WEBVTT 00:00.180 --> 00:01.330 SUBMITTED THE 2016 REPORT TO CONGRESS 00:01.330 --> 00:02.450 ON MILITARY AND SECURITY DEVELOPMENTS 00:02.450 --> 00:03.690 INVOLVING THE PEOPLE'S REPUBLIC OF CHINA. 00:03.690 --> 00:04.840 THIS ANNUAL REPORT HIGHLIGHTS CHINA'S 00:04.840 --> 00:06.210 DEFENSE STRATEGY AND MILITARY DEVELOPMENTS. 00:06.210 --> 00:07.330 THE REPORT IS INTENDED TO BE FACTUAL, 00:07.330 --> 00:08.720 DESCRIPTIVE AND ANALYTICAL. LET THE FACTS SPEAK FOR 00:08.720 --> 00:10.060 THEMSELVES. THE REPORT DESCRIBES HOW CHINA 00:10.060 --> 00:11.210 CONTINUES TO INVEST, ANTI ACCESS AREA 00:11.210 --> 00:12.570 DENIAL AND EMERGING DOMAINS, CYBERSPACE, SPACE AND 00:12.570 --> 00:13.540 ELECTROMAGNETIC SPECTRUM. 00:13.540 --> 00:15.090 CHINA CONTINUES TO PREPARE FOR POTENTIAL CONFLICT IN THE 00:15.090 --> 00:16.300 TAIWAN STRAIT BUT MISSIONS IN THE EAST AND 00:16.300 --> 00:17.540 SOUTH CHINA SEAS AND KOREAN PENINSULA ARE 00:17.540 --> 00:18.600 EQUALLY IMPORTANT TO THE P.L.A. 00:18.600 --> 00:19.690 CHINA'S LEADERS SEEM COMMITTED TO 00:19.690 --> 00:20.750 GROWTH FOR THE FORESEEABLE FUTURE 00:20.750 --> 00:22.120 EVEN AS CHINA'S ECONOMIC GROWTH DECELERATES. 00:22.120 --> 00:23.270 IT ANNOUNCED IT'S BUDGET WILL GROW TO 00:23.270 --> 00:24.540 $144 BILLION. FOR 2006-2015, CHINA DISCLOSED 00:24.540 --> 00:25.540 MILITARY 9.8% GREW A YEAR IN 00:25.540 --> 00:26.510 INFLATION-ADJUSTED TERMS. 00:26.510 --> 00:27.720 CHINA'S PUBLISHED MILITARY BUDGET, R AND D 00:27.720 --> 00:29.030 AND PROCUREMENT OF WEAPONS AND EQUIPMENT. 00:29.030 --> 00:30.210 THE TRUE EXPENDITURE, D.O.D. ESTIMATES IN 00:30.210 --> 00:31.780 TERMS OF TOTAL MILITARY RELATED SPENDING FOR 2015 EXCEEDED $180 00:31.780 --> 00:32.600 BILLION IN 2015. 00:32.600 --> 00:33.810 AS A RESULT THE P.L.A. CONTINUES TO MAKE 00:33.810 --> 00:35.060 STRIDES. FOR INSTANCE, CHINA'S MILITARY 00:35.060 --> 00:36.240 PARADE LAST YEAR, CHINA UNVEILED DF 26 00:36.240 --> 00:37.330 MISSILE, CAPABLE OF PURSUING GROUND 00:37.330 --> 00:38.330 STRIKES IN THE ASIA PACIFIC. 00:38.330 --> 00:39.840 BEYOND THESE ONGOING LONG TERM TRENDS, THE PROGRAM ENTERED A 00:39.840 --> 00:40.720 NEW PHASE IN 2015. 00:40.720 --> 00:41.840 I WOULD LIKE TO HIGHLIGHT THREE KEY 00:41.840 --> 00:43.210 SECURITY DEVELOPMENTS. THE FIRST IS MARITIME 00:43.210 --> 00:44.360 ACTIVITIES. 2015 CHINA USED ASSERTIVE 00:44.360 --> 00:45.600 TACTICS TO ASSERT IT'S CLAIMS IN THE SOUTH 00:45.600 --> 00:46.720 CHINA SEA, RECOVERING VAST ACREAGE ON 00:46.720 --> 00:47.840 EXISTING OUT POSTS AND CONSTRUCTING 00:47.840 --> 00:48.720 MILITARY FACILITIES. 00:48.720 --> 00:50.330 CHINA'S LEADERSHIP DEMONSTRATED WILLINGNESS TO TOLERATE HIGH 00:50.330 --> 00:51.450 LEVELS OF TENSION IN PURSUIT OF IT'S 00:51.450 --> 00:52.750 MARITIME CLAIM. WITHOUT JEOPARDIZING THE PEACE 00:52.750 --> 00:53.840 FOR ECONOMIC DEVELOPMENT WHICH HAS 00:53.840 --> 00:55.120 MAINTAINED CHINA'S COMMUNIST PARTY GRIP 00:55.120 --> 00:56.300 ON POWER. CHINA'S LEADERS ARE LEVERAGING 00:56.300 --> 00:57.450 THE COUNTRY'S POWER TO EXPAND IT'S 00:57.450 --> 00:58.600 INTERNATIONAL INFLUENCE AND MILITARY 00:58.600 --> 01:00.000 FOOTPRINT OVERSEAS. THE MOST PROMINENT EXAMPLE, 01:00.000 --> 01:01.240 EXPANDING AMBITION, NOVEMBER ANNOUNCEMENT 01:01.240 --> 01:02.540 ESTABLISHING A MILITARY FACILITY IN DJIBOUTI. 01:02.540 --> 01:04.060 BIG STEP FORWARD FOR P.L.A. THE THIRD TREND IS SWEEPING 01:04.060 --> 01:05.270 REFORMS TO MAKE A MORE CAPABLE AND LOYAL 01:05.270 --> 01:06.270 P.L.A. PRESIDENT XI ANNOUNCED 01:06.270 --> 01:07.540 REPLACING THE OLD MILITARY REGIONS WITH NEW 01:07.540 --> 01:09.090 GEOGRAPHIC COMMANDS AND SEEK TO STRENGTHEN CHINA COMMUNIST 01:09.090 --> 01:10.180 PARTY CONTROL OVER THE P.L.A. BY 01:10.180 --> 01:11.330 ESTABLISHING NEW BODIES TO OVER SEA THE 01:11.330 --> 01:12.510 MILITARY. THE UNITED STATES WILL SEEK 01:12.510 --> 01:13.720 COOPERATION IN AREAS OF MUTUAL BENEFIT AND 01:13.720 --> 01:14.870 MANAGE COMPETITION WITH CHINA FROM A 01:14.870 --> 01:15.750 POSITION OF STRENGTH. 01:15.750 --> 01:17.000 REDUCING THE RISK OF MISUNDERSTANDING 01:17.000 --> 01:18.240 AND MISCALCULATION. AS UNITED STATES BUILDS 01:18.240 --> 01:19.360 STRONGER FOUNDATION FOR MILITARY TO 01:19.360 --> 01:20.540 MILITARY WITH CHINA, WE WILL CONTINUE TO 01:20.540 --> 01:21.780 MONITOR THEIR EVOLVING MILITARY STRATEGY, 01:21.780 --> 01:22.720 DOCTRINE AND DEVELOPMENT. 01:22.720 --> 01:24.060 AND ENCOURAGE THEM TO BE MORE TRANSPARENT. 01:24.060 --> 01:25.210 OUR APPROACH FOCUSES ON REDUCING RISK, 01:25.210 --> 01:26.600 EXPANDING COMMON GROUND AND MAINTAINING OUR MILITARY 01:26.600 --> 01:27.810 SUPERIORITY. TO REDUCE RISK THE D.O.D. AND 01:27.810 --> 01:29.030 P.L.A. EXPANDED UPON THE HISTORICAL 01:29.030 --> 01:30.090 UNDERSTANDINGS IN 2014 WHEN THEN 01:30.090 --> 01:31.240 SECRETARY OF DEFENSE CHUCK HAGEL AND 01:31.240 --> 01:32.390 MINISTER OF DEFENSE IN CHINA SIGNED TWO 01:32.390 --> 01:33.570 MEASURES. FIRST RULES OF BEHAVIOR FOR 01:33.570 --> 01:34.720 SAFETY OF AIR AND MARITIME ENCOUNTERS 01:34.720 --> 01:35.810 M.O.U. AND SECOND NOTIFICATION OF 01:35.810 --> 01:36.780 MILITARY ACTIVITIES M.O.U. 01:36.780 --> 01:38.000 2015 WE EXPANDED WITH ADVANCES AIR TO 01:38.000 --> 01:39.270 AIR INTERACTIONS AND CRISIS COMMUNICATIONS. 01:39.270 --> 01:40.420 THESE CONFIDENCE-BUILDING MEASURES ARE 01:40.420 --> 01:41.570 ENHANCED EFFORTS TO REDUCE RISK AND 01:41.570 --> 01:42.840 MISUNDERSTANDING. WE INCLUDED AS APPENDIXES IN 01:42.840 --> 01:44.120 THE REPORT. PROGRESS IN DEVELOPING THE 01:44.120 --> 01:45.030 CAPACITY TO COOPERATE. 01:45.030 --> 01:46.150 IN DELIVERY OF INTERNATIONAL PUBLIC 01:46.150 --> 01:47.330 GOODS, INCLUDING HUMANITARIAN DISASTER, 01:47.330 --> 01:48.480 PEACEKEEPING OPERATIONS, SEARCH AND 01:48.480 --> 01:49.840 RESCUE AND MILITARY MEDICINE. IN SHORT, THIS REPORT 01:49.840 --> 01:51.210 ILLUSTRATES THE COMPLEXITY OF THE ISSUES AT 01:51.210 --> 01:52.330 STAKE. DESPITE, THIS REPORT DOCUMENTS 01:52.330 --> 01:53.510 THE KIND OF MILITARY CHINA IS BUILDING. 01:53.510 --> 01:54.660 WE HOPE IT CONTRIBUTES TO THE PUBLIC'S 01:54.660 --> 01:55.810 UNDERSTANDING OF THE P.L.A. AND WITH 01:55.810 --> 01:57.090 THAT I WOULD BE HAPPY TO TAKE A FEW 01:57.090 --> 01:58.060 QUESTIONS. >> THANK YOU. 01:58.060 --> 01:59.510 DAVID BRUNSTROM FROM REUTERS. I WAS WONDERING IF YOU COULD 01:59.510 --> 02:00.690 BRING US UP- TO-DATE ON INFRASTRUCTURE 02:00.690 --> 02:01.870 DEVELOPMENT. THE REPORT MENTIONS THAT THE 02:01.870 --> 02:03.540 RECLAMATION HAS BEEN COMPLETED. BUT IN TERMS OF THE BUILDING OF 02:03.540 --> 02:04.750 AIRSTRIPS, HAVE THEY BEEN COMPLETED YET? 02:04.750 --> 02:05.840 AND JUST ON THE DEFENSE SPENDING I 02:05.840 --> 02:07.030 UNDERSTAND THE FIGURE ANNOUNCED IN 02:07.030 --> 02:08.150 MARCH FOR THIS YEAR WAS ACTUALLY A 02:08.150 --> 02:09.330 SLOW DOWN IN GROWTH TO THE FIRST TIME IN 02:09.330 --> 02:10.510 SOME TIME. DO YOU EXPECT THAT TREND TO 02:10.510 --> 02:11.720 CONTINUE? >> IN TERMS OF, YOU ASKED ABOUT 02:11.720 --> 02:12.750 CHINA'S INTENTION OF FURTHER 02:12.750 --> 02:14.090 MILITARIATION. FOR THAT I WOULD HAVE TO REFER 02:14.090 --> 02:15.270 YOU TO THE CHINESE GOVERNMENT IN TERMS 02:15.270 --> 02:16.270 OF THEIR OVERALL OBJECTIVES. 02:16.270 --> 02:17.390 WE HAVE WATCHED THIS VERY CLOSELY. 02:17.390 --> 02:18.780 WE HAVE SEEN THEM CONDUCT CONSTRUCTION AND RECLAMATION 02:18.780 --> 02:20.030 AND WE HAVE BEEN WATCHING THIS ISSUE 02:20.030 --> 02:20.690 VERY CLOSELY. 02:20.690 --> 02:22.300 WE ARE AWARE OF THESE ISSUES. AND WE SEE THEM AS OUT OF STEP 02:22.300 --> 02:23.330 WITH THE REST OF THE REGION TO 02:23.330 --> 02:24.450 PEACEFULLY MANAGE AND RESOLVE THESE 02:24.450 --> 02:25.630 DISPUTES. BUT IN TERMS OF WHERE THEY GO 02:25.630 --> 02:26.780 FROM HERE, WHERE THE NEXT STEPS ARE, 02:26.780 --> 02:27.840 I WOULD HAVE TO REFER YOU TO THE 02:27.840 --> 02:28.750 CHINESE GOVERNMENT. 02:28.750 --> 02:30.000 >> CAN YOU BRING US UP-TO-DATE FROM THE 02:30.000 --> 02:31.150 PERIOD OF THE REPORT TO TODAY, AS TO 02:31.150 --> 02:32.660 WHERE THEY HAVE GOT IN TERMS OF BUILDING, FINISHING AIRSTRIPS? 02:32.660 --> 02:33.810 THE REPORT MENTIONED THREE AIRSTRIPS 02:33.810 --> 02:35.060 AND SAYS THEY ARE BEING COMPLETED BUT 02:35.060 --> 02:36.180 ARE THEY NOW COMPLETE, FOR EXAMPLE? 02:36.180 --> 02:37.270 >> WELL THE TRENDS OF WHAT WE HAVE 02:37.270 --> 02:38.390 SEEN IN TERMS OF CONSTRUCTION HAVE 02:38.390 --> 02:39.540 CONTINUED THROUGH THE LIFETIME OF THIS 02:39.540 --> 02:40.720 REPORT. I DON'T HAVE ANYTHING SPECIFIC 02:40.720 --> 02:41.570 FOR YOU RIGHT NOW. 02:41.570 --> 02:42.780 BUT THE TRENDS WE SAW IN 2015 IN TERMS OF 02:42.780 --> 02:44.030 MILITARY CONSTRUCTION HAVE CONTINUED 02:44.030 --> 02:45.150 FOR A BIT. BUT IN TERMS OF NUMBER OF 02:45.150 --> 02:46.330 CERTAIN ASSETS, I DON'T HAVE ANYTHING 02:46.330 --> 02:47.150 SPECIFIC FOR YOU. 02:47.150 --> 02:48.600 >> TARA WITH STARS AND STRIPES. CHINA SAID IT'S THE U.S. 02:48.600 --> 02:49.780 FREEDOM OF NAVIGATION OPERATIONS THAT ARE 02:49.780 --> 02:51.030 INSPIRING IT TO FURTHER BOLSTER IT'S 02:51.030 --> 02:52.150 DEFENSES OF THESE RECLAIMED ISLANDS. 02:52.150 --> 02:53.300 I WAS WONDERING YOUR THOUGHTS ABOUT 02:53.300 --> 02:54.330 THAT. AND IN GENERAL WITH THIS 02:54.330 --> 02:55.570 REPORT, DO YOU ANTICIPATE THAT HAVING SOME 02:55.570 --> 02:56.660 ACTUAL NUMBERS ABOUT WHAT CHINA IS 02:56.660 --> 02:58.000 DEVELOPING AND SPENDING WILL BE SHAPING 02:58.000 --> 02:59.060 FUTURE STRATEGIC DIALOGUE SUCH AS 02:59.060 --> 03:00.090 UPCOMING SHANGRI-LA DIALOGUES. 03:00.090 --> 03:01.570 >> THESE ARE NOTHING NEW. WE HAVE BEEN CONDUCTING FREEDOM 03:01.570 --> 03:02.630 OF NAVIGATION OPERATIONS AROUND 03:02.630 --> 03:03.690 THE UNITED STATES AND OPERATING 03:03.690 --> 03:04.870 ACCORDING TO INTERNATIONAL LAW FOR A LOT 03:04.870 --> 03:05.720 LONGER THAN THAT. 03:05.720 --> 03:06.780 THESE OPERATIONS ARE INTENDED TO 03:06.780 --> 03:08.030 ACKNOWLEDGE AND DEMONSTRATE THAT WE 03:08.030 --> 03:09.180 DON'T ABIDE BY EXCESSIVE MARITIME PLANS 03:09.180 --> 03:10.750 TO COUNTER TO INTERNATIONAL LAW. THEY DEMONSTRATE OUR COMMITMENT 03:10.750 --> 03:11.750 TO UPHOLD INTERNATIONAL LAW. 03:11.750 --> 03:13.060 AS THE PRESIDENT SAID, AS THE SECRETARY 03:13.060 --> 03:14.210 SAID THAT WE ARE GOING TO FLY, SAIL AND 03:14.210 --> 03:15.720 OPERATE WHATEVER THEY ALLOW. SO THERE'S NOTHING NEW IN TERMS 03:15.720 --> 03:16.600 OF THESE OPERATIONS. 03:16.600 --> 03:17.690 SO WHY CHINA IS DEVELOPING THESE 03:17.690 --> 03:19.030 CAPABILITIES IN THE SOUTH CHINA SEA, I THINK 03:19.030 --> 03:20.210 MAY COME FROM A WIDE VARIETY OF OTHER 03:20.210 --> 03:21.360 FACTORS AND I WOULD HAVE TO REFER YOU 03:21.360 --> 03:22.690 TO THEIR GOVERNMENT. THE FACT WE HAVE BEEN DOING 03:22.690 --> 03:23.810 THESE OPERATIONS FOR DECADES SUGGEST 03:23.810 --> 03:25.060 TO ME THOSE SPECIFIC OPERATIONS ARE 03:25.060 --> 03:25.750 NOT THE CAUSE. 03:25.750 --> 03:27.030 >> THEN ON SHANGRI-LA? >> THESE ISSUES. 03:27.030 --> 03:28.150 I THINK THE DISCUSSIONS WE HAD, NOT 03:28.150 --> 03:29.330 SPECIFIC TO THE UPCOMING DIALOGUES BUT 03:29.330 --> 03:30.450 DISCUSSIONS THAT WE HAVE BEEN HAVING 03:30.450 --> 03:31.600 ACROSS THE REGION FOR SEVERAL YEARS, 03:31.600 --> 03:32.720 OFTEN CENTER AROUND ISSUES RELATED TO 03:32.720 --> 03:34.210 THE SOUTH CHINA SEA. AND I THINK, AGAIN, THIS IS THE 03:34.210 --> 03:35.390 REASON WE ARE TALKING ABOUT THESE THINGS 03:35.390 --> 03:36.510 IS NOT BECAUSE OF THE UNITED STATES 03:36.510 --> 03:37.660 CONTINUING TO OPERATE THE WAY WE ALWAYS 03:37.660 --> 03:38.750 HAVE. BUT RATHER BECAUSE OF NEW 03:38.750 --> 03:40.000 THINGS. I WOULD ARGUE NEW THINGS THAT 03:40.000 --> 03:41.240 CHINA HAS DONE IN TERMS OF RECLAMATION IN 03:41.240 --> 03:42.210 TERMS OF CONSTRUCTION AND 03:42.210 --> 03:43.510 MILITARIZATION. THAT'S DRIVING CONCERNS AROUND 03:43.510 --> 03:44.270 THE REGION. 03:44.270 --> 03:45.450 AND I THINK THAT'S WHAT'S NEW IN DRIVING 03:45.450 --> 03:46.630 THESE DISCUSSIONS. I CAN'T PREDICT WHAT 03:46.630 --> 03:48.060 CONVERSATIONS MAY HAPPEN IN UPCOMING DIALOGUES. 03:48.060 --> 03:49.240 BUT I CAN SAY IN PAST DIALOGUES THE PAST 03:49.240 --> 03:50.480 CHINA SEA HAS BEEN AN ISSUE OF DISCUSSION. 03:50.480 --> 03:51.630 >> YOU REFERRED TO CHINA USING COERCIVE 03:51.630 --> 03:52.810 TACTICS. CAN YOU EXPLAIN WHAT THAT IS? 03:52.810 --> 03:54.450 WHAT ARE YOU REFERRING TO THERE? >> SURE, WE TALK ABOUT IT A BIT 03:54.450 --> 03:55.270 IN THE REPORT. 03:55.270 --> 03:56.450 WHAT WE SEE CHINA'S FORCES, I SHOULD SAY 03:56.450 --> 03:57.600 USING TACTICS SUCH AS RECLAMATION. 03:57.600 --> 03:58.780 AT TIMES SOME OF THEIR FISHING VESSELS 03:58.780 --> 04:00.000 AND COASTGUARDS ACTING UNPROFESSIONAL 04:00.000 --> 04:01.240 OR SORT OF MANNERS IN THE VICINITY OF THE 04:01.240 --> 04:02.330 MILITARY FORCES, FISHING VESSELS OF 04:02.330 --> 04:03.750 OTHER COUNTRIES IN A WAY THAT'S DESIGNED TO ATTEMPT TO 04:03.750 --> 04:05.000 ESTABLISH A DEGREE OF CONTROL AROUND 04:05.000 --> 04:05.750 DISPUTED FEATURES. 04:05.750 --> 04:07.030 AS WE NOTE IN THE REPORT, IT SEEMS TO US 04:07.030 --> 04:08.180 TO OUTSIDE OBSERVERS THESE ACTIVITIES 04:08.180 --> 04:09.600 ARE DESIGNED TO STAY BELOW THE THRESHOLD OF CONFLICT BUT 04:09.600 --> 04:10.810 GRADUALLY DEMONSTRATE AND ASSERT CLAIMS 04:10.810 --> 04:11.810 THAT OTHER COUNTRIES DISPUTE. 04:11.810 --> 04:13.060 >> A COUPLE QUESTIONS NOT RELATED TO 04:13.060 --> 04:14.420 THE SOUTH CHINA SEA. FOR YEARS THIS REPORT HAS BEEN 04:14.420 --> 04:15.570 SEEN AS A BENCHMARK BETWEEN CHINA AND 04:15.570 --> 04:16.540 TAIWAN'S MILITARY STRENGTH. 04:16.540 --> 04:17.690 YOU MENTIONED THEY HAVE BEEN SPENDING 04:17.690 --> 04:18.840 9% OR SO AND MORE FOR THE LAST DECADE. 04:18.840 --> 04:20.420 HAS TAIWAN KEPT THE PACE. IT'S BEEN RELATIVELY FLAT WHERE 04:20.420 --> 04:21.510 CHINA HAS EXPONENTIALLY INCREASED. 04:21.510 --> 04:23.000 WHAT IS YOUR TAKE THERE. IS THE U.S. NOT PRESSURE BUT 04:23.000 --> 04:24.180 ENCOURAGE THE NEW REGIME IN TAIWAN TO 04:24.180 --> 04:25.240 INCREASE IT'S DEFENSE SPENDING? 04:25.240 --> 04:26.390 >> SURE. WE HAVE BEEN MONITORING THE 04:26.390 --> 04:27.480 CROSS STRAIT MILITARY BOUNDS FOR A 04:27.480 --> 04:28.600 LONG TIME AS DEMONSTRATED BY THE LONG 04:28.600 --> 04:29.570 HISTORY OF THESE REPORTS. 04:29.570 --> 04:30.750 AND WE CONTINUE TO MONITOR THE SITUATION. 04:30.750 --> 04:31.840 AND WE HAVE ENCOURAGED TAIWAN TO 04:31.840 --> 04:33.030 CONTINUE TO INCREASE IT'S DEFENSE 04:33.030 --> 04:34.210 SPENDING AND TO INVEST IN A SYMMETRIC 04:34.210 --> 04:35.420 AND INNOVATIVE CAPABILITIES AND CONCEPTS. 04:35.420 --> 04:36.570 WE CONCENTRATE ON ASYMMETRY BECAUSE 04:36.570 --> 04:38.120 OF THE OBVIOUS AND UNAVOIDABLE IMBALANCE OF THE TWO SIDES. 04:38.120 --> 04:39.210 BECAUSE OF THAT WE BELIEVE TAIWAN 04:39.210 --> 04:40.390 NEEDS TO INCREASE IT'S SPENDING BUT ALSO 04:40.390 --> 04:41.840 NEEDS TO MAKE INVESTMENTS IN ASYMMETRIC CAPABILITIES THAT 04:41.840 --> 04:42.870 WOULD ACCOUNT FOR THAT NATURAL 04:42.870 --> 04:43.750 DISPARITY IN SIZE. 04:43.750 --> 04:45.030 >> DO THEY PAY FOR THOSE OUT OF IT'S OWN 04:45.030 --> 04:46.210 BUDGET AS OPPOSED TO MILITARY SPENDING 04:46.210 --> 04:47.330 FROM THE UNITED STATES AND STUFF LIKE 04:47.330 --> 04:48.450 THAT? >> I'M NOT GOING TO GET INTO 04:48.450 --> 04:49.480 THE FINANCING OF THESE THINGS. 04:49.480 --> 04:50.660 TAIWAN DOES SPEND FUNDS ON ITS DEFENSE. 04:50.660 --> 04:51.720 AND WE DO IN ACCORDANCE WITH THE 04:51.720 --> 04:53.000 TAIWAN'S RELATIONS ACT MAKE NECESSARY 04:53.000 --> 04:54.390 FOR IT'S OWN SELF DEFENSE. BUT WE BELIEVE THEY NEED TO 04:54.390 --> 04:55.600 SPEND MORE ON THESE CAPABILITIES IN ORDER 04:55.600 --> 04:56.660 TO MAINTAIN THE ABILITY TO DEFEND 04:56.660 --> 04:58.030 THEMSELVES. >> FOR THE LAST 3-4 YEARS THE 04:58.030 --> 04:59.210 PENTAGON PARTICIPATED THAT THE CHINESE 04:59.210 --> 05:00.420 WOULD GET NUCLEAR DETERRENT CONTROLS WITH 05:00.420 --> 05:01.300 CLASS SUBMARINES. 05:01.300 --> 05:02.420 WE ANTICIPATE BY THE END OF THE YEAR 05:02.420 --> 05:03.600 NUCLEAR DETERRENT MISSIONS WILL START. 05:03.600 --> 05:05.180 AND THEY HAVEN'T STARTED YET. CAN YOU GIVE SOME INSIGHT INTO 05:05.180 --> 05:06.150 WHY THEY HAVEN'T STARTED? 05:06.150 --> 05:07.360 IS IT MORE LIKELY BY THE END OF THIS YEAR 05:07.360 --> 05:08.510 THAN PAST YEARS THEY WILL WATCH WITH 05:08.510 --> 05:10.030 THE J.L.2 NUCLEAR MISSILES? >> I REALLY CAN'T BEGIN TO 05:10.030 --> 05:11.270 SPECULATE AS TO WHY THIS TREND CONTINUES TO 05:11.270 --> 05:12.210 SUSTAIN OVER THE YEARS. 05:12.210 --> 05:13.420 I CAN'T DEFINITIVELY SAY THAT THEY HAVE 05:13.420 --> 05:14.510 CONDUCTED A DETERRENCE PATROL YET. 05:14.510 --> 05:15.660 NOR CAN I COMMENT ON WHAT CHINA MAY 05:15.660 --> 05:17.270 CONSIDER A DETERRENCE PATROL. I THINK IT'S GOOD TO DEFER TO 05:17.270 --> 05:18.390 THEM. BUT WE HAVE NOT SEEN, WE HAVE 05:18.390 --> 05:19.540 NOT YET SEEN THEM CONDUCT WITH THIS 05:19.540 --> 05:20.390 SPECIFIC PLATFORM. 05:20.390 --> 05:21.480 WE HAVE NOT SEEN THEM CONDUCT WHAT 05:21.480 --> 05:22.630 WE WOULD CONSIDER TO BE A DETERRENCE 05:22.630 --> 05:23.750 PATROL BUT AS TO WHY, I REALLY CAN'T 05:23.750 --> 05:25.060 SPECULATE. I WOULD REFER YOU TO THEM FOR 05:25.060 --> 05:26.150 THAT. I'M NOT A SUBMARINER OR NAVY 05:26.150 --> 05:27.360 SPECIALIST. I CAN'T REALLY GET INTO THE 05:27.360 --> 05:28.630 SPECIFICS OF IT. BUT WE HAVEN'T SEEN YET, AS WE 05:28.630 --> 05:29.810 CAN TELL BUT REALLY IN TERMS OF WHY AND 05:29.810 --> 05:31.030 WHAT'S GOING ON UNDERNEATH THIS ISSUE 05:31.030 --> 05:32.150 I WOULD HAVE TO REFER YOU TO THEM. 05:32.150 --> 05:33.450 >> ENDURANCE PATROL. HOW SIGNIFICANT WILL THAT BE 05:33.450 --> 05:34.570 FOR THE REGION, ON THE MESSAGE OF 05:34.570 --> 05:35.450 CHINESE CAPABILITY? 05:35.450 --> 05:36.660 >> I REALLY CAN'T GET INTO HYPOTHETICALS 05:36.660 --> 05:37.780 LIKE THAT. >> I WANT TO DRILL DOWN A 05:37.780 --> 05:39.120 LITTLE IN YOUR OPENING REMARKS, HOW IT WAS 05:39.120 --> 05:40.300 $180 BILLION IN 2015 A MUCH HIGHER NUMBER 05:40.300 --> 05:41.180 THAN THEY DISCLOSED. 05:41.180 --> 05:42.330 THIS YEAR THEY DISCLOSED A BUDGET OF 05:42.330 --> 05:43.660 ABOUT $135 BILLION. I'M WONDERING HOW DO YOU SEE 05:43.660 --> 05:44.600 THAT NUMBER IN ACTUALITY. 05:44.600 --> 05:46.210 REUTERS AND OTHER OUTLETS HAVE DESCRIBED THAT AS A DECLINE IN 05:46.210 --> 05:47.330 SPENDING. BUT OBVIOUSLY THAT DOESN'T 05:47.330 --> 05:48.540 INCLUDE THE AREAS YOU MENTIONED BEFORE. 05:48.540 --> 05:50.060 IS THAT REALLY A DECLINE? AND AGAIN WHERE DO YOU SEE THE 05:50.060 --> 05:50.810 NUMBER THIS YEAR? 05:50.810 --> 05:52.360 >> IT'S A DECLINE IN GROWTH. OVER TIME, AS I MENTIONED THE 05:52.360 --> 05:53.600 BUDGET HAS RAISED TO ROUGHLY AN AVERAGE OF 05:53.600 --> 05:54.390 9.6% PER YEAR. 05:54.390 --> 05:55.750 AND THIS TIME I THINK 7%. IN TERMS OF THEIR ANNUAL 05:55.750 --> 05:56.660 OFFICIAL ANNOUNCEMENTS. 05:56.660 --> 05:57.870 AND IN TERMS OF WHY IT MAY BE SLOWING 05:57.870 --> 05:59.090 DOWN, I REALLY COULDN'T SPECULATE. 05:59.090 --> 06:00.240 I THINK IT'S A GOOD QUESTION FOR THEM. 06:00.240 --> 06:01.720 WHAT WE SEE CONTRIBUTING TO AN AGGREGATE, WHAT WE SEE THIS 06:01.720 --> 06:03.030 RESULTING IN IN AGGREGATE IS INCREASINGLY 06:03.030 --> 06:04.150 CAPABLE AND MODERN FIGHTING FORCE 06:04.150 --> 06:05.330 ACROSS ALL DOMAINS OF COMBAT CAPABILITY. 06:05.330 --> 06:06.420 SO WE SEE THEM FOR A LONG TIME AS 06:06.420 --> 06:07.540 DOCUMENTED IN THIS SERIES OF REPORTS 06:07.540 --> 06:08.630 MAKING SIGNIFICANT INVESTMENTS IN 06:08.630 --> 06:09.750 MILITARY CAPABILITIES AND WE SEE THEM 06:09.750 --> 06:11.000 NOW REAPING THE BENEFITS OF SOME OF 06:11.000 --> 06:12.060 THOSE BENEFITS WITH INCREASINGLY 06:12.060 --> 06:13.420 CAPABLE AND MODERN SYSTEMS. >> THE NUMBER FOR 2016 06:13.420 --> 06:14.600 INCLUDING THOSE AREAS THAT YOU SAID WERE 06:14.600 --> 06:15.480 EXCLUDED? >> YEAH. 06:15.480 --> 06:16.540 LET ME FIND. IT'S IN THE REPORT. 06:16.540 --> 06:18.180 I LOOKED AT IT BEFORE I CAME UP. I BELIEVE OUR ESTIMATE WAS IT 06:18.180 --> 06:19.210 EXCEEDED $180 BILLION IN 2015. 06:19.210 --> 06:20.450 IN '16, WE HAVEN'T MADE THAT ESTIMATE YET. 06:20.450 --> 06:21.570 AND I THINK EVERY REPORT, AS FAR AS I 06:21.570 --> 06:22.690 RECALL IS ABOUT THE YEAR PREVIOUS. 06:22.690 --> 06:23.810 SO I DON'T HAVE AN UPDATE FOR YOU IN 06:23.810 --> 06:25.000 TERMS OF WHAT YOU THINK THEY ARE 06:25.000 --> 06:26.240 SPENDING IN 2016. >> CAN I JUST DRILL DOWN A 06:26.240 --> 06:27.450 LITTLE WHAT DAVID HAD ASKED BEFORE ABOUT 06:27.450 --> 06:28.240 THE BUILDING. 06:28.240 --> 06:29.450 FIRST, THE REPORT SEEMED TO FOCUS ON -- 06:29.450 --> 06:30.540 CAN YOU PROVIDE ASSESSMENT ON THE 06:30.540 --> 06:31.750 PARACEL ISLANDS, WOODY ISLANDS, BOTH IN 06:31.750 --> 06:33.000 ACREAGE AS WELL AS YOUR ASSESSMENT OF 06:33.000 --> 06:34.150 THE INCREASE IN EITHER THE NUMBER OR 06:34.150 --> 06:35.450 SCOPE OF FACILITY. THE REPORT DOESN'T REALLY GET 06:35.450 --> 06:36.660 INTO SOME ASSESSMENT OF THE SCOPE OF THE 06:36.660 --> 06:37.810 FACILITY. >> IN TERMS OF SPECIFICS AND 06:37.810 --> 06:39.180 LIKE ACREAGE I WILL HAVE TO GET BACK TO YOU. 06:39.180 --> 06:40.330 I DON'T HAVE THE NUMBER IN FRONT OF ME. 06:40.330 --> 06:41.510 I CAN SAY THAT WE HAVE SEEN THAT CHINA 06:41.510 --> 06:42.600 CONTINUED TO CONDUCT RECLAMATION AS 06:42.600 --> 06:43.780 WELL AS CONSTRUCTION IN THE PARACELS. 06:43.780 --> 06:45.030 BUT I DON'T HAVE ANYTHING MORE SPECIFIC 06:45.030 --> 06:46.180 THAN THAT WITH ME BUT I CAN GET MORE 06:46.180 --> 06:47.510 INFORMATION TO YOU. >> AS FAR AS SPLATLING CAN YOU 06:47.510 --> 06:48.630 GIVE ESTIMATE OF SCOPE OF INCREASE 06:48.630 --> 06:49.690 IN THE FACILITIES THEY HAVE BEEN 06:49.690 --> 06:51.000 BUILDING? >> THE REPORT DOESN'T COMMENT 06:51.000 --> 06:52.000 ON SPECIFIC MILITARY SYSTEMS. 06:52.000 --> 06:53.120 ALTHOUGH WE ARE AWARE OF REPORTS OF 06:53.120 --> 06:54.240 ARTILLERY AND OTHER SORTS OF SYSTEMS. 06:54.240 --> 06:55.450 I WOULD ENCOURAGE YOU TO TAKE A LOOK AT 06:55.450 --> 06:56.480 THE REPORT. >> I SAW THE MAP. 06:56.480 --> 06:57.690 I WAS TRYING TO FIGURE OUT IF THERE'S 06:57.690 --> 06:58.810 ANYWAY YOU COULD VERBALLY SAY THEY 06:58.810 --> 07:00.060 TRIPLED, QUADRUPLED, WENT FROM TENS TO 07:00.060 --> 07:01.090 HUNDREDS. IS THERE ANY WAY. 07:01.090 --> 07:02.210 DON'T YOU HAVE ANY SORT OF NUMERICAL? 07:02.210 --> 07:03.330 AS OPPOSED TO JUST LOOKING AT THE 07:03.330 --> 07:04.660 PICTURES ON THE MAP? >> I DON'T HAVE ANY SPECIFICS 07:04.660 --> 07:05.540 FOR YOU RIGHT NOW. 07:05.540 --> 07:06.810 >> (INAUDIBLE) ON PAGE 57, YOUR REPORT SAYS IN 07:06.810 --> 07:08.000 THERE NUCLEAR, ADDITIONAL DRIVER 07:08.000 --> 07:09.240 BEHIND CHINA'S NUCLEAR FORCE MODERN ADDITION, 07:09.240 --> 07:10.360 BUT DON'T YOU THINK THEY ARE MORE 07:10.360 --> 07:11.330 DRIVEN BY U.S. THAN INDIA? 07:11.330 --> 07:12.450 >> I REALLY COULDN'T SPECULATE AS TO 07:12.450 --> 07:13.570 WHAT WAY IS GREATER IN THE MINDS OF 07:13.570 --> 07:15.120 CHINESE MILITARY PLANNERS. THAT BEING SAID, I BELIEVE IF 07:15.120 --> 07:16.330 YOU LOOK AT THE REPORT, IT REFERS TO THAT 07:16.330 --> 07:17.480 SPECIFIC SECTION REFERS TO THE UNITED 07:17.480 --> 07:18.570 STATES THAN RUSSIA AND THEN INDIA. 07:18.570 --> 07:19.690 I WOULD REFER IN TERMS OF GIVING AN 07:19.690 --> 07:20.780 AUTHORITATIVE ANSWER WHAT DRIVES 07:20.780 --> 07:21.870 CHINESE THINKING ON THESE ISSUES. 07:21.870 --> 07:23.060 I WOULD HAVE TO REFER YOU TO THE 07:23.060 --> 07:24.270 GOVERNMENT. THIS IS OUR BEST UNDERSTANDING 07:24.270 --> 07:25.420 BASED ON AUTHORITATIVE STATEMENTS AND 07:25.420 --> 07:26.420 RIDINGS OF MILITARY SCHOLARS. 07:26.420 --> 07:27.630 >> AND THE CHINESE SUBMITTING ACTIVITIES 07:27.630 --> 07:28.720 IN THE INDIAN OCEAN HAS INCREASED. 07:28.720 --> 07:29.810 AND REPORTS ABOUT U.S. AND INDIA 07:29.810 --> 07:31.030 PLANNING TO JOIN MODERN ACTIVITIES. 07:31.030 --> 07:32.180 TO WHAT EXTENT THE STATUS QUO IN THE 07:32.180 --> 07:33.270 INDIAN OCEAN AND FLOOR OF ECONOMIC 07:33.270 --> 07:34.390 TRADE. IN THE U.S. PLANNING IN THE 07:34.390 --> 07:35.630 INDIAN OCEAN. >> WE DO IN THE REPORT DETAIL 07:35.630 --> 07:36.750 HOW CHINA'S INTERESTS ARE GETTING 07:36.750 --> 07:37.750 MORE GLOBAL AS THEIR ECONOMY 07:37.750 --> 07:38.870 EXPANDS, AS THEIR ECONOMY GROWS MORE 07:38.870 --> 07:40.090 SOPHISTICATED AND MODERN, GROWING 07:40.090 --> 07:41.240 MORE GLOBAL WHICH WE SEE AS A PRIMARY 07:41.240 --> 07:42.420 DRIVER IN ANNOUNCEMENT OF ESTABLISHING 07:42.420 --> 07:43.870 A FACILITY IN DJIBOUTI. IT IS UNDERSTANDABLE THEY WOULD 07:43.870 --> 07:44.870 BE OPERATING IN OTHER AREAS. 07:44.870 --> 07:46.510 BUT THAT DOES NOT INCLUDE VALUE STATEMENT ABOUT INTENTIONS OR 07:46.510 --> 07:47.540 EFFECTS OF THIS EASE ACTIONS. 07:47.540 --> 07:48.840 -- THESE ACTIONS. AS YOU KNOW SECRETARY CARTER 07:48.840 --> 07:50.060 VISITED AND WILL CONTINUE TO ENHANCE 07:50.060 --> 07:51.210 OUR BILATERAL ENGAGEMENT WITH INDIA. 07:51.210 --> 07:52.330 NOT IN THE CHINA CONTEXT BUT BECAUSE 07:52.330 --> 07:53.480 INDIAN IS AN INCREASINGLY IMPORTANT 07:53.480 --> 07:54.780 PLAYER BY THEMSELVES. AND WE ARE GOING TO ENGAGE 07:54.780 --> 07:55.720 BECAUSE OF IT'S VALUE. 07:55.720 --> 07:57.360 >> FINALLY THE LAST QUESTION. THERE WAS A NEWS REPORT IN THE 07:57.360 --> 07:58.570 CHINESE MEDIA, THE CHINESE ARMY DECIDED 07:58.570 --> 07:59.630 TO UPGRADE IT'S -- (INAUDIBLE) 07:59.630 --> 08:01.210 UPGRADING THE INFRASTRUCTURE. TO WHAT EXTENT IT WOULD HAVE 08:01.210 --> 08:02.390 INCREASE TENSION WITH INDIA AND CHINA AS 08:02.390 --> 08:03.540 YOU LOOK FORWARD IN YOUR REPORT ABOUT 08:03.540 --> 08:04.630 THEIR DISPUTES THAT CHINA HAS WITH 08:04.630 --> 08:05.720 OTHER NEIGHBORING COUNTRIES LIKE 08:05.720 --> 08:06.810 INDIA? >> THE TERRITORY DISPUTE YOU 08:06.810 --> 08:08.030 REFERENCE BETWEEN CHINA AND INDIA IS 08:08.030 --> 08:09.240 SOMETHING THAT CONTINUES TO FESTER OVER 08:09.240 --> 08:09.870 THE YEARS. 08:09.870 --> 08:11.060 THE OTHER REPORT DETAILS WE HAVE 08:11.060 --> 08:12.210 NOTICED INCREASE IN MILITARY CAPABILITY 08:12.210 --> 08:13.750 CLOSER TO THE BORDER WITH INDIA. BUT IT'S DIFFICULT TO SAY HOW 08:13.750 --> 08:14.840 MUCH OF THIS IS DRIVEN BY INTERNAL 08:14.840 --> 08:16.300 CONSIDERATIONS TO MAINTAIN INTERNAL STABILITY AND 08:16.300 --> 08:17.240 HOW MUCH IS AN EXTERNAL 08:17.240 --> 08:18.510 CONSIDERATION. I DON'T REALLY HAVE A GOOD WAY 08:18.510 --> 08:19.480 TO BREAK THOSE THINGS OUT. 08:19.480 --> 08:20.750 >> YOU CALL THE DJIBOUTI FACILITY A BIG STEP 08:20.750 --> 08:21.840 FORWARD FOR THE CHINESE MILITARY. 08:21.840 --> 08:23.090 CAN YOU ELABORATE ON THE SIGNIFICANCE 08:23.090 --> 08:24.240 OF THE FACILITY AND WHETHER OR NOT THE 08:24.240 --> 08:25.810 U.S. GOVERNMENT EXPECTS SIMILAR FACILITIES TO POP UP AROUND THE 08:25.810 --> 08:26.810 GLOBE IN THE COMING YEARS? 08:26.810 --> 08:28.000 >> SURE. THE UNITED STATES HAS BEEN 08:28.000 --> 08:29.180 OPERATING AROUND THE WORLD FOR DECADES. 08:29.180 --> 08:30.270 OUR BASES AROUND THE WORLD ARE A 08:30.270 --> 08:31.330 CRITICAL COMPONENT OF OUR GLOBAL 08:31.330 --> 08:32.540 CAPABILITIES AND POSTURE AND ALLOW US TO 08:32.540 --> 08:33.660 FULFILL OUR GLOBAL RESPONSIBILITIES. 08:33.660 --> 08:34.840 WHAT CHINA HAS ANNOUNCED WITH DJIBOUTI 08:34.840 --> 08:36.060 IS DIFFERENT THAN A U.S. STYLE BASE. 08:36.060 --> 08:37.180 IT'S MORE OF A FACILITY THAT WOULD 08:37.180 --> 08:38.270 FACILITATE LOGISTICAL SUPPORT FOR 08:38.270 --> 08:39.510 OPERATIONS FAR FROM THE CHINESE MAINLAND. 08:39.510 --> 08:40.630 I COULDN'T SPECULATE AS TO WHAT MAY 08:40.630 --> 08:42.240 COME AS FAR AS ADDITIONAL BASES. IT'S POSSIBLE AS I MENTIONED 08:42.240 --> 08:43.360 THE INCREASING GLOBAL INTEREST THAT 08:43.360 --> 08:44.120 CHINA HAS. 08:44.120 --> 08:45.300 AND IT'S AN ISSUE AS YOU SAW THAT WE ARE 08:45.300 --> 08:46.450 DOCUMENTING THAT WE WILL CONTINUE TO 08:46.450 --> 08:47.600 MONITOR. >> THE REPORT MAKES THE POINT 08:47.600 --> 08:48.810 THAT THE DEVELOPMENT OF CHINA'S MILITARY 08:48.810 --> 08:49.870 COULD REDUCE THE U.S.'S MILITARY 08:49.870 --> 08:50.870 TECHNOLOGICAL SUPERIORITY. 08:50.870 --> 08:52.060 WHAT WOULD YOU SAY, GIVEN WHAT YOU 08:52.060 --> 08:53.270 HAVE SEEN, IS THE BIGGEST VULNERABILITY 08:53.270 --> 08:54.750 THE U.S. FACES ON THAT FRONT? WHAT IS THE, IS THERE A NUMBER 08:54.750 --> 08:56.030 ONE AREA OR A SERIES OF AREAS, IN YOUR 08:56.030 --> 08:57.210 ASSESSMENT, THE U.S. FACES A RISK OF 08:57.210 --> 08:58.300 LOSING THAT SUPERIORITY IN THE NEAR 08:58.300 --> 08:59.420 TERM? >> I'M NOT GOING TO FOCUS ON 08:59.420 --> 09:00.450 U.S. CAPABILITIES AND POTENTIAL 09:00.450 --> 09:01.780 VULNERABILITIES. THE REPORT WE ARE ANNOUNCING IS 09:01.780 --> 09:03.000 FOCUSED ON CHINA AND CHINA'S MILITARY 09:03.000 --> 09:04.240 DEVELOPMENTS. WHAT I'M SAYING WE HAVE BEEN 09:04.240 --> 09:05.360 WATCHING CHINA'S MILITARY OVER A LONG 09:05.360 --> 09:06.540 PERIOD OF TIME AS DOCUMENTED IN THESE 09:06.540 --> 09:07.660 REPORTS. WE WILL CONTINUE TO MAKE THE 09:07.660 --> 09:08.780 INVESTMENTS AND POSTURE DECISIONS 09:08.780 --> 09:09.870 NECESSARY TO MAINTAIN OUR MILITARY 09:09.870 --> 09:11.180 CAPABILITY SO WE CAN CONTINUE TO DEFEND 09:11.180 --> 09:12.240 OURSELVES, DEFEND OUR ALLIES AND 09:12.240 --> 09:13.630 DEFEND OUR INTERESTS. >> IN THE REPORT YOU MENTIONED 09:13.630 --> 09:14.750 THE WAY, IN YOUR OPENING REMARKS YOU 09:14.750 --> 09:16.030 MENTIONED AN AGGRESSIVE STYLE BUT IT'S 09:16.030 --> 09:17.180 DESIGNED TO STAY BELOW A THRESHOLD OF 09:17.180 --> 09:18.360 CONFLICT. IN THE REPORT IT MENTIONS I 09:18.360 --> 09:19.570 BELIEVE IN CERTAIN ACTIVITIES IN THE SOUTH 09:19.570 --> 09:20.750 CHINA SEA AND EAST CHINA SEA, YOU SAID 09:20.750 --> 09:21.870 YOU ARE GOING TO KEEP MONITORING FOR 09:21.870 --> 09:22.780 CHANGES IN DOCTRINE. 09:22.780 --> 09:23.840 WHAT CHANGES IN DOCTRINE ARE YOU 09:23.840 --> 09:25.480 CONCERNED ABOUT OR PARTICULARLY WATCHFUL OF IN THOSE AREAS IN 09:25.480 --> 09:26.630 TERMS OF HOW THE CHINESE AIR, NAVY AND 09:26.630 --> 09:27.750 PARA MILITARY CONTROLS PARTNER WITH 09:27.750 --> 09:28.540 ALLIED VESSELS? 09:28.540 --> 09:29.780 >> I DON'T THINK I CAN CALL OUT A SPECIFIC 09:29.780 --> 09:30.840 AREA WE ARE FOCUSING ON MORE THAN 09:30.840 --> 09:32.030 ANOTHER. WHAT I'M REFERRING TO IS 09:32.030 --> 09:33.240 CONFIDENCE- BUILDING MEASURES AND ANNEXES 09:33.240 --> 09:34.420 WE HAVE ASSIGNED RECENTLY THAT DETAIL 09:34.420 --> 09:35.480 HOW OUR NAVAL AND AIR PLATFORMS 09:35.480 --> 09:36.450 INTERACT WITH ONE ANOTHER. 09:36.450 --> 09:37.570 A KEY OBJECTIVE IS TO REDUCE RISK. 09:37.570 --> 09:38.690 AS THEY OPERATE IN CLOSE PROXIMITY TO 09:38.690 --> 09:39.840 ONE ANOTHER WE SEE IT AS IMPORTANT TO 09:39.840 --> 09:41.060 ESTABLISH RULES OF BEHAVIOR TO ENSURE 09:41.060 --> 09:42.210 THAT MISUNDERSTANDINGS AND POTENTIAL 09:42.210 --> 09:43.390 FOR MISCALCULATION IS MINIMIZED AND THE 09:43.390 --> 09:44.600 RISK OF UNINTENTIONAL INCIDENT IS REDUCED 09:44.600 --> 09:46.060 AS MUCH AS POSSIBLE. >> IS THAT INTERACTION, IS THAT 09:46.060 --> 09:47.210 EFFORT YIELDING MORE POSITIVE RESULTS 09:47.210 --> 09:48.270 OR TRENDING POSITIVELY OR SEEING 09:48.270 --> 09:49.360 INCREASED CONCERNS THOSE TYPE OF 09:49.360 --> 09:50.570 AGREEMENTS INKED FOR RULES OF BEHAVIOR ARE 09:50.570 --> 09:52.030 BECOMING FURTHER AWAY? >> WE ARE SEEING A POSITIVE 09:52.030 --> 09:53.060 TREND IN TERMS OF PROFESSIONAL 09:53.060 --> 09:54.210 INTERACTIONS BETWEEN OUR TWO FORCES. 09:54.210 --> 09:55.330 WE THINK THESE ARE IMPORTANT AVENUES 09:55.330 --> 09:56.480 TO PURSUE. AREAS THAT WE ARE GOING TO 09:56.480 --> 09:57.420 PURSUE WITH THEM IN OUR 09:57.420 --> 09:58.540 MILITARY-TO-MILITARY RELATIONSHIP. 09:58.540 --> 09:58.540 >> THANK YOU.