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Copyright 2001 Federal News Service, Inc.  
Federal News Service

January 11, 2001, Thursday

SECTION: CAPITOL HILL HEARING

LENGTH: 26620 words

HEADLINE: HEARING OF THE SENATE ARMED SERVICES COMMITTEE
 
SUBJECT: THE NOMINATION OF DONALD RUMSFELD TO BE SECRETARY OF DEFENSE
 
CHAIRED BY: SENATOR CARL LEVIN (D-MI)
 
LOCATION: 106 DIRKSEN SENATE OFFICE BUILDING, WASHINGTON, D.C.

WITNESSES: DONALD RUMSFELD, PRESIDENT-ELECT BUSH'S NOMINEE FOR SECRETARY OF DEFENSE
 


BODY:
(Gavel is struck repeatedly.)

SEN. JOHN WARNER (R-VA): The history of this committee and the annals of the Senate reflect that we have achieved, through successive chairman, the high degree of bipartisanship that our nation is entitled from this committee.

I've been privileged to serve 23 years on this committee with my distinguished colleague. We came together 23 years ago. And it's been my privilege to serve as the chairman for the past two years, and if the high water doesn't rise and flood us out, I will return to that position in a week or so. But in the meantime, I am privileged to, in the spirit of bipartisanship, pass the gavel to Senator Levin.

Senator Levin and I, and Senator Inouye, Senator Stevens, and other members of the House went down to visit with President-elect Bush on Monday, and we had a very good and thorough and searching examination of defense issues. And that struck the note of bipartisanship so essential as we, the collective members of our committee, represent this nation in national security.

So, Mr. Chairman -- (strikes the gavel) -- it's with a privilege I pass the gavel to you.

SEN. LEVIN: Thank you, Senator Warner. And I've been chairman of this committee for all of about a week, and I can't tell you how many people have noted to me just how you have thrived under my chairmanship already. (Laughter.)

The committee meets today to -- and I want to thank you before I proceed. I want to thank you for the years of friendship and the years of -- that we've -- the many good years, the over two decades now that we've been in the Senate. And I will have some more comments about your chairmanship and that of Senator Thurmond and others in a moment, but just first this personal thank you to you.

The committee meets today to consider the nomination of Donald Rumsfeld to serve as secretary of Defense. As the first order of business, I want to welcome all of our members back to the committee and to extend a special welcome to prospective new members. On our side, we're joined by Senator Akaka, Senator Bill Nelson, Senator Ben Nelson, Senator Carnahan, and Senator Dayton. On the Republican side, we're joined by Senators Collins and Bunning.

This is a great committee you serve on.

And I know that Senator Warner and I and all the members of this committee look forward to our new members joining us.

And on behalf of the entire committee, I extend a warm welcome to Mr. Rumsfeld and his family. I understand that you are accompanied by your wife, Joyce Rumsfeld; your daughter, Marcie (sp) Rumsfeld; your granddaughter, Kailey (sp) Rumsfeld, if I'm pronouncing the name correctly.

MR. RUMSFELD: Yes, sir.

SEN. LEVIN: We know of the sacrifices that your family will make while you are in this position, and we want to thank them in advance for their support of you and those sacrifices which they will make.

MR. RUMSFELD: Thank you.

We will be welcoming Senators Durbin and Fitzgerald in a few moments, who are joining us today -- and I see Senator Fitzgerald is already here -- to introduce Don Rumsfeld to us.

Mr. Rumsfeld is well-known to this committee from his recent service as chairman of the U.S. Ballistic Missile Threat Commission and his many other endeavors. A couple of the senior members of the committee may also admit to their age -- (scattered laughter) -- by remembering Mr. Rumsfeld's previous service as secretary of defense in the Ford administration.

Don Rumsfeld was the youngest secretary of defense in our history. After a few years of service in the upcoming Bush administration, he will earn the distinction of being our oldest secretary of defense as well; at least until Senator Thurmond is sworn in as his successor sometime in the future. (Laughter.)

We convene this hearing at a unique moment in the history of this country, and in the history of the United States Senate. We have just concluded the closest presidential election in our history. And for the first time ever, at the beginning of a Congress the Senate is equally divided. A practical arrangement to accommodate that unusual situation was worked out by our leaders and approved by the Senate last week.

Times like these call out for and necessitate bipartisanship and cooperation. Fortunately, this committee, as Senator Warner has said, has a long tradition of working in a bipartisan manner to address the national security challenges facing this country. Chairman Warner has consistently led the committee in this spirit, as did chairmen before him.

At times when the rest of Congress has suffered from gridlock, this committee's legislative achievements, like Goldwater-Nichols, like Nunn-Lugar, have been marked by bipartisanship. Even our disagreements on issues have rarely been along partisan lines.

For instance, while debates on the withdrawal of troops from Kosovo and the debate on additional rounds of base closures have divided this committee in recent years, the division has not been on partisan lines. It is my hope that the ease with which we hand the chairman's gavel back and forth in the course of this month will symbolize the close working relationships on this committee over the decades and help set the tone elsewhere.

Our new secretary of defense will inherit the most dominant military force in the history of the world. Over the last two decades our military has incorporated a series of technological improvements that have revolutionized their military capability from precision- guided munitions and stealth technology to satellite reconnaissance and electronic warfare capabilities.

The members of this committee, the Appropriations Committee, and our counterparts in the House of Representatives, have played a key role in those changes. Today, each of our military services is more lethal, more maneuverable, more versatile, and has greater situational awareness on the battlefield than at any time in history.

During the 1990's, Congress and the administration worked together to enhance our national security by achieving a balance between the needs of today's troops, including their current readiness, with the need to develop and field weapons that will enable us to retain our technological advantage in the future.

This effort led to the enactment of comprehensive improvements to the military's health care system, military pay and retirement systems, and the substantially increased acquisition spending to recapitalize and modernize the force. We have also been engaged in a constant struggle, however, to maintain funding for operations and maintenance accounts that support current readiness, given the high rates of deployment.

The terrorist attack on the USS Cole last fall demonstrated once again that our enemies are most likely to use indirect, asymmetric means to attack us. They realize it would be suicide to confront the United States military directly. The most likely threats to our national interest will come from regional conflicts due to ethnic, religious or cultural conflicts, and from terrorists and terrorist states. If states are involved, they will seek to hide their involvement because the retaliatory power of the United States is so massive and survivable as to guarantee the destruction of the principal goal of a totalitarian regime -- its own survival.

In the area of national missile defense, the outgoing administration chose to aggressively pursue research and development, while stating a determination to consider in any deployment decision not only the threat, but also the system's operational effectiveness and affordability, and the impact that deployment would have on our overall national security. This approach gives appropriate weight not only to the effect that large expenditures on missile defense would have on resources available to meet other vital defense needs, but also to the negative impact that the unilateral deployment of a national missile defense could have on our allies and on the proliferation of nuclear weapons, given the likelihood that the Russian and Chinese response to such unilateral deployment would be to increase or stop reducing the number of nuclear weapons and the amount of nuclear material on their soil.

As Senator Baker and Lloyd Cutler found in their report, released yesterday, the most urgent unmet national security threat to the United States is that weapons of mass destruction, or weapons-usable material located in Russia, could be stolen and sold to terrorists or hostile nation states and used against Americans abroad or at home.

We need to analyze the extent to which we spend defense resources on threats that are the least likely to occur. A ballistic missile attack from a terrorist state against the United States is a threat, but it is one that we have successfully deterred, and against which we have a continuing, overwhelming deterrent. And, of course, there are cheaper and easier means of attacking the United States than an ICBM, means such as truck bombs, poisoning of water systems, or infiltration of computer networks, which may not open the unknown attacker to massive destructive in return.

Those are just a few of the issues which we will be grappling with as a committee, and you will be grappling with as secretary of Defense.

We're blessed to live in a nation whose political institutions and economy are respected throughout the world. With the end of the Cold War, our core values of freedom, democracy and human rights appear to be stronger than ever, with democratic revolutions changing the history of nation after nation. Our military, when used wisely, at once makes our nation secure and enables us to play a unique role in influencing the course of events outside our borders in a peaceful and stable direction.

The ability to influence events does not necessarily mean of course the ability to control them. Because we live in such a complex world, we must deal with many interests that are contrary to our own. We should be proud of all that we have achieved in the world, including the reversal of ethnic cleansing in Europe for the first time in history, which also enabled nearly a million refugees and displaced persons to return to their homes.

At the same time, we must be prepared to deal with new threats, particularly the terrorist threat, with new technologies, more mobile forces and improved intelligence capabilities. And Chairman Warner, with my support, created a subcommittee that is specially aimed at addressing these new threats. And in the most recent bill that we have adopted, we have paid special attention to the need to address the new threats.

The new administration will develop its own strategy for addressing these difficult issues and for maintaining the superiority of America's military force. Today's hearing provides an opportunity for all of us to begin the process of discussing that strategy.

The nominee before us today has a strong commitment to the national defense. He is well qualified to address the issues facing the Department of Defense, and he a extremely well qualified nominee for this position. And we congratulate him. We congratulate the president-elect for this nomination. And we now call upon Senator Warner for his opening statement.

SEN WARNER: Thank you very much, Chairman Levin. And I join you in welcoming our new members. Historically, that puts this committee at the highest member levelship (sic) in its history at 24. In years past, I can recall we sort of recruited members, and now we have certainly an indication of strength among our entire Senate membership as reflected by so many wishing to join us. We welcome you.

And to you, my dear friend, for over 30 years, we have had a friendship and a personal relationship and indeed a professional one, having served together in the Ford administration, I as secretary of the Navy and you as one of our troublemakers over in the White House as a young -- (laughter).

And I join in welcoming your lovely wife and family. Anyone taking on -- particularly your responsibility as secretary of Defense, 24 hours a day, seven days a week, and that phone is always by your side -- and, indeed, your family fully shares the heavy responsibilities, and you are so fortunate to have such a wonderful family to share that burden. And if I may say, Mrs. Rumsfeld, you will be an integral part of reassuring the other families of the service persons throughout the world by your strong support of your husband and, indeed, them. So we welcome you as a team to the department.

I look back over the hearing record from 1975, November 12th, 1975. It was a very short hearing, I note, and perhaps not as well- attended. (Laughter.) But that reflects the importance of the Senate advise and consent today, and this committee, as do other committees of the Senate, take that responsibility very seriously. So our hearing today will be lengthy and we will probe deeply into many areas of our security relationships and your responsibility and how you intend to full them.

First, I'd like to say that, based on my good fortune to have known you, I say without any reservation you are competent, you're experienced, you're trustworthy, and you have the character, the honesty, to do this job second to none. And I was so pleased and, indeed, I think the country should be grateful that you are willing to come back again and sign on for a second hitch, as we say in the military, in this important post.

And I note behind you two old-timers who are not paying any attention to what we're saying, Mr. Snyder and Mr. Korologos -- (laughter). I don't know why they are here, but we welcome them anyway. (Laughter.)

We also commend you, Mr. Rumsfeld, for keeping active and informed on defense and security issues since your last Pentagon service. The committee is familiar with the excellent work you've done in both the Commission to Assess the Ballistic Missile Threat, which issued its report in '98, and the ongoing Commission to Assess United States National Security Space Management and Organization, which, coincidentally, the report will be issued today. Senator Levin and I and others have received a briefing on the work of this commission. It's a job well done.

MR. RUMSFELD: Thank you.

SEN. WARNER: And it's another her serious wake-up call to America about the threats directed at us.

Our committee played a central role in establishing both of these commissions. I commend its membership, and we thank you again, and the members of your committees, for your work.

We are familiar with the findings and recommendations of the Ballistic Missile Threat Commission and the influence that that report had. It came at a critical time, I say to you. In many ways the Ballistic Missile Threat Report changed the entire debate over national missile defense by convincing many in Congress and, I say, respectfully, in the Clinton administration that the potential threat is more serious and more imminent than previously understood throughout our nation.

I look forward to your comments on this subject. And my dear friend and colleague here, I think quite appropriately, in his opening statement indicated some of his strong views. We've not always agreed on it, but it is a subject that is on the centerpiece of the new Bush administration. And no one is better qualified than yourself to advise the president on the directions to be taken.

We still have, as you well know -- you're a former sailor, former naval aviator -- we still have the best-trained, best-equipped military force in the world today. There are certainly many areas in which we need to continue to make improvements. We're not pleased at all with the retention levels, the difficulty of recruiting. You know, when we recruit today, we recruit families. We recruit -- unlike when you and I went in many years into the service, it's families today. And then when that critical decision is made about retention, the wives are usually co-equal partners. It's a family decision to stay or to go out and seek the lucrative opportunities that these well-trained individuals have in the private sector.

Readiness and modernization has been the highest priority of this committee. We've achieved some gains, but not enough. Procurement. We've almost dropped to levels which are just totally unacceptable. We've got to modernize and restore, best we can within the budget, a much higher level of acquiring new and modern weapons. Just look at the truck inventory in the United States Army. No civilian, no private sector would operate a truck force like we're operating in the military. That's just one thing people can understand all across America.

So therefore, Mr. Secretary, we've got to increase defense spending. When we, Senator Levin and I and others, had an opportunity to visit with President-elect Bush and President-elect Cheney on Monday, we didn't talk about specific levels, but bipartisan in that room was the clear consensus that we have to increase substantially defense spending.

Now, this morning we can't establish those levels with any precision, but I was heartened to see that the president-elect wants to first task you to examine how the current budget and those of past years being expended to determine whether or not you should redirect funding, to determine whether there are efficiencies within which you can gain some cash needed for other programs.

Then after doing that, you can establish that level of increase in the context of not only the other budget factors but, most importantly, the president-elect said, the defense budget has got to have a direct relevance, if not in fact be driven by the threats voiced against this nation today, threats quite different than our generation of active service in the military, quite different.

Senator Levin expounded on terrorism and the work of this committee. And I commend this committee for its work. We have constantly had to push the current administration for higher levels of funding in a wide range of areas to combat terrorism and the risks here in the United States, which I will address momentarily. We call it "homeland defense." President-elect Bush used that very phrase in his statement at the Citadel, which is sort of a foundation document of his thinking.

Now, historically, the Joint Chiefs of Staff have had, of course, a vital role in the planning in the Department of Defense. But I commend them, especially for the past two years, and indeed, the year before, under my distinguished predecessor Senator Thurmond, for coming before this committee and testifying about the need for additional funds over and above the recommendations and the submissions by the commander-in-chief, the president of the United States, at that very table. The past two years, we've taken that testimony, which has been essential as this committee has gone to the floor of the United States Senate to get higher authorization levels for spending. We've gotten what I regard as modest sums but, nevertheless, very important increases in the past two fiscal years.

You will be faced early on with, first, a supplemental. We've talked about that together -- you've talked with Senator Stevens and Senator Inouye about it -- followed by a budget amendment to the current Clinton administration budget, which is traditionally submitted to the Congress by the out-going president. Those are some of the key things that you will have to address immediately, and within both, we will have additional sums needed desperately for our defense.

President-elect Bush has articulated a vision for the U.S. military and has set three broad goals for national defense.

First, to strengthen the bond of trust between the president, which is so essential, from the four-star officer down to the private or the seaman, that bond of trust between the commander-in-chief and those in uniform and, indeed, their families.

Second, to defend the American people against missiles and terror. Very few people in the United States recognize we're virtually defenseless against missile attack. And that, of course, is a subject that my colleague discussed, and we'll have further discussions on that.

And third, to begin creating the military of the next century. How well you know, from your own study, the old slogan -- "They're always preparing to fight the last battle." Well, that worked, maybe, in World War II when we had the time to catch up because of the protection of the oceans, but those protections are gone today. Warfare is instantaneous. It's the arsenal we have of weapons and trained people in place that will be used.

Cyber-warfare -- no one envisioned that a decade ago, but today it's a threat which I and others think is just as lethal as anything. I commend, frankly, your predecessor, Secretary Cohen.

He has recognized, I think, in large measure -- wouldn't you say, Mr. Chairman? -- the oncoming and the changing threats in just the four years that he has been present as secretary of Defense. And I want to say at this time -- and I think the members of this committee would want to reflect -- our respect for the work that Secretary Cohen and his team have done in his administration.

You understand these goals, and I want to go back to the president's speech at the Citadel. He said, and I quote, "Those who want to lead America accept two obligations. One is to use our military power wisely, remembering the costs of war. The other is to honor our commitments to veterans who have paid those costs -- people; it's one word -- those who have served in the past, those who are serving today, and those we need to have come in and serve for tomorrow."

I'm proud of the way this committee, in its last bill, began to reach back and take care of those veterans, particularly the career veterans, in terms of their medical needs. This committee is very conscious of the fact that they're the best recruiters in the world, those who have served once. And we have in the past, I think, neglected them. That's come to an end with the work of this committee.

As a starting point, President-elect Bush has said that he will recommend a substantial pay raise, a billion. This committee has worked on two successive pay raises, and we're ready to accept that challenge of that billion-dollar mark. Perhaps it has to be adjusted, maybe up or sideways, or down a bit. We will back you in working through that very important thing, because that is key, again, to retention and the care of the families. We all know that most of the retention decisions, as I said, are made on a family basis, and that pay is critical to care for those people.

Homeland defense will be a high priority for President-elect Bush and yourself, if confirmed. The president-elect has said that he will deploy both theater and national ABM systems to guard the United States, our allies and troops deployed overseas against missile attack or the threat of attack. Defense against domestic terrorism, including detecting and responding to such threats, will also be a priority for the next administration, and you will be at the very forefront.

We also need an immediate and comprehensive review, as the president-elect advised us when we visited with him, of our military today, its structure, its strategy, its capabilities, and its modernization priorities. President-elect Bush has promised such a review, and in my conversations with you, you're fully prepared to undertake that the first day you arrive in the department. We must look beyond the modest improvements we've had to our current systems and find ways to enhance and strengthen our military in many, many areas.

I want to include among that base closure. It's been a very contentious subject. In past years, I was privileged to join with my friend the chairman in originating those bills. Senator McCain has been very active on that front. And I urge you to take a look at that at the earliest opportunity. There's infrastructure out there that can be withdrawn, and I think, constructively and in many instances, we'll help local communities to get that infrastructure back and put it to good use. There will be a cost savings to the military, which -- those dollars can applied elsewhere, and in most instances it will eventually help the local communities.

These are some of the initiatives that you must undertake.

So I support this nomination very enthusiastically. My intention is to cast that vote for you, subject to the work of this committee. And I wish to commend President-elect Bush for putting together an absolutely outstanding team on the areas of national defense and national security in international affairs.

Thank you, Mr. Chairman.

SEN. LEVIN: Thank you, Senator Warner.

Two of our dear colleagues and friends have joined us to introduce Mr. Rumsfeld. And Senator Durbin, we'll call on you first and then we'll call on Senator Fitzgerald.

RICHARD DURBIN (D-IL): Thank you, Chairman Levin and the members of the committee. (Clears throat.) Excuse me.

It is an honor to introduce to the committee today, my distinguished colleague from the land of Lincoln. I know that presidents have often complained about the Senate confirmation process. Herbert Hoover, upon the birth of his granddaughter said, quote, "Thank God she doesn't have to be confirmed by the Senate." (Laughter.) Donald Rumsfeld has so much experience, I'm sure he'll have less trouble winning confirmation than President Hoover's granddaughter would have had if she'd required the Senate's blessing.

Don Rumsfeld's resume is impressive: four-term congressman from Illinois, director of the Office of Economic Opportunity, U.S. ambassador to NATO, White House chief of staff, the youngest-ever secretary of defense, CEO of several major corporations, and a special envoy for President Reagan.

We've heard a lot about bipartisanship lately. When Don Rumsfeld came by my office to talk about this hearing, he told me that when he served in Congress, before Baker vs. Carr, that speaker Sam Rayburn had a congressional district of about 89,000. Is that what you remember, Don? His congressional district was the largest in the nation at 1.1 million. The Illinois district that Don Rumsfeld represented in the House of Representatives was split in two in Congress after he departed -- one district represented by a conservative Republican, and one by a liberal Democrat. His ability to serve such a diverse district speaks well of his ability to bridge Congress and a country almost equally divided.

While all senators may not agree with Mr. Rumsfeld on every issue, he has certainly earned our respect. In fact, I want to warn my Senate colleagues to be reluctant to "go to the mat" with Don Rumsfeld. Not only was he captain of Princeton University's wrestling team, an all-Navy wrestling champion, he was also inducted in the National Wrestling Hall of Fame and Museum. He joins Speaker Hastert as another famous wrestler who hails from Illinois. I, for one, plan to keep in mind that wrestling depends on strategy and making the right move at the right time as much as it does on strength and power.

Some of his critics have complained that Mr. Rumsfeld's experience with defense is from a by-gone Cold War ear. Those critics ignore the obvious, Mr. Rumsfeld's valuable contributions: chairing several commissions, including the Ballistic Missile Threat Commission and the obvious experience that he's had in managing major corporations in a new economy. Mr. Rumsfeld has kept up, and I would challenge his critics to try to keep up with him.

In 1775, in our revolutionary era, Patrick Henry said, "I have but one lamp by which my feet are guided, and that is the lamp of experience. I know no way of judging the future but by the past." It is only because the United States was so steadfast in fighting for freedom and democracy that the world enjoys an unprecedented era of freedom and prosperity today.

Mr. Chairman, Mr. Rumsfeld carries the lamp of experience. I wish him, for our country's sake, every success as he travels by that light. It is with pride that I present to you one of Illinois' favorite and most distinguished sons.

SEN. LEVIN: Senator Durbin, thank you.

Senator Fitzgerald.

SEN. PETER FITZGERALD (R-IL): Thank you very much, Mr. Chairman, and members of this distinguished committee. It's a great honor and privilege for me to join with my colleague, Senator Durbin, to present to this committee one of Illinois' most distinguished residents, Donald Rumsfeld.

The day after President-elect Bush announced his selection of Donald Rumsfeld, I noted that in the New York Times the reporter had asked Dr. Henry Kissinger his opinion of the defense secretary- designate. And Dr. Kissinger said, and I quote, "I literally cannot think of a better person for the post." And that was exactly my impression, and I believe it was the impression of many of the members of this body, and certainly of many of the newspaper editorial boards around the country.

It's kind of an irony, Don. You were actually my congressman when I was growing up! (Laughter.) I was one of those 1.1 million constituents Senator Durbin referred to. Now, lest this committee conclude either that I'm too young to be in the United States, or that he's too old to serve as the Defense secretary, I would point out that he was a very young member of Congress, one of the youngest members of Congress at the time, in his early 30s. And I would note that in one of life's unfair ironies, he has more hair than I do today. (Laughter.) And as Senator Durbin said, I wouldn't recommend that anybody try to wrestle with Don Rumsfeld.

Shortly after I got sworn-in, I was very familiar with Donald Rumsfeld's record in business and in government. I knew of his impressive resume. But what I would urge you to reflect upon is not -- this man is not simply a resume who has held all these impressive posts; he's someone who has collected a lot of wisdom from his years of experience. And he shared with me, shortly after I was sworn-in, a little pamphlet that he's put together and compiled over the years, known as "Rumsfeld's Rules." And if any of you haven't seen that, I would recommend that you get a copy of it. It has many of his words of wisdom and advice to members of Congress or those in the administration. And I read that carefully after I got sworn-in, and I remember certain pearls and chestnuts that you had, such as, "No member of Congress is here by accident." And if you get to know your fellow colleagues in this body, you will see that there's some special reason each one of them is here, and in getting to know that special reason, you'll come to respect that member, and you'll also learn a lot about America. So I commend that "Rumsfeld Rules" to all of you. It has a great deal of wisdom in it.

As Senator Durbin said, he was a graduate of Princeton University, and a captain of the wrestling team, I believe; captain of the football team. He went on to be a Naval aviator; was the Navy wrestling champion; four terms in Congress; White House chief of staff; Defense secretary. He was regarded as having a wonderful record and having been an outstanding secretary of Defense the first time around. I can only imagine him being better this time around.

Now, there's a lot of talk about investment opportunities these days, with the market having gone up so much the last few years and then coming down.

A good investment strategy over the last 20 years would have been to invest in companies that were chaired or the CEO was Donald Rumsfeld. GD Searle Company, a major Illinois pharmaceutical company, was in dire straights back in 1977, when Don Rumsfeld took over. By the time he left in 1985 and the company was sold, the stock had quadrupled.

There was a similar success story with General Instruments Corporation. Many of you are familiar and are friends with Ted Forseman, who runs a fund that invests in corporations. And Ted Forseman of course is known for his philanthropy and his generosity in creating scholarships for young children all over the country. That philanthropy might not have been possible had not his fund bought General Instruments, put Donald Rumsfeld in charge, who within three years had tripled the stock of that corporation, they took it public.

He's continued on in advisory roles to this body and to the executive. He's stayed in touch with defense issues. This is a rare individual who has literally succeeded at almost everything he's done in life. And I think I can only say -- I can only conclude, as some of you have already concluded, that we are simply fortunate to have a person of this caliber who's willing to re-enter public service and to assist our company (sic) -- country. (Laughs.)

Mr. Chairman, I would ask leave to introduce into the record prepared remarks that I have. And I want to thank you all for your consideration. And I recommend Donald Rumsfeld with whole-hearted enthusiasm and confidence.

Thank you.

SEN. LEVIN: It will be made part of the record, and we thank you for your presence, and we thank both of your for coming. It makes a real difference to the nominee, I'm sure, and to this committee.

Mr. Rumsfeld, now you've got to live up to all of that.

MR. RUMSFELD: Wow.

SEN. LEVIN: And some investment advice while you're at it.

MR. RUMSFELD: (Laughs.) Well, I must say, I thank Senator Fitzgerald, Senator Durbin for those very generous words. I will try to live up to them.

Mr. Chairman, Senator Warner, members of the committee, it is a privilege and an honor to appear before you today as the nominee for the post of secretary of Defense. I am certainly grateful to President-elect George W. Bush for his confidence that he's placed in me. I thank the committee and you, Mr. Chairman, for your courtesy in arranging this hearing so promptly.

I'd like, with your permission, to make some remarks off my prepared statement and have the statement made a part of the record.

SEN. LEVIN: It will be made part of the record in full.

MR. RUMSFELD: As has been said, it was 25 years ago that I had the privilege of appearing for the first time before this committee as President Ford's nominee for secretary of Defense. Certainly we lived in a very different world then. And in the intervening quarter of a century, the world has changed in ways that once we could really only have dreamed of.erica was locked in a nuclear and ideological standoff with the Soviet Union. Today, the Soviet Union is no more. And the world superpower standoff has given way to a world of expanding freedom and, I would add, expanding opportunity. The last time I appeared for a confirmation hearing here, the armed forces and those of our NATO allies stood toe to toe, facing the militaries of the Warsaw Pact, ready to clash at a moment's notice on a battlefield of Poland, Hungary, Czechoslovakia and East Germany.

Today the Warsaw Pact is no more. Berlin is again the capital of a unified Germany, and Warsaw, Prague, Budapest are now capitals of our new NATO allies. As one who served as U.S. ambassador to NATO, I must say I find those changes breathtaking and fundamental.

When I appeared previously, American industry was facing industrial challenge from Japan. You'll recall the productivity and competitiveness made American industry look fat in overhead, excessively layered in management, sluggish in confronting change and innovation. Today U.S. industry has shaken off those handicaps, in a process that I've had the privilege to witness firsthand, and become a leader and a model for the rest of the world.

The end of the Cold War and the collapse of Soviet military power have brought the 20th century, possibly the most violent and destructive century in human history, to a remarkably peaceful close. U.S. and allied military power was the indispensable instrument that contained the Soviet Union, confronted Soviet power and its surrogates at the geographic extremities of its advance, and provided the shield within which democratic order and economic prosperity could evolve and develop.

When the great struggle that was World War II had passed, this country found itself facing new challenges with the advent of the Cold War and the development of nuclear weapons. Today the Cold War era is history and we find ourselves facing a new era, often called the post- Cold War period or, possibly more properly, the era of globalization. It's an extraordinarily hopeful time, one that's full of promise but also full of challenges. One of those challenges, one that, if confirmed, I look forward to working with President-elect Bush and this committee and the Congress to meet, is the challenge of bringing the American military successfully into the 21st century so that it can continue to play its truly vital role in preserving and extending peace as far into the future as is possible.

As President-elect Bush has said, after the hard but clear struggle against an evil empire, the challenge that we face today is not as obvious, but just as noble, to turn these years of influence into decades of peace. And the foundation of that peace is a strong, capable, modern military. Let there be no doubt.

The end of the Cold War did not bring about an end to armed conflict or the end of challenges and threats to U.S. interests. We know that. Indeed, the centrifugal forces in world politics have created a more diverse and less predictable set of potential adversaries whose aspirations for regional influence and whose willingness to use military force will produce challenges to important U.S. interests and to those of our friends and allies, as Chairman Levin mentioned.

President-elect Bush has outlined three over-arching goals for bringing U.S. armed forces into the 21st century. First, we must strengthen the bond of trust with the American military. The brave and dedicated men and women who serve in our country's uniform -- active, Guard and Reserve -- must get the best support their country can possibly provide them so that we can continue to call on the best people in the decades to come.

Second, we must develop the capabilities to defend against missiles, terrorism, the newer threats, against space assets and information systems, as members of the committee have mentioned. The American people, our forces abroad and our friends and allies must be protected against the threats which modern technology and its proliferation confront us.

And third, we must take advantage of the new possibilities that the ongoing technological revolution offers to create the military of the next century.

Meeting these challenges will require a cooperative effort between Congress and the executive branch and with industry and our allies as well. If confirmed, I look forward to developing a close working relationship with this committee and with the counterpart committees in the House of Representatives to achieve these goals and to fashion steps to help to transform our defense posture to address those new challenges.

We must work together if we are to be able to address the problems of inadequate funding, which has been the case; unreliable funding, perturbations in funding; and resistance to change. Change is hard, and institutions are difficult to move. With cooperation we can make real progress and, without cooperation, we will surely fail.

President-elect Bush is committed to a strong national defense and if confirmed, one of our first tasks will be to undertake a comprehensive review of U.S. defense policy that Senator Warner mentioned. This review will be aimed at making certain that we have a sound understanding of the state of the U.S. forces and their readiness to meet the 21st century security environment. We need to ensure that we will be able to develop and deploy and operate and support a highly effective force capable of deterring and defending against new threats. This will require a refashioning of deterrence and defense capabilities. The old deterrence of the Cold War era is imperfect for dissuading the threats of the new century and for maintaining stability in our new national security environment.

If confirmed as secretary, I plan to pursue five key objectives needed to support and make progress on the president's goals. First, we need to fashion and sustain deterrence appropriate to the new national security environment. The proliferation of weapons of mass destruction and their means of delivery are a fact of life that first must be acknowledged and recognized for what it is, and then must be managed. While striving to slow proliferation remains essential, a determined state may nonetheless succeed in acquiring weapons of mass destruction and increasingly capable weapons, missiles. And as a consequence, a decisive change in policy should be aimed at devaluing investment in weapons of mass destruction and their delivery systems by potential adversaries.

Credible deterrence no longer can be based solely on the prospect of punishment through massive retaliation. It must be based on a combination of offensive nuclear and non-nuclear defensive capabilities working together to deny potential adversaries the opportunity and the benefits that come from the threat or the use of weapons of mass destruction against our forces, our homeland, as well as those of our allies.

Second, the readiness and sustainability of deployed forces must be assured. The price of inadequate readiness is paid in unnecessary risks to American interests and in unnecessary risks to the lives of American servicemen and -women. But inadequate readiness exacts a further price in the future quality of the force.

Our armed forces today are all volunteers. Whether active duty, Reserve or National Guard, they are men and women who have willingly answered the call to serve our country and accept the burdens and dangers that go with that service. As President Bush has said, even the highest morale is eventually undermined by back-to-back deployments, poor pay, shortages of spare parts and equipment, and declining readiness.

A volunteer military really has only two paths it can travel. One is to lower standards to fill the ranks, or it can inspire the best and brightest to join and stay. And if confirmed, I look forward to working with the president, and this committee that has been so interested in the subject, to make sure that our country's service is able to attract and retain the best of our country.

Third, U.S. command, control, communications, intelligence, and space capabilities must be modernized to support our 21st century needs. A modern command, control, communication, and intelligence infrastructure is the foundation upon which U.S. military power is employed. The development and deployment of a truly modern, effective command, control, communication, and intelligence system is fundamental to the transformation of U.S. military forces, and it's indispensable to our ability to conduct effective diplomacy.

I'm committed to strengthening our intelligence, to serve both our short-term and our long-term national security needs. I will personally make establishing a strong spirit of cooperation between the Department of Defense and the rest of the intelligence community, under the leadership of a DCI, one of my top priorities. We simply must strengthen our intelligence capabilities and our space capabilities, along with the ability to protect those assets against various forms of attack.

Fourth, the U.S. defense establishment must be transformed to address our new circumstance. The need to swiftly introduce new weapons systems is clear. The transformation of U.S. military power to take full advantage of commercially created information technology may require undertaking near-term investment to acquire modern capabilities derived from U.S. scientific and industrial preeminence, rather than simply upgrading some existing systems.

The present weapons system acquisition process was designed in an environment that's very different from the one -- exists today. In my view, it's not well suited to meet the demands posed by an expansion of unconventional and asymmetrical threats in a -- rapid technological advances in a period of pervasive proliferation.

The cycle time from program start to initial operational capability for major acquisition programs conducted over the past several decades has, I am told, generally been between eight and nine years. Some efforts, obviously, have taken far longer. But such processes are not capable of harnessing the remarkable genius and productivity of the modern information-based commercial and industrial sectors that have done so much to revolutionize our civilian economy.

Fifth, reform of DOD structures, processes, and organization. The legacy of obsolete institutional structures and processes and organizations does not merely create unnecessary cost, which of course it does; it also imposes an unacceptable burden on national defense. In certain respects, it could be said that we are in a sense disarming or underarming by our failure to reform the acquisition process and to shed unneeded organization and facilities. If confirmed, we will examine, in consultation with the Congress, omnibus approaches to changing the statutory and regulatory basis for the most significant obstacles to reform.

This agenda for the new security environment is admittedly ambitious. It's an achievable one if the legislative and the executive branches work together. If confirmed, I will work closely with the committee and with the other appropriate committees of the Congress to develop, fund, implement an overall defense program that can achieve our goals for the future and for the future of our children.

I again want to express my appreciation to the president-elect for his confidence, and to you, Mr. Chairman, and the members of the committee, for inviting me here today. Thank you, sir.

SEN. LEVIN: Thank you, Mr. Rumsfeld.

In accordance with the practice of the committee, without objection, your responses to our pre-hearing policy questions, and your response to the committee questionnaire will be made part of the record of this hearing.

We have not yet received all of the paperwork on Mr. Rumsfeld's nomination. That paperwork, which may be lengthy, will be reviewed by the committee, and it could require additional discussion between the committee and the nominee.

Before we begin our first round of questions, there are several standard questions which we ask every nominee who comes before the committee. In your response to advance policy questions, you agreed, Mr. Rumsfeld, to appear as a witness before congressional committees when called, and to ensure that briefings, testimony and other communications are provided to Congress. And here are the standard questions.

Have you adhered to applicable laws and regulations governing conflict of interest?

MR. RUMSFELD: I don't know. (Laughter.) First of all, the laws and regulations and rules are different from the various entities to which I have submitted this massive amount of information -- the Pentagon, the Office of Public Ethics, the committee. I don't know that they all agree among themselves, but they're reviewing it. And I think probably one of the reasons for the delay in getting the stack of hundreds of pages of materials to you is because it's still down in the Office of Public Ethics.

I have a large number of investments and activities that would have to be characterized as "conflicts", were they to be maintained during service as secretary of Defense. I have, however, indicated in my response to you, Mr. Chairman, and to the other organizations, that I am ready and able, I believe able, but certainly ready, to take whatever steps are appropriate to eliminate anything that anyone of the various entities might feel would be inappropriate, both with respect to investments and with respect to relationships and boards and associations and that type of thing.

SEN. LEVIN: Well, then, we'll rephrase the tense of the verb: Will you adhere to applicable laws and regulations governing conflict of interest?

MR. RUMSFELD: Yes, sir, of that you can be certain.

SEN. LEVIN: Have you assumed any duties or undertaken any actions which would appear to presume the outcome of the confirmation process?

MR. RUMSFELD: No, I have not. I have talked to two people about -- on a contingency basis, that in the event that I am confirmed, they are individuals I would like to have join me in the department. And -- but it has been purely on a contingency basis.

I might just say that because the outcome of the election was delayed so long, the process is delayed. And I hope that when we do get to the point of my recommending to the president-elect names to join me in the Pentagon, that the committee will move as promptly as possible with consideration of those people, because when I think of the massive review you characterized in your opening remarks that is facing the Pentagon, it's not something I would look forward to doing alone. (Laughter.) I will need all the help I can get.

SEN. LEVIN: I'm sure that our next chairman will have the support of this full committee in trying to expedite nominees for those positions.

MR. RUMSFELD: Thank you, sir.

SEN. LEVIN: Will you ensure that the department complies with deadlines established for requested communications, including prepared testimony and questions for the record in hearings?

MR. RUMSFELD: I will certainly try to. I have been told that the number of requests for studies, and responses to questions from various elements of the committees of interest to the executive branch, to the Department of Defense is enormous.

And I would have to look at it and see how we can manage that process in a way that's satisfactory to both the Congress and to the executive branch. But I certainly would make every effort in the world to do so.

SEN. LEVIN: Will you cooperate in providing witnesses and briefers in response to congressional requests?

MR. RUMSFELD: Yes, sir.

SEN. LEVIN: Will those witnesses be protected from reprisal for their testimony?

MR. RUMSFELD: Well, if it's accurate and honest, certainly. If some witness came before a committee and said something that was inaccurate, I certainly would want to visit with them. (Laughter.)

SEN. LEVIN: I think we would, too.

MR. RUMSFELD (?): I do, too.

SEN. LEVIN: I think maybe the Justice Department would, too.

MR. RUMSFELD: Yes.

SEN. LEVIN: But other than that qualification, you will take steps to make sure that there is no reprisal against witnesses who intend to honestly present testimony and their opinions?

MR. RUMSFELD: Yes, sir, I would certainly want to see that witnesses were honest and forthright with the committees of the Congress.

SEN. LEVIN: Now, we're going to proceed to a first round of questions, which, because of the number of members who are here, we're going to limit to eight minutes for each senator. First we will do that on an alternating basis between the two sides, and then, following the "early bird" rule, we will recognize current members of the committee first, followed by our newly designated members. That's a bit of an awkward way to go at this, but I hope that our designated members who are not yet formally members of the committee will understand that. And if there's a difficulty with that, we can try to adjust within us to accommodate schedules. But I didn't know any other way to proceed until our new members are actually members of the committee, which will not occur, apparently, till next week.

The second round and any subsequent rounds will be limited to six minutes for each senator. And it's my intent to recess the committee for lunch at about 1:00 and to resume the hearing at 2:00, and if necessary, we will schedule additional hearings.

First, relative to missile defense, Mr. Rumsfeld. Press reports have occasionally suggested that the Ballistic Missile Threat Commission, which you chaired, advocated the deployment of a national missile defense system. Am I correct in stating that the mandate of the commission was limited to examining the ballistic missile threat to the United States, and that you and your committee did not take any position whether we should deploy a national missile defense system?

MR. RUMSFELD: That is correct.

SEN. LEVIN: It has also been suggested that the incoming administration has already made decisions about the architecture of a national missile defense system should it seek to deploy such a system. It's been stated by, I believe, one of our colleagues that you will see -- in other words, that a decision presumably has been made already -- a phased layered plan and a reconfigured plan for the ground-based program, including land, sea and space components. Do you know whether or not the incoming administration has made any decisions relative to the architecture of a national missile defense system if in fact a decision is made to recommend such a system?

MR. RUMSFELD: Well, we know that the president-elect -- and I suppose that in terms of trying to characterize an administration that doesn't exist yet and where the prospective participants have really not had opportunities to meet and discuss these things -- the president-elect has indicated that it is his intention to deploy a missile defense system. I know of no decisions that have been made by him or by me with respect to exactly what form that might take.

SEN. LEVIN: The National Missile Defense Act, which was adopted by Congress, signed by the president, contains two equal statements of U.S. policy. The first statement: That it's the policy of the United States to deploy as soon as technologically possible an effective national missile defense system to defend against limited ballistic missile attacks; and two, that it is the policy of the United States to seek continued negotiated reductions in Russian nuclear weapons.

Do you believe that we should consider the possible negative impact that the deployment of a national missile defense system could have on our policy to seek continued negotiated reductions in Russian nuclear weapons, as indicated by that statute?

MR. RUMSFELD: Well, I've -- you were kind enough to give me a copy of that statute, and I have read it, and it seems perfectly reasonable to me. The only thing I might have added to it, had I been a member of Congress, might have -- I might not have included the word "negotiated" in the second phrase where it says "seek continued negotiated reductions in Russian nuclear forces." It seems to me you may or may not do it on a negotiated basis. There have been instances in relationships with countries where they have each taken actions that were not a result of a final negotiated agreement, but rather were understood and were agreed to be in both parties' interests.

But I find nothing in here that is surprising or unusual or with which I would disagree.

SEN. LEVIN: All right. And you believe that both of those goals are legitimate goals, with that qualification?

MR. RUMSFELD: There is no question but that I think that we should deploy a missile defense system and -- when it's technologically possible and effective, and I think you obviously would want to be in discussions with Russia about the sizes and shapes of their capabilities and ours.

SEN. LEVIN: And that it is a legitimate policy and an important policy, do you believe, to seek reductions in those nuclear weapons on Russian soil, as indicated by that statute? Do you agree with that as a goal?

MR. RUMSFELD: I do. I think that to the extent we can manage those capabilities down -- I must say, I think that the Russian stockpile, or capabilities, are going to go down anyway, simply because of the circumstance of their economy. But I have no problem in talking with them about that, although it's principally a responsibility of the Department of State.

SEN. LEVIN: Is it in our interest that there be fewer nuclear weapons on Russian soil rather than more nuclear weapons on Russian soil? Is that something which would be in America's interest and the world's interest?

MR. RUMSFELD: Sure. Yes, indeed.

SEN. LEVIN: On the Comprehensive Test Ban Treaty, we've recently received a letter from Secretary Laird, former Secretary Laird, who now joins General Shalikashvili in believing that there should be reconsideration of the Comprehensive Test Ban Treaty with certain safeguards relative to it, relative to verification. I'm wondering whether or not -- and given your previous position as having doubts about the question of verification -- whether you would be willing to take a look at the position of our Joint Chiefs, which favored the Comprehensive Test Ban Treaty and believes it is verifiable, and would you be wiling to take a look at the recommendations of General Shalikashvili, Secretary Laird, relative to that treaty?

MR. RUMSFELD: Former Secretary of Defense Mel Laird was kind enough to send me the material that he communicated with General Shalikashvili about. I've not had a chance to study it. But my concern on the Comprehensive Test Ban Treaty -- and I forget when it was before the Senate, but as I recall, I testified on the subject -- my concerns were two-fold, really.

One was the number of issues that were raised by people whose judgment I respect in the scientific community about the risks to the reliability and safety of the stockpile. And I think that's something that is terribly important. We simply must have confidence in the safety and reliability of our weapons. And the second was the difficulty of verification. I have -- I'm aware in the press of what General Shalikashvili has come forward with, and certainly I would want to look at it and think about it as any reasonable person would.

SEN. LEVIN: Thank you.

Earlier this month, the Chicago Tribune reported on a taped conversation that you apparently had with President Nixon when you were serving as counsellor to the president in 1971. On the tape, there's a number of statements which I would appreciate your commenting on. And I think it's important that you do comment on them.

MR. RUMSFELD: Mmm-hmm.

SEN. LEVIN: First, there were some offensive racist comments by the president. And I would like you to explain your recollection of that conversation and your response to his comments.

And secondly, the Chicago Tribune reports the conversation -- that you make the statement that "the Republicans got us out of Democrat wars four times in this century," referring to the first World War, second World War, Korean War, and Vietnam War. I'm wondering whether or not you believe that those wars were Democratic wars -- whether you believed it at the time and, if not, you know, what was -- why you would have made that statement and your thoughts about that.

MR. RUMSFELD: Well, I was -- the Bush transition office was contacted by the reporter who had been listening to the tape. And he provided the Office with some notes -- I wouldn't call them a transcript because, in many cases, they weren't -- didn't even purport to be a transcript of a tape. And there was lots of places where it was dot, dot, dot. And they then, somehow -- the transition office got a hold of the tape and I was able to listen to a few seconds of it; I don't know how long, but not much. And I couldn't understand much of it. It's very difficult to understand.

The truth is, I didn't remember the meeting or the conversation at all when it was raised. It was 30 years ago -- 29 years ago. Apparently, from what can be reconstructed was I was in a office somewhere in the White House complex with President Nixon as a -- I guess I was an aide or a counsellor or an assistant to him at the time. Apparently -- and again, I'm not certain of all of this -- but it appears that he was characterizing some remarks that were made by Vice President Agnew. And he was characterizing -- he was quoting them in a critical manner, saying that Agnew shouldn't have said that; he shouldn't have been drinking with people who he didn't know, or whatever it was. And then later he quoted some other people and how they talked and he adopted a dialect, according to this statement.

The tape seems to indicate that I may have agreed with one or more things on that tape. To the extent I did agree with anything, I am certain I agreed only with the fact that some people talked like that and that Vice President Agnew should not have used or thought such derogatory and offensive and unfair and insensitive things about minorities. I did not then, and I do not now, agree with the offensive and wrong characterizations. And I think it's unfortunate that it comes up because it can -- it's not fair and it can cause pain to people to read that type of thing.

It's ironic that that newspaper, the Chicago Tribune, opposed the civil rights legislation during the 1960s when I was supporting it, when I was -- the most powerful paper in my congressional district. And I supported every single piece of civil rights legislation. And I was chairman of Tuskegee Institute's 100th Anniversary fund-raising when Chapie James (sp) died, and have an honorary degree from Tuskegee Institute.

On the Democratic war quote, I would say this; that was a time when the Vietnam War was raging and President Nixon was embattled, and he was trying to end it. And there were buses around the White House, if you think back to that period. It is not -- when you think of the Hoover Depression or the Clinton economy today, there are shorthand ways of talking in private. And it is -- a war is our country's war; it is not a Democratic war, it is not a Republican war, it is not a president's war, it is our nation's war, and I understand that. And to the extent shorthand was used, it should not have been.

SEN. LEVIN: Thank you.

Senator Warner.

SEN. WARNER: Thank you, Mr. Chairman.

That's an important inquiry that the chairman brought up. And I feel I should add some personal recollections. I was secretary of the Navy at that very time, under Nixon. And I recall being in a similar position from time to time in his presence when -- although I regard him as a great president on national security and foreign affairs, he did have his shortcomings.

And I've looked into that transcript very carefully with our nominee here this morning, and I'm personally satisfied that he conducted himself in a manner that reflects no discredit on him today.

And secondly, I must say, Mr. Chairman, the morning after that article appeared, Senator Moynihan called me. And Senator Moynihan also was a member of our team in those days and very much involved. And he said that if this is a matter that requires an explanation, he'd be happy to appear before this committee as a witness and testify to the unqualified credentials of this distinguished nominee, and particularly in the area of civil rights.

So I thank you for your forthright responses on that issue.

Let us turn to the critical question of defense spending. I'm going to ask you three or four questions on it. We're not here today to establish a number or even a benchmark. I think the important thing is to receive from you your unqualified support to increase defense spending. The procedures by which you will, in the first 90 days, undertake to ascertain, first, the efficiencies that can be generated within the existing budgets, and secondly, the procedures by which the president, yourself, and other advisers will determine how to increase by what amount.

And secondly, reiterate what the president has already said to me and others, that yes, other budget considerations very important, will take into consideration, but threat -- the threats facing the United States and the need for this modernization will be the controlling factor in reaching the determination on increased funding.

Can you elaborate on that?

MR. RUMSFELD: Yes, sir. I was asked by the president to consider becoming his nominee for this post, I guess eight or 10 days ago. And I have spent most of my time visiting with members of this committee and preparing for this hearing.

I have not taken a series of briefings at the Pentagon, nor have I had an opportunity to wrap my head around the budget numbers. I've read a great deal about it. I mean, the CBO was using one number, I think it was something like a 40- or $50 billion add-on. I read an article by Jim Schlesinger and Harold Brown, who came up with a number that was somewhat higher than that, 60 or 75 billion, as I recall. And I read a report from the Center for -- CSIS and Georgetown Center that was something in the neighborhood of 100 or 100-plus.

SEN. WARNER: And I urge you include the very conscientious evaluations of the joint chiefs.

MR. RUMSFELD: Yes. Yes.

What the number is, I don't know. Is it clear that there needs to be an increase in the budget? There is no doubt in my mind. But I'm not well enough along in my thinking on it, nor have I had an opportunity to even begin to be briefed by Bill Cohen, although he has told me they are -- he feels the same way. And I have not had a chance to talk to the transition people who are thinking through the budget numbers and how whatever it is --

SEN. WARNER: But your commitment today is to work towards a significant increase.

MR. RUMSFELD: Yes, sir.

SEN. WARNER: That's what I wanted to know.

MR. RUMSFELD: Absolutely.

SEN. WARNER: And that threat will be a consideration.

MR. RUMSFELD: Absolutely.

SEN. WARNER: And secondly that in your capacity as secretary of Defense, the chiefs can continue under your administration to come before Congress and give us their views.

MR. RUMSFELD: Yes, indeed.

SEN. WARNER: That's fine.

MR. RUMSFELD: I'd prefer they give them to me first, but --

SEN. WARNER: Well, that's all right. (Laughter.) We'll get them.

Let's turn to another threat. And it's interesting. I've done a lot of study on this. We know about the military threat, but there's another threat, and that's the industrial base in America has been put to a tremendous task of trying to survive in the face of 12 to -- a dozen years of decline in defense spending. They find very tempting avenues to go out into the private sector and do business and forget about all the regulations in the Department of Defense and the uncertainty of defense spending and take that on and simply worry about their bottom line. But fortunately, we have a lot of courageous people who are willing to continue to provide our industrial base.

So you bring that business experience, which is very valuable -- not unlike old Dave Packard (ph), with whom I served with, and he really understood the need to strengthen the industrial base -- together with the competition from firms in Europe primarily, where those firms have government support in some instances.

So give us your thoughts on that, and then I address a quote by the president-elect here that I want to get some clarification. "We will modernize some existing weapons and equipment necessary for current tasks. But our relative peace today allows is to do this selectively. The real goal is to move beyond marginal improvements, to replace existing programs with new technologies and strategies, to use this window of opportunity to skip a generation of technology."

Now that's a bold challenge. And I bring back your recollection. I left the department roughly '74. You came in shortly thereafter. You remember the bones of TFX were all over the department, billions of dollars lost in trying to manufacture an airplane and hang every trinket known to mankind on it, until it sunk of its own weigh.

MR. RUMSFELD: (Laughs.)

SEN. WARNER: We then experience the A-12, which I can show you that. Billions of dollars lost. Well, today we're working on I think some essential programs. I won't mention them here. One indeed needs to be scrutinized, and that's the VSTOL. You know that aircraft. The Marines. It's important to the Marine mission. We've got to give very serious consideration to that program.

But I'm not getting into programs. I want you to explain to me, against that background, your definition of skipping a generation of technology and the impact that could have on this industrial base.

MR. RUMSFELD: Yes, sir. First, with respect to the study on the defense industrial base, let me say that I agree with you. I had the privilege of being briefed by General Tom Mormon (sp), who served, I believe it was, on the Defense Science Board that did the study, and it is a very serious problem. I mean, the return on investment in the defense industry today is not sufficient to attract investment. And the government doesn't make things, we purchase things, we acquire things, and that industry has to be there. And to be there, it has to be viable from an economic standpoint or people are not going to invest in it. And it is a very serious problem.

Second, with respect to the president-elect's remarks about skipping generations and that, clearly the review is going to have to address this. But it seems to me there's at least two ways that one can achieve advances in technology. And I don't want to bring up ancient history, but as fate would have it, I was in the secretary of Defense office when the subject of the M1 tank along. And the argument was that it should continue to be another upgrade of a new diesel; let's do another diesel and a couple more diesels. And I decided no. I said let's go to a turbine engine. Now, that takes a major weapon system and moved into an entire new generation of technologies at that time.

SEN. WARNER: I think that's helpful. Let me get in one last question here. You'll have an opportunity to amplify that for the record. And that's the doctrine of the use of force.

General Powell, the secretary of State designee, once stated that we should always execute the decisive results and be prepared to commit, quote, "the force need to achieve the political objective." I was quite interested the other night, in looking at the Lehrer NewsHour, and our secretary of State, Mrs. Albright -- I urge you to go back and look at that transcript. And I'll just pick out one of her quotes. And I do that respectfully, but it says as follows in answering that question about where she was with regard to the Powell doctrine. "It doesn't have to be all or nothing. If you think about the fact that you have to employ every piece of force that you have, and you have months to plan it, and the Earth is flat, you're never going to do anything." In other words, you need the full -- I don't have the time here to -- (inaudible word).

Give us your parameters of thinking of how you are going to advise the president of the United States as to when to send into harm's way the men and women of the armed force, and, frankly, secretary-designate, when not to send.

MR. RUMSFELD: Well, that is an enormous question and an exceedingly important one. And I'd be happy to talk about it for a few seconds here.

Could I go back to the tank first? I would not want to leave the idea that the only way to transform is to go from one generation of technology and leapfrog into a new one. There's another way. And I'm not as familiar with it, but respect to the same tank, it's my understanding that it's gone from, I think, the M1 to the M1 --

SEN. : M1A.

MR. RUMSFELD: What's the second -- ?

SEN. : M1, A2.

SEN. : This is the tank expert right here.

SEN. : M1 and then A2.

MR. RUMSFELD: But it's gone from analog to digital. Now, there you've taken a platform that exists and you've not done a leapfrog with the whole platform, but you've taken some electronics and leapfrogged. And there are plenty of opportunities to do things where we can significantly improve capabilities, both with respect to the system itself but also with respect to the pieces of the system, or elements of the platform, if you will.

Now with respect to your question. This is a subject that is important. It's sensitive. It is, in my view, a presidential issue and not a secretary of Defense issue alone; it is a National Security Council team issue. And we have not met. We have not deposited ourselves and worried this through. All of us in that team have opinions and all of us have opined on this subject, publicly and privately, from time to time, including the president-elect.

The elements that come back from time to time are, is what you think you want to do actually achievable?

It may be meritorious, it may need to be done, but if you can't really do it, oughtn't you maybe not to try? And that's a tough one to evaluate. In no case it is a cookie mold you can press down and say, There's the answer. Each of these are subjective and difficult.

The second that comes to mind is resources. Do you have the resources? You might be able to do it, but if you're spread all over the world and you simply don't have the capabilities at that given moment, then you've got to face up to the truth, and that is that you can't do everything. A second thing that comes back from time to time is, To what degree is this particular activity or recommendation truly a part of our national interest? And that's something that comes -- it's a consideration. It's one of the dimensions of the debate and discussion.

Another, I would say, is other artificial constraints as to how you can do this, and I think -- I think it's terribly -- I personally believe it's terribly important that we have a very clear understanding of what the command structure is and who is deciding what, and to the extent humanly possible you avoid a committee that hasn't pre-decided these things and ends up interminably debating as to what should be done with respect to various aspects of an engagement.

I think last, and there may be others I have forgotten, but I thought about this last night, When is -- What are the -- How would you characterize what success is? When you've done something, how do you know when you've done it that you've done what you went in to do, and what is success, and what's your exit strategy? When does it end? Is there some point where it's over, or is it interminable?

Now, I don't know where that positions me across that spectrum, because I don't -- I tried to avoid characterizing where I happen to think in any given case, because I don't know. I really -- it's something I wanted to talk to the president-elect about and Secretary- designate Powell and Condi Rice and the folks that are interested in this, and it's an enormously important subject.

SEN. WARNER: Thank you, Mr. Rumsfeld.

SEN. LEVIN: Senator Kennedy.

SEN. KENNEDY: Thank you very much, and my congratulations, Mr. Secretary.

MR. RUMSFELD: Thank you, sir.

SEN. KENNEDY: On arms control, Mr. Rumsfeld, during the campaign, President-elect Bush made some interesting arms control proposals, including the reduction of nuclear weapons well below the START II levels and removing them from hair-trigger status. I've long been an advocate of arms control and was pleased to see the president- elect's interest in this area. I understand that when you were with President Ford as Secretary of Defense, you did not support the SALT II Treaty, and are opposed now to the Comprehensive Test Ban Treaty. Will you support the president-elect's arms control agenda?

MR. RUMSFELD: Well, you can be sure I'll support the president- elect's agenda. He's the president, and -- I will, however, offer my views, I hope, persuasively and thoughtfully, in deliberations with the National Security Council, as I did during that time. I mean, I -- people, honorable people, can come to different views, and I did with respect to SALT II.

SEN. KENNEDY: You had an exchange in response to questions seven to 11 on the missile defense. As you know, the failure of the two most recent flight tests of the NMD has cast significant doubts on the viability of the current system. When the president-elect announced you as the nominee, he spoke of the need for the United States to develop a missile defense system that will work. And I'm interested in what your definition of a "system that will work."

You were talking about recently about characterizing success and involving the United States in these situations overseas. What is your -- when will we know that it will work?

I mean, would you establish as a baseline that it clearly has to pass a field test?

MR. RUMSFELD: Senator, I would really like to avoid setting up hurdles on this subject. I think back -- I was reading the book "Eye in the Sky," about the Corona program and the first overhead satellite, and recalling that it failed something like 11, 12, or 13 times during the Eisenhower administration and the Kennedy administration. And they stuck with it, and it worked, and it ended up saving billions of dollars in -- because of the better knowledge we achieved.

In this case, if I could just elaborate for a moment, the principle of deterrence, it seems to me, goes to what's in the minds of people who might do you harm and how can you affect their behavior.

The problem with ballistic missiles, with weapons of mass destruction, even though they may be a low probability, as the chart that Senator Levin, I believe, mentioned suggests, the reality is, they work without being fired. They alter behavior.

If you think back to the Gulf War, if Saddam Hussein, a week before he invaded Kuwait, had demonstrated that he had a ballistic missile and a nuclear weapon, the task of trying to put together that coalition would have been impossible. There's no way you could have persuaded the European countries that they should put themselves at risk to a nuclear weapon. People's behavior changes if they see those capabilities out there.

I think we need missile defense because I think it devalues people having that capability, and it enables us to do a much better job with respect to our allies.

Now, finally, I don't think many weapons systems arrive full- blown. Senator Levin or somebody mentioned "phased" and "layered." Those are phrases that I think people, not improperly, use to suggest that things don't start and then suddenly they're perfect. What they do is they -- you get them out there, and they evolve over time, and they improve.

And so success -- you know, this isn't the old "Star Wars" idea of a shield that'll keep everything off of everyone in the world. It is something that in the beginning stages is designed to deal with handfuls of these things and persuade people that they're not going to be able to blackmail and intimidate the United States and its friends and allies.

SEN. KENNEDY: Well, I think that you make good response to the question. I think we can give assurance, though, that there's going to be a very careful review and --

MR. RUMSFELD: Absolutely.

SEN. KENNEDY: -- in terms of the effectiveness, by you as it moves along, and that it's going to have to meet the criteria. And I'm prepared to establish that criteria, but it's going to be meaningful criteria, in terms of actually being able to function and be able to work --

MR. RUMSFELD: Yes, sir.

SEN. KENNEDY: -- in the different phases.

Let me move to the questions of Colombia. What is your sense of the capacity of the military in these countries to address the particular challenge? Do you think that -- and how are we going to deal with these reports that we've read recently about the spillover in the area and in the region, and how are we really going to be able to determine the difference between the counterinsurgency and the counternarcotics? Have you -- can you tell us what you're thinking? This is complicated. It's specialized. It's not -- it's somewhat on the edge of -- but enormously important. We're going to have to address this. And I'd be interested -- just your thinking at this time. We'll have more time later on to get into it, but can you tell us now, at least, what your thoughts are?

MR. RUMSFELD: It -- Senator, it is not something that I've been able to get briefed into. It's my understanding that the Department of State has the lead on this. And I understand that there's a cap that's been put on by the Congress on the numbers of people in -- military people that are engaged. It is complicated.

I am one who believes that the drug problem is probably overwhelmingly a demand problem, and that it's going to find -- if the demand persists, it's going to find ways to get what it wants, and if it isn't from Colombia, it will be from somebody else. And if I were the neighboring countries, I'd be concerned about spillover as well. I think it's a very important problem, and it's not something I've had a chance to screw my head into or talk to the National Security Council team about.

SEN. KENNEDY: For the next eight days, I'm the chairman of the Seapower Subcommittee of this committee. Under Senator Snowe, we had extensive hearings about the decline of the ship-purchasing budget and what's going to be necessary in order to meet responsibility in terms of the Navy.

Have you had a chance in any respect to review that, and can you give us any kinds of ideas of how you think that that issue is going to be able to be addressed down the road?

MR. RUMSFELD: Well, I haven't been briefed on it at all. I am, by background and interest, very interested in the Navy, and I recognize the importance Mrs. -- Senator Snowe indicated to me that we are currently building ships at a level that, if it continues, will permit the U.S. Navy to decline down into very low numbers, and that the only thing that can be done, if we're to maintain the kind of capabilities in the world where we can project power and presence through the United States Navy, is we're going to have to increase the shipbuilding budget. I'll stop there.

SEN. KENNEDY: Okay. Just -- and I only have a few more -- about a minute. Senator Roberts, who has been the chairman of the Emerging Threats Subcommittee, and has been a real leader in the whole area of bioterrorism and cyberterrorism has -- and Chairman Levin referenced that in terms of his opening comments. Could you give us some assessment of what your own kind of concerns would be in those areas? There's been recent legislation that Senator Frist, myself, and others had advanced at the end of the last session in terms of bioterrorism. I'd just be interested in your own kind of perception of the nature of the threats as we're looking down the road.

MR. RUMSFELD: Well, I've been made aware of Senator Frist's and your interest and Senator Roberts'. I would rank bioterrorism quite high in terms of threats. I think that it has the advantage that it does not take a genius to create agents that are enormously powerful, and they can be done in mobile facilities, in small facilities. And I think it is something that merits very serious attention not just by the Department of Defense, but by the country. And I have an interest in it, and certainly would intend to be attentive to it.

SEN. KENNEDY: Thank you very much.

Thank you, Mr. Chairman.

SEN. LEVIN: Senator Thurmond?

SEN. THURMOND: Thank you, Chairman Levin. Mr. Chairman, I congratulate you on your leadership during this period of transition, and appreciate your bipartisan approach in holding this hearing. Your chairmanship continues the committee's long tradition that the defense of our nation is above politics.

Before I address the issue at hand, I want to express my appreciation for our outgoing secretary of Defense, Bill Cohen. His tenure as secretary of Defense will be marked by great advances in the quality of life for our military personnel and their families; the refocusing of the Department of Defense to the new threats of weapons of mass destruction and cyberterrorism, and more importantly, assuring this nation's position as the world's only superpower. I wish him, and his lovely wife, Janet, the best in their future endeavors.

Secretary Rumsfeld, congratulations on your nomination and welcome to this, your second confirmation hearing as secretary of defense. I hope that the praise of Bill Cohen does not lead you to the conclusion that you will not have any challenges as you move into the office of the secretary of defense.

Our nation is fortunate to have an individual such as you follow Bill Cohen. You have distinguished career, both in the public and private sector, and have shown your willingness to take on the tough issues faced in the Department of Defense.

Those of us who have served on the Armed Services Committee in the mid-70s can recall the problems you encountered then with the state of our armed forces. They were undermanned, morale was sagging, drugs were rampant, and most important, they were underfunded. Fortunately, shortages in the armed service forces are no longer a major issue. However, overworked and undermanned units and underfunded programs are problems that will, again, test your mettle.

Mr. Secretary, you have been a proponent for a strong defense. I can assure you that this committee will provide you their support. That will be critical as you work to strengthen the armed forces and meet the challenges of the future. Our nation's history is replete with examples of failing to anticipate the future challenges and denuding our military capability.

Coincidentally, it was 50 years ago, at the beginning of the Korean War, when the United States sent the ill-equipped and under- trained troops of Task Force Smith into battle with tragic results because we failed to anticipate a threat. As we commemorate that war, we should make the pledge of never again will this nation send another Task Force Smith to battle.

Mr. Secretary, I wish you success and look forward to working with you in the coming years.

Thank you very much, Mr. Chairman.

MR. RUMSFELD: Thank you, sir.

SEN. LEVIN: Thank you, Senator Thurmond for those comments. And we very personally appreciate it, and the leadership that you have shown on this committee and so many other places in this Senate over the years.

Senator Lieberman, we all give you a special welcome back; some of us with greater enthusiasm, perhaps, than others. (Scattered laughter.) But welcome back.

JOE LIEBERMAN (D-CT): Thanks, Mr. Chairman, Mr. Rumsfeld.

I was privileged to have a courtesy call yesterday from Don Evans, the secretary of Commerce designate, and I opened by thanking him for all he did to bring me back to the United States Senate. (Laughter.) So it is good to be here though, with my colleagues and particularly on this committee.

Mr. Rumsfeld, I welcome you and join my colleagues in expressing my, not only admiration for you extraordinary record of public and private service, but for your willingness to take on this job at this time.

I haven't read "Rumsfeld's Rules" yet, but I will certainly -- I remember it was a little red book in another country of some distance from here. (Laughter.) I don't know what color "Rumsfeld's Rules" are going to be, but --

As your opening statement suggests, at this critical time -- unusual time in our national security history, there's a surprising amount that we have to do. We are -- when I think of the comparison that you made of the Cold War situation you found on the last occasion when you came in as secretary of Defense, and the remarkably different circumstance you find today -- we are not in ideological and strategic conflict with another major superpower, the Soviet Union, we are it. But we are nonetheless challenged. Technology is expanding the threats. As you've documented, we have tremendous demands on us to maintain our force, to keep our troops with the quality of life and training that we want them to have.

This is going to require some very tough leadership from you, and priorities -- the setting of priorities and the willingness to try to implement those. We have -- in the time I've been privileged to be on this committee and therefore been involved more directly in national security questions, watching Congress and the military and the executive branches we have generally reached beyond in authorization what we have ultimately -- and conceptualization -- what we've ultimately been willing to pay for.

And I think we're at such a point now where legitimate claims can be made for resources, and we haven't yet put them together. I mean, in the madcap experience to which Senator Levin refers that I went through last year -- (laughter) -- a glorious experience, actually, and one that I thoroughly enjoyed -- the Bush-Cheney Campaign had a document out suggesting the willingness to spend $45 billion more over the next 10 years for national security.

Vice President Gore and I doubled that to $100 billion, big spenders that we are -- (scattered laughter). But what is interesting and, of course, focuses the tough choices you will have, is that the chiefs, the Joint Chiefs who, I believe Senator Warner referred to, have essentially told us that what we really need is at least $50 billion more a year.

So let me first put in an appeal which you and I have spoken about, which is that all of us who care about national security have to really reach out and try to build more of a public understanding for the need to spend more to keep our national security strong in this age. If you look at what people think we ought to spend more money on as we are deciding how to spend the surplus, national security comes out way down on the list, and that's not good. And as long as that exists, it's going to be hard for us here to make the decisions we should make.

Second point is, how do you -- how do you begin to approach the excess of needs and the deficiency of resources and make the kind of priority decisions that we need you to make?

MR. RUMSFELD: It is -- it is -- I want you to know that I understand the task facing the Department of Defense is enormously complex. It is not a time to preside and tweak and calibrate what's going on. It is a time to take what's been done to start this transformation and see that it is continued in a way that, hopefully, has many, many more right decisions than wrong decisions. There is no one person who has a monopoly on how to do this, or genius. It's going to take a collaborative relationship within the executive branch and with the Congress, and I just hope and pray that we're wise enough to do it well.

But the one thing we know of certain knowledge is that it's not a peaceful world. It is a different world and it is more peaceful in the sense that the Soviet Union is gone. But it is nonetheless a dangerous and untidy world. We also know that the power of weapons today is vastly greater than it was in earlier eras, and we know that with the relaxation of tension at the end of the Cold War the proliferation of these capabilities is pervasive. It is happening, and we have to acknowledge that.

If I know anything, I know that history shows that weakness is provocative. Weakness invites people into doing things they wouldn't otherwise think of.

SEN. LIEBERMAN: Right.

MR. RUMSFELD: And what we have to do is better understand what will deter and what will defend against this new range of threats? And I don't look at them in isolation. I don't think of long-range ballistic missiles and short-range ballistic missiles and cruise missiles and terrorism as something that's disconnected. I think of it as a continuum.

With the Gulf War, the world was taught, Don't try to take on Western armies, navies and air forces, because you lose. Therefore, you should try something else.

SEN. LIEBERMAN: Right.

MR. RUMSFELD: And that means you're going to look at things like information system attacks and cyberwar, you're going to look at bioterrorism, you're going to look at other kinds of terrorism. The vulnerability of space assets has to be worrisome to people, as well as shorter-range ballistic missiles and cruise missiles, in addition to ballistic -- long-range ballistic missiles.

So --

SEN. LIEBERMAN: Let me ask this question: If -- and I agree with you -- if we have to prepare to face this new range of threats to our security, because no sensible antagonist will take us on as we were taken on in the Gulf War because we were too dominant, does that not inevitably mean that we will have to cut some of the programs that we are now spending money on that may be more continuations of that earlier threat scenario than the new ones?

MR. RUMSFELD: It's entirely possible that that kind of a recommendation can come out of this review. And whether it will or not, I don't know until I dig into it. I mentioned the need for collaboration with Congress. That's true. We also need to make darn sure that we're dealing with our allies in a way that they are brought along. We're not alone in this world. We have some enormously important allies in Asia and Europe and friends in other parts of the world. And I think that those relationships as well are terribly important.

SEN. LIEBERMAN: Let me ask about the review that you've spoken of. As you know, Congress has authorized by law a quadrennial defense review, and that was a way to try to encourage and mandate an incoming administration to look forward and to require that those in the military present some big thoughts over the horizon. You've also referred to, and the president-elect referred during the campaign and more recently to a strategic review. Help me, if you would, to relate those two reviews to one another. Is the strategic review the incoming administration has in mind the quadrennial defense review authorized by law? Or since that doesn't give you a final product until December, though it gives you some before, are you thinking about a separate review to help you make some of the budget priority decisions I've just referred to.

MR. RUMSFELD: The latter. My impression is that what the president has in mind is that we will take a look at how we view the world and our circumstance in it, and fashion some thoughts with respect to broader strategy, and then get down into more of the details as to the defense establishment's capability or appropriateness of our current arrangements to deal with those kinds of threats and

******* Matching of next tape 011129CH.SA

It is -- I'm worried about getting people picked, recommended, which I can't do, as we know, until I'm the man. And I'm not. I have to have help. And it is -- I'm being practical. As a manager, I know that we're going to have to figure out a way to flush out this system a little bit.

SEN. LIEBERMAN: Thanks very much. I'd say, from your perfmance here this moring, that it's cleaer that you are the man. (Laughter.)

MR. RUMSFELD: (Laughing.) Thank you. Thank you.

SEN. LEVIN: Senator McCain?

SEN. JOHN MCCAIN (R-AZ): Thank you, Mr. Chairman.

I want to congraulate the president fo r

It is -- I'm worried about getting people picked, recommended, which I can't do, as we know, until I'm the man. And I'm not. I have to have help. And it is -- I'm being practical. As a manager, I know that we're going to have to figure out a way to flush out this system a little bit.

SEN. LIEBERMAN: Thanks very much. I'd say, from your performance here this morning, that it's clear that you are the man. (Laughter.)

MR. RUMSFELD: (Laughing.) Thank you. Thank you.

SEN. LEVIN: Senator McCain?

SEN. JOHN MCCAIN (R-AZ): Thank you, Mr. Chairman.

I want to congratulate the president for his outstanding selection of Don Rumsfeld to be the next secretary of Defense. His reputation for intelligence, candor, and competency is well deserved. And I look forward to a rapid confirmation of his nomination, so that he can get right to work.

I guess there's very few benefits of old age, but every new administration we hear the same complaint that you just mentioned. It's a very legitimate complaint. And perhaps maybe we ought to do something about this process.

And I'm not worried about the willingness of people like you to serve, in all candor, because you're a patriot first and last. But I am worried about, at lower levels of government, the undersecretary, the assistant secretary, those positions that, when highly qualified men and women look at it and then see what they have to go through, they decide not to do that. And I think that's the compelling reason.

I don't have a lot of sympathy for you, Mr. Secretary --

MR. RUMSFELD: (Laughs.)

SEN. MCCAIN: -- but I certainly do for others that we -- that you need to attract on your team, as you so well pointed out.

I was interested in your comments to Senator Warner's questions about the use of force, and when and when not the United States troops should be committed. Those of us who assailed the administration and NATO's conduct of gradual escalation during the Balkans campaign took heart in your comments at that time, particularly your reflections on CNN on April 4th, 1999, with respect to comparisons of Kosovo to Vietnam, which went as follows, and I quote: "There's always a risk in gradualism. It pacifies the hesitant and the tentative. What it didn't do is shock and awe and alter the calculations of the people you're dealing with."

During an interview with Chris Matthews, you noted that "it was a mistake to say that we would not use ground forces, because it simplifies the problem for Milosevic. It seems to me we ought to start saying things -- stop saying things to appease and placate our domestic political audiences, and we ought to start behaving in a way that suggests to Milosevic that it's in his interest to end this and stop ethnic cleansing and come to the negotiating table." I appreciate those words very much.

But my question is, do you think we should have gotten involved in Kosovo to start with?

MR. RUMSFELD: (Pauses.) There are pieces of that on both sides, obviously. I think that NATO had historically been a defensive alliance and been thought of as that. And its image has altered as a result of that.

My comments -- (chuckling) -- and they sound pretty good to me, too; I'm kind of pleased I said those things -- (laughs) -- were obviously after the fact. It was: We're there, by golly. I'm no fan of graduated response. If we're going to do something, let's do it.

And -- but I don't know that -- the problem is that in our society people seem to watch how people manage a crisis or a conflict, rather than what preceded it. And of course, the real kudos ought to go to people who manage things in a way that the conflict doesn't happen, that in fact --

SEN. MCCAIN: Or not manage them, so that the conflict does happen.

MR. RUMSFELD: Well, yes, sir. And when I think back to the Balkans -- I mean, goodness, I don't -- again, I don't want to bring up ancient history, but all of us for years did scenarios and war planning and war games with respect to the -- Yugoslavia coming apart and problems in that part of the world. And if we know anything, it's that the Europeans, I think -- by waiting for the Europeans to do something, things evolved in a way that were unfortunate.

And I think it requires a lot more --

SEN. MCCAIN: That's certainly true --

MR. RUMSFELD: -- effort up front.

SEN. MCCAIN: I think that's certainly true of Bosnia.

MR. RUMSFELD: It is.

SEN. MCCAIN: Now, Kosovo is a little closer call.

MR. RUMSFELD: Yes. It is.

SEN. MCCAIN: So we don't have an answer.

MR. RUMSFELD: I don't, and that's -- that's (direct ?).

SEN. MCCAIN: I'd like to mention a couple more issues to you, and I'll again propose the question that you previously addressed in the advance questions to the committee. Do you believe we still have excess military infrastructure that can and should be reduced?

MR. RUMSFELD: Instinctively, I do, but knowledgeably, I don't because I have not gone back in and reviewed it. But I would say this --

SEN. MCCAIN: Well, have you heard the comments of Colin Powell, the Joint Chiefs of Staff, the secretary of Defense that you are succeeding, virtually every military expert in America?

MR. RUMSFELD: I have. I am kind of old-fashioned, though. I like to figure things out for myself. But I am a firm believer that force structure has to -- that base structure has to fit force structure, and we know --

SEN. MCCAIN: Do you think that it does now?

MR. RUMSFELD: As I say, my impression is it doesn't. I have not been in there, and I -- the next question after that would be, well, in what way, and of course, I don't know what way because I've not been over there getting briefed. But my brain tells me, my instincts tell me, from the past, that in fact not only should base structure fit force structure, but that it doesn't, and that something should be done about it, because we cannot afford to waste resources with the important tasks we have ahead of us. But I'm not in a position to say, This is how it ought to be done.

SEN. MCCAIN: Recently, the United States made a very significant investment in the problems in Colombia; largely, not totally, but largely unnoticed by Americans and their representatives. I take it from your answer that "I have less than well-informed personal views which I'd prefer to discuss with the appropriate officials before taking a public position," is that you haven't paid as much attention to it as maybe other issues, as well?

MR. RUMSFELD: That could be true. I haven't. I have not been to the country in years, and I -- and I know only basically what I know from the press, and --

SEN. MCCAIN: You know that we've just invested about $1.3 billion in the last appropriations cycle?

MR. RUMSFELD: That's my understanding.

SEN. MCCAIN: And we're upgrading a base in Ecuador, which I found out -- perhaps I shouldn't admit this -- by looking at a newspaper.

MR. RUMSFELD: I didn't know that.

SEN. MCCAIN: There's a lot of things going on in Colombia, Mr. Secretary, and I hate to harken back to other conflicts, but I hope you'll get very well aware of this situation, what we're doing, what the involvement of U.S. military personnel is in the area, and what kind of investment -- more importantly, what goals we seek here. Because, very frankly, I don't know the answer to those questions yet, and I think that at least those of us who sit on this committee should be much better informed, and I hope that the committee will start looking at this situation from an armed forces standpoint very quickly.

MR. RUMSFELD: I will certainly invest the time needed to do that.

SEN. LEVIN: Senator McCain, if I could just interject?

SEN. MCCAIN: Yes.

SEN. LEVIN: Senator and Warner and I were just chatting, and he raised that very same subject, and I think both of us would agree with your comment that we should, indeed, as a committee, get more deeply involved, and will.

SEN. MCCAIN: I thank you, and I'll take responsibility for not knowing about the upgrade in Ecuador, but very frankly, I'm not sure many Americans know about it, either. And maybe that's perfectly fine, but I think we'd better have a close and careful examination of exactly what we're committed to. I'm not sure that members of this committee and Americans would agree with the proposed decision on the part of the president of Colombia to give more areas of sanctuary to the so-called narcotraffickers there.

But anyway --

Finally, Mr. Secretary, I am sure that you are aware of my concerns about excess spending and the increase of pork barrel spending. It's risen -- my time has expired, but I --

SEN. WARNER: No, you -- we cut into your time. You can take that question.

SEN. MCCAIN: I'll take about five or 10 more minutes, Mr. Rumsfeld. (Laughter.)

SEN. WARNER: No, no, no, no, no, no.

SEN. MCCAIN: Well, it's gone up. It continues to go up. When you were secretary of Defense it was about $200-$300 million a year of unrequested add-ons in the Defense appropriations process. It's now up around $6 or $7 billion at minimum -- at minimum. And new gimmicks have been invented since you were there. One of them is the so-called wish list that comes over from the Pentagon that, although not requested in the budget, would be really great to have. So they pick and choose from that very long list.

I want to say this to you, Mr. Secretary. And I don't think you need any advice. But unless you get a handle on this spending, a billion and a half dollars for an aircraft -- helicopter carrier that the Navy and Marine Corps said they neither want nor need, continued acquisitions of C-130s which 10 years ago the United States Air Force they didn't need, we're going to have a C-130 in every school yard in America before this is over. You're going to have to get a handle on this, and you may have to face down some very powerful interests, both on the Hill and off the Hill.

And so I see it lurch out of control. Why do I care? I was just down at Marine Corps Air Station Yuma. They're still living in World War II barracks. And we're purchasing equipment that the military neither wants nor needs. We hopefully have addressed the food stamp problem, although I'm not sure we have satisfactorily. But while all this excess and unnecessary spending is going on, the men and women in the military have suffered. It's not an accident that Army captains are getting out at a greater rate than in the history of this country's armed services. I don't mind losing a few admirals and generals; I do mind losing the high quality captains that are the future leaders of this country.

So I strongly urge you to look at this issue because the urgency of the cold war situation has therefore allowed us a degree of license in unnecessary spending out of the Defense budget, much of which has nothing to do with defense, that you're never going to be able to meet our requirements of a new and modernized military much less the men and women in the military being taken care of unless you address this issue.

I thank the chairman for the additional time.

SEN. WARNER: Thank you.

Do you have a quick comment on that before I call on Senator Cleland? You want an opportunity to --

MR. RUMSFELD: No, I'm -- no, I certainly agree that the question that has to be posed is whether or not something is going to contribute to our national security and whether or not it meets the priorities that are important for this country. That has to be our focus.

SEN. WARNER: Thank you.

Senator Cleland.

SEN. MAX CLELAND (D-GA): Mr. Secretary, since the C-130s are build in Georgia, I'd like to say that I'm for school yards being able to be moved anywhere in the world at a moment's notice. (Laughter.)

Let me just say that I'm fascinated by the Rumsfeld Rules. And I appreciate your appreciation for quotes and anecdotes.

In listening to your incredible resume and your wonderful experience that you bring to this task -- and you certainly have my support for this job. I think you're going to be an outstanding secretary of Defense -- I thought about the line by Jack Kennedy that the thing he appreciated most in the White House was a sense of history, the thing he feared most was human miscalculation. And I think you bring som