the East is essential-perhaps by creating Communist parties have felt obliged to challenge Moscow. over time a confederation of the two states with East Economic decentralization-essential for perestroika- Germany becoming essentially demilitarized. liberates pressures for autonomy if not outright indepen- I envisage a three-stage process. The first stage would dence within the framework of glasnost. be the reduction of forces outlined in President Bush's Too many Western leaders seem to think that these proposal of last May. The principle of total Soviet with- trends need little response beyond judicious doses of drawal of ground forces should be established in this stage, economic assistance. I strongly favor greatly increased aid for example by the complete withdrawal from at least one to Poland and Hungary. But this is no substitute for a European country such as Hungary. concept for the future of Europe. An empire assembled The next stage would establish four security zones: over a period of 400 years by force will not disintegrate from the Atlantic to the Rhine; from the Rhine to the passively. And the Western alliance is bound to be shaken eastern frontier of West Germany; from that frontier to by the very events it is celebrating. the Soviet-Polish frontier; from the Soviet-Polish frontier to the area of Moscow. The forces west of the Rhine and For 40 years the Atlantic Alliance has been held together between the Polish-Soviet frontier and Moscow would be by the fear of Soviet military aggression. Its response has roughly equal, as would be the forces on both sides of the been to build up integrated conventional forces augmented dividing lines in the central sectors. by European-based nuclear weapons and backed by an The final stage-toward the latter part of the decade intimate reliance on the U.S. nuclear deterrent Now each -would X free elections 111 hast Germany, uner Photo Copy Preservation AL FRIDAY, MARCH 2, 1990 Czechoslovakia's Free-Market Minister By JOHN H. FUND first became exposed to Western economic for an ambitious and dramatic push to- Vaclav Klaus, Czechoslovakia's new thought during post-graduate studies in It- ward'a free market. Within days of taking free-market finance minister, kicked off aly and at Cornell University in the U.S. office, he drastically devalued the Czech his whirlwind 24-hour, visit to New York during the late 1960s. Just before the 1968 crown from eight to the dollar to 38, and last week by speaking to a group of Wall Prague Spring, he was hired by a section proposed his country quit the communist Street executives and others about how his of the Ministry of Economics that criti- trading bloc, Comecon. country needed to adopt "a market econ- cized non-Marxist economics. Mr. Klaus Mr. Klaus sums up his overall policy as omy without any adjectives became converted to classical liberal one of "demonopolization." He aims to use Afterward, Alice Tepper Marlin, direc- thinking: "By letting me see Western text- very restrictive monetary and fiscal poli- tor of the leftish Council of Economic Pri- books, the government in a way paid for cies to squeeze state monopolies, while en- orities, approached him with a gift: her its own undermining." couraging competition from foreign com- group's guidebook on "Shopping for a Bet- Even after the Soviet invasion, Mr. panies to help make Czech firms efficient ter World," a sort of moral report card Klaus took délight in writing anti-statist es- players in the world market. on U.S. corporations and the products they says for a Czech Encyclopedia of Econom- Monday, President Havel announced a make. After leafing through it, his reaction ics. His dismissal of John Kenneth Gal- package of sweeping new laws that will al- was polite but firm: "If this is another ef- braith as a "social critic" rather than an low state companies to sell-shares to their fort to make a third way between capital- economist drew rebukes, He was fired in. workers, permit citizens to start their own ism and communism, we have tried this. 1970 after being cited as the leading companies of whatever size, and allow for- We wanted to create a New Man, with only "counter-revolutionary" in the Ministry eign investors to own as much as 100% of a unselfish thoughts. I am afraid it is not For most of the next 19 years, Mr. Czech firm. Next week, Mr. Klaus will possible." Ms. Marlin, somewhat taken Klaus worked in obscure positions in the present an austere budget cutting state aback by an Eastern European with such subsidies by at least 15%. views, retreated. Although he is satisfied with the pace of Admirer of Milton Friedman Refreshingly, Czecho- reform for now, Mr. Klaus acknowledges that his colleagues have some disagree- Mr. Klaus, a slim, graying 48-year-old slovakia is not asking for ments with his radicalism. Mr. Komarek, with a dry sense of humor, Is one of three ministers in charge of the Czech economy. Western foreign aid. Mr. the first deputy prime minister, appeared to fire a shot across Mr. Klaus's bow last They are easily the most outspoken free Klaus believes such assis month when he warned that "if a market marketeers in post-communist Eastern Eu- tance would bring both in- economy were to start immediately, eco- rope. An admirer of Nobel Prize-winning nomic agony" and chaos would result. economists Milton Friedman and F.A. Hayek, Mr. Klaus says fundamental com- flation and timidity in pol- Mr. Klaus may be forced to edge a little toward the "reform trap." He says It is promises with a market economy will only icy formulation. best not to slash consumer subsidies fur- delay solutions to his country's stagnant ther until a "legitimate" government is in- economy. He says the market is not divisi- stalled after the June 8 elections. Jan Ur- ble; the only real issue is the proper se- Czech central bank. However, he is quick ban, the secretary general of Civic Forum, quence of reforms needed to dismantle the to note that the image of total control that wonders if the government is tossing away statist economy. the communist government displayed to a real opportunity for radical measures, at Mr. Klaus is especially leery of what he the West had little to do with reality. In a time when people are most prepared to calls the "reform trap," in which cautious fact but not in name, Mr. Klaus became sacrifice: and partial reforms prove worse than none the adviser to the bank's chairman Last Mr. Klaus also says he has been criti- at all. He fears that Hungary and, to a year, he was rehired by the Ministry of cized by some in the West for not moving lesser extent, Poland are in danger of fall- Economics and once again began to criti- faster to privatize Czech companies. He ing into exactly that trap. cize the regime publicly. Mr. Klaus says says that in the absence of firm rules for Mr. Klaus and his colleagues-Valtr Ko- that there were many Western misconcep- such sales It would be folly to unload state marek, first deputy prime minister and tions about his country over the past year. companies now. He refuses to play Santa Vladimir Dlouhy, the planning minister- "We weren't an outpost of Stalinism," he Klaus to communist managers by letting know that Czechoslovakia faces some hard says. "The communists had lost effective them sell their firms at fire-sale prices to times in the short run. Machinery and control; new thinking was everywhere. the first Western buyer, often in exchange equipment exports to the Soviet Union Even the economy was moving away from for a golden parachute. (70% of all Czech ex- the bureaucrats. The party only had the ports) will fall by at A Big Hit power to break up demonstrations. least a fourth in the Then on Nov. 17, the pace of change Still, Mr. Klaus and his colleagues were next few years. Most suddenly lurched into overdrive. On that a big hit in both Washington and on Wall of the lost exports night, after a police beating of student Street last week. Robert Hormats, vice are unsalable else- demonstrators, opposition to the regime chairman of Goldman Sachs International, where. Moscow will swelled into a mass movement. Mr. Klaus says the Czech team is very Impressive. also deliver only remembers walking home from the train, They mean to tackle underlying economic 70% of promised oil station about 11 that night, unaware of the problems head-or and solve them.' Many shipments in the brutality. Outside his home, he met his 20 Wall Streeters asked for assurances that first three months of year-old student son, who was white with the Czechs would be in office after the this year. fright from what he had seen. The son June elections. No guarantees were given, Still, Czechoslo- challenged the father to do more than en- but with Vaclav Havel likely to baw to de- vakia's long-term gage in academic criticism. "We children mands that he seek a full term as presi- economic prospects did our job tonight, and now it is the re- dent, the Civic Forum team looks like a are the brightest of Vaclav Klaus sponsibility of the parents to do some- winner at the polls. any Eastern European country outside of thing,' he told his father. Similar conver Leaving his meeting with the Wall rapidly vanishing East Germany. Czechs sations took place all over Prague. Street executives, Mr. Klaus banters with have to remind visitors that in 1939 their Two days later, Civic Forum was a crowd of admirers in pin-stripes. A country ranked 10th in the world in per-ca- formed out of a loose. collection of dissi- Chase Manhattan official tells him that her pita income, ahead of Austria and Bel- dents, actors, academics and workers. Mr bank is'about to send a mission to Prague. gium. Klaus became a key political adviser to Oh, would you like to buy a bank?" Mr. And refreshingly, unlike every other Vaclav Havel. The two men had met dur- Klaus asks, his eyes twinkling. "Sure, Eastern European country, Czechoslovakia ing the Prague Spring when they served to what's your price?" the executive coolly is not asking for Western foreign aid. gether on the board of a literary magazine replies "Well, the Austrians are also com- "That is the last thing on our agenda," and had kept in close touch When, the rev.) ing in a few days so you may have to com- says Mr. Klaus, who believes such assis- olution succeeded, Mr. Klaus was pres pete, Mr Klaus says. We are reformers, tance would bring both inflation and timid- sured into taking the highly visible job of but we are not naive reformers." ity in policy formulation. finance minister. He had hoped for a qui- Mr. Klaus has never been timid in his eter post as head of the central bank. Mr. Fund is a Journal editorial opposition to the communist regime. He Instead, he has become the point man writer The Oder Neisse Imbroglio Political judgments often boll down There is indeed a nationalist fringe in to this: You:are right, but you lose. German politics in the form of the Re Chancellor, Kohl seems to be publikaner party. Virulently patriotic, relearning this lesson in the midst of xenophobic and anti free market, the the current German election cam Republikans prey on the kinds of re paign. While there seems to be gen- sentment found in any democratic eral agreement in the West that a electorate. After World War II, for united Germany will be democratic, ample, the Soviet "liberators" helped prosperous and firmly bound to NATO themselves to allarge chunk of Polish and the European Community, the territory in the east, while the country head of West Germany is catching was compensated from the histori heat for his position on the border be- cally German regions of Silesia; Po- tween East Germany and Poland. merania and East Prussia to the west His position is that before the mat- and north: The subsequent population ter can be finally settled, Germany movement caused no little suffering must be reunited: There Is a certain among the defeated Germans a histo- logic to the notion that until he has rian might say this was rough justice some authority over East Germany he for the Nazishorrors, but some per can't decide-its border questions. In centage of German voters might take fact, both West and East Germany a different view. have signed various treaties recogniz- The Republikaners have recently ing the present border at the Oder and done well in local elections and are Neisse rivers, but Poland and certain now running at about 5% in the polls. West German and other Western poll- Unhappily, 5% is the percentage ticians are demanding resolutions that would entitle them to representa- corresponding to a peace treaty. tion in Parliament under the German Pressure has been applied by Po- electoral system. Mr Kohl knows that land's prime minister, Tadeusz Ma- if the Republikaners do well his zowiecki, West Germany's opposition party does. poorly. And if the Free Social Democrats and Free Democrat Democrats fail to mount the Foreign Minister Hans-Dietrich threshold, his present coalition would Genscher, part of Mr. Kohl's Chris- collapse and he would have to choose tian Democrat-led coalition: The chan- between the unwanted support of the cellor told his cabinet this week that Republikaners and a grand coalition he would not oppose a joint resolution with the Social Democrats: forswearing territorial demands on Mr. Kohl's position on the Eastern Poland by the Bundestag and the Par territor esprepresents a careful. tacti- liament to be elected in East Ger cal decision to avoid handing the Re many this month. He stopped short of publikaners a volatile issue Surely offering a provisional treaty, however keeping the Republikaners out of Par and later rejected suggestions about liament is worth.a temporary delay In taking up the issue of war repara dotting the is and crossing the on: tions. The political barrage against the Oder-Neisse Line. One can, of Photo Copy Preservation him continued, with France's foreign course, disagree with the chancellor minister, Roland Dumas; demanding tactical judgment, but his motives immediate clarity about the borders. ought to be respected by politicians tempted to play to anti-German re- The way to understand Mr. Kohl's sentments in their own electorates position is to sit back from the tran- Mr. Kohl is not trying to fan the scendent Issue to the more immediate flames of German chauvinism, but to context of West German politics. contain them: Asides Return of the Gipper March 18 elections wants the origina- tor of the "evil: empire" speech to Ronald Reagan even now remains speak in East Berlin on their behalf a figure of controversy and obloquy in We know that some disagree with us some American quarters, but they on this, but future historians will have love him in East Germany. Yes, a rich material for deciding: Who won party coalition running there in the Eastern Europe? Richard Cohen No Double Standard for Germany The polls tell us that most Americans Of course, no one can ignore what to see the revival of German language support German reunification. The fig. happened the last time Germany was newspapers In Polish areas with signifi- ures are foverwhelming 67 percent unified. It produced Adolf Hitler, World cant numbers of ethnic Germans. To the and a German reading those figures War II and the Holocaust. A visitor to Poles and others, these might seemina might take both comfort and pride in Germany, especially one whose relatives tionalistic demands-as they might well (them. Not 80 fast, Helmut The Cold War perished in the Holocaust, cannot help be-aut they are no different from what may be over, but in certain neighbor staring at people on the street Sand other countries would ask71 hoods World War II is still being fought wondering about them: have they The problem for Germany that Journalists are warned not to put too changed? do that on every visit, and in ordinary manifestations of nationalism much faith in polls. They capture public my imagination, put them in uniform. will be viewed as a return to the past. opinion at particular moment and no There: that's how they would look in The German lunatic fringe will be ex- more accurately predict the future than military or: SS garb, There: that is aggerated and the occasional victory at does Nancy Reagan's astrologer. At this Germany and nothing has changed. the polls of a neo-Nar will be trumpet- particular moment, Germany-both East But a lot has changed. For almost half ed 8 harbinger of things to come, and West-is looking pretty good Indeed, a century, West Germany has been But other countries, including our own, East Germans are streaming over the democracy-an integral part of the dem- have their lunatics, David Duke, the border and being met by only the most ocratic West, It has made reparations to former Klansman, seat in the understanding and charitable of (former) Holocaust victims. West Germany-as Louisiana legislature, but that did not countrymen. Who cannot be moved? opposed to East Germany-has never signal the return of Jim Crow. And Americans have been, According ducked its responsibility for that enory When such things happen in Ger- to:s New York Times/ CBS News poll mous crime, and indeed, it has taught its many, Its high rating here only 16 percent of those polled feared young the truth of the Nazi period. will surely plummet, and some people Germany would once again try to domi- contrast that effort with the experience of will warn of the "old Germany, But it nate the world. Americans are SO favor- a young Mississippi woman I know. Not is 8 "new Germany" they will, be ably disposed to the prospect of German until she saw the film "Mississippi Burn- seeing It will be a nation acting much reunification that even the World War II ing did she realize what had happened in like any other-having its parades, generation has little apprehension. the civil rights era in her own state: saluting its flag and electing its occa- Among persons 65 and older, 64 percent No young West German could be 80 sional extremist, Moreover, it will be were untroubled by reunification. ignorant: But along with that education a nation where patriotism had been Let me make a prediction: It's only a effort has come some resentment. A repressed. As a result, it may surface matter of time. until those favorable college student I spoke with in Bonn said very suddenly and rambunctiously. It figures nosedive. That's because it's her classmates had just about had it with would only help the worst elements in only a matter of time until Germany, their national "guilt trip." They wanted, Germany to apply a double standard both East and West, becomes, well, instead, to celebrate German accom- to the entire nation. Germany. I refer to a chauvinistic ren- plishments and revive a patriotism that Germany justifiably still remains on aissance, an explosion of nationalism has long been dormant, parole, But if a united Germany is ever that is bound to make both the United Others in Germany are feeling patriotic to take its place among nations it has to States and Europe anxious. When that or, if you will, nationalistic. When it be allowed to act much like any other happens whole lot of people are comes to Poland, for instance Germans nation, To treat it differently, to feeda point to want them dead cared OF in German IFPA dna Defense Nuclear Agency PROGRESS REPORT FOR THE DEFENSE NUCLEAR AGENCY May 1 - June 30, 1989 Contract Number: DNA 001-87-C-0033 Policy Considerations Affecting Nuclear Forces Modernization United The Federal Nethariands Xingdom Beigname Republic of Germany France Italy Submitted By: The Institute for Foreign Policy Analysis 675 Massachusetts Avenue, Cambridge, MA 02139 1612 K Street, NW, Washington, DC 20006 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Table of Contents Executive Summary i Implications for DNA and Acquisition Policy vi Federal Republic of Germany 1 West German Perspectives of the NATO Summit's Comprehensive Concept and its Handling of the SNF Issue 1 The Future of SNF 5 The Vienna CFE Talks 6 Bundeswehr Restructuring and Personnel Issues 8 United Kingdom 13 British Perspectives on the NATO Summit 13 British SNF Modernization 14 The Bush CFE Proposal and U.S./British Relations 15 Defense White Paper: Major Procurement Themes 16 Labour Policy Review: Kinnock's Move to "Multilateralism" 22 SLD Defense Policy Statement 25 France 27 French Defense Council Decisions on Nuclear Weapons Procurements 27 The SNF Controversy and Hadès 28 French Views of the Current CFE Proposals 30 Defense Austerity and the 1992 Budget Guidance 35 The European Elections and the National Service Debate 39 The Netherlands 43 Fall of the Lubbers Government and Dutch SNF Perspectives Leading to the NATO Summit 43 The Dutch "Shift Concept" Reflected in Summit Communiqué 44 Impact of the Government's Fall on Procurement 47 Prospects for the Next Dutch Government: The European Elections in the Netherlands 51 Belgium 53 The NATO Summit and Arms Control Priorities 53 Procurement Issues and Defense Industrial Trends 55 European Elections and Belgian Coaltion Politics 60 Italy 62 Italy's Governmental Crisis and the NATO SNF Debate 62 Italian Views of the NATO Compromise 63 Implications for Italian Defense Reorganization 65 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency POLICY CONSIDERATIONS AFFECTING NUCLEAR FORCES MODERNIZATION Executive Summary Federal Republic of Germany The SNF debate continues to be controversial in the Federal Republic of Germany, not- withstanding the NATO Summit's compromise formula on Lance modernization and SNF negotiations. Even if the present government coalition is returned to power in the 1990 election, it is increasingly doubtful that the Germans will take a decision on FOTL in the 1992 timeframe. Moreover, there is also the prospect that the West German government will support opposition calls for an SNF negotiation that aims at an early reduction in the number of nuclear-capable surface-to-surface missile launchers, down from their present total of 88 to a number above zero, irrespective of progress achieved in the CFE negotiations. The emergence of West German "sovereignty" as an issue in Alliance politics threatens to become more important in the future, and, together with the growing importance of environmental issues throughout all of Western Europe, may jeopardize Alliance decision- making on future weapons modernization decisions, including TASM. In the Federal Republic, support for a "Third Zero" option is widespread, although for many it is considered only with regard to land-based surface-to-surface missiles and nuclear-capable artillery deployments, and not dual-capable aircraft platforms. West German criticisms of the Bush CFE proposals focused on the inclusion of troop ceilings and aircraft platforms, although in the FRG there is widespread popular support for the President's initiatives and the opposition parties are in favor of an agreement at the CFE that includes both categories. Military opposition to the Bush proposals is based primarily on fears that the inclusion of aircraft, for example, will dilute the focus of the talks, which, in the military's view, must be the reduction of the Warsaw Pact's invasion capabilities. On the question of troop reductions, some in West Germany fear that this will become a license for the large-scale withdrawal from Western Europe of American conventional forces. In the context of a prospective CFE regime, the West Germans are restructuring their ground forces to emphasize highly mobile units based, in large measure, on the utilization of reserve forces. For the West Germans, the prospective post-CFE force structures of the NATO allies and the Warsaw Pact nations will imply a change in the scale of projected conflict probabilities, in stark contrast to current planning assumptions that are based on expectations i Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency of attack by large-scale and massed armored Soviet forces. In a CFE regime, West German military analysts feel that the incentive for surprise attack may be increased and in this circumstance nuclear weapons deployments will remain critical to war deterrence in Europe. Britain British perspectives on SNF continue to be shaped by Mrs. Thatcher's views of the relationship between British strategic-nuclear forces and their contingencies for use, and NATO's requirement for Selective Employment options in the context of Flexible Response. It appears as if the Prime Minister is seeking to maintain distance between a forward battle contingency in the FRG and the prospective destruction of British territory, in line with her so-called "firebreak" thesis. British concerns that West Germany may not be prepared in 1992 to come to a decision on Lance modernization have helped to solidify a U.K. decision to sign an MOU with the United States on TASM cooperation. A final decision by the British Government on which technological option (related to TASM) to choose will be governed by assessments of the best offset arrangements and cost/effectiveness issues pertaining to the incorporation of British "front-end" and other technologies. As is true elsewhere in Western Europe, however, TASM modernization will likely face criticism in Britain, although the Government's decision to replace the aging British stockpile of WE-177 free-fall bombs is likely to stand. Its major challenge may come from budget austerity requirements which could sacrifice tactical nuclear aircraft programs to stave off budget cuts to either Trident or conventional force modernizations. However, because of the early decision on TASM cooperation with the United States, such a budget contingency is not likely to occur. The newly released Defense White Paper provides for little change in British procurement priorities. NATO commitments, apart from the Trident program, account for the largest single line items, and amount to 39% of the total spending in the procurement area. France On June 2 the French Defense Council agreed to a series of austerity measures designed to stretch out and scale down major weapons procurements. While no major nuclear equipment programs were shelved, there continues to be speculation that the S-4 mobile IRBM program will be scrapped, in favor of the deployment of a ground-based variant of the M-5 SLBM, to keep up-to-date the 18 launchers deployed on the Albion Plateau. There is also speculation that the Hadès "prestrategic" nuclear weapons program will be reduced, or even cancelled, if the President can be persuaded that its cancellation will not push the West Germans to ii Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency foreclose a NATO option to modernize Lance, which, in turn, may be linked-from the French perspective-to the willingness of the United States to sustain its troop commitment to Western Europe. In contrast, in conventional weapons procurement, the Defense Council decisions mean delays in some programs like the PAH helicopter project and the construction of the Charles de Gaulle nuclear-powered aircraft carrier, although it still is not clear whether the Socialist government will, ultimately, decide to cancel the carrier modernization program altogether. Over the next year, on the basis of cost-effectiveness studies, major force structure reor- ganization decisions will be taken by the French. In this respect, it is widely speculated that French ground forces may be reorganized to emphasize highly mobile structures and reduced personnel ceilings. The French Government hastens to point out that these austerity measures are in no way related to Western CFE proposals and should not be taken as an impetus to rush toward an agreement. At the CFE talks, the French continue to be opposed to the inclusion of aircraft platforms, even in a second round of the negotiations, and, reject any notion that French offe forces are to be included in "NATO" cuts, preferring to categorize their capabilities as reserve forces distinct from, but integral to, forces located in the "central zone," or the areas of the Federal Republic and the Low Countries. There is likely to be much political debate over the Government's austerity measures, and, in particular, its decision to retain, for the moment at least, French "tactical" nuclear weapons in the French inventory. There has never been great support in France for such systems, and renewed debate in Parliament and the press over Hadès, for example, could erode the widely-vaunted French defense consensus, which is much more fragile than is readily understood in the United States. French perspectives on defense issues, particularly nuclear weapons deployments in France, and NATO Europe more generally, are diverse and much more complex than is widely believed. As elsewhere in Western Europe, they are being subjected to influence as a result of changed threat perceptions of the Soviet Union and an evolving conception of policy priorities and French national interests. Thus, in the conceptualization of French interests, arms control and environmental issues, for example, have emerged as central concerns in the shaping of policy initiatives, as has the requirement to help to manage change in the relationships between and among their Eastern neighbors and West European partners. Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency The Netherlands The fall of the Dutch center-right government on May 2, triggered largely by Liberal Party in-fighting (and the growing dissatisfaction of the Liberals' over their junior status within the coalition), raises the distinct possibility of a center-left Christian Democratic/Labor coalition coming to power after the September elections. In terms of future defense planning, such a coalition might lead, for example, to a greater willingness on the part of the Christian Democrats to accept lower levels of defense spending and to press NATO toward early SNF negotiations, in exchange for a more moderate Labor defense policy across the board (including on SNF issues). The ongoing Dutch role in helping to fashion a NATO compromise on SNF can be seen in the degree to which the Summit communique incorporated major aspects of the SNF strategy outlined by Foreign Minister van den Broek, which included: a call for unilateral Soviet reductions to the NATO level; an opening of SNF negotiations after an agreement has been reached on conventional force cuts in CFE; steps to ensure that such negotiations do not lead to a "Third Zero"; and support for the updating of NATO SNF systems "where necessary". The fall of the Lubbers Government has had the immediate impact of delaying major procurement programs formulated by the Dutch defense ministry. Key programs now on hold include the modernization of the Leopard I tank; selection of an attack helicopter for the Dutch army; replacements for peacetime attrition in F-16s; the purchase of additional Patriot air defense systems; and the purchase of the Crotale SAM system. The outcome of the European Parliament elections in Holland suggests that a CDA/PvdA successor to the fallen CDA/VVD coalition is, while probable, not inevitable. The Dutch Labor party (PvdA) did not perform as well as had been expected, while the centrist CDA turned in a strong showing with the Dutch electorate. Should these trends persist, and if Labor Party centrists fail to gain adequate support among the rank and file for a more moderate defense policy, Lubbers and the Christian Democrats may choose to govern once again with a suitably chastened Liberal Party (which, nevertheless, continues to slide in the polls). Belgium The center-left Martens government welcomed the formula for possible SNF negotiation and modernization reached at the NATO Summit, although both major party blocs in the current coalition - - the Christians and the Socialists - - would prefer to begin SNF talks in the nearer term (even parallel to the CFE negotiations). iv Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency While still opposing (for the moment) a "Third Zero" option, the Government also continues to reject any "updating" of existing SNF assets that might significantly extend their range. In this context, support in Belgium is weak for the deployment of air-launched stand-off systems (such as TASM), which many on the center-left of the political spectrum believe may violate the "spirit" - if not the letter - of the INF Treaty. The Belgian Socialists - particularly the Flemish wing - still voice support for an ultimate "Third Zero", and argue (with the center-left in West Germany) that such an option was not foreclosed by the NATO Summit. In this formulation, negotiations toward a "partial reduction" of NATO SNF are viewed primarily as an intermediate step toward the final objective. With the decision to procure the French Carapace ECM system for the Belgian F-16 fleet, the Ministry of Defense has announced the last major systems procurement for 1989-90. Although an American candidate was rejected in this competition (primarily due to the lack of a sufficiently attractive offset package for Belgian industry), future areas of potential sales opportunity include budgeted plans for the modernization of Belgium's Leopard I tanks and field artillery, together with the acquisition of modern anti-tank, air-to-air, air-to-surface, and surface-to-air missile systems. Results from the elections to the European Parliament suggest shifting public support for the parties in Belgium's governing coalition. Prime Minister Martens' Christian Socialists faired well, while their strongest rivals in the coalition - the Flemish Socialists - faired poorly. Also of note was a fall in support for the Flemish nationalist Volksunie party (now in the government), support which shifted primarily toward the more extreme Vlaams Blok. Belgian Greens also polled extremely well, while the Liberals in both language communities continued their slide in popularity. Italy Italian defense perspectives emphasize internal security threats and "out of area" contingen- cies, specifically Italy's interests in the Mediterranean basin and concern over the export of Middle Eastern terrorism. On this basis, future Italian defense planning will revolve around a defense model, called the Zanone Plan, that emphasizes power projection capabilities and highly mobile ground forces structures. However, the funding that is necessary to support the new Italian defense model is unlikely to be forthcoming, and if anything, over the next several years, in line with the (former) Government's priority to bring into balance Italy's deficit spending, Italian defense ap- propriations are likely to be reduced. Already, a supplemental spending bill that authorizes funds for major international collaborative programs, including Patriot procurement, EFA V Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency funding and the NATO Frigate program, has been delayed in Parliament and is not likely to be submitted for a vote in the near future. On the SNF controversy in NATO, the Italians are generally supportive of the official West German governmental position, including Bonn's attempts to tie SNF negotiations to the CFE talks. In contrast to the official German governmental position, however, the (former) five-party Italian governmental coalition is more skeptical of the deployment in Italy of strike-tasked aircraft, and, on this basis, hopes that a CFE negotiation will preclude the necessity for the redeployment of the American 401st F-16 squadron to Italy. This explains, in part, the widespread Italian support for President Bush's CFE proposals. The formation of a new Italian government is proving to be somewhat more difficult than had been expected, largely because of the personality clash between the Socialist leader, Bettino Craxi, and Christian Democratic leader Ciriaco De Mita. Craxi apparently favors a partnership with either his friend in the Christian Democratic Party, Arnaldo Forlani, or the CD Foreign Minister, Giulio Andreotti. In either case, Italian government policy on national security issues is unlikely to change. Implications for DNA and Acquisition Policy General Political Observations Political considerations will affect policy decision-making in NATO to a far greater extent in the future than was the case in the past. Particularly with regard to nuclear modernization issues, political considerations have become as important as military requirements in delineating the parameters for Alliance deployment and modernization of SNF. In NATO, this can already be seen in the context of the national debates over Lance and nuclear-artillery modernization. In future, it will be apparent especially in the context of the CFE talks and the broad European desire for early SNF negotiations. Clearly, European political objectives and policy perceptions may impose upon U.S. and NATO planners real constraints in terms of SNF and force deployment contingencies. Environmental issues, too, will have a greater role in shaping European defense policy options, from restraints on low-level flying to limitations on troop maneuvers in protected areas. Together with a greater West German sensitivity to sovereignty issues, environmental politics will have implications for NATO planning, including, possibly, TASM deployment, depending on how the issue is presented by the United States and Allied leadership. Few West German political analysts think that TASM modernization will be any less difficult to achieve than Lance modernization. Already members of the "left" have raised opposition to TASM on the basis that its deployment would be a circumvention of the INF Treaty, an vi Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency argument that is shared by many left-of-center politicians in other NATO countries (includ- ing those examined in this Report). SNF The NATO agreement on SNF, set forth in the joint communiqué document issued at the Summit, represents a fragile consensus among national views on the SNF issue that continue to diverge. Significant, however, is the widespread support throughout each of the countries reviewed in this report for the U.S. CFE proposals set forth by the President at the Summit. It is necessary for the United States to maintain the perception now held in Western Europe that it has seized the initiative at CFE. This perception will help to stall pressure for negotiations on SNF before a CFE agreement is finalized. In many respects, the prospects for a positive decision on Lance modernization are decreas- ing, and even if the current government coalition in the FRG is returned to power in the 1990 election, its support for FOTL is questionable, given widespread public opposition to ground-based short-range nuclear weapons deployments on West German soil. It may be that the easiest route toward a more stable NATO consensus on nuclear weapons deployments lies in TASM and enhancements to DCA survivability. Because TASM could be deployed with the air forces of a number of NATO European countries, it would not single out West Germany as the only deployment country. By the same token, the range of a TASM stand-off system would make possible attacks launched against targets deeper in Warsaw Pact territory (perhaps even in the western Soviet Union), thus obviating West German fears of deploying a system capable of being targeted only against sites in East Germany. Yet, TASM modernization is not without potential pitfalls. A number of leading West European officials and party leaders in most of the countries reviewed in this study argue that an extended-range (400 km or over) TASM would violate the spirit of the INF Treaty. Others oppose TASM because they reject the necessity of modernized SNF for NATO, based on widespread opposition to "nuclear warfighting" concepts. In Western Europe, today, there is a strong, popular and analytical attachment to "massive retaliation" as the favored deterrence strategy for NATO. So, too, a growing number of West Europeans endorse a "minimal deterrence" concept based on a low nuclear threshold in NATO. This conception is driving West European arms control perspectives, as well, and provides a basis for rationalizing defense budget cuts, especially in ground forces structures. Recent announcements concerning the defense budgets of many of the countries reviewed in this Report suggest a continuing trend of reduced growth rates throughout NATO Europe, despite a renewed commitment to 3% real growth per year. For reasons ranging from the fall of government coalitions to the reordering of budgetary priorities to emphasize spending vii Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency Federal Republic of Germany In the second quarter of 1989, West German defense debate focused on the Alliance controversy over short-range nuclear forces (SNF), the NATO Summit and the U.S. and Soviet arms control proposals presented at the CFE talks. During this period the Federal Republic hosted state visits by President Bush and Soviet General Secretary Mikhail Gorbachev. In June, the new budget figures for the Bundeswehr were released and discussion of Bundeswehr planning attracted considerable attention from FRG defense analysts, both in and out of government. West German Perspectives of the NATO Summit's Comprehensive Concept and Its Handling of the SNF Issue While West German government offi- West German officials, although pleased with the cials expressed relief over the results of unified picture presented by the NATO summit the NATO Summit's SNF compromise, agreement, are critical of the Comprehensive they have been highly critical, in private Concept. accusing it of lacking a "vision" of the conversations, of the Comprehensive future of East-West relations. Given the huge Concept's perceived lack of visionary economic power of the FRG relative to its size, initiative. This is based on a view that West German leaders are making increasingly the future role of the Alliance lies more clear their desire to be treated as a full partner in in the political, and not strictly the the Alliance and with the United States; these military, realm, as a manager of East- desires are manifested in more vocal demands for West relations and, in particular, of the full sovereignty on issues which attract public arms control process, which increasingly attention, namely SNF modernization, low-level is identified as the most important agen- flying, and NATO-maneuvers. da item in the evolving East-West relationship. In this context, and to a considerable extent, West German policy officials, particularly those in the Foreign Ministry, feel that the U.S. insistence on Alliance support for "updating as necessary" SNF deployments has resulted in an inflexibility that detracts from the Comprehensive Concept's capacity to help fashion a creative Alliance policy relating to the future of East-West relations. Many West German politicians argue that NATO needs an agenda for East-West relations in which options and consequences are drawn from a systematic assessment of the changes taking place in Eastern Europe and the USSR. From this perspective, if NATO cannot adapt itself to such a role. its institutional framework may be less and less relevant to emerging European interests and policy objectives. 1 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Clearly, the role of the Federal Republic in the Alliance is under review across the spectrum of political opinion in West Germany. Only the most radical political spokesmen today advocate West Germany's withdrawal from NATO altogether, but this is less a reflection of a convergence of opinion between the Alliance's supporters and its opponents, than an indication of a growing sense that the Federal Republic has a leadership role to play in the Alliance. Based in part on a more narrow assessment of West German national interests arising from the FRG's solid economic performance in recent years, as well as from a sense that U.S. and West German interests may not necessarily coincide in all areas, support for an expanded West German role in the Alliance is a manifestation of the increasing importance of the "sovereignty" issue in West German politics. Paradoxically, however, it is also part of the more amorphous, less well- defined, sentiment in support of greater European unity and the need to put forward regional perspectives on global economic and security issues. The European impetus is reflected in the West German insistence on greater decision authority in the Alliance, to be sure. But it is also manifested in the FRG's expressed desire for closer European collaboration in the defense area on a bilateral and multinational basis (i.e., the Franco-German Brigade), including collaborative projects under the auspices of the Independent European Program Group (IEPG) for weapons acquisition (i.e., NATO Frigate) and R & D cooperation (i.e., MSAM). The emergence of a new assertiveness on the part of the West Germans with respect to Alliance issues was reflected dramatically in President Richard von Weiszäcker's remarks on the occasion of the fortieth anniversary of the Federal Republic. In this speech, von Weiszäcker stated that West Germany was no longer prepared to be treated as anything less than a full partner in the Alliance. Furthermore, he noted that, while Europe may be leading the path toward change in a new strategic situation on the Continent, the Federal German Republic is capable of playing a greater role in Europe. If von Weiszäcker's remarks are taken to heart, we must assume that in the future West German perspectives on security issues may not always correspond to, and may sometimes even conflict with, those of the United States. For NATO this may mean greater difficulty in the future with regard to decision-making on issues that directly affect West German perceptions of Germany's national interests. This is likely to be the case with respect to Alliance decisions on issues that are seen as infringing on West Germany's sovereignty, such as low-level flying and NATO exercises. Of higher visibility and, ultimately, of potentially greater significance to Alliance cohesion will be the West German position on the continuing SNF debate, which by no stretch of the imagination has been resolved as a result of the NATO Summit's compromise formula. In fact, at the heart of West German criticisms of the Comprehensive Concept document is the SNF issue, and British and American insistence on an explicit statement excluding the "Third Zero" option. The West German position entering the pre-Summit negotiations had been laid 2 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency out by Chancellor Kohl in his speech to the Bundestag on April 27, 1989 (see IFPA's DNA Quarterly Report for January-April). In this speech, Kohl announced that any West German decision on proceeding with a follow-on-to-Lance (FOTL) would not be made until 1992, and would be dependent upon an evaluation, at that time, of "political and security policy develop- ments, especially considering the results of all arms control negotiations." Specifically, Kohl tied the decision to the achievement of three goals. First, there would have to be "increased security at a lower level of nuclear and conventional forces as a whole." Second, the Alliance would have to judge whether "binding agreements" with the Warsaw Pact had been concluded, "eliminating the capability for surprise attacks and offensives designed to conquer territory." Third, the Alliance would seek evidence of agreement creating "a greater degree of mutual trust, based on increased transparency and calculability of military procedure." Additionally, Kohl put forth the West German demand for "speedy" negotiations to reduce NATO and Warsaw Pact deployments of SNF in Europe. Holding to these positions against what was perceived in West Germany to be extreme pressure from the United States and the United Kingdom to agree to modernization without arms control, the coalition was able to make the argument domestically that it had fought up to the last minute to ensure that the Allies took account of West German interests. The compromise reached in Brussels, which delayed the FOTL modernization decision until 1992, tied the start of negotia- tions on SNF to the conclusion and implementation of the first stage of CFE reductions, and confirmed that the Alliance seeks only a partial draw-down of its SNF assets. In the Federal Republic, in the immediate aftermath of the NATO Summit, the SNF compromise was portrayed as a great victory. However, in recent IFPA discussions with West German officials, it became clear that, from their perspective, the Alliance debate over SNF and Lance modernization was far from over, and few defense analysts in the FRG were optimistic over the prospects for deployment in West Germany of FOTL. Even as Kohl, in his presentation on June 1 of the Government's view of the NATO Summit, sounded an optimistic tone with regard to SNF, and in particular the Lance modernization decision, he proceeded to say that, in this context, the phrase "for the foreseeable future," can mean "only a relatively limited period of time," suggesting that the Alliance might eventually decide that the conditions have been reached which make any or all of the SNF basing modes obsolete. From Kohl's perspective, then, the NATO compromise formula fails to rule out the possibility of significant change in Alliance deployments of short-range nuclear forces. In the future, as the nature of the threat changes either as a result of unilateral Soviet initiatives or because of a negotiated arms reduction regime, land-based SNF, in particular, could be 3 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency configured differently than they are at present. For deterrence purposes, however, many West German policy officials and defense analysts agree that the political utility of SNF deployments will be critical even under a CFE regime that is characterized by conventional parity. From this perspective, and under the circumstance of a CFE regime, ground-based nuclear surface-to-sur- face missile launchers could, perhaps, be reduced to below the current NATO inventory of 88 (Lance) launchers, but not necessarily to zero, as is favored by some members of the government coalition (principally members of the Free Democratic Party) and endorsed by the opposition Social Democratic Party (SPD) and the Greens. On the specific issue of what the NATO Summit compromise means for the modernization and future deployment of nuclear-capable surface-to-surface and other SNF systems, notably nuclear artillery and aircraft platforms, differences of interpretation among the government coalition partners, and between the government and opposition parties, have begun to be aired publicly. For example, CSU Bundestag member Ortwin Lowack assesses the compromise to mean Alliance agreement to end the drift toward a "Third Zero" option in short-range forces. On this basis, he recently stated that by the NATO formula the "Third Zero" was "off the table." Reflecting this view also is the NATO Secretary General and former West German Defense Minister Manfred Wörner, who declared that the wording of the agreement, which accepted only a partial reduction of SNF, meant exactly that: "partial means partial-and not complete." However, in Bundestag debate, West German Foreign Minister Hans-Dietrich Genscher (FDP) called upon the Federal Republic to shape the disarmament process so that there can be no "compulsion for modernization" in the case of short-range nuclear forces, and that negotiation of the "Third Zero" option should not be unilaterally ruled out by the NATO allies. It was widely reported in the Federal Republic and other NATO capitals that Genscher had threatened to bring down the government coalition over the SNF issue if negotiations on short-range nuclear forces were not somehow sanctioned by the Alliance. Although the Summit wording leaves ample room for interpretation, Genscher did come away from the meeting with an Alliance commit- ment to drop the modernization issue until 1992, stating: "we have an agreement to negotiate without an agreement to modernize." Having put off the modernization issue until 1992, Genscher went even further in his efforts to discourage the potential for a positive decision at that time. With regard to the language used at the Summit, Genscher commented that an agreement to negotiate a modemization decision is not a decision to modernize. It remains to be seen whether the FDP's relatively poor showing (5.6%) in the June European Parliamentary elections will strengthen or diminish Genscher's objective of pushing for early SNF negotiations and thereby obviating, according to his view, the requirement for FOTL. Nevertheless, one thing is clear: while the European election results for the CDU were not extraordinary, attracting 4 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency only 37.8% of the vote, they were not so disastrous as to prompt a Party decision to oust Kohl from the CDU leadership. (It had been widely speculated in the Federal Republic that if the CDU failed to attract 35% to 40% of the popular vote in the Parliamentary election, the CDU might turn to a more charismatic personality than the personally unpopular Kohl). However, despite the continuity of Kohl's leadership in the CDU, the prospects for a positive FOTL decision are diminishing steadily in the Federal Republic. The opposition Social Democrats and Greens, both parties of which held their respective voter support in the June elections-37.3% for the SPD and 8.4% for the Greens-are opposed to SNF deployments on West German soil, at least in the SSM and nuclear artillery categories, and both support immediate calls for the start of negotiations on SNF reductions toward a "Third Zero" in parallel with the CFE talks in Vienna. There is some division in the SPD on air-launched SNF systems, but in general most party officials oppose TASM deployment, with some "centrist" defense analysts supportive of DCA in the context of deterrence coupling and assuming no significant reduction in Soviet SNF capabilities.) The Future of SNF Particularly since the signing of the INF Treaty, Although the NATO summit agreement West German and American differences over included approval of only a partial reduc- the roles of nuclear weapons in Alliance tion of short-range nuclear forces, and strategy have become more pronounced. In line then only after implementation of a CFE with general European thinking on this issue, negotiated reduction, modernization op- the West Germans, apart from some military ponents still call for a Third Zero option. officers and defense analysts, emphasize the Chancellor Kohl himself envisages a time political function of nuclear weapons in NATO in the future in which NATO SNF could be strategy and reject any conceptualization of reduced below current NATO levels. SNF as "warfighting" capabilities, as was clear- ly evident in their reaction to Wintex. In this respect, the West Germans, like their European counterparts, are more comfortable with the strategic logic of "massive retaliation" and are highly critical of NATO's Selective Employment options for the "substrategic" use of nuclear weapons. This perspective engenders criticism of SNF deployments, in particular because of their disproportionate destructive potential relative to German territory (East and West) and the lack of a "shared" risk that they bestow upon the other NATO allies, who do not themselves host deployments of short-range nuclear weapons. In the Federal Republic, this has contributed to a convergence of opinion across the political spectrum against Lance modernization and nuclear-artillery deployments on West German soil. It is also reflected in the widespread support for early SNF negotiations. Thus, the Chancellor's speech of April 27, calling for "early" or 5 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency "speedy" negotiations, was a product of pressure from both the political "right" and "left" which he could not leave unanswered, even if this set him into direct conflict with the United States. Moreover, from the West German perspective, it is difficult to rationalize NATO's call for modernization of SNF and, at the same time, support for the goal of deep cuts in conventional forces in Europe. The rationale for short-range nuclear force deployments is widely seen in the Federal Republic as compensation for Warsaw Pact conventional superiority. Thus, the logical nexus between a CFE regime and SNF deployments would be a force mix based on lower levels of short-range nuclear capabilities. It seems that in much the same way as NATO tied cruise and Pershing II missile deployments to the Soviet deployment of SS-20 IRBMs, the West Germans are seeking to tie Alliance SNF options to specific cuts in Soviet Warsaw Pact conventional forces. Clearly, in the Federal Republic, it will be extraordinarily difficult to build support for any SNF modernization, including FOTL and also TASM, in an era of perceived progress on conventional force reductions. There is little reason to believe that the opposition which coalesced around FOTL would leave TASM untouched, especially given the extreme West German sensitivity regarding aircraft in the current environment. Already opposition to TASM has been broached among the public at large, based largely on the argument that the deployment of such systems would constitute a circumvention of the INF treaty. It is conceivable that an attempt on the part of the Alliance to introduce TASM as a routine technical improvement, after substantial consultation with the FRG in advance, might lessen opposition, but it is impossible to predict that even this approach would meet with success. Even those who are not opposed in principle to TASM question its survivability, including the ability of its platform to penetrate enemy air defenses and to escape aircraft interdiction on the ground, a concern that certainly diminishes its perceived credibility as a deterrent asset. Broader popular opposition to TASM is also possible in the context of West German concerns over FRG sovereignty. Calls for TASM deployment could help to coalesce the divergent antinuclear and environmental groups opposed, in the context of the sovereignty issue, to the large concentration of "foreign" troops on West German soil. Whatever the validity of these observations, it is becoming increasingly apparent that TASM modernization may be politically difficult to accomplish in an environment that now provides for the prospect of an SNF negotiation and a CFE regime which includes aircraft platforms. The Vienna CFE Talks Because the future of negotiations on the reduction of short-range nuclear forces in Europe is now clearly tied to the achievement of progress in the conventional force talks, West German attention is more clearly focused on Vienna. Although the intent of President Bush's surprise proposals for the CFE talks may have been to suggest to the Bonn leadership that substantial 6 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency progress could be made toward an agreement Some West German military analysts were and its implementation-and thus toward SNF critical of Bush's proposal to include negotiations,-they also opened for discussion aircraft in the CFE talks, and suggest that the new issue areas of aircraft, helicopters, and NATO concentrate in the first phase of the troop reductions. Based on previous ex- negotiations on the more significant prob- perience in the MBFR, this expansion of the lem of ground forces. CFE mandate is widely expected in West Ger- many to slow down progress at the talks substantially, making it unlikely that Bush's six-month- to-one-year deadline can be met. Nevertheless, Chancellor Kohl and Foreign Minister Genscher were obviously relieved that President Bush had found in the CFE a means of mitigating the NATO dispute over "early" negotiations on SNF and of wresting the arms control initiative from Gorbachev, even if only temporarily. In early assessments of the Bush proposals, West German defense analysts were critical of two aspects: the inclusion of troop reductions and aircraft platforms (although on the aircraft issue the political leadership is divided, with public opinion and the opposition parties strongly supportive of this element of the President's CFE initiative). Thus, while members of the CSU and some CDU politicians oppose the inclusion of aircraft platforms in the CFE, even in a second round negotiation, on the basis that this will dilute the primary focus of the talks (which should be directed toward the Warsaw Pact's ground force invasion capabilities), the leadership of their coalition partner, the FDP, endorsed the Bush initiative, arguing that combat aircraft represent an area of Western superiority which must be considered in a CFE force reduction regime, if the West is to be perceived as serious about its arms control efforts. With regard to the platforms for inclusion, the West German Defense Ministry believes that the CFE proposals should be confined to land-based aircraft (but including land-based West German naval air assets-i.e., Tornado, which Foreign Minister Genscher is said to have already conceded to the Soviet Union). However, notwithstanding the inclusion, for planning purposes, of their land-based Tornado assets, defense planners in Bonn continue to insist that the Alliance must not allow the CFE negotiations to affect NATO's structural combat capability. Thus, one West German working proposal is to include only land-based aircraft and the West German Tornados, in the second phase of the negotiations, while first focusing on combat helicopters. In this way, the Defense Ministry may hope to diffuse the DCA issue. In other words, the Germans are considering a proposal that aims at finding a common Alliance position on aircraft by emphasiz- ing cuts in combat helicopters (together with personnel) in the first phase, and accepting, in principle, negotiations on fixed-wing aircraft at a later time. 7 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency Bundeswehr Restructuring and Personnel Issues In the context of the manpower issue, the Bush and Soviet CFE proposals have ob- Arms control agreements, demographic pres- vious implications for future Bundeswehr sures, and budgetary restrictions will all play planning, and the force structure options a part in shaping future Bundeswehr force being discussed at the Defense Ministry are structure; the Bundeswehr of the future will said to be taking into account possible arms rely ever more heavily upon reserve units. control outcomes. While it is anticipated that West German ground forces will continue to emphasize the Brigade/Division/Corps structure that is currently the basis of West German defense planning, there are likely to be changes (restructuring) in the active strength-reserve forces ratio in some units. There also is likely to be created a new "Ready Reserve" that will be structured to fill short-falls in personnel created in active force units which are not manned at optimal levels. Clearly, from the West German perspective, one of the implications of a CFE agreement will be to put a premium on highly ready, limited, force structures, with a greater reliance on reserve force structures. FRG PROCUREMENT PLANS Agreement between FRG and France on 3 Joint Projects »MBB and Aerospatiale to develop fibre optic guided missile for aircraft and helicop- ters; to be named Polypheme, and having an IOC of 1999 New fire control system Optical equipment for third-generation anti-tank missile FRG will purchase five Signaal multi-beam acquisition radar for targeting (SMART) for its Type 123 frigates MBB joins GeneralElectric (USA), Aeritalia, Ferranti (UK), and Electronique Serge Dassault to bid for NATO Battlefield Information Collecting and Exploitation System (BICES) CAE (Canada) selected to develop testbed simulator providing low-level flight training for Tornado; CAE also selected to upgrade seven existing simulators FRG relents on demand that German company be granted contract for maintenance of aircraft for multi-service electric warfare group; decision now left to NATO Manage- ment and Supply Agency (NMSA) 8 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Together with the establishment of cooperative Confidence and Stability Building Measures (CSBMs), the resultant CFE force structures imply a change in the scale of projected conflict in stark contrast to current West German planning assumptions that are based on expectations of attack by large-scale, massed, Soviet/Warsaw Pact forces. In a CFE regime where inspections and rapid challenges are the norm-and limited forces structures the result-many West German military analysts feel that the incentive for surprise attack may be increased and not diminished in the European theater. Moreover, in the context of the discussions at the CFE talks, and against the background of prospective defense budget cuts, West German defense planners are engaged in a detailed study of future Bundeswehr structures and personnel ceilings. It is interesting to note that in a briefing received by IFPA personnel from members of the Planning Staff (of the Defense Ministry), the West Germans, in their working numbers, (in the aircraft category), appear to include all NATO personnel, including naval forces manpower. The accompanying table reflects the planning assumptions of the West Germans related to their assessment of the Western and Eastern CFE proposals. With the content of the Bush proposals and the U.S. agreement to include troop ceilings in the CFE discussions, the West Germans are grappling with means to maintain an active force component end-strength of 450,000 up to the end of the century. Already facing domestic opposition to his policies on SNF, Chancellor Kohl announced that the Coalition had decided to postpone for three years the planned extension of military service from 15 to 18 months. The extension for conscript personnel had been a highly contentious issue in West German political circles and Kohl was under a great deal of pressure, even within his own party, to postpone the military-supported initiative. (See Table II for survey results of recent West Table II POLL RESULTS In your opinion, who is performing the more important service for Society on the whole: a young man who performs military service as a soldier in the Bundeswehr, or someone who per- forms civilian service, in a nursing home or old peoples home, for example? 1981 1988 Person Entering Bundeswehr 24 19 Person Performing Civil Service 23 36 Same 46 40 Undecided 7 5 9 West German View of theEffects of the Warsaw Pact CFE Proposal (23 May 89) NATO Warsaw Pact Category Upper Limit Current Level Reduction Current Level Reduction Percentage Percentage Personnel 1.35 mil. 2.93¹ mil. 1.58 mil. 54% 4.07¹ mil. 2.72 mil. 67% Combat Aircraft 1,500 4,740 3,240 68% 8,208 6,708 Progress Report for the Defense Nuclear Agency Institute for Foreign Policy Analysis 80% 10 Combat Helicopters 1,700 2,627 927 35% 3,664 1,964 53% Tanks 20,000 22,809 2,809 12% 50,000 30,000 60% 24,000 17,739 2) 2) Artillery 42,715 18,715 44% APCs 28,000 28,610 610 2% 55,800 27,800 50% 1 May 30 June 1989 1) Includes land, air, and naval forces; for the Warsaw Pact, also includes special troops. 2) Estimated at 6.261, theoretical reduction of 36%. Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency German attitudes on Bundeswehr service and public attitudes toward the military in general.) The effect of this decision will be a drawdown in the country's active force strength unless collateral measures are taken, including a tightening of permissible exemptions from service, a lowering of medical entry standards, and the collateral use of men who participate in local "fire brigades" to fill out undermanned units. According to members of the Defense Planning Staff, the West Germans have some breathing space on this issue, probably until the end of the century, because there are still enough reservists to fill in active units that could be mobilized in a wartime contingency. By West German calculations, there is also a pool of approximately 300,000, men who have received military deferments, but who would still be eligible for mobilization if called. Nevertheless, the Bundeswehr structure for the year 2000 is based on projections of a reduced active force strength and a greater reliance on reserve force structures, as was discussed above in the context of West German thinking about a post-CFE environment in Europe. Also as noted above, West German thinking with regard to future force planning hinges substantially on the assumptions being made about the CFE and the prospective SNF negotiations. There is, from the West German perspective, no doubt that under the current CFE proposals, the large scale Soviet offensive capability will be reduced dramatically if the current Western proposals are implemented. At the same time, there is likely to be a political perception of a reduction in the Soviet threat even if Moscow's ability to implement an attack against Western Europe will remain. Under these conditions, the West German military, as well as members of the Defense Ministry's civilian bureaucracy, question their ability to fashion, together with NATO, a force posture that will meet the defense and deterrence needs of the twenty-first century. In late June, this was placed further into question as a result of the agreement reached by Defense Minister Gerhard Stoltenberg and Finance Minister Theodor Waigel on the level of defense spending planned for the 1990 national budget. Stoltenberg's initial request for DM 55.3 billion, ($28.43 billion) which would have represented a 4.7% increase over last year's expenditures, was cut to DM 54.47 billion, ($28.00 billion), or an annual increase over FY89 funding of approximately 2.2%. Stoltenberg has characterized the agreement with Waigel as a "tolerable and satisfactory compromise for the Bundeswehr," despite the fact that the proposed increase does not out-pace inflation and does not meet the 3% level approved by NATO defense ministers (including Stoltenberg) in Brussels in late May. Strong FDP resistance to substantial increases is said to have led to agreement on the lower figure. The full cabinet is expected to meet to pass the FY90 budget on July 5, 1989. According to the new spending figures, approximately DM 400 million ($210.5 million) will be programmed for incentives to enhance the attractiveness of military service, in order to increase the number of soldiers deciding to remain in the Bundeswehr after the mandatory 15-month term. Among other items, these incentives will also include modernization of 11 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency barracks and increased emphasis on practical training. Equipment procurements will have to be reduced in this austere budget environment, with reductions in credits anticipated for the West German contribution to EFA and other air defense modernization programs. The West German Navy faces similar cutbacks. In an appearance before the Bundestag's Defense Committee in May, Inspector General, Admiral Mann (the FRG equivalent of the U.S. Chief of Naval Operations) described the cuts he is prepared to make in naval forces to meet financial constraints. These include decisions to close one half of the Navy's bases located on the Baltic and North Seas, including those in Flensburg and Cuxhaven. In addition, according to Admiral Mann, by the year 2000, only 80 of the current 188 ships will remain in service, while the number of men serving in the fleet will fall from the current 38,700 to approximately 20,000 in the year 2005 to meet the projected budget austerity measures. 12 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency United Kingdom British Perspectives on the NATO Summit British governmental perspectives on SNF are Most significant among defense-related driven by Mrs. Thatcher's desire to maintain developments in the United Kingdom distance between Britain's strategic options and during May and June was the Thatcher NATO's selective employment policies. Government's insistence on a near-term system-specific decision for a successor to the Lance missile and its continued opposition to East-West negotiations on short-range nuclear forces (SNF), a position that Prime Minister Thatcher pressed vigorously in the weeks leading to the NATO Summit. At the Summit itself, Mrs. Thatcher remained unalterably opposed to a "Third Zero" on short-range nuclear systems. Thus, in the agreement that emerged from the Summit, Britain was widely perceived to have made significant concessions in the interests of Alliance unity; yet, Mrs. Thatcher continued to assert, to an increasingly skeptical British public, that Britain had secured its most important objectives in the final NATO communique by staving off a negative SNF modernization decision and ensuring that the "Third Zero" was not a near-term Alliance option. The Prime Minister's "hardline" on the SNF issue can be seen, in part, as a response to her perception that the Bush Administration might become so concerned with the achievement of a NATO-wide consensus that major British interests-specifically, the maintenance of an up-to-date short-range nuclear forces element of the NATO force posture-would be pushed aside. It can also be assessed in the context of British fears of West Germany's drift toward "neutralism", and Mrs. Thatcher's concerns over what she has called the "mindless" rush toward arms control. On the surface, the British Government's strategy was successful, with the Alliance decision to push off but not foreclose, until 1992, a decision on the "introduction and deployment" of a Lance successor. However, in fact, Foreign Office analyses of the Summit's compromise formula are less optimistic about the future prospects for a Lance modernization, and, in this context, Foreign Office experts were relieved that the Summit Formula for endorsing SNF negotiations at least precludes, according to their understanding, the "Third Zero" option. This latter point was particularly important to Mrs. Thatcher, who, during the course of the Summit wrangling on the language of the Communiqué, forced the NATO heads of state to agree that the "Third Zero" is not an option for NATO under present conditions. Even through the condition that CFE implementation must be "underway" prior to the initiation of SNF negotiations was a weaker formulation than Thatcher would have preferred, the Prime Minister stated clearly that her understanding of the clause was that "not a single missile can be taken 13 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency out until the whole conventional agreement has been implemented." Mrs. Thatcher's views on the SNF issue are clearly shaped by her perspectives of the relationship between British strategic nuclear forces and NATO short-range "tactical" nuclear capabilities. In line with her "firebreak" analysis (which reportedly sought to establish a barrier between NATO's selective employment options and the requirement for use of British strategic nuclear forces), Mrs. Thatcher apparently is seeking to maintain distance between a forward battle contingency in the FRG and the prospective destruction of British territory. Mrs. Thatcher's critics have been quick to point out her efforts to separate Britain from its European NATO allies on the SNF issue, and, in Parliamentary debate after the NATO summit, both opposition Labour Party members and "centrist" Social and Liberal Democrats criticized the Government's "hard-line" stance on the Lance modernization and SNF negotiations issues. British SNF Modernization In the context of British concerns that the West Germans may not, in 1992, be British concerns that West Germany may not be in a position to go ahead with a modern- prepared to come to a decision on FOTL have led ization decision on Lance, and holding to their signing of an MOU on TASM with the United States. to a view of deterrence that emphasizes NATO's escalatory options, the British government is continuing its own SNF force modernization program, based on the procurement of a long-range stand-off strategic missile capacity. In this regard, in early May, Defense Minister George Younger announced that Britain's range of choices for a new generation nuclear-tipped tactical air-to-surface missile (TASM), to be deployed on the Tornado GR-1, would not be based on collaboration with the French utilizing their air-to-ground medium-range missile (ASMP) technology base. Younger pointed out that the French system was "not suitable for [British] needs either in timing or range." Though no mention of a specific selection choice was made in the Statement on the Defense Estimates (the annual White Paper), which was released in June, the British government has signed a Memorandum of Understanding with the United States on collaboration for the development and procurement of TASM to replace the U.K.'s ageing stockpile of WE-177 free-fall bombs. According to British MOD officials, Britain favors two U.S.-developed systems that are in competition for selection as the British choice for TASM: the Boeing-developed Short-Range Attack Missile "T" (SRAM-T), a tactical variant of the SRAM-2; and Martin-Marietta's Supersonic Low Altitude Target (SLAT) system. A British decision between these two systems will hinge on a number of considerations, primary among which will be the offset arrangements for British industry and the cost/effectiveness 14 The Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency related to the incorporation of a British "front end" (i.e., warhead technologies) and adaptations to the Tornado airframe.. As is the case elsewhere in Western Europe, TASM modernization is not without its critics in Britain, and has the potential, therefore, for attracting widespread public opposition, as did British acceptance of cruise missile deployments in the late 1970s. Against criticisms that TASM deployment would be a circumvention of the INF Treaty, the British government has defended its decision to move ahead on TASM on the grounds that the Soviet Union has not curtailed its continuing modernization of Warsaw Pact SNF capabilities. More to the point, the Thatcher Government has countered that: (1) as an air-based system, TASM does not fall within Treaty constraints, which apply only to land-based INF systems; and (2) the range of a British TASM would, in any case, be under the 500 km limit established by the INF Treaty. However, arguments such as these are not convincing to diehard opponents of SNF and, as a procurement decision appears to be imminent, popular and political opposition to a British government decision is likely to increase for several reasons. First, as will be more closely examined below, the Thatcher government is wary of President Bush's proposal to include combat aircraft in CFE negotiations, and has already announced that its DCA are exempt from consideration in the negotiations. Yet, in Britain, the inclusion of aircraft in the CFE talks is a popular initiative, and the Government's interest in TASM may be seen to fly in the face of NATO negotiations policy. Secondly, British involvement in TASM development is likely to be opposed as well because of its perceived contribution to NATO's nuclear "warfighting" options and, in par- ticular, its ability to target aimpoints located on Soviet territory. In addition, the potential expense associated with modernization of aircraft systems, the survivability of which is in question in light of Soviet preemptive strike assets and the evolution of Soviet air defense capabilities, could attract opposition from those who do not necessarily oppose the TASM system concept. In a budget constrained environment, tactical nuclear weapons programs may not receive the support that conventional weapons procurements, especially naval systems, might, and-given that the Trident is a "sacred cow"-budget cuts in the tactical nuclear area may be easier to effect than would cuts in the British Army of the Rhine, whose forward deployment in West Germany provides tangible evidence of Britain's European interests. The Bush CFE Proposal and U.S.-British Relations Across the British political spectrum, President Bush's proposals for the CFE talks-known as the "Conventional Parity Initiative"-were well received. Martin O'Neill, Labour's shadow Defense Minister, characterized the Bush initiative as "the first really constructive attempt by the Bush Administration to address the challenges which Gorbachev has placed before the Alliance." Former Labour Defense Minister John Gilbert welcomed the linkage Bush had 15 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency established to "very drastic Soviet conven- Bush's CFE proposals were welcomed across tional cuts," and Paddy Ashdown, leader of the British political spectrum, although the the centrist "Democrats," hailed the Bush proposed inclusion of DCA in the talks is con- proposals as "an historic moment which troversial and opposed by some in the Conser- must not be wasted." vative government. Perhaps the coolest reaction to the Bush proposals came from the Prime Minister herself, who voiced concern over both timing and content. While crediting the Bush proposals as having "transformed" the Summit, Mrs. Thatcher stressed the need for NATO to retain adequate levels of dual-capable aircraft in its force structure, an objective that she feared might be compromised by the President's call to include combat aircraft in the CFE mandate. The Prime Minister also called for a clause in any potential CFE agreement requiring the destruction, and not merely the removal, of weaponry, for aircraft moved simply beyond the Ural Mountains, she noted, would still be only three hours' flying time from Western Europe. So, too, Thatcher characterized as "very optimistic" the Bush challenge to complete CFE negotiations within six months to a year. Mrs. Thatcher's concerns over the scope of President Bush's proposals did not cloud the atmosphere at the London meeting between the President and the Prime Minister in early June. U.S. attempts to soothe British fears over a growing Washington-Bonn relationship, at the expense of British interests, were met with repeated affirmations by Thatcher of the enduring importance of the "special relationship." So strong were the Prime Minister's statements on the importance of the U.S./U.K. relationship that they were widely interpreted in Britain as a decision by the Conservative Party government to place loyalty to the United States ahead of considerations of further European integration. In fact, Thatcher had said in formal remarks that "[f]or us, loyalty to the United States is paramount because we share so many of the same basic beliefs." Coming as it did less than two weeks before the European Parliament (EP) elections, however, this statement was held by British commentators to underscore Thatcher's opposition to significantly increased European integration. This interpretation contributed to the Conservatives' poor performance in the EP elections, and set off a round of opposition criticism of Thatcher's handling of the British-U.S. relationship. Defense White Paper: Major Procurement Themes Early May also saw the release of the British Government's annual Statement on the Defence Estimates. This year's White Paper again defied long-standing calls, from both the Labour ranks as well as from voices within the Conservative party itself, for a full-scale review of commitments and capabilities by the Thatcher Government. Instead, the 1989-90 White Paper 16 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency The defense White Paper provides for proposed a continuation of the large majority of all little change in British procurement British equipment programs and force commitments, priorities. NATO commitments, cutting back in small increments where savings apart from Trident, account for the needed to be made. largest single line items. Overall British defense spending for 1989-90 was announced in the White Paper to be $33.84 billion (at an exchange rate of $1.68 = £1.00). This represents an increase of $1.6 billion over the previous (1988-89) fiscal year, and an additional $294 million over 89-90 spending as projected in last year's White Paper-which, while significant, is not nearly sufficient to compensate for inflation in defense costs over the past twelve months. (Retail inflation in Britain currently stands at 7.9%, which alone would require an increase of $2.65 billion to stay even with last year's projected expenditures.) Thus, the overall British defense budget for 1989-90 represents in real terms a cut of 0.7%. Specifically, this has forced a cut of approximately $168 million on the Royal Navy, while providing for small increases in Army and Air Force spending. Moreover, in the area of manpower, Britain will increase spending on personnel by $504 million-but this increase will go toward a total force level that will fall by 3,000 troops, to a level of 324,000. Even given increased personnel expenditure, however, Britain's retention rates are falling, and a number of combat units are operating under strength. The White Paper sets forth an equipment procurement budget for 1989-90 of $13.9 billion, which represents 41% of overall British defense spending (as shown in Figure 1) and an increase of only $28.56 million over last year (when equipment procurement stood at 38% of total British defense spending). These resources are to be allocated among the Services, General Support, and Research areas. The breakdown of this allocation is seen in Figure 2. Significant major projects in these major areas of equipment procurement include: Royal Navy two nuclear-powered fleet (attack) submarines four conventional submarines eight frigates (including four Duke-class Type 23 frigates, for the ASW mission, at a value of $840 million) British Army of the Rhine (BAOR) a sixth and seventh regiment of Challenger replacement of Rapier with the advanced Rapier-C 16 additional Lynx helicopters 17 Figure 1 The Divisions of the Defence Budget by Principal Heading 1989-1990 1 Works and Miscellaneous stores and services Forces Pensions 19% 6% Civillan Pay Progress Report for the Defense Nuclear Agency The Institute for Foreign Policy Analysis 12% 18 Equipment 2 41% Forces Pay and Allowances 23% 1 May . 30 June 1989 Notes 1 Percentage of equipment expenditure based on the last five years. The total adds up to 101% because of roundings. 2 Of which 75% to UK, 15% to collaborative procurement and 10% to overseas procurement. Figure 2 The Main Divisions of the Procurement Program 1989-1990 Air Equipment Development $1.08b Production $4.03b 7% Production 26.1% $2.31b Progress Report for the Defense Nuclear Agency The Institute for Foreign Policy Analysis Land Equipment 15% Research Development 3.3% 4.7% $719m 19 $502.3m 6.6% Development¹ $1.01b 7.7% General Support 25.5% Production Production 4.1% $1.09b $3.94b Development $631.7m Sea Equipment 1 May - 30 June 1989 Note: 1) Including the cost of some HQ staff who are responsible for both research and development. Figure 3 Estimated Costs of Defense Commitments for 1989-1990 (in billions of dollars) RAF Germany (incl reinforcement Central Front forces) 6.741 1.741 Berlin 4.903 98 BAOR (incl reinforcement forces) Progress Report for the Defense Nuclear Agency The Institute for Foreign Policy Analysis Maritime 4.015 3.174 20 Eastern Atlantic .84 Channel Home Base 3.393 Other 1.274 Nuclear Strategic Force 1.795 1 May - 30 June 1989 The Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency An Analysis of Defence Resources by Major Programs 1989-1990 Figure 4 5.7 Nuclear Strategic 0.6 Force 1.3 Naval General 11.9 Purpose Combat 122 Forces 7.0 17.0 European Theater 31.4 Ground Forces 14.2 0.9 Other Army 4.4 Combat Forces 3.5 17.4 Air Force General 19.0 Purpose Forces 5.3 2.2 Reserve and Auxiliary 0.9 Formations 1.8 11.7 Research and 0.3 Development 14.0 6.7 18.1 Training 7.5 Equipment Support 5.2 and Associated 2.6 Facilities in the UK 21.0 War and Contingency 2.5 Stocks 18.8 Other Support 10.5 Functions 24.4 Expenditure as a percentage of the defence budget 1989-90 Service manpower as a percentage of estimated total average strengths Civilian manpower as a percentage of estimated total average strengths 21 The Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency Royal Air Force (RAF) 6 additional mobile radars for the UK air defense ground environment 15 additional Tornado ADV (air defense variant) 26 additional Tornado GR1 (strike version) In addition, progress continues on the Trident nuclear deterrent force, which is to begin replacement of the existing Polaris force in the mid 1990s. Two of the boats are currently under construction, with the third (of a total of four) expected to be ordered by the British government later this year. In short, there are no surprises in the White Paper-especially in the absence of a complete review of British defense commitments and capabilities. The cost of supporting British defense commitments is illustrated in Figure 3. Clearly, the lion's share of Britain's defense commitment has been, and continues to be, its contribution to NATO Central Front forces, which comprise fully 39% of overall British expenditure on defense commitments (and is almost exactly twice that spent on the defense of Britain's home territory). When these defense commitments are divided further into major programmatic areas of British defense spending, as represented in Figure 4, the preponderance of the NATO-European commitment becomes even more obvious. British ground forces dedicated to the NATO central front take up fully 31.4% of overall service manpower, and 17% of the entire British defense budget. The allocation of effort in British defense spending illustrated in Figure 4 may be expected to guide the U.K.'s procurement priorities for as long as the Thatcher Government continues in office. Labour Policy Review: Kinnock's Move to "Multilateralism" For its own part, the opposition Labour party, guided by its leader Neil Kinnock, completed in mid-May its year-long review of Labour policies. Of primary importance in this effort was Kinnock's determination to move the Labour party away from its long-held policy of com- prehensive, unilateral nuclear disarmament in the event a Labour government assumed office. Kinnock, á member of Britain's Campaign for Nuclear Disarmament (CND) since his college days, argued forcefully for the "unilateralist" position during the 1987 general elections, which resulted in a crushing defeat for Labour and an unprecedented third consecutive victory for the Conservative government of Prime Minister Thatcher. In the wake of this electoral disaster, and with the Labour party wrenched between its "hard-left" elements and what remained of its once-predominant centrist wing, Kinnock launched a full-scale review of Labour policies. Central to this effort was his insistence that in order to present a credible alternative to the Conservative government, Labour would have to move away from its "unilateralist" stance and 22 The Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency toward a position that has become labelled "multilateralism." Instead of a unilateral elimination of all British nuclear forces (as well as the closure of all nuclear bases on British soil), a "multilateralist" Labour government would instead seek a denuclearized Britain through enter- ing British forces into talks on strategic forces, presumably the START talks. While "multi- lateralism" did not (and does not) represent a fundamental shift away from the primary conviction of the Labour party that Britain should become denuclearized, the prospect of adopting the new policy became the primary point of debate as the new Labour policy document moved toward public release. Ultimately, one week after its stunning success in the Welsh by-election in May, Labour's governing board-the National Executive Council (NEC)-approved, by a 17 to 8 vote, the new "multilateralist" policy. Major themes of the policy as adopted include: All nuclear bases in Britain will be reduced, and eventually removed, under a Labour government. While this represents a willingness to work out arrangements with NATO as Britain moves toward denuclearization, it still is représentative of Labour's rejection of a nuclear element to NATO's force posture. A policy of "no first use" to be adopted with respect to Britain's nuclear capability. Placing all of the U.K.'s nuclear weapons in East-West negotiations, with the intention of eliminating them. Thus, instead of giving up "something for nothing"-the major criticism of Labour's defense policy in the last election-Labour would now adopt a "something for something" approach to scaling down British nuclear forces. Within this framework, however, other Labour perspectives on defense and security issues were made clear. Of note are the following: Labour continues to oppose the modernization of NATO's SNF forces, and holds the view that no convincing case has been made for NATO to take this step. Labour indicates its agreement with the West German perspective that SNF weapons, "far from constituting a deterrent to conventional war, actually make conventional war much more likely by lowering the threshold of nuclear response and blurring the difference between the use of conventional and nuclear weapons." Continued rejection of NATO's doctrine of Flexible Response. Labour holds the view that the first use of nuclear weapons would lead to uncontrolable escalation up to and including and exchange of central strategic forces. Support for a third zero. The Labour party believes that "the third zero should be made a firm objective." 23 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Support for the objective of "elimination of all nuclear weapons by the year 2000"-an objective first enunciated by Soviet General Secretary Gorbachev. Unilateral abandonment of further testing of British nuclear devices. Cancellation of the fourth British Trident submarine. (The third is slated to be ordered later in 1989.) The combination of what has been characterized as a "sweeping change" in Labour's policies— particularly defense-and the party's dramatic successes in recent parliamentary by-elections, has led to increasing speculation among analysts of the British scene that Labour may once again be regarded by the British electorate as a credible governing alternative. In what appears to be a two-track approach of his own devising, Kinnock has now sought to ensure the complete adoption of the "new" defense policy by isolating the hard "left" of the party-which has opposed the move to multilateralism-while suggesting through public comments a new "pragmatic" approach by Labour to the possession of nuclear weapons. Examples of the isolation tactic include, in addition to the vote approving the policy shift, the defeat of two "left-sponsored" amendments to the policy document which would have adopted a "no use" policy on British nuclear weapons, together with a repudiation of the U.S. strategic nuclear "umbrella". With respect to public statements on nuclear weapons, Kinnock went so far as to say in a speech to the Welsh Labour Party (of which he is a member) that he would never say yes or no "if asked whether I would push the button." Such statements seemed intended to increase in public perception the credibility of Kinnock's claim that the "multilaterialist" policy represents a significant departure from Labour's 1987 defense platform. However, Kinnock still must overcome a number of obstacles within the party before he can claim to have completely brought about the change in policy. Before the new policy was even unveiled, a member of the Labour "shadow cabinet"-Bryan Gould, responsible for trade and industry-criticized the new policy, noting that "we have no intention of keeping a nuclear deterrent either to use or to deter." The "hard left" of the party, meeting as the "Socialist Conference," condemned Kinnock and his allies in the policy review as "new men with old 24 The Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency ideas," and characterized the new "multilateral" policy as "a shambles." Many of the hard-left trade union leaders-notably Ron Todd, head of the Transport and General Workers' Union (TGWU) and a member of the defense policy review committee-have already indicated that they will direct the weight of their block votes against the multilateralist position. In addition to the TGWU, this list includes the Manufacturing, Science, and Finance Union. Supporters of the new policy have included the National Union of Public Employees (NUPE), a major force in the trade block votes. In fact, the change in defense policy has opened a breach in Labour's trade union support, with potentially far-reaching consequences for the internal cohesion of the party. SLD Defense Policy Statement During the same time, but with much less fanfare, the centrist opposition "Democrats" (or Social and Liberal Democrats) presented their own policy statement on defense. During mid-May, final drafting sessions were held on the SLD's policy document, entitled After the Cold War, in which the party affirmed its acceptance of a nuclear element to deterrence (and criticized the Labour party's failure to do the same). Even so, however, support is also expressed for the deployment of Trident with fewer warheads, to be followed by a stage-by-stage negotiated reduction of the British national deterrent force. The Democrats also express in their document a clear opposition to the modernization of NATO SNF systems, and support the idea of a "nuclear free zone" in Europe. The document represented something of a departure from the Democrats 1987 election platform, under which the party supported the cancellation of Trident. Response to its publication was mixed, even within the party, which is itself the result of a merger between the old British Liberal party and elements of the Social Democratic Party. For example, Meg Beresford-chairperson of the Campaign for Nuclear Disarmament (CND) and a member of the Democrats' defense policy review committee-criticized the final document as "illogical and inconsistent." Beres- ford, a member of the old Liberal party, represents a large antinuclear sector of the newly-merged party, drawn from what was once the strongly antinuclear Liberals. At the same time, the party's * The Labour Party is goverened in its convention through votes from both constituencies (the parliamentary districts) and block votes from the British trade unions that have membership in the party. The trade union block votes are a significant makeweight on a wide variety of party policy decisions, and have been a contributing factor to the popular perception of the Labour party as controlled by the unions-a perception Thatcher has used to her advantage on numerous occasions. Realizing this, Kinnock is presently attempting to change the structure of the party's internal government, with the specific objective of reducing the impact of the trade union block votes on party policy decisions. 25 The Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency defense spokesman, Menzies Campbell, declared that the document represented a consensus on the need to maintain a "minimum deterrent" under British control. There seems little doubt that the defense policy statement will prove a source of contention when the Democrats hold their annual conference in September-a meeting which will likely determine whether or not the party will continue to remain both politically and financially viable. 26 Institute for Foreign Policy Anlaysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency France Over the last two months the French defense debate was focused on the NATO SNF controversy and the NATO Summit meeting; the Conventional Forces Talks, including the Warsaw Pact and Bush proposals; the Defense Council's military budget decisions; and the European Parliamentary election debate, which in France turned largely on the issue of 'national service'. Publication of Richard Ullman's article (in Foreign Policy) alleging closer U.S.-French nuclear collaboration than generally was publicly known to exist, also prompted brief attention in French defense policymaking circles. In general, however, the furor that might have been expected never erupted in France-in part because of the timing of the article's publication, which coincided with the NATO Summit meeting, and in part because of the Government's swift and practiced response that admitted limited cooperation with the U.S., but denied that this in any way affected negatively French independence in strategic nuclear technologies and policy. In contrast, the outcome of the NATO Summit and President Bush's CFE proposals attracted much commentary and debate in France, and, as with the French Defense Council's revisions to the 1987 guidance on force procurements, are influencing official and public perceptions of the future requirements of the French deterrence posture. French Defense Council Decisions on Nuclear Weapons Procurements By far, the most immediate issue to affect the future While no major nuclear equipment composition of French military forces and their programs were shelved, key preferred deployment contingencies was the June 2 programs have been stretched out decision of the Defense Council, headed by French or delayed-including the Mirage President François Mitterrand, to stretch out and 2000N and the M-5 SLBM-and the scale down a number of major weapons programs in S-4 IRBM SRM is likely to be a series of austerity measures. While no major scrapped and Hadès deployments nuclear equipment programs were shelved, there con- are uncertain. tinues to be speculation that the S-4 IRBM and the Hadès short-range nuclear missile will, ultimately, be scrapped, if cost analyses of these programs demonstrate that monies can still be saved from their cancellation. At the same time, several other nuclear programs were delayed or cutback, including the Mirage 2000N program which will be reduced to three squadrons (down from five) making for a reduction to 45 from 75 aircraft capable of carrying the ASMP air-to-ground nuclear missile. In addition, the M-5 SLBM modemization program will be stretched out and is not expected to be operational until the turn of the century. The M-5 is widely expected to be tapped as the candidate system, in a ground-based version, for replacement of the older S-3 IRBMS, 18 of which are deployed on the Albion Plateau in the South of France. The prospective 27 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency selection of the M-5 is largely for reasons of cost effectiveness; also significant is President Mitterrand's own opposition to mobile, ground-based nuclear weapons (the S-4 program), and the expectation that French Greens and other groups (such as members of the Communist (PCFs) and Radical (MRG) Parties) will oppose the program and undermine the much discussed French national defense consensus (which is already eroding), This decision is expected to be taken this fall by the Defense Council which will also, probably, formally cancel the S-4 program. Support for the S-4 program has never been forthcoming among members of the Socialist Party. The program was originated by the conservative government of Jacques Chirac during the "cohabitation" period of 1986-1988, and his defeat during last year's Presidential election virtually signalled the end of the expensive mobile missile program. With regard to the Hadès program, controversy has erupted between the offices of the Defense and Prime Ministers, with the Finance Minister siding with Michel Rocard (Prime Minister) in his effort to cancel the program, and President Mitterrand having to mediate between the two on the issue. According to a discussion with Prime Minister Rocard's chief defense advisor, Marisol Touraine, and with Marc Perrin de Brichambaut, Jean-Pierre Chevènement's technical- military counsellor, both the Prime Minister and the Defense Minister are staunchly committed to opposite positions on the Hadès program, with Chevènement apparently prepared to resign if Rocard persists is pushing for deep cuts in Hadès deployments or the cancellation, altogether, of the program. Hubert Vedrine, President Mitterrand's chief security advisor, is also reportedly skeptical of the Hadès program, but, like the French President, is apparently willing to consider systems' deployment at a considerably reduced level. Vedrine sees this primarily as a means to help push the West Germans into acceptance of a Lance modernization decision and systems deployment in the early 1990's, provided a CFE agreement does not radically alter the deterrence requirements for longer-range, ground-based SNF-and assuming that a SNF negotiation has not obviated the requirement for a ground-based surface-to-surface system altogether. The SNF Controversy and Hadès Chevènement's position on the Hadès is derived from a conception of deterrence coupling with the United States that considers the American strategic relationship crucial to West European security, admitting implicitly that French nuclear forces by themselves may not credibly form the basis of a broader West European deterrence posture. Perhaps, more importantly, Chevènement's position on Hadès stems from an apprehension that a West German refusal to deploy a follow-on system to Lance on West German territory would contribute to debate in France over French nuclear systems and, thus, help to fracture the widely vaunted French defense consensus. In this context it is important to note that neither Chevènement nor Rocard-nor the French President, for that matter-appear to be interested in the military-operational 28 Institute for Foreign Policy Anlaysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency contribution of SNF to NATO and French defense postures. In France, with the possible exception of a few French defense analysts and a handful of military personnel, the value of short-range nuclear force deployments lies not in their potential "warfighting" roles but in their perceived contribution to deterrence and crisis stability. In French strategic thinking, SNF are considered "prestrategic" systems whose use in a European contingency would be closely tied to the employment of French (and other Western) strategic nuclear assets. Such a political conceptualization of nuclear weapons, then, appears to provide the basis for the French defense consensus, and has allowed even opponents of nuclear weapons deployments (for example, members of the French Communist Party) to endorse the French deterrence posture. If pressed, however, most French policy officials and defense analysts, not to mention public opinion, would support only minimal strategic nuclear weapons deployments-and, indeed, successive French governments since the Gaullist period, with the brief exception of the "cohabitation" government of Jacques Chirac as Prime Minister and François Mitterrand as President (1986- 1988), have sought to down-play the role of shorter-range nuclear weapons. Clearly, the President's Defense Council decision to retain, for the moment, the Hadès program must be seen in the context of the NATO Summit's compromise formula on SNF modernization and against fears that the Federal Republic of Germany is abandoning its linchpin role in the Atlantic Alliance. The French preoccupation with the perceived neutralist drift of West Germany has already prompted the current government to strengthen bilateral defense coopera- tion with the FRG through the creation of a joint brigade (for potential employment in a reserve role in a European contingency) and the implementation of exercises designed to bring French conventional forces into a "forward defense" role in a European contingency. The contribution of French short-range nuclear weapons in a European scenario is still problematic, with the employment of 'tactical nuclear' weapons inextricably tied, in French strategic thinking, to the protection of French national territory, and under the direct command authority of the French President. While refusing to be drawn into the pre-Summit controversy between Britain and the United States, on the one hand, and West Germany, Belgium, Italy, Denmark, Spain and Norway, on the other hand, the French President has consistently said that whereas he opposes a "Third Zero" option at the moment, he does endorse a delay in pushing for a NATO modernization decision (on Lance) until 1992, as the West Germans wish. French interests in the NATO SNF debate relate directly to French security conceptions, which are based on the perceived requirement for the continued deployment in the European theater of American conventional and "substrategic" systems (the NATO lexicon for SNF), both of which are viewed as essential for deterrence coupling purposes and for the credibility of French nuclear force deployments 29 Institute for Foreign Policy Anlaysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency themselves. Thus, the official French governmental position is not to oppose SNF negotiations, as such, but to ensure that the "Third Zero" is not an option for NATO in the near future, so long as Soviet SNF deployments outnumber those of NATO and before the CFE produces deep cuts in Soviet-Warsaw Pact offensive nonnuclear capabilities. For the French President, and for most French defense analysts, negotiations to reduce conventional forces deployed in the central region of Europe continues to be the priority objective of East-West arms control discussions. French Views of the Current CFE Proposals At the CFE, and in response to President Bush's arms control proposal that was articulated at the time of the The French government opposes NATO Summit, the French have voiced several con- President Bush's CFE proposals to cerns. The first, and foremost, relates to the concep- include aircraft platforms in the tualization of French forces in the context of proposed negotiations. reductions for NATO and Warsaw Pact forces. France rejects any notion that its forces are to be included in "NATO cuts," and prefers to categorize French forces as European reserve capabilities-distinct from, but integral to, forces located in the "central zone" or roughly the areas of the Federal Republic, plus the Low Countries. (The Germans had long sought to resist this French conceptualization of a separation between their forces and those of the Federal Republic; but, for the sake of the unity of the Western proposal, the West Germans conceded to placing France in a concentric, if separate, zone from the FRG). At the heart of the French CFE position is their perception of the autonomy of French defense forces and probably, more importantly, their fear that through the "backdoor" French nuclear forces might be compromised. This is partly the reason for the French insistence that aircraft platforms be kept out of the CFE discussions. The proposed inclusion of fixed and rotary-wing aircraft in the conventional forces talks may also be seen as the basis of French objections to the Bush arms control proposals. According to a number of French defense analysts, the real reason for the French opposition to the inclusion of conventional aircraft platforms in the CFE is far more complex than just an apprehension about the prospect of compromising French na- The much-vaunted French consensus on tional nuclear assets. Allegedly, it relates to fears that inclusion of aircraft in the CFE will nuclear forces is more fragile than it occasion debate in France over the role of French appears. In fact, it extends primarily to French strategic systems; support for tactical nuclear forces themselves, and perhaps tactical nuclear systems is tenous. contribute to a fracturing of the much discussed, but little understood, French defense consensus. 30 Table I Opinion Poll: European Views on Defense * France Great Britain Italy FRG In taking account of the International and economic situation, do you think the country should: Increase military spending. **(9) 5 (17) 9 (8) 6 (4) 2 Maintain the present level. (45) 43 (49) 54 (22) 19 (39) 36 Reduce military spending. (35) 46 (27) 31 (62) 70 No opinion. (11) 6 (7) 7 (7) 5 (1) 2 Progress Report for the Defense Nuclear Agency Institute for Foreign Policy Anlaysis (57) 61 The U.K. and France have their own nuclear weapons. Personally, would you prefer to see these countries: 31 Continue the enhancement of the nuclear weapons. 10 4 1 2 Leave things as they are. 33 37 7 23 Reduce the importance of nuclear weapons. 28 27. 20 28 Renounce nuclear weapons. 24 26 69 46 No opinion. 6 6 3 0 To ensure their defense the majority of Western European countries are linked to the United States through NATO. Do you believe that Western Europe should: Maintain their military relations with the United States within NATO. (26) 27 (41) 43 (19) 29 (54) 56 Build a common European defense, independent from the United States within NATO, (35) 37 (23) 23 (38) 42 (19) 26 Assume the entire responsibility for its own 1 May. 30 June 1989 defense. (20) 21 (26) 23 (31) 27 (25) 17 No opinion. (20) 15 (10) 11 (12) 1 (2) 1 This poll was conducted in 1989 by the OPTEN Institute, in cooperation with the U.K.'s ICM, Italy's ASM, and West Germany's Marplan. The survey was based on 1054 French respondents, 1406 British, 1860 Italian, and 1801 West German. Respondents were all 18 or older. .. Numbers in parentheses represent results from the 1987 poll. Opinion Poll: European Views on Defense (continued) France Great-Britain Italy FRG If there were a common European defense, Independent from the U.S. and NATO, which of the three possibilities In your opinion, would be the major desirable? Use the existing nuclear weapons of Great Britain and France as a foundation for a European nuclear defense, but without the participation of the other countries in their development or in determining how they are to be employed. (8) 11 (13) 18 (3) 1 (12) 30 Build a common European nuclear defense capability with all countries that would like to participate in the development and use of nuclear weapons. (35) 36 (35) 30 (14) 11 (14) 21 Progress Report for the Defense Nuclear Agency Institute for Foreign Policy Anlaysis Build a common European defense withoutnuclear weapons and reinforce conventional weapons. (25) 33 (35) 37 (70) 67 (29) 46 No opinion. (31) 21 (17) 16 (13) 20 (46) 4 32 If the military threat of the USSR diminishes, do you believe that Western European countries must: Reduce their defense effort in the same proportions. 34 43 59 66 Maintain a precautionary defense effort at the same level that now exists. 54 48 31 33 No opinion. 12 9 9 1 Do you believe that the leader of the USSR, Mikhall Gorbachev, truly believes In arms control? Yes 41 (31) 74 65 (31) 76 No 36 (57) 12 18 (68) 23 No opinion 23 (12) 15 17 (1) 1 Do you feel that the U.S. President, George Bush, truly believes In arms control? 1 May 30 June 1989 Yes 29 (35) 38 36 (3) 55 No 38 (52) 27 27 (69) 42 No opinion 33 (13) 35 37 (1) 3 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency In speaking with numerous French government officials and defense analysts, it is clear that the much-vaunted French defense consensus is more fragile than we in the United States understand. While there is great support for the French deployment of strategic submarine forces in the context of the East-West deterrence calculus, there is less and less support for the deployment of shorter-range nuclear weapons systems. This results from a diminished threat perception of the Soviet Union, but also because of a general abhorrence of "nuclear warfighting" concepts- and, at the same time, a renewed interest in environmental concerns. Several recent public opinion polls confirm the tenuous state of the French defense consensus. When asked, for example, if they thought France should continue to develop its nuclear armament systems, only 10% of Frenchmen responded favorably, while 33% favored the status quo (no modernization, but deployment of existing capabilities ); 28% thought that less importance should be placed on French nuclear weapons development; and, 24% said that they thought that France should renounce, altogether, its nuclear capability. These results parallel those of a televised national survey (on French channel AN 2 on May 31, 1989) that found, in response to a question on French deterrent forces, a majority (52%) still favored the deployment of strategic nuclear weapons at present levels, but a growing minority (34%) favored renunciation of all French nuclear weapons. (Fourteen percent of those polled had no opinion.) More surprising, perhaps, were the French responses to the question (published in L' Express, on June 9, 1989) of whether France should use its nuclear weapons to defend French territory. Fully 56% of the respondents stated that, in case of the entry of Soviet troops in France, the Government should "negotiate" and offer no armed resistance. (The accompanying Table I highlights French (and related European) responses to the L' Express poll.) In light of these trends in the public perception of the acceptability of nuclear force deployments in France, and against a diminished perception of a Soviet threat- 41% of the French sincerely believe that Mikhail Gorbachev wants to lower the level of armaments in Europe, as opposed to 29% who believe that President Bush is sincere in this objective- and a growing desire to have the French government spend less money on defense and more on education and health care, the French may seek to use the arms control negotiations at Vienna to achieve defense economies in programs that are too costly. Indeed, in the French view, it is this motivation that drives the American CFE proposal. French security analysts have observed that the Bush proposal to include aircraft, albeit in a second round negotiation, may be the result of a considered American decision to withdraw several aircraft wings from Europe for budgetary or political reasons, such as the Italian opposition to the siting of the U.S. 401st F-16 squadron on Italian soil. At any rate, French interests at the CFE are clearly related to future force structure planning, the legitimacy of which could be placed in question if NATO's capacity to effect a credible forward defense is eroded by the arms reduction regime agreed to at the CFE. 33 Institute for Foreign Policy Anlaysis 1 May 30 June 1989 Progress Report for the Defense Nuclear Agency Table II: French Views of the CFE Proposals' Limitations NATO WARSAW PACT Current Total1 Proposed Limits Proposed Limits Unilateral Current Total1 Reductions United States Troops 317,000 275,000 Soviet Troops (2) 240,000 600,000³ Number of those troops sta- tioned in East Germany, Hun- gary, and Czechoslovakia 50,000 Tanks 16,364 20,000 20,000 10,000 (4) 59,470 Other armored vehicles 40,814 28,000 28,000 70,330 Artillery pieces (5) 14,458 16,500 24,000 8,500 71,560 Aircraft 4,077 3,400 (6) 1,500 800 7,876 Attack Helicopters 2,519 2,140 (6) 2,785 1. The totals indicated here are those that each alliance announced last fail for its own forces. Part of the differences can be attributed to how the categories are defined: thus, the Warsaw Pact credits NATO with 7130 attack aircraft and 5270 helicopters: however, the West recognizes only 4077 and 2519. repectively. The numbers indicated for NATO include the French forces. 2. The Soviet Union has not yet announced limits that would be imposed on its own troops outside its frontiers in Europe: the total of Warsaw Pact forces from the Atlantic to the Urais would be limited to 1,350,000 men. 3. This number is obtained from the Bush communiqué, but has not been confirmed by Moscow, which has announced the total of its overall strength west of the Urais (i.e. including the European part of the Soviet Union): to be 2,458,000 men. 4. These will be retired from the Soviet Anny west of the Urais by 1991. included in this number are 5000 tanks which must be removed from East Germany, Hungary and Czechoslovakia. These numbers should be added to the unilateral reductions announced by Soviet allies. 5. NATO considers all artillery pieces larger than 100mm as "heavy" artillery. The Warsaw Pact includes in this category all cannons greater than 75mm and mortars larger than 50mm. 6. These limits have been established as part of the 15% reduction announced by President Bush of the numbers of planes and helicopters recognized by NATO. Source: Le Monde, May 31, 1989. 34 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency As elsewhere in Western Europe, there are differences in perception among French policy officials and defense analysts regarding the American CFE proposal. (See Table II) While it appears that officials in the Defense Ministry and some in the Foreign Ministry are adamantly opposed to the inclusion of aircraft and the proposed reduction of American troops, the office of the Prime Minister and the President's advisors appear more willing to accept the U.S. propositions. However, they caution that there are, restrictions on their support, enjoining that troop and aircraft reductions should only be considered after reductions are implemented in the three categories of tanks, artillery and armored vehicles. Both the Prime Minister's defense advisor and members of the Defense Ministry are leery of negotiations on combat helicopters, given that this is one area in which they believe that the West has a real advantage; but more than this, such capabilities are projected to form the backbone of future Western force postures under a CFE regime that inevitably will place a premium on highly mobile, and ready force structures. This analysis notwithstanding, it appears that the French military has not yet begun a systematic assessment of what the various CFE proposals might mean for French forces, although this is doubtless a priority, especially in the context of preliminary studies for the preparation of the new "Programme Loi" (the French five year budget guidance plan) for the years 1992-1997. The question that the French are struggling to deal with is how, within the context of the CFE proposal, the reductions are going to be carried out. The French still appear to be resisting the Western position on the proportion of reductions within the Atlantic Alliance countries. The French also make clear that the budgetary measures that were announced by the Defense Council in early June are separate from the CFE, and should not be construed as part of French arms control obligations. To do so, the French fear, will be to give the West an impetus for a CFE agreement before the Allies have worked out how the reductions should be apportioned Defense Austerity and the 1992 Budget Guidance In preparing for development of the 1992-97 The revision of France's "Programme Loi" "Programme Loi", the Prime Minister's office has lowered equipment procurement fund- is sponsoring a series of cost analysis studies ing. Given that no nuclear programs are to designed to examine the criteria by which be cancelled, this has resulted in the stretch- French procurement decisions are being ing out of major French conventional made. The stated purpose of these studies is programs, including the Rafale aircraft, the to identify which programs are experiencing PAH-2 helicopter, and the Charles de Gaulle cost overruns and why; to evaluate the ration- carrier. ale for specific weapons procurements; and, to make policy recommendations to avoid bad acquisition decisions. Reminiscent of the U.S. 35 Institute for Foreign Policy Anlaysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency Defense Department's quantitative studies methodology emphasized during Robert McNamara's tenure as Secretary, the current French Defense Minister is opposed to this approach to defense decision-making. For example, with regard to the highly costly Rafale aircraft program, Chevènement's view is that it is a politically important program which, even if too expensive, cannot at this late date be cancelled. Likewise, the Hadès program is regarded by Chevènement and his staff to be important politically (to shore up West German resolve in the defense area); even though September 1989 is said to be the cross-over point (after which it would no longer make any sense to cancel the program), he is pressing for a systems deployment decision this July at the next Defense Council meeting. (At that time, it is expected that Mitterrand will support a reduced deployment decision of Hadès launchers, stretched out to the 1995-96 timeframe-incidentally, the same time-frame during which NATO Lance systems would become obsolete.) The Rocard-Chevènement controversy dates back to their long association in the Socialist party and reflects their respective perceptions, which differ, on the future role of France in Europe. Rocard is much more European-oriented than is Chevènement, who is a French nationalist. Rocard began his political career in the Algerian independence movement; Chevènement opposed Algerian independence on the basis of its implications for the French colonial empire. Thus, whereas Rocard is seeking to support the American CFE proposals in the hope of negotiating a successful European arms control regime, Chevènement is concerned about the effects that the proposed cuts would have upon the French national defense posture. While he is "leftist" on domestic economic issues, Chevènement is of the Gaullist school in foreign and national security policy. However, he is isolated in the Socialist Party, which is further to the "left" on arms control and defense issues than even the more "centrist" positions of Rocard and Mitterrand. Thus, in arbitrating the defense budget controversy between the Defense and Prime Ministers' positions, the President had to consider his Socialist Party constituency and the weight of public opinion-which, as noted above, is turning away from support for higher defense spending and the modernization of systems to emphasize highly sophisticated and costly weapons technologies. As a result, in a revision of the spending levels for the next two years in the 1987-1991 "Programme Loi" (an exercise that had been widely anticipated by French defense experts given the rate of inflation over the last three years and the rising costs of weapons procurements), the French President opted to lower equipment procurement funding, in line with the suggestions of Finance Minister Pierre Bergovoy. Together with the Prime Minister, Bergovoy had sought to reduce defense spending by several percentage points (in relation to the Produit Interier Brut Marchand (PIBM), which corresponds to all the gross values of the domestic commercial 36 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency product (GDP), including the Value Added Tax). Thus, for 1990, the French government lowered its acquisition and equipment budgets to FFr 103.1 billion ($15.6 billion in 1990's figures), down from the "Programme Loi's" provision of FFr 100.1 billion (or $15.19 billion) in 1986 francs. In 1991, equipment funding is projected to be FFr 107.2 billion ($15.48 billion), down from FFr 106.2 billion (or $15.33 billion) in 1986 francs. Using the projected franc value for 1990, as compared to the "Programme Loi's". original reliance on the value of the 1986 Franc, the Socialist's revised spending plan for military equipment in the year 1990 will amount to a less than 3% increase in credits (as compared to the 5% that was originally projected and the 6% that Chevènement said was necessary to sustain all current procurement acquisitions). For 1991, credits will rise to 3.9%. Over the following two-year period, 1992 and 1993, equipment credits are expected to reach a real annual growth rate of 4%, resulting, over the four-year period, in a projected savings of approximately FFr 40-45 billion ($6.04-7.0 billion). In announcing the proposed cuts, Mitterrand stated that they would not, however, affect France's ability to carry out the four primary defense missions of nuclear deterrence, territorial defense, European defense, and out-of-area force projection. Yet, in practical terms, this means that without the outright cancellation of any currently planned nuclear forces programs (as noted above), major conventional weapons programs will have to be delayed or stretched out. The accompanying Table III portrays the major equipment programs that form French procurement priorities, to date. The most vulnerable program in this regard is the controversial Charles de Gaulle, the Navy's nuclear-powered aircraft carrier project. By the President's decision the program will be delayed, with its entry into service pushed back to 1998 from 1996. Similarly the new carrier's battle group will also be affected, with the Atlantique, a maritime surveillance aircraft program, targeted for reductions. Three (instead of five) will now be purchased in the first year. The construction program for surveillance frigates will be maintained; but the plans for development of a "light" frigate will be delayed by one year. Likewise the fifth, sixth and seventh Améthyste-class nuclear attack submarines will be delayed, on average, for eight months; and Air Force orders of the Mirage 2000 will be reduced from 33 per year to 28. For now, the main battle tank program, Leclerc, is being continued, but on a reduced basis order of 1050 (down from 1400). It is still possible that this program may be cancelled if cost overruns continue and, more importantly, if the Army is restructured to take account of possible CFE outcomes. As was reported in IFPA's DNA Quarterly Report for the months of January through April, 1989, the Defense Ministry is studying proposals for the reorganization of French conventional ground forces. Under the direction of Jean-François Delpech of the Center for the Study of Relations between Technologies and Strategies (CREST), the MOD-sponsored study is reported to be 37 Table III: Major French Equipment Procurements Affected by Austerity Measures Nuclear Deterrence Central-European Defense Out-of-Area New S4 Missile Rafale Franco-German Leclerc Tank Hadès Charles de Naval Aviation Generation Attack Prestrategic Gaulle Nuclear Group SNLE-NG Helicopter Missile Aircraft Carrier Ballistic (PAH-2) Submarine Progress Report for the Defense Nuclear Agency Institute for Foreign Policy Anlaysis (Rafale?) Cost of Program: Cost of Program: Cost of Program: Cost of Program: Cost of Program: Cost of Program: Cost of Program: $12.07 billion $5.28 billion $22.02 billion Cost of Program: $6.79 billion $2.26 billion $3.02 billion $3.02 billion 38 $9.05 billion Number planned: Number planned: Number systems: Number planned: Number planned: Number planned: Number Planned: 6 18 with spares 336, of which 86 Number systems: 1050 40-45 2 4 wings? are for naval 427, of which Projected year of Projected year of aviation 215 are for First deliverles: First deliverles: Year of Service Year of Delivery: deployment: deployment: France 1991, (110 per 1992 entry: 1996 2002 1994 ?? First year for year) deployment: First deliverles: Delayed: 1995-6 Delayed: 1998 Delayed: ? Delayed: 1995? Contractors: 1996 1997 Delayed: ? Aérospatiale Contractors: Contractors: Contractors: (principal) Delayed: Delayed: 2000 Contractors: Aérospatiale Direction des DCN of Cher- End of 1996 GIAT (principal), (principal), CEA, Constructions bourg Contractors: Sagem, Creusot- Sagem Navales Brest (principal), Contractors: Aérospatlate Loire (principal), CEA, Creusot-Loire, Dassault (prin- and MBB (prin- Framatome, Alsthom, CEA cipal). Snecma, cipals), Thomson, Thomson, Turboméca, Creusot-Loire + M4 and M45 Matra, and MTU, Thomson missiles: others approximately 1 May 30 June 1989 $9.05 billion +M5 missiles (after the year 2000): $12.07 billion Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency considering a reduction in the number of French Army Corps from three to two, with the elimination of the General Staff Corps headquartered in Metz. The operational structure of the French Army differs from the delineation of French territorial districts and has been in effect since 1984. The First Army Corps in Metz is composed, principally, of two armored divisions, one infantry division, and one division recruited from the infantry school in Montpellier, with a total strength of 33,000 men. The Second Army Corps is essentially composed of three armored divisions stationed across the Rhine and has, in total, 42,000 men. The Third Army Corps, headquartered in Lille since 1984, is composed of 30,000 men forming one armored division, one infantry division, and a division recruited from the tank school in Saumur. The proposed elimination of the Metz Army Corps will place into question current operational doctrine and will force a fundamental reassessment of the roles and missions of French conventional ground forces, especially in a CFE environment. The European Elections and the National Service Debate Defense budget issues were insinuated In the European Parliament elections, the com- into the campaign for the European Par- bined French right (RPR and UDF) captured liamentary elections when former French 26% of the French vote, compared to the President Valery Giscard d'Estaing (who Socialists' 22%. Remarkably, the French is running for the presidency of the Greens gained 10.6% of the vote. A significant European Parliament, and headed the list issue during the EP campaign in France was the of the unified right, composed of the Rally subject of national service, with former Presi- for the Republican (RPR) and Union of dent Giscard d'Estaing calling for an end to the Democratic Center (UDC) Parties) conscription and the creation of a professional went on national television (May 29, army. 1989) and proclaimed his support for the end of conscription and the creation of a professional army. Giscard, whose center-right coalition captured 29% of the vote for a gain of 26 of France's 81 seats in the European Parliament, based his recommendation for a professional army on the assumption that if the CFE negotiations are successful the French conventional force structure will be profoundly affected, placing a premium on highly-trained but smaller force structures. Moreover, according to the former French President, "a profes- sional army would contribute to the objective of European defense unity and would facilitate, more easily, cooperation between France and its European partners in areas such as language training and development of a familiarity with their armament and strategic concepts." The former President also expressed the hope that by moving away from the conscript system the social injustice created by "middle and upper class" youth exemptions would be rectified, and 39 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency the Armed Forces would have the luxury of accepting only the most qualified volunteers. Within France, public opinion, by and large, appears to be opposed to the creation of a professional army and, thus far, only the right-wing National Front Party, which won 12% of the French European Parliamentary vote, has endorsed the concept in its program platform. According to the ideas of National Front leader Jean-Marie Le Pen, the French concept of a professional army should encompass service by both males and females and be based on a voluntary period of service of six to nine months. The leadership of the political center in France-which includes Giscard, but is not limited to him-is in disagreement over whether France alone should proceed on this basis. Raymond Barre, for example, has stated that this, "is a complex idea which needs great thought." Pierre Méhaignerie, president of "centrist" Democratic Socialist Grouping, greeted the proposition with caution, stating that the idea should be discussed with France's European partners. Beyond the expense that would be associated with the creation of a professional army force, French opponents of the Giscard concept fear that declining demographic trends especially evident in the years between 1992 and 2002, as depicted in the accompanying graphic, would create a situation in which available slots would outnumber the high quality volunteers. More than this, however, conscription is viewed by most French defense analysts and policy officials as providing the basis of French national support for French defense policies. Thus, in a coalition of the "right" (the Rally For the Republic Party) and the "left" (the ruling Socialist, the Communists, and the leader of the Greens Antoine Waechter) proponents of the national service concept opposed the creation of a French professional army, although each of the "leftist" parties tied their respective opposition to several conditions. For the Socialists, opposition is strong, with the possible exception of former Defense Minister Charles Hernu, who bases his support on the complexity of emerging weapons technologies and the requirements of a common European defense. The French Communist Party opposes the professional army concept but proposes a limit of six months on conscripted military service, while the French Greens favor national service if a conscriptee has the option of choosing between military or civil service. The most hostile opposition to the Giscard proposal came from Jacques Chirac's RPR, stating that a "professional army could lead to an authoritarian state," and, that, "national service forms the basis of French national defense and democracy." The furor created by the Giscard proposals did not affect his prospects (as noted above), nor those of the "center-right" in the European Parliamentary elections. Giscard's unified list of RPR and UDF candidates won 26 of France's 81 Parliamentary seats, while the ruling Socialist Party attracted only 24% of the vote or 22 seats. The "Centrist" list under the immensely popular Simone Veil, a former President of the European Parliament, won only 8% of the votes for 7 40 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Anticipated National Service Manpower Resources for the Next 20 Years, (x1000) 450 400 1 350 2 300 Personnel Strength 3 4 250 200 150 5 100 50 0 1986 1967 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1993 1999 2000 2001 2002 2003 2004 2005 6 Key: 1) average births, 1966-1985 (source: National Institute of Statistics and Economics Studies); 2) real average manpower resources at census time B 396,500; 3) anticipated manpower resources through draft (working back from current data) average - 275,000; 4) useful manpower resources per birth year; 5) useful manpower resources per birth year; 6) birth year class (actual birth year 20 years earlier) Source: Défense Nationale, March 1989, p. 24. seats; while Jean-Marie Le Pen's National Front Party emerged with 12% of the vote or 10 seats. The French Communist Party attracted 8% of voter support, making for 7 seats, while the big winner, the Greens won 11% of the vote for 9 Parliamentary seats. Even as voter turnout (at 50%) in France was the second lowest in the history of the Fifth Republic (surpassed only by the low turnout during the referendum on New Caledonia last year), the clear winners in this election were the Greens and Prime Minister Rocard. Rocard's aspirations for leadership of the Socialist Party (after Mitterrand exits the French political scene) is unlikely to be challenged by former Prime Minister Laurent Fabius, as the Socialist Party's showing in the election under Fabius' leadership is widely regarded as a political failure, and probably the end of his hopes to 41 Institute for Foreign Policy Anlaysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency lead the French Socialist party. What these results mean for French defense policy may be profoundly important, although caution must be exercised in analyzing these election results since they do not affect significantly French national interests and hence they may not reflect precisely future French voting patterns. Election of the Greens indicates, further, a loosening of the French defense consensus and the virtually unchallenged position of nuclear power in French defense and energy policies. Clearly, the Chernobyl disaster, coupled with a diminished threat perception of the Soviet Union, has raised public sensitivity to the possibility of opposing established policy on French nuclear issues. In coming months the fragility of the French defense consensus is likely to be further tested in the context of the French Parliamentary debates on national planning and defense spending. 42 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency The Netherlands Fall of the Lubbers Government and Dutch SNF Perspectives leading to the NATO Summit The centrally important event in the The fall of the Dutch Government on May 2 was not Dutch defense debate during the related to defense issues, but rather disagreements second quarter of 1989 was the un- within the coalition and, specifically, within the expected fall of the Christian Liberal party-raising the prospect of a center-left Democratic-Liberal (CDA-VVD) coalition after the September elections. government on May 2. Prime Min- ister Ruud Lubbers' government, which had been the longest-lived postwar coalition (outlasting by five years the 26-month average life of postwar Dutch governments), ultimately fell not over issues directly related to defense and security, but rather over questions relating to the funding of the government's environmental plans. The smaller partner in the coalition, the People's Party for Freedom and Democracy (VVD, or Liberal party), perceived the issue-mistakenly, it would appear-as one upon which it might effectively reassert its own identity and agenda within the governing coalition, while simultaneously resolving internal party leadership questions. In any event, the Liberal's hardline stand on the environment issue had the effect of bringing about the government's resignation in the midst of NATO consultations on the contentious subject of SNF modernization leading up to the May summit of NATO heads of government. As a result, Dutch influence in bringing about a NATO compromise on SNF was perhaps not felt to the degree it might have been in the leadup to the summit. During this period, Dutch officials continued to oppose calls for immediate negotiations on SNF, emanating chiefly from the Federal Republic of Germany and Belgium. So high was the importance attached to this issue that Prime Minister Lubbers kept a scheduled meeting with Chancellor Helmut Kohl on the afternoon of May 3rd, even though it was only the preceding morning that he had submitted the Cabinet's resignation to the Dutch head of state, Queen Beatrix. Later reports of the Lubbers/Kohl meeting indicated that the two had discussed "party issues" in advance of elections to the European Parliament (both are the leaders of Christian Democratic parties in their respective countries). However, it seems unlikely that Lubbers and Kohl would have avoided the single most important defense policy topic on the agenda during their meeting. The Dutch position on SNF was underscored later in May- and closer to the summit meeting-by Hans van den Broek, the Dutch Foreign Minister and a member of Lubbers' CDA party. Van den Broek, in a speech at The Hague during the visit of Polish Foreign Minister Tadeusz Olechowski, welcomed Gorbachev's announcement in early May of a unilateral Soviet 43 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency withdrawal of 500 Soviet SNF warheads from Warsaw Pact countries. Van den Broek took note, however, of Moscow's continuing numerical advantage in SNF, and characterized Gorbachev's withdrawal offer as a "modest step" against this background. The Dutch Foreign Minister indicated that the policy of the Netherlands vis-a-vis Moscow would be "to continue to urge the Soviet Union to bring down unilaterally its 14-fold preponderance in SNF missile systems to the current NATO level." Until progress was made along these lines, van den Broek averred, "no realistic basis [will exist] for negotiations on mutual reductions to equal ceilings in land-based missiles." Finally, in the week before the NATO summit, Frits Bolkestein-the Liberal party Defense Minister in the CDA/VVD coalition, who will now continue in that position during the caretaker period leading up to the September general election-became the first Western defense minister to visit Hungary. This meeting had been arranged before the fall of the government and, while it was carried out in his official capacity as defense minister in the caretaker government, Bolkestein did not hesitate to utilize the forum provided by his visit to promote the prospects of his own party, both in the European elections of early June and the September Dutch general elections. Even so, Bolkestein's visit to Budapest was significant, at least in so far as it represented the lessening of political tensions between East and West immediately before the NATO summit. Bolkestein, whose party is strongly Atlanticist, has been seen, since his accession to the post of Defense Minister, as sympathetic to U.S. policies and perspectives, and has publicly voiced skepticism regarding the motivations behind Gorbachev's unilateral force reduction offers. During his trip to Hungary, Bolkestein did not directly challenge Gorbachev's intentions. The purpose of his trip, noted Bolkestein, was "the awakening of reciprocal trust. We are talking about small steps within the room for maneuver that the two countries are offered within their own alliances." The Dutch "Shift Concept" Reflected in the Summit Communiqué If the fall of the Dutch government limited the ability of Dutch officials to effect a compromise between contending perspectives on SNF modernization and arms control before the Dutch perspectives on SNF were largely summit convened, the same cannot be said for reflected in the final language of the NATO the outcome of the meeting. The Communiqué Summit Communiqué. This perspective in- issued by the assembled heads of government cluded support for modernized, longer- is clearly marked by the presence of major range SNF at lower levels, together with an elements of the Dutch position defined and opening to SNF modernization after an articulated in the months leading up to the May agreement reducing conventional force meeting. Primary elements in this position, as asymmetries. 44 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency noted in previous IFPA updates, have been the following: Support for a "phased approach" to SNF modernization, with options at each step for updating SNF systems, for reducing unilaterally shorter-range assets, for restructuring the NATO stockpile toward longer-range systems, and (if certain conditions are met) for pursuing SNF negotiations. First phase would include allied agreement in principle to keep NATO's nuclear assets "up to date where necessary", coupled with unilateral cuts in NATO nuclear artillery. At the same time, NATO would call on Soviet Union to reduce unilaterally its own SNF forces to the NATO level, at which point NATO would consider SNF negotiations. With this option in mind, priority should be given to the formation of a special NATO working group to consider the specific mechanics of SNF arms control. Deeper, negotiated cuts in SNF forces would be tied to progress at the CFE talks, but would in no case go to zero. In this phase, SNF negotiations might be directly linked to second-phase CFE talks. Primary Dutch objective throughout all phases is to "shift" the orientation of NATO's SNF away from shorter-range capabilities and toward longer-range (400-450 km) systems, while reducing overall inventory. Each of these points is reflected, to a greater or lesser extent, in the final Communiqué issued by the NATO heads of government. The "phased approach," an essential component in the Dutch "shift" concept (to move the NATO SNF stockpile in the direction of fewer, longer-range systems) is not mentioned directly; however, the recent steps taken by NATO (since the Montebello agreement) to reduce unilaterally its SNF arsenal is once again noted by the Communiqué. Special emphasis is placed on the fact that NATO's SNF stockpile "has been reduced by over one-third to its lowest level in 20 years." Moreover, the Communiqué notes, "Updating where necessary of (NATO's) substrategic systems would result in further reduc- tions"--a clear and concise statement of acceptance of the Dutch "shift" concept. In line with the long-standing Dutch position, the Summit Communiqué also calls upon the Soviet Union "to reduce unilaterally its short-range missile systems to the current levels within the integrated military structure"-nearly a word-for-word restatement of van den Broek's response to Gorbachev's 500-warhead cut (noted above). While such unilateral cuts were not established as a pre-condition for NATO participation in SNF reduction negotiations, the Communiqué did establish the condition that implementation of a phase I CFE agreement must be "underway" before the Alliance would consider it appropriate to enter into such negotiations. Such a position is a reflection of the Dutch position that SNF talks should await the outcome of 45 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency the CFE negotiations. Furthermore, Holland's insistence that SNF not be reduced to zero in any circumstance-a position also held by the United States and Great Britain-was also reflected in the Communique's language. In what was widely reported to be the single most important phrase in clinching a consensus position [and agreement between the U.S. and West German delegations], the following language-thought to have been suggested by van den Broek, who chaired the Foreign Minister's meeting-was suggested: Once implementation of such an agreement [the CFE talks] is underway, the United States, in consultation with the allies concerned, is prepared to enter into negotiations to achieve a partial reduction of American and Soviet land-based nuclear missile forces of shorter range to equal and verifiable levels. (Emphasis in original) The key phrase in this language referred to "partial" reductions, which seemed to satisfy the Dutch, U.S., and U.K. requirement that a "Third Zero" be clearly ruled out. (Although, as discussed in the sections of this report dealing with the Federal Republic and Belgium, perceptions that a "Third Zero" opption had been foreclosed are not universally shared.) As for the potential "updating" of existing SNF assets, there has been greater discussion in the Netherlands following the NATO Summit-as there has been in other countries examined in this Report-of nuclear-tipped stand-off systems, and most particularly a tactical air-to-surface missile (TASM) option, which many believe would be less controversial to deploy than new ground-based systems. Yet, the emergence of broader support for TASM by leading Dutch defense planners could result in friction between the partners in a future center-left governing coalition in Holland-which, as discussed below, is a possible, and perhaps probable, successor to the fallen center-right coalition. At least two points of division between CDA and Dutch Labor (PvdA) leaders may be anticipated on the TASM issue. First, while CDA leaders reaffirmed after the INF Treaty their commitment to a continuing nuclear role for Holland's F-16s, and have openly endorsed-as have Liberal and D'66 party leaders-the deployment by NATO of air-launched stand-off weapons, PvdA leaders have continued to press in the recent past for a substantial reduction (if not elimination) of the nuclear tasks performed by Dutch forces, including that assigned to the F-16s. PvdA spokesmen have remained, studiously noncommittal during the current SNF debate on the question of stand-off systems, be they air- or sea-launched. Secondly, and more importantly, Labor spokesmen-similar to their counter- parts in other NATO European countries-have become increasingly critical of TASM-like systems (with ranges nearing, and possibly exceeding, the 500-kilometer threshold) as violating the "spirit" of the INF Treaty, even though the accord deals solely with the elimination of ground-based missile systems. It remains to be seen whether or not Labor's desire to enter the next coalition-together with Labor leader Wim Kok's rather pragmatic approach to defense 46 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency policy (compared to that of his predecessors)-will be strong enough to move the PvdA closer to the CDA position on TASM and SNF in general. Impact of the Government's Fall on Procurement For the moment, the fall of the Government The fall of the Government has resulted in in May has had a direct and immediate delays in a number of major procurement impact on Dutch defense procurement programs. Though Prime Minister Lubbers plans. A number of key procurement has appealed for movement on key programs projects, detailed in earlier IFPA quarterly such as the Leopard I tank modernization, it is updates, have now been deferred until a unlikely that decisions on major procurement new government is assembled-a process projects will be made before a new government that could take some weeks (and perhaps is assembled. months) following the general elections on 6 September. Significant procurement projects and decisions that have been put off include: Modernization plans for the Dutch Army's 468 Leopard I tanks A system decision on an attack helicopter to fill the Army's requirement for 50 platforms (a decision was to have been forthcoming in November, but is now not expected until early 1990) A decision on whether or not to purchase replacements for peacetime attrition losses of F-16s The purchase of four Patriot air defense systems The acquisition of the FIST Verdac fire control system for the Army A decision on Dutch participation in the NATO Helicopter for the Nineties (NH-90) project in order to provide an ASW helicopter for the Dutch Navy The previously-announced decision to procure 14 Crotale SAM systems to provide air defense for seven Dutch air bases The Defense Committee of the Dutch parliament informed Lubbers' caretaker government on May 11 that it would suspend consideration of major defense procurement projects until after the forthcoming elections. Prime Minister Lubbers is reported to have replied in a letter to the Committee that the delay of parliamentary review of these projects could result in contractual difficulties, the need to reopen negotiations with contractors, and increased costs. This is particularly the case with respect to three major procurement decisions which are at a crucial decision stage, and for which specific funding requests had previously been submitted: 47 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency The Leopard I modernization ($560 million) The Crotale SAM system ($132 million) The purchase of the Thomson-CSF ATILA field artillery command and control system ($79 million) A significant result of the government's fall with respect to defense procurement was the announcement by State Secretary for Defense Jan van Houwelingen of his intention to leave office following the September elections. Van Houwelingen, a member of the CDA, has held the number two slot at the Dutch Ministry of Defense for eight years. In this capacity, he has championed greater European defense cooperation, and was largely responsible for the revitalization of the Independent European Program Group (IEPG) as a major focus of defense equipment collaboration among the major NATO European defense industrial countries, including France. Van Houwelingen has frequently expressed a preference for European collaborative projects over similar projects involving the participation of U.S. firms. This has particularly been the case of late with respect to two major recent or on-the-horizon procurement decisions, namely, (1) a forthcoming decision on which attack helicopter system to choose for the Army's air support requirement, and (2) the recent choice of Crotale air defense systems for air base defense over the U.S.-produced pedestal-mounted Stinger and the U.S./West German ADATS system. In a recent interview, van Houwelingen has expressed the view that a decision on an attack helicopter system may be forthcoming by September-although, as noted above, most observes point to January as a more likely target date. Van Houwelingen's preference is for the European Light Attack Helicopter (LAH), also referred to as the Tonal. Under discussion for two years between the Dutch, the United Kingdom, Italy, and Spain, there is as yet no agreement among the partners on performance requirements for the LAH. As a result, some reports suggest that-despite van Houwelingen's optimism-the Dutch will abandon participation in the LAH sometime in July, unless two conditions are agreed to by the other partners: (1) the LAH must be capable of carrying the TRIGAT antiarmor missile; and (2) a firm timetable must be agreed to for production. The Hague is concerned that the four partners in the LAH are behind the game in the procurement of modern attack helicopters. Simultaneously, reports suggest that the major Dutch aerospace firm, Fokker-the industry representative of the Netherlands in the LAH project-is now pressuring The Hague to drop plans for participation in LAH in favor of the procurement of Italy's A-129 Mangusta. Fokker's motivation is reputedly a hoped-for sale of its new F-100 commercial transport planes to the Italian national airline. It is thought, therefore, that the way to this order could be smoothed by the Dutch Army's purchase of Italian helicopters. 48 institute for Foreign Policy Analysis I May 1909 Progress Report for the Defense Nuclear Agency Whether or not this option materializes is yet to be seen. Other key contenders for the Dutch attack helicopter requirement is the "Euro-Apache" now being offered by McDonnell Douglas to the Dutch and other Allied countries, and the French-West German future helicopter project currently known as PAH/HAC. For his part, van Houwelingen has said that he is "not exactly sure what the Euro-Apache is." He continues to express the conviction that the LAH project will move ahead following what he anticipates will be the U.K.'s decision to continue with the program. In any event, notes van Houwelingen, "the helicopter is only the platform. What really matters are the weapons systems"-a reflection of the Dutch insistence on TRIGAT capability with whatever platform is selected. Late in May, the possibility that Holland might ultimately choose the French-West German PAH/HAC option was enhanced by developments in another helicopter arena, the NH-90. The Netherlands, currently holding a five percent stake in the utility helicopter program (and planning, as noted above, to utilize the NH-90 in an ASW role with the Royal Navy), was approached by the Federal Republic with the request that Holland double its financial commit- ment to the program (to ten percent). In last September's Defense White Paper, the Dutch government had earmarked $287 million for its share of the NH-90 development costs; accepting the West German offer would raise this stake to $574 million. The motivation for the German offer was simply a financial one. Recognizing the Hague's increasing doubts over the LAH program (see above), and given Bonn's continuing inability to commit resources to the NH-90 project sufficient to support its own 25% stake in the program, the German government offered Holland participation in the PAH program-with no entrance costs-in return for taking over an additional 5% stake in the NH-90. In addition to participation in the Franco-German project, the Netherlands would be loaned a number of West German Bo-105 antitank helicopters until the PAH's come into service. Given Dutch concern that, by waiting for the LAH, it is getting behind the game in deployment of a modern attack helicopter, this option will probably receive considerable support within the Dutch MOD. However, the greatly increased outlays (relative- ly) required to accept the West German offer would require review by the Dutch parliament- which seems unlikely to happen before a new government is formed. At the moment, no time limit has been set on the West German offer. In another significant area of procurement, reports during the quarter suggested that Dutch Air Force officials are now formulating requirements for a planned mid-life update (MLU) of Holland's F-16 fleet. The Netherlands, as the single largest European purchaser of the F-16, will have a proportionately larger degree of influence over the MLU program, which it is hoped will be adopted jointly by all European F-16 fleets (in Belgium, Denmark, and Norway in addition to the Netherlands). Air Commodore Cees Barendregt, now the Deputy Chief of Plans 49 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency for the Royal Netherlands Air Force (and soon to take command of the Dutch Tactical Air Command), has recently stated this objective clearly: "We hope to be able to agree on a joint MLU-suite, based on common core avionics and standard software, with optional loose ends to facilitate individual extras." Key elements of the MLU proposal, which is to be submitted to the four European F-16 countries by General Dynamics at the end of this year, are expected to include radar, computer memory, processing and database interface capabilities similar to Block 50 F-16 C/D aircraft (the European countries fly the F-16 A/B). Other elements anticipated are a digital terrain navigation system, and database technologies making possible the integration of threat intelligence data with electronic warfare capabilities. Owing to the Dutch focus on the effectiveness of ground operations (noted in previous IFPA reports on the Netherlands), F-16s are expected (and their pilots are trained) to fulfill two missions-both air superiority/air space control (air-to-air) and ground support (air-to-ground). Because of the need to keep these missions in balance, Dutch planners have shied away from the procurement of systems that in their view would impose intensive training requirements on one mission only. Thus, even though Dutch F-16s continue to deploy laser-guided bombs that require remote laser designators (say, from other 2ATAF aircraft or ground-based designators), plans for updating these systems to the Maverick self-guided missile have been dropped on the argument that training requirements for the new system would orient Air Force operations too far toward the air-to-ground role. Instead, future acquisition plans include the possible purchase of a future Modular Stand-Off Weapon (MSOW) and/or the U.S. Direct Airfield Attack Combined munition. Procurement practices generally in the Netherlands have been subject to increased scrutiny during the second quarter of 1989. With the fall of the government, and the coming campaign for the September general election, it may be that defense procurement will receive even wider attention in Holland. Recommendations for improving Dutch procurement processes-which had been developed with the assistance of an external consulting firm-were accepted by the Netherlands Defense Council and submitted to Parliament during the quarter. These recom- mendations included specific proposals for improving the process in five major areas, including clarification of objectives; increased collaboration between the Ministries of Defense and Economic Affairs; clearer definition of accountability, responsibility, tasks, and authority in the procurement process; better coordination of operational requirements and procurement; and the control of managerial information. One specific recommendation of note to emerge from this review is the development of a joint task force between the Dutch Economic Affairs and Defense 50 institute IUI Analys Progress Report for the Defense Nuclear Agency Ministries in order to develop a future strategy for Dutch defense industries, particularly with respect to the coming single European market of 1992. Prospects for the Next Dutch Government: The European Elections in the Netherlands Whether these recommendations are Though observers have widely predicted a center- put into effect, however, hinges-as left successor to the recently-fallen center-right indeed, the prospects of each of the Dutch government, the European Parliament elec- procurement programs noted above tions suggested that the Dutch Labor party's sup- do-on the outcome of the September port is slipping, The centrist CDA did well, general elections. To the extent that suggesting that it will continue to exert considerable the recent European elections are any control over Dutch defense policy. indication of how the Dutch elec- torate will shape its next government, it may be said that the Dutch Liberal party was ill-advised in bringing down the government by standing firm against the CDA's environmental policies, if it had any intention of remaining in the governing coalition. For the Liberal party fared poorly in the European election, losing two of its four seats in the Dutch delegation to the European Parliament (EP), while Lubbers' CDA gained two seats, making the CDA the largest single party in the Dutch EP delegation. Moreover, the CDA gained 34.6% of the total Dutch vote, which matched its best-ever electoral performance recorded in the last national election (of 1986). At the same time, the opposition Dutch Labor party (PvdA), unlike a number of other socialist parties across Western Europe (but similar to the Belgian Socialists), fared poorly in the Dutch European poll. The PvdA actually lost one of its seats in the Dutch delegation of 25, falling from nine to eight members with a vote of only 30.7%-compared to its vote of 33.3% in the last Dutch general election. The poor showing of the Dutch Labor party has increased the possibility that a government formed after the September election will incorporate three parties-the CDA, the PvdA, and the smaller Democrats '66 party-in a center-left coalition. For a number of reasons (including questions over internal party leadership and significant hostility within the party rank and file toward the treatment received at the hands of the CDA, and specifically from Prime Minister Lubbers), the right-of-center Liberal party seems unlikely to have a role in the next government. Yet predictions immediately after the government's fall that a CDA-PvdA coalition would come about from the September election now seem to have been clouded by Labor's poor showing in June. A number of emerging factors, not least among them being the greatly increased importance of environmental issues on the Dutch domestic agenda, as well as Lubbers' own personal preference for a more center-left approach (so long as the economy is sound and a 51 Institute for Foreign Policy Analysis Progress Report for the Defense Nuclear Agency moderate security policy is pursued), point in the direction of a CDA-PvdA coalition succeeding the center-right CDA-VVD government. Unless the Labor party can improve its showing over the June elections, however, the degree of any leftward shift would likely be moderated by the presence of the more centrist D'66 party within the coalition.* What can be said about the next Dutch government with respect to defense policy is that it will face strong pressure to reduce public spending on defense. Within the Dutch electorate, there is a general sentiment that the years of austerity imposed in order to balance the Dutch budget deficit did not fall equally on defense spending. As noted in previous IFPA reports on the Netherlands, increases in defense spending have not even approached NATO's agreed goal (recently reaffirmed at the Brussels summit) of three percent per year real growth in defense spending. Yet even so, the PvdA has long held that Dutch defense spending should be frozen, if not reduced, in order to restore cuts imposed in social welfare programs during the CDA/VVD austerity programs. Democrats '66 have proposed a freeze in the Dutch defense budget for the early 1990s, with "built-in flexibility" to increase (or decrease) defense expenditures as developments in the European arena warrant. For its own part, the CDA lead the governing coalition that authored a proposed 2% per year increase in defense spending beginning in 1991; it is doubtful, however, that this plan will be observed by the next government, regardless of its composition. Recognizing the need to make its defense policies more palatable to the electorate, the Dutch Labor party has moved steadily away from the strongly antinuclear posture that had come to characterize its security perspectives in recent years. Marjanne Sint, the party chair, has stated that pragmatism is called for if the PvdA is to be viewed as a credible coalition partner; this sentiment has also been reflected in the public statements of Wim Kok, the party's parliamentary leader, who has never really embraced the extreme antinuclear sentiments articulated by past Labor leaders. A prospective coalition agreement between the CDA and PvdA, therefore, might extend to the PvdA's more explicit acceptance of a continuing nuclear element to the NATO force posture (carried out in part by Dutch forces), so long as the CDA agrees to press in NATO for early negotiations on SNF and accepts lower levels of defense spending at home. * It is important to note that while in most of the other countries covered in this update the success of socialist and Green parties can be attributed to rejectionist sentiments and low voter turnout, the Dutch case is somewhat different. Because the fall of the government preceded the European Parliament poll, the June vote was widely seen as a "primary" of sorts in the leadup to the September general elections. The predictive value of the Dutch European results were limited, however, by the surprisingly low turnout-which, at 47.2%, represented the lowest turnout of Dutch voters for a European Parliament election since they began. 52 Progress Report for the Defense Nuclear Agency BELGIUM Belgium's center-left government The NATO Summit and Arms Control Priorities welcomed the NATO Summit In Belgium, as in other countries examined in this communiqué as supporting its own Report, debates over security policy during the past position, which favors near-term two months have revolved primarily around the proper SNF negotiations "as soon as pos- focus to be adopted in NATO's "comprehensive con- sible", while deferring any decision cept"-or, in French, concept global-of arms control on Lance until 1992. While reject- and disarmament, the final draft of which was being ing, for the moment, a "Third Zero" readied for approval at the NATO Summit on May option, the current Belgian coalition 29-30. Indeed, ever since the October 1988 NPG opposes any significant increase in meeting at Scheveningen, the current center-left Mar- the range of existing SNF assets. tens Government (known locally as Martens VIII) has taken a particularly active-if nonetheless skeptical- role in the discussion of short-range nuclear force (SNF) modernization requirements, arguing (with the Germans) against any near-term decision by NATO to deploy a follow-on to Lance (FOTL), and pressing instead for East-West negotiations on SNF "as soon as possible" (preferably running parallel to the CFE talks in Vienna). Not surprisingly, therefore, in the weeks immediately preceding the NATO Summit, Belgian officials involved in the NATO policy process continued to stress the "arms control plank" of the draft comprehensive concept, together with the need for Allied agreement on a common approach to potential SNF negotia- tions prior to any serious discussion of possible upgrades to NATO's existing SNF assets. On the specific question of FOTL, moreover, the Martens Government (in the days leading up to the Summit) held fast to its position-first publicly articulated by the Prime Minister in a speech before Parliament on April 11-that no decision was required before 1991-92, and that even then such a decision should be sensitive to possible reductions in the threat achieved via the CFE talks. Perhaps, in a bid to guard against any compromise on this issue, the Chairman of the Flemish Socialist Party (SP)-which remains the most stridently antinuclear political grouping in Belgium-warned on May 23 that the Socialist bloc (or at least the larger Flemish wing) might well pull out of the governing coalition, if Belgium (for the sake of Alliance solidarity) were to agree at the Summit to an SNF modernization program. Given these views on arms control and SNF, Belgian reactions to the NATO Summit-which endorsed President Bush's proposals for deeper and broader force reductions at CFE, deferred any FOTL decision until 1992, promised only to update SNF "where necessary," and secured U.S. support for SNF negotiations once implementation of a CFE agreement is "underway"- 53 Institute for Foreign Policy Analysis Progress Report for the Defense Nuclear Agency have been quite favorable across party lines. In a speech before the Belgian Parliament on June 9, Prime Minister Martens, speaking on behalf of the five-party coalition, praised the Allied decision to include combat aircraft, helicopters and troops in the CFE negotiations as an "important gesture toward the Soviet position", which would make early agreement on conven- tional force reductions-and, by extension, the opening of SNF talks in the near-term future-far more likely. Recalling Belgium's opposition (for the moment) to a "Third Zero" option and her willingness to maintain-without significantly improving-NATO's tactical nuclear forces "at whatever level may be necessary", Martens went on to describe the final concept global, as it appeared in the Summit Joint Communiqué, as "an honorable compromise to which Belgium could fully subscribe a compromise set within a dynamic approach to relations with the East." Forty years after the Treaty of Washington, Martens concluded, the Alliance faced two major trends-namely, progress toward European integration and the turn toward reform in the Soviet Union and Eastern Europe-and the NATO Summit, in his estimation, would facilitate both. This is not to suggest, of course, that the debate over SNF policy and arms control priorities has come to an end in Belgium. For now, the Flemish Socialists-who pushed the governing coalition to oppose SNF modernization-seem prepared to adopt a "wait and see" attitude, even though they would prefer immediate SNF negotiations without any linkage to the state of progress at the CFE talks. As do many in Western Europe, they perceive the object of their greatest opposition-that is, the FOTL option-to be, in any event, "dead in the water", and are more willing, as a consequence, to give the negotiators at Vienna a chance to produce concrete results before pressing an alternative approach on the SNF front. If there are few signs of an impending CFE agreement within six months to a year, however, the Belgian Socialists (especially from Flanders) will no doubt revive their campaign for SNF negotiations "as soon as possible", an appeal that almost certainly would be endorsed by other left-of-center parties in NATO Europe. Echoing statements made in the FRG, moreover, Socialist spokesmen in Belgium made clear, once the full text of the Summit Communiqué was released, that a "Third Zero" for SNF forces definitely remained, in their view, a live option. While they may be willing to approve ambiguous Summit language endorsing East-West negotiations toward only a "partial reduction" of SNF (once implementation of CFE cuts are in progress), Socialist critics of NATO's nuclear policy still consider such reductions as merely a necessary phase in the complete elimination of SNF systems from the European theater. Yet another possible complication that could dampen Belgian support for future Alliance initiatives is the Martens Government's stated opposition to any upgrades of SNF forces that might significantly increase their range, "thereby undermining", in the words of Martens' statement before Parliament on April 11, "the spirit of the INF Treaty". As discussed at length 54 Institute for Foreign Policy Analysis 1 May - June 1909 Progress Report for the Defense Nuclear Agency in the last IFPA Report, the Belgian admonition that NATO avoid extended-range SNF can be traced primarily to the Socialists' concerns that deployment of such systems would reverse what they view as a generally positive trend toward reduced ranges brought about by the elimination of theater nuclear systems with ranges of 500 kilometers or more. What is more, it has become clear in recent debates in the Belgian Parliament that SNF systems with ranges much beyond 400 kilometers would indeed be considered excessive by most of the Socialist bloc and (in fact) by many from the more centrist Christian parties. What this means in practical terms is that the NATO plan to deploy 400-plus kilometer air-launched SNF (such as TASM) is likely to trigger rather strong opposition from powerful elements within Belgium's governing coalition. This is true despite the widespread preference among most NATO allies (including the FRG) to shift from shorter to longer-range SNF. If the Belgian Socialists-and again, the Flemish activists, in particular-have their way, efforts to phase-in TASM-like systems as routine modernizations of NATO's air-delivered nuclear assets will proceed (if at all) with difficulty. Should the view that TASM and similar range systems contravene the spirit-if not the letter-of the INF Treaty begin to gather broader support in NATO Europe (and the signs are that this is occurring on the center-left of the political spectrum), then post-Summit assumptions that deferral of FOTL could be compensated for, to some extent at least, by deployment of supposedly less controversial stand-off systems (both air and sea-launched) may need to be revised. Procurement Issues and Defense Industrial Trends On the military equipment front, Belgian The selection of the Carapace ECM system- MOD and General Staff officials took ad- largely due to the offset package offered to ditional steps in the May/June period to set Belgian industry-represents the last major in place the 1989-92 Mid-Term Procure- Belgian purchase for 1989-90. Future ment Plan approved by the Martens prospects for U.S.-Belgian defense cooperation Government on March 24, announcing in will be chiefly in Air Force and Army mid-May the selection of the Carapace programs (Leopard Iupgrades, artillery mod- electronic countermeasures (ECM) sys- ernization, third-generation anti-tank tem-produced by the French firm weapons, and air-to-air/air-to-surface mis- Electronique Serge Dassault-to update siles). the Belgian F-16 fleet. With a total pro- gram value reaching some $220.4 million, the ECM buy stands as the last major hardware purchase scheduled for the 1989-90 timeframe (the Army's VHF choice having been made earlier in the year). Significantly, this will be the first time, according to a Belgian MOD press release, that equipment built by a non-American company would be integrated with the F-16. 55 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Principal Belgian Procurement Programs for the Mid-Term 1989-1992 (in millions of dollars) General Staff 1989 1990 1991 1992 TOTAL BEMILCOM 43.9 43.9 BEMILDAT 11.6 6.3 17.9 COMPUTERS 14.5 8.5 2.5 1.6 27.1 AWACS MODERNIZATION 24.6 24.6 GAS MASKS 24.6 24.6 Army BRIGADES REORGANIZATON 1.1 2.3 37.7 41.1 3RD GENERATION ANTITANK 15.6 15.6 LEOPARD MODERNIZATION 45.0 6.6 87.7 139.3 VHF RADIO 244.9 2.1 13.8 260.8 ARTILLERY MODERNIZATION 2.3 15.8 25.9 44.0 VEHICLES 3.2 32.9 202 238.1 Air Force F-16 ECM 175.6 21.0 23.8 220.4 MIRAGE UPDATE 35.9 53.8 89.7 AIR-TO-AIR MISSILES 52.8 35.9 96.9 185.6 AIR-TO-SURFACE MISSILES 30.8 30.8 C-130 MODERNIZATION 35.9 25.4 61.3 SURFACE-TO-AIR MISSILES 83.6 83.6 Navy FRIGATE CONSOLIDATION 17.9 12.8 30.7 MINESWEEPERS 0.64 72.5 73.0 Medical STERILIZERS 9.4 9.4 MED. UNIT 2.8 2.8 Logistics NATO 73.0 84.5 89.6 91.2 338.3 OTHER 9.8 56.4 25.7 2.2 94.1 56 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency Perhaps more important from the perspective of U.S. defense industry, this decision represents a significant set-back for Litton Applied Technology's TWS (Tail Warning System) 95B project, which Litton had hoped would open the door-beginning in Belgium-to broader export sales in the NATO European market. The selection of Carapace, moreover, simply underscores the difficulty American firms will continue to have in generating new sales in the increasingly competitive European market, unless they are prepared to offer much more attractive offset packages, including additional production opportunities for local industry. For Belgium- where the relatively small aerospace sector is finding it increasingly difficult to compete with the larger European firms (especially in the wake of the current rash of mergers)-access to advantageous offset terms for Belgian industry was almost certainly the single most decisive factor in choosing between competing ECM systems. The French entry won, no doubt, not merely because it met the technical requirements of the Belgian Air Force (as did Litton's TWS), but because Electronique Serge Dassault was prepared to guarantee that a minimum of 80 percent of the contract value would be returned to the Belgian marketplace in the form of direct subcontracts, co-production schemes and indirect offsets (involving products unrelated to the specific deal). The importance of revitalizing Belgium's defense industrial base-and the entrée to the Belgian market that this process could provide to foreign firms-was reaffirmed by Minister of National Defense Guy Coëme in a speech in early June to a group of defense industry executives. Coëme noted the need for Belgian industry-together with the three regional governments of Flanders, Wallonia and Brussels-to make a far greater effort to help finance military procurement programs (and to get involved early on in program planning), if they are to remain competitive in the European single market that will emerge in 1992. Joint funding from industry and the regions, Coëme implied, was perhaps the only way to avoid stagnation in the Belgian defense industrial sector after 1992, and one sure avenue toward an improved financial footing for Belgian industry (and, by extension, for the regions themselves) was to encourage greater foreign investment. As noted above, this objective weighed heavily in Belgium's recent selection of prime contractors for the Army's combat helicopter and the Air Force's F-16 ECM suites. It seems to have been a key factor as well in the decision in June by Fabrique Nationale (FN) to sell a controlling interest (51 percent) of its aeronautics division-FN Moteurs-to the French engine manufacturer SNECMA, keeping a 42 percent interest for itself and providing the regional government of Wallonia (which agreed to pour some $26 million into FN Moteurs) with a 7 percent share. The deal, which netted the FN Group approximately $45 million, permits FN to pay off its debts and finance a costly restructuring program, while still retaining a major minority interest in a far more competitive FN Moteurs (which will keep its separate identity and its production base near Liege). 57 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Belgian Procurement Funds by Service for the Mid-Term 1989-1992 (in millions of current dollars) 308.9 1989 264.3 18.54 30.0 1990 141.5 12.8 96.5 1991 168.7 303.5 96.9 1992 72.5 738.9 Total 1989-1992 671.4 103.84 Army Air Force i Navy 58 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Division of Belgian Procurement Funds for the Mid-Term 1989-1992 (in percentages) Air Force 32% General Staff 7% Army 35% Logistics 21% Medical Navy 1% 5% 59 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency The implications of the above for U.S. defense companies, then, seem rather obvious. If they are prepared to invest in Belgian firms-or, failing that, establish new subsidiaries within Belgium-as part of a broader strategy to improve their European production base in preparation for 1992, they stand a far better chance of winning Belgian contracts. If they are unwilling or unable to do so, American firms will continue to be edged out by European competitors and others (e.g., the Japanese) who seek to improve their market position in the post-1992 environ- ment. As for specific contract opportunities over the mid-term (1989-92), hardware needs of the Army and Air Force-as the accompanying charts graphically illustrate-will provide the most lucrative projects for .industrial participation. Looking beyond the VHF and ECM accounts, major equipment programs over the next four years will include (for the Air Force) the purchase of modern air-to-air, air-to-surface and surface-to-air missiles, and (for the Army) an upgrade of the Leopard I tanks, artillery modernization, and acquisition of a third-generation anti-tank weapon (likely to be the joint European TRIGAT system). The European Elections and Belgian Coalition Politics Beyond the election of national delegates to Results from the European Parliament vote the European Parliament, the European elec- suggest shifting levels of support for the par- tions in mid-June hold significance in Bel- ties in Belgium's Chrístian/Socialist/Flemish gium for what they imply about the likely nationalist governing coalition, bringing into stability of the current coalition and the rela- question the continued stability of the Bel- tive strength of Belgium's various political gian government. Prime Minister Martens' parties, both in and out of government. In- CVP party gained strength, while the deed, given the delicate political balance that Flemish Socialists and Flemish nationalists prevails in Belgium, even slight shifts in political popularity can open rifts among (Volksunie) lost support. Additionally, Bel- coalition partners, and a preliminary assess- gian Green parties gained remarkable sup- ment of the election results suggests that this port. may very well be happening. To be specific, the Flemish Nationalist Volksunie party-which has been slipping in the polls since the September 1988 local elections-lost a significant portion of its vote (and a seat in the European Parliament) to the more extreme, far-right, ultra-nationalist Vlaams Blok, a turn of events which many feel will strengthen the Volksunie's pre-existing doubts about remaining in the coalition. Given the importance of the Volksunie to the constitutional reform process (devolving greater powers to the regions), neither of the larger coalition groupings-the Christians and the Socialists-would look forward to the Volksunie's departure from government any time soon, 60 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency at least not until the close of the current Parliament in January 1992. Yet, should the Volksunie's fortunes continue to slide, its leadership may very well opt out of the governing coalition. Among the five parties now in power, the main winner in the European elections was Prime Minister Martens' Flemish Christian Socialists (the CVP), which gained a seat in Strasbourg, while the principal losers were the Flemish Socialists, who lost a seat. Martens' former coalition partners-the more conservative Liberal parties of Flanders and Wallonia-also lost support (and one seat in the European Parliament). Together with their failure to lead the voting in the Brussels regional elections (held parallel to the European elections), the Liberals did little to improve their standing among the Belgian electorate (or, in consequence, their chances of joining another coaltion in the near-term, should the current government fall). By far the true victors in the Belgian European elections were the two Green parties, the Walloon Ecolo and the Flemish Agalev. In French-speaking Wallonia, the Green turnout was particularly strong, giving Ecolo 15 percent of the Walloon vote (just a notch less than that for the Francophone Liberals) and the same level of representation at Strasbourg (two seats) as that for the venerable Walloon Christian Socialists (PSC). Belgium's Green presence in the European Parliament will probably be bolstered still further by the sole remaining Volksunie delegate, who is expected to align with the Green faction. What this means for defense is difficult to tell with precision. The annual summer negotiations among the governing parties over the national budget is about to begin, and the CVP's comparatively stronger showing may help to hold off Flemish Socialist pressures to reduce further Belgian defense spending-pressures which a number of informed observers thought might well increase in the wake of post-Summit arms control euphoria and NATO's more agressive efforts to achieve a CFE agreement at Vienna. On the other hand, CVP leaders-who must contend with a vocal anti-defense/antinuclear minority within the party-have never been particularly eager to expend scarce political capital protecting military expenditures. Given the Green Party proclivities of the Volksunie on such matters, the Christians' only real ally (among its coalition partners) in the coming budget battle will be the French-speaking Socialists (the PS) of Wallonia, where most of Belgium's defense industries are located. Together, the CVP and the PS will likely sustain the Government's current commitment to a $2.7 billion Mid-Term Procurement Program, but efforts to maintain annual defense spending at the $2.66 billion level-thought by Belgian Chief of Staff Charlier to be the absolute minimum allowable-could easily falter. 61 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency Italy Over the last three months, Italian strategic and political analysts were focused on; President Bush's visit to Rome and the subsequent NATO Summit meeting; the outcome of the European Parliamentary elections; and, the continuing search for a rationalization of the roles, missions and structures of the Italian armed forces. All of these issues were, however, overshadowed by the fall, on May 19, of the forty-eighth Italian post-World War II government, occasioned by the resignation of Christian Democratic Prime Minister Ciriaco De Mita. Italy's Governmental Crisis and the NATO SNF Debate At the heart of Italy's current political crisis is a struggle for power between, on the one hand, Socialist Party leader Bettino Craxi and his Christian Democratic friend and ally Arnal- Italian defense perspectives are focused on do Forlani, the former Prime Minister who internal security and "out-of-area" threats. aspires to leadership of the Christian Democratic Party (CDI), and, on the other hand, the De Mita faction which has relied on centralization of the government bureaucracy to sustain control over dissident party factions. This rivalry helped to shape the Italian election campaign for the European Parliament which, ultimately, resulted in a victory for the "left", as the Italian Communist and Greens Parties made significant inroads in cutting the popular majority of the five-party coalition government. Even as voter turnout was low, in fact the lowest in post-war Italian history, and the campaign centered less around European questions - although in a related referendum Italian voters overwhelmingly approved a motion that Europe should be governed by a single government responsible to Parliament-the June Parliamentary election results revealed several interesting insights into Italian political, and hence strategic, perspectives. The first, and most obvious, is the apparent rejuvenation of the Italian Communist Party (PCI) under its new dynamic leader, Achille Occhetto. With his Europeanist outlook (that was described in depth in IFPA's DNA Quarterly Report for January-April 1989) and his Party's innovative approach to domestic economic issues, the new Italian Communist Party leader may succeed in attracting a greater share of the Italian electorate in a national election, and, thus, disrupt the plans of Socialist Party (PSI) leader Bettino Craxi to form and head a new "union of the left." Such a "union" presumably would take on many of the positions of the International Socialist Movement, including in the defense arena where both Parties have been supportive of West German NATO positions, in particular their insistence on starting SNF negotiations before implementation of a CFE agreement. In this context, both the Socialist Craxi and PCI leader Occhetto have supported a "Third Zero" option, pertaining to Lance (nuclear surface-to-surface) missiles and nuclear-capable artillery deployments. Their respective positions on NATO deployments of 62 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency dual-capable aircraft are less clear, although both men are said to oppose the Italian acceptance of the redeployment of the U.S. 401st air wing, primarily because of its collateral nuclear-strike tasking. This sensitivity of Italian officials (and public opinion, to nuclear deployments on Italian soil) threatens to emerge as a major political issue in regard to TASM, especially if the U.S. F-16s are, in fact, redeployed to Italy. Reinforcing this view is the apparent growing sympathy of Italian voters for the environmentalist cause which was manifested in the gains made by the Italian Greens whose 6% of the vote translates into five seats in the European Parliament. Together with the growth of antinuclear sentiments, the concern over environmental issues reflects the emergence in Italy, as well as in Western Europe, of a "leftist" trend which may have a significant impact on the future conceptualization of national and European defense/deterrence requirements. However, the extent to which the results of the European Parliamentary elections will influence the nearterm shaping of Italian defense policy is unclear. At the moment, Italian perspectives on defense and deterrence issues are preoccupied with a growing concern over the global proliferation of ballistic missile and chemical warfare technologies and, for the most part, a diminished perception of a threat posed by the Soviet Union and Warsaw Pact forces. As has been noted consistently in previous IFPA Quarterly Reports for DNA, Italian threat perceptions have changed over the years since World War П, to emphasize internal security and "out of area" threats, specifically from Libya to the South and terrorism from the Middle East. For at least a decade the Italians have emphasized the Libyan threat in the context of their Mediter- ranean obligations in NATO and in the course of Alliance debates over force dispositions and burdensharing. In their current defense plans, Italian forces are structured primarily for use in Mediterranean scenarios, although they maintain a capability for employment in the North against a Soviet/Warsaw Pact contingency. It is in this context that Italian public opinion has become embroiled in the NATO SNF debate and the attendant discussion of Western CFE proposals. Italian Views of the NATO Compromise Apart from sympathizing with the dilemma of the West Germans in the Alliance, and indeed, supporting their position in the NATO controversy on Lance modernization and SNF negotia- tions, the last five-party Italian government coalition, under the lead of the long-serving, Christian Democratic Foreign Minister Giulio Andreotti, has been outspoken on the need to reconsider the deployment of all of NATO's frontline forces, nuclear as well as conventional, in the context of both the conventional force talks (CFE) and the prospective negotiation of an agreement to limit short-range nuclear forces in Europe. The Italian position on the relationship between the CFE talks and the proposed negotiation of short-range nuclear forces is based on 63 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency a perception that NATO has more to gain by bringing Soviet short-range nuclear weapons into talks which may result in their disproportionate dismantling (because of the larger inventory of Soviet SNF systems, as compared with that of the Alliance). But more than this, from the Italian perspective, the defense rationale for the deployment of SNF systems will inevitably be diminished as the conventional force talks produce agreement on the reduction of armored and artillery force deployments in Europe. Thus, the five-party government coalition partners have been united in their support for an early SNF negotiation, tied to progress at the CFE, but not necessarily to implementation of an agreement. At the same time, the Italians have also been more or less united in the view that a Lance modemization decision need not be made by the Alliance this year. In part, in support of the West Germans, the Italians have stated that a modernization decision on Lance could be pushed off until the early 1990's, at which time many Italian defense analysts anticipate that there will be negotiated a framework agreement at the CFE which would facilitate, from a military-operational perspective, a draw-down in Alliance SNF deployments. While there is widespread support in Italy for SNF negotiations, there are divergent views of whether or not to support the "Third Zero" option. Among Italian public opinion, support for the "Third Zero" is strong; but among defense experts and The Italian position on SNF negotiations does not tie policymakers in the Foreign and future negotiations to implementation of a CFE Defense Ministries and at NATO, agreement, although it does foresee some progress this is widely regarded as a at CFE as a necessary precursor to talks. dangerous option for the strategic stability of Europe. There is among Italian defense experts strong support for the concept of minimal deterrence based upon the extension of a U.S. strategic-nuclear guarantee to Western Europe, manifested in the forward deployment of American forces in the Central Region of NATO. In this context SNF may have a coupling role, especially in the aftermath of the INF Treaty; but deployments of nuclear artillery and large numbers of SSM systems (i.e. the 88 Lance launchers) are widely regarded as unnecessary. On the precise question of a preferred NATO SNF force posture under a minimal deterrence concept, the Italians are divided as to whether NATO Europe should support deployments of ground-based nuclear weapons capabilities at all. Ever since the INF deploy- ment controversy and debate in Italy, the question of nuclear-capable systems located on Italian soil has been controversial and sparks opposition, especially in those areas where these systems are to be sited. For many Italian defense analysts, the current NATO controversy over SNF should be regarded as the "tip of the iceberg." The real Alliance confrontation is said to be 64 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency coming over military doctrine and the defense posture attendant with NATO's forward defense concepts. For many Italians, the differences in perspective between NATO's front-line states (of West Germany and Italy) and what were termed by the Italians as the "second-line" allies (of France, Britain and the United States) go to the core of the Alliance's nuclear "warfighting" posture. From the Italian perspective, the present NATO strategy of forward defense and early use of short-range nuclear weapons, if conventional forces cannot hold their assigned wartime posi- tions, creates a distinction between "front" and "second-line" states, with Italy and the Federal Republic of Germany facing prospective destruction and widespread radioactive contamination. For the Italians who deploy six batteries of nuclear Lance missiles (in the northeast, near the town of Portogruaro), with the objective of stopping a Warsaw Pact invasion down the Po valley, their use in a European contingency would ensure the destruction of Italian territory and population from Trieste to Udine. Increasingly, as with the deployment of nuclear-capable artillery launchers, the deployment on Italian soil of any short-range nuclear weapons is disputed except, perhaps by the Italian Army's leadership, and is likely to engender heated public and policy debates that could have the effect of eroding Italian support for NATO as the preeminent institutional framework for defense cooperation in Europe. Already many Italian defense and policy analysts and officials have jumped on the "European" bandwagon, preferring to explore the future prospects for defense collaboration either under West European Union (WEU) auspices or in the context of the European Communities, which currently have no formal defense-related responsibilities. Italian opposition to land-based short-range nuclear weapons deployments on Italian soil is also seen in the growing opposition to the planned redeployment of the U.S. 401 st F-16 wing. Apart from regional concerns which are not incidental and which focus on a range of environmental issues - from noise abatements to low-flight training - there is growing political opposition to the move on the basis of anti-nuclear sentiment, but also in the context of diminished threat perceptions of the Soviet Union and against the prospects of a CFE agreement. By and large, Italians are hopeful that a CFE framework agreement can be negotiated by 1991, especially in light of President Bush's recent proposals which included aircraft and troop reductions, both of which the Italians have long supported for inclusion in the CFE. Implications for Italian Defense Reorganization In line with projected changes in the European security environment as a result of a diminished Italian threat perception of the Soviet Union, and a possible CFE outcome that may affect fundamentally Alliance force deployments and military structures in Western Europe, the Italian military is working on a major reorganization of Italy's defense forces. This effort is being 65 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency undertaken in the context of reduced defense spending and against the assumption that austerity measures will be necessary well into the 1990's if the Italian economy is to meet the government's objective of stabilizing the national debt before 1992, and the implementation of the European Single Integrated Market structure. Within the new Italian defense model: the territorial defense structure will be streamlined, with a progressive reduction of the number of conscripts and a revision in the numbers of personnel assigned to logistics; while redundant or unnecessary facilities will be closed or made available for civilian use. Additionally, both in the administrative area and logistics services, automated systems and new organizational structures will be put into operation, and, the length of military service will be reduced to take account of political opposition to current conscription periods. On the equipment side, the Zanone Plan, as the defense model is now termed, provides for major equipment procurements between the years of 1989 and 2000, related specifically to air defense of Italian territory; to sea-based air defense assets, including systems for the protection of land-based as well as naval assets; mobility enhancements; and, infrastructure modernizations for the Italian ground forces. This Plan does not, however, include funding for major interna- tional procurement programs like Patriot, the European Fighter Aircraft, or the NATO Frigate program, which, when taken together, would "break through current budgetary ceilings" and thus, have to be authorized under a separate Parliamentarily-approved funding package. (In this context it is important to note that the Zanone Plan Defense reorganization necessitated by the Italian is a draft law that also has government's austerity measures into the 1990s will include: not yet been submitted to streamlining of the territorial defense structure, reduction in the Italian Parliament for the number of conscripts and revision of the number of approval.) personnel assigned to logistics, and closure of unnecessary The emphasis of the facilities. The current defense plan includes funding for in- Zanone Plan on Italian frastructure and mobility enhancements and air-defense as- defense interests in the sets, but not for major international procurement programs Mediterranean and "out- like Patriot or the NATO Frigate. Funding to meet these of-area" contingencies demands would have to be authorized by Parliament under a reinforces, in the new separate supplementary procurement package. Italian defense model, the role of the Italian Navy which, until now, has been relegated a "poor third cousin" to the Air Force and the Army in budgetary allocations. For example, the 1988 Italian defense budget assigns 42.5% of its funds to the Army, 35.7% to the Air Force, and only 21.8% to the Navy. Moreover, of the 3.189 66 Institute for Foreign Policy Analysis 1 May . 30 June 1989 Progress Report for the Defense Nuclear Agency intervention for limited peacekeep- ing and international security Italy at a Glance operations, "will be the most prob- Population: 56.8 million able ones in the next years." Area: 30.2 million hectares Yet, funding for the proposed Work force (average 1988): 24 million Italian defense reorganization is Unemployed (average 1988): 2.9 million not likely to be available in the next Dollar exchange rate ten years. While Italy's Defense (average 1988): one dollar =1,302 lire Minister, Valerio Zanone, has re- Inflation (consumer price index average 1988): 5.0% quested budget authority for 30 tril- GDP 1988: L1,073,100 billion lion Lire ($21 billion) over the next ten years for the modernization of GDP growth 1988: 4.0% Italian armed forces, a large portion Money supply M2 growth 1988: 7.7% of it will be allocated to administra- Public sector borrowing tive and service costs. Of the ap- requirement 1988: L124,651 billion propriations to "heavy Public debt at technologies" there will be a large year end 1988: L 1,035,500 billion deficit if each of the Services' mod- Public debt/GDP: 96.5% ernization requirements are to be Trade 1988: met. In his budget request, Zanone Imports L180,059 billion Exports L167,196 billion proposes to allocate three trillion Merchandise trade deficit L12,863 billion Lire ($2 billion) per year to the Head of State: President Francesco Services, making for an allotment Cossiga of one trillion Lire ($705 million) Prime minister: Ciriaco De Mita for each of the armed forces. This (ChristianDemocrat) is in addition to the 30,000 billion Government: Five-party coalition comprised of: Christian Democrats (DC), Lire ($20,9 billion) that the govern- (until May 19, 1989) Socialists (PSI), ment requested Parliament to Social Democrats (PSDI), Republican (PRI) and authorize for additional procure- Liberals (PLI) ment funding over the next ten Parliamentary composition years. This supplemental (three main parties): Christian Democrats 34.3% Communists (PCI) 26.6% authorization is supposed to cover Socialists 14.3% Italian participation in major inter- national programs, notably the European Fighter Aircraft, Patriot, and the NATO Frigate program. Thus far, however, the funding bill has not been acted upon by the Parliament which, together with the governing coalition, had decided that it was of a lower priority than implemen- tation of proposed cuts in government spending. Without authorization of the supplemental 68 Institute for Foreign Policy Analysis 1 May - 30 June 1989 Progress Report for the Defense Nuclear Agency funding bill, Italian defense spending over the first three years of the requested budget authorization would amount to just 0.1% of the Gross Domestic Product (GDP) and would permit Italian defense to reach in 1992 (the year in which the national budget is to be stabilized according to coalition government policy), an overall defense expenditure percentage of almost 2.4% of the GDP, which compares favorably with the present spending level of 2.1% of the Italian GDP (in 1988). Even so, the budget request will barely be enough to preserve the status quo of the armed services and to authorize investments already made. To meet the objectives of the new defense model, Italy would have to have available at least a budget of 35 billion Lire ($24.7 million) on an annual basis, according to analyses of the new Ministry of Defense think tank headed by General Carlo Jean. 69