TESTIMONY OF THE 
 JOINT CHIEFS OF STAFF

 BEFORE THE
COMMITTEE ON ARMED SERVICES
UNITED STATES HOUSE OF REPRESENTATIVES

REGARDING THE FISCAL YEAR 2005
 NATIONAL DEFENSE BUDGET REQUEST FOR THE DEPARTMENT OF DEFENSE

FEBRUARY 4, 2004

 

I am privileged to report to Congress on the state of the United States Armed Forces.

As they were a year ago, our Nation's Soldiers, Sailors, Airmen, Marines and Coastguardsmen are currently operating within our borders and around the globe with dedication, courage and professionalism, alongside our Coalition partners, to accomplish a variety of very demanding missions.  Global terrorism remains a serious threat, and the stakes in the GLOBAL War on Terrorism remain high.

Over the past year, I have told you that with the patience, will, and commitment of our Nation we would win the War on Terrorism.  The support we have received from the Congress has been superb.  From Congressional visits to deployed personnel, to support for transformational warfighting programs, to funding for security and stability operations, to improved pay and benefits for our troops, your support for our servicemen and women has enabled us to make significant progress in the War on Terrorism.

We are winning.  Saddam Hussein no longer terrorizes the Iraqi people or his neighbors; he is in custody awaiting justice.  The Iraqi people are well on their way to establishing a prosperous and peaceful future.  They have already assumed a significant role in providing for their own security, and the list of important accomplishments in every sector-education, medical care, business, agriculture, energy, and government, to name a few-is long and growing.  We have made substantial progress in Afghanistan as well.  The recent Constitutional Loya Jirga is an encouraging example of democracy in action.  In both countries, as in the Horn of Africa and other areas, US and Coalition personnel work together to capture or kill terrorists, while at the same time improving infrastructure and economic conditions so that peace and freedom can take hold.

Despite the operational demands on our forces, we remain ready to support the President's National Security Strategy to assure our allies, while we dissuade, deter and defeat any adversary.  The draft National Military Strategy (NMS), developed in consultation with the Service Chiefs and Combatant Commanders describes the ways we will conduct military operations to protect the United States against external attack and aggression, and how we will prevent conflict and surprise attack and prevail against adversaries.  The strategy requires that we possess the forces to defend the US homeland and deter forward in four critical regions.  If required, we will swiftly defeat the efforts of two adversaries in an overlapping timeframe, while having the ability to "win decisively" in one theater.  In addition, because we live in a world marked by uncertainty, our forces must also be prepared to conduct a limited number of lesser contingencies while maintaining sufficient force generation capabilities as a hedge against future challenges.   

We appreciate your continued support giving our dedicated personnel the warfighting systems and quality of life they deserve.  Our challenge for the coming year and beyond is to stay the course in the War on Terrorism as we continue to transform our Armed Forces to conduct future joint operations.  We cannot afford to let our recent successes cause us to lose focus or lull us into satisfaction with our current capabilities.  The war is not over, and there is still dangerous work to do.  To meet this challenge, we continue to focus on three priorities: winning the War on Terrorism, enhancing joint warfighting, and transforming for the future.  

War on Terrorism 

Twenty-eight months after the terrorist attacks on September 11, defeating global terrorism remains our military's number one priority.  We will continue to fight this war on many different fronts, because terrorism comes in many different forms.  The stakes remain high, but our resolve remains firm.  

The more experience we gain in this fight, the more we recognize that success is dependent on a well-integrated military, interagency and coalition effort.  This means the coordinated commitment of the military, diplomatic, informational, economic, financial, law enforcement, and intelligence resources of our Nation - all instruments of our national power.  On the international level, Coalition military and interagency cooperation has been remarkable.  In Iraq, Coalition forces from 34 nations are working hard to bring peace and stability to a country brutalized for 3 decades.  In Afghanistan, 37 nations are working to secure a democratic government and defeat al Qaida and remnants of the Taliban regime, with NATO assuming an increasing role in stability and reconstruction efforts.     

We have made significant strides coordinating US Government efforts within the interagency and with our Coalition partners.  One of the ways we have been successful at coordinating interagency efforts is through venues such as the Strategy Working Group, the Senior Leadership Review Board and the Regional Combating Terrorism Strategies.  Continued success in this war will depend largely on our ability to organize for a sustained effort and coordinate seamlessly among all government agencies.  An even more demanding task is coordinating the efforts of our Coalition partners, now numbering more than 90 nations.  Coalition contributions have been significant, ranging from combat forces, to intelligence, logistics and medical units.  They have complemented our existing capabilities and eased the requirement for current US forces in Iraq and Afghanistan.  Coordinating the efforts of our Coalition partners is critical to combating the remaining terrorist threat.  

The al Qaida network, though damaged, remains resilient, adaptable and capable of planning and executing more terrorist acts, such as the attacks in Saudi Arabia and Turkey toward the end of 2003.  Al Qaida continues to receive support and recruit operatives from sympathizers around the world. 

Al Qaida will increasingly focus on Iraq as today's jihad.  As the network consolidates its efforts in Iraq, the threats of attacks will grow.  In fact, four al Qaida audiotapes released in 2003 prominently mentioned Iraq, demonstrating Usama Bin Ladin's emphasis on staging attacks there.  Ansar al-Islam also remains a formidable threat in Iraq, despite damage inflicted by Coalition forces during OIF.  Its key leadership remains at large and continues to plot attacks against US and Coalition interests. 

Other terrorist groups also pose significant threats to US interests, and we believe that some of these terrorist groups have developed contingency plans for terrorist attacks against US interests abroad.  The Revolutionary Armed Forces of Colombia continue to conduct terrorist attacks throughout Colombia. They currently hold three US hostages captured in early 2003, and directly threaten efforts to bring peace, stability and an end to the drug trade in Colombia.  Jemaah Islamiyah in Southeast Asia is another terrorist group that shares al Qaida's goals and methods, adding to the transnational terrorist threat.  The intelligence that led to recent heightened alert levels in the US show that the threat of a major terrorist attack against the US homeland remains very real. 

Disturbingly, terrorist groups continue to show interest in developing and using Chemical, Biological, Radiological and Nuclear (CBRN) weapons in terrorist attacks.  Terrorists have attempted to acquire military-grade materials, and interest in CBRN weapons and materials by several groups is well documented.   

The Coalition's efforts in the War on Terrorism (WOT) represent the significant first step in curtailing WMD proliferation.  Our strategy for combating WMD calls for the Combatant Commanders to detect, deter, deny, counter, and if necessary, interdict WMD and its means of delivery.  Combating WMD relies on a continuum of interrelated activities, employing both defensive and offensive measures, and confronting the threat through mutually reinforcing approaches of nonproliferation, counterproliferation, and consequence management.  This multi-tiered and integrated effort will greatly reduce the threat of WMD falling into the hands of terrorists.  Following the liberation of Iraq and the collapse of Saddam Hussein's brutal regime, the countries of Iran, and most recently, Libya have been more forthcoming about their illegal WMD programs to the international community.  This should also help to apply international pressure on North Korea and its nuclear declarations.    

To counter the potential threat of the proliferation of WMD, the President's Proliferation Security Initiative (PSI) is the most far-reaching attempt to expand our efforts to impede and interdict the flow of weapons of mass destruction, their means of delivery, and related materials, between state and non-state actors of proliferation concern.  It is part of a larger effort to counter proliferation of weapons of mass destruction and missile-related technology by interdicting shipments of these materials by air, land, and sea.  To date, there are 11 partner nations actively participating in PSI operations and exercises.  Our goal is to expand PSI participation in order to be postured to respond quickly to assist in the interdiction of the proliferation trade.  

 OIF and OEF Operations 

US Central Command (CENTCOM) is still center-stage in the WOT, and doing a magnificent job under difficult circumstances.  Iraq is well on its way to becoming a sovereign country.  Our Coalition is strong, with 34 countries directly supporting stability and security in Iraq.  As part of the 15 November 2003 agreement, the US, our Coalition partners, and the Iraqi Governing Council are forging plans and agreements to allow for the transfer of sovereignty to Iraq this June.  Since the end of major combat operations, we have made steady progress towards meeting our objectives.  Essential services are being restored, and a political transformation is already underway in Iraq.  Security in Iraq is steadily improving, and we are transitioning to a time when the face of security in Iraq is an Iraqi face, and Coalition forces are in the background. 

Today, Coalition forces continue to rout out remnants of the former regime attempting a desperate last stand.  Using intelligence provided by Iraqi citizens, we are conducting thousands of raids and patrols per week alongside Iraqi security forces.  We have seized massive amounts of ammunition, and captured or killed 45 of the 55 most wanted former Iraqi leaders, as well as thousands of other Saddam loyalists, terrorists and criminals.  We have captured or killed all of the top 5, most notably Saddam Hussein and his sons, Uday and Qusay.  

The Iraq Survey Group is continuing its examination of Saddam's WMD programs by interviewing Iraqi citizens, examining physical evidence, and analyzing records of the old regime.  We know that this process will take time and patience, and must be able to stand up to world scrutiny.  

Our Soldiers, Sailors, Airmen, Marines and Coastguardsmen in Iraq are now supporting over 203,000 Iraqi security forces.  The Iraqi police continue to expand their training pipelines in Jordan and Iraq, producing hundreds of trained officers each month.  We are well on track to meet our goal of 71,000 Iraqi police by August 2004.  The Facilities Protective Service has fewer training requirements and has already reached its goal of 50,000 members.  They have taken over security from Coalition Forces at most fixed site locations, such as power lines and parts of the oil infrastructure - key targets for sabotage.  Our goal for the Border Enforcement Force is to have 25,700 members by December 2004.  They will relieve Coalition forces guarding checkpoints along Iraq's border.  US military forces continue to vet former members of the Iraqi military and other security services for employment in the new Iraqi security services, but Iraqis are formally in charge of de-Ba'athification efforts and have established guidelines for that process.  The Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan 2004 that Congress approved last year was instrumental in enabling our planned accelerated development of these security forces, and we are grateful for that support.  

The New Iraqi Army continues to train additional battalions.  Iraq's Army needs more than just military skills.  They must have a deep-rooted sense of professionalism, focused on protecting all Iraqis while operating firmly under civilian control.  The new army will reflect Iraq's religious, regional, and ethnic mix, will be apolitical, and indoctrinated in their role of defense and security.  We will spend the time and resources necessary to ensure the Iraqi Army is a well-trained and highly capable force.  

The linchpin of our security efforts during this transition period is the Iraqi Civil Defense Corps (ICDC), which is currently planned for a force of 40,000 by the summer of 2004.  The ICDC is a light military force, created to deal with the current stability issues in Iraq.  As we have done from the beginning, we continue to reassess the security environment in Iraq.  These security assessments could change force goals for the various components of Iraqi security forces.  With the resources allocated from the supplemental, we have made great headway in providing them with vehicles, uniforms and other gear, including communications systems that will enable them to succeed in their critical tasks.  Military commanders in Iraq tell me that the Iraqi Civil Defense Corps has been highly effective, and as such, we increased the goal from 18 to 36 Battalions and provided $124 million extra funding to reinforce the success of this Iraqi Security Force.  

These supplemental funds also provided commanders with one of the most successful tools in winning the hearts and minds of the Iraqi and Afghan people, the Commander's Emergency Response Program (CERP).  These funds provide commanders and the resourceful young troops they lead with the means to respond to urgent humanitarian and stabilization and reconstruction needs such as water and sanitation projects, irrigation and small-scale agriculture assistance, school house repairs and civic cleanup projects.  This program is an invaluable tool for establishing relationships with the Iraqi and Afghan people, assisting in economic development, and creating a safer environment.             

The United Nations and the international community are also playing vital roles in the political and economic transformation of Iraq.  Over 70 countries and international organizations including the US , pledged $33 billion at the Madrid Donors Conference.  UN Security Council Resolution 1511 called upon Iraqis, initially through the Iraqi Governing Council, to determine the course and speed of their political reformation.  In response, the Iraqi Governing Council has submitted its plan and timetable for selecting a transitional National Assembly and interim government, drafting a constitution and holding elections.  It is an ambitious schedule, but one that they can accomplish with our help.     

In addition to security and political progress, we continue to help Iraq rebuild the infrastructure required for economic progress and a stable democracy.  The Coalition Provisional Authority (CPA) and Task Force Restore Iraqi Electricity are managing a comprehensive maintenance and upgrade program designed to improve power generation, transmission, efficiency and capacity to meet the future needs of the Iraqi people.  Through the coordinated efforts of the Army Corps of Engineers and the Iraqi Ministry of Electricity, we met the initial October 2003 goal of 4,400 MW of peak power generation.  The next goal is 6,000 MW of power by 1 June 2004.  In order to meet this goal the CPA developed the Power Increase Plan to offset recent system failures from severe weather and continuing sabotage and looting.  This plan increases electrical power generation through an increase of  generator rehabilitation and maintenance projects, the increase of new power generators to the national power grid, increasing electrical power imports from other nations, and improving system-wide power transmission and distribution.  Other progress continues throughout Iraq in potable drinking water projects, supplying hospitals with medical supplies, providing school supplies for Iraqi school children and rebuilding classrooms.  Living conditions are improving everyday in Iraq, as many of you have seen for yourselves on recent trips to Iraq.  

In Afghanistan, our military strategy combines both combat and stability operations.  US and Coalition forces are conducting combat operations to rid Afghanistan of al Qaida and Taliban remnants, and stability operations to assist in building Afghan security institutions, governing bodies, and economic prosperity.  A few weeks ago the interim Afghan government held their first Constitutional Loya Jirga, approving a new constitution for Afghanistan.  

Security and stability operations are being conducted by 11 Provincial Reconstruction Teams (PRTs) operating throughout Afghanistan, with 1 more PRT planned for this year.  PRT representatives are making great strides improving the quality of life for the Afghan people by building schools, clinics, wells, roads and other community infrastructure projects.  Reopening the Kabul-to-Kandahar road was a major success.  Our efforts have increased security and stability in Afghanistan.  

In August 2003, NATO assumed responsibility for the International Security Assistance Force (ISAF) in Afghanistan.  In October 2003 the United Nations Security Council passed a resolution extending ISAF's mission in Afghanistan for one year, and authorizing ISAF to operate outside Kabul and its environs.  In February 2004, a Canadian officer will assume command of the NATO ISAF headquarters from the German commander.  NATO's role in Afghanistan is expanding.  The first phase of NATO expansion included transfer of responsibility for the US PRT at Konduz to NATO, with Germany as lead nation, and temporary NATO deployments outside Kabul.  NATO is planning future ISAF expansion throughout Afghanistan.  

The Afghan National Army (ANA), now numbering 5,785 trained personnel, is at the forefront of efforts to improve security and stability and establish a strong national identity among the Afghan people.  They are well on their way to reaching the annual throughput goal of 10,800 personnel by June 2004.  To date the ANA has performed well, fighting side-by-side with US and Coalition forces during recent successful combat operations to capture or kill Taliban, Hezb-I-Islami-Gulbiddin, and al Qaida elements.  Most of the funding provided in the Afghanistan portion of the FY-04 Emergency Supplemental is being targeted to efforts that strengthen the ANA, such as new infrastructure and equipment that will also improve recruitment and retention efforts.  These efforts include increased pay, plans to field 15 new regional recruiting centers by this spring, and establishing military benefit packages.  

Congress has demonstrated its commitment to the future of Afghanistan, but there is still much more the international community could and should contribute to the reconstruction of Afghanistan.  The Afghan government, with the help of the US government, is seeking more donations for several infrastructure projects such as a new Ministry of Defense headquarters, a hospital in Kabul, and a military academy, as well as donations of certain equipment, weapons and ammunition.  

In neighboring Pakistan, working closely with President Musharraf, we have been able to increase coordination among US, Coalition, Afghan and Pakistani forces along the Pakistan-Afghanistan border.  The Pakistani government has taken some initiatives to increase their military presence on the border, such as manned outposts, regular patrols and security barriers, including areas of the Pakistan Federally Administered Tribal Areas, an area historically avoided by Pakistan's military forces. The Tripartite Commission consisting of US, Afghan and Pakistan representatives concluded its fifth session in December, and among its accomplishments was the establishment of a sub-committee to investigate means to prevent cross-border conflict.  US/Pakistani military cooperation continues to improve, and we are helping Pakistan identify equipment requirements for their counter-terrorism efforts. 

Operations in the Horn of Africa remain an essential part of the WOT.  The Joint Task Force Horn of Africa at Camp Lemonier, Djibouti is conducting counter-terrorist and civil affairs operations in Eastern Africa.  Although these operations have impacted al Qaida's influence in the region, a continued military presence is essential to stop the movement of transnational terrorists and demonstrating to the region our resolve to wage the WOT in Africa. 

In support of OEF - Philippines, US Pacific Command (PACOM) used congressionally approved funds this past year to continue counter-terrorism training for the Armed Forces of the Philippines.  A small contingent of US military personnel remains in the southern Philippines managing these efforts and other humanitarian assistance projects.   

Other Overseas Operations

 US European Command (EUCOM), in accordance with SECDEF guidance, has developed a concept for the reduction of US forces supporting US Kosovo Force in the Province of Kosovo, and US Stability Forces in Bosnia-Herzegovina.  Implementation of this plan is dependent on the North Atlantic Council's Periodic Mission Review recommendation for the Balkans. 

When EUCOM concludes the Georgia Train and Equip Program in May 2004, they will meet their objective of improving Georgia's ability to confront transnational terrorism operating within Georgia.  Training is being provided for two staffs, four battalions and one mechanized/armor company team.  To build on this success and momentum, EUCOM is reviewing a possible follow-on Georgia Capabilities Enhancement Program to sustain and improve the Georgian military's newly acquired capabilities, and demonstrate a continued US commitment to the Georgian Armed Forces' development. 

Maritime Interdiction Operations took on a new global focus last year, beyond the historical CENTCOM and EUCOM missions, when the President approved Expanded Maritime Interception Operations to interdict terrorists and their resources globally.  Expanded Maritime Interception Operations are now significant mission areas for every deployed battle group, especially along maritime transit lanes and choke points.  Results from these maritime operations, such as in the Mediterranean Sea, have produced lower insurance premiums in the shipping industry, considerably less illegal immigration in countries such as Spain, Italy, and Greece, and a reduction in crime at sea.  Maritime Interdiction Operations are a truly international effort.  German and Spanish led multi-national naval forces patrol the CENTCOM area of responsibility, and this past year Coalition naval forces have been responsible for boarding over thirty ships within EUCOM's area of responsibility.    

US Southern Command (SOUTHCOM) continues to support counter-narcotics trafficking and counter-terrorism efforts in the Caribbean and Central and South America.  They are assisting the Colombian military in its fight against designated terrorist organizations by providing military advice, training, and equipment with an emphasis on the pursuit of narco-terrorist leadership, counter-narcotics tactics, and security for major infrastructure such as the Cano Limon pipeline.  SOUTHCOM supported the formation of the Colombian Army Special Operations Command and is continuing its efforts to train the Commando Battalion, and a Ranger-type unit.  Training was successfully completed for the first Colombian Commando Battalion, and training has begun for the second battalion.  The Colombian military has been very successful over the past year in their fight against narco-terrorism.  The Tri-Border Area between Argentina, Brazil and Paraguay is another focal point for drug and arms trafficking, money laundering, document fraud and Islamic terrorist-supported activities in South America.  US-sponsored multilateral exercises are promoting security, improving effective border control, and denying terrorist groups such as Hizballah, Hamas and other Middle Eastern terrorist safe havens, restricting their ability to operate. 

SOUTHCOM is also providing nearly 2000 military personnel to manage detainee operations at Guantanamo Bay, Cuba.  We operate in close coordination with several US Agencies.  We are constantly reviewing the status of each detainee, and to date have transferred 87 of the detainees who were determined to be of no intelligence or law enforcement value, or no threat to the US or its interests, back to their countries of origin for release.  Four detainees have been transferred back to their country of origin, under an agreement for continued detention by that country.  More await similar agreements to allow for transfer or continued detention.  A number of detainees have been assessed as high intelligence and or law enforcement value, or pose a significant threat to US interests.  These detainees will remain for further exploitation.  Other cases are being considered for referral to the Military Commission, although no one has been referred to date.  Information gleaned from detainees, many of whom continue to make threats against Americans, has already helped prevent further terrorist attacks against the US and our allies.  Furthermore, continued detention of those who pose a threat to US interests prevents those enemy combatants from returning to the battlefield.  

In accordance with the Unified Command Plan 2002 Change 2 implemented last year on 1 January 2004, US Strategic Command (STRATCOM) reported significant progress in all of their new mission areas: global strike; missile defense; DOD information operations; and command, control, communications, computers, intelligence, surveillance and reconnaissance missions.  Further, they are on schedule to achieve full operational capability in each of the newly assigned mission areas this year.  SECDEF has already approved the Information Operations Roadmap, which has 57 wide-ranging recommendations that aid Combatant Commanders in planning and executing fully integrated information operations. 

As we become more reliant upon information to conduct operations, the defense of our network is paramount.  This requires properly trained people, common operating standards, and a well-stocked arsenal of Information Assurance tools. We are working diligently to centralize network operations and defense, and to formalize information sharing policy, guidance and procedures.  These steps, along with our cryptographic modernization plan, will safeguard our vital information. 

We are formalizing the role of US Special Operations Command (SOCOM) in the War on Terrorism.  In the near future, we will be recommending a change to the Unified Command Plan assigning SOCOM specific responsibility to coordinate DOD actions against terrorist networks.  We are also drafting planning guidance that will designate SOCOM as the supported commander for planning and, when directed, executing operations against terrorist networks.  These changes will provide SOCOM and all of DOD improved focus in our global effort to combat terrorism.   

Current Homeland Defense Operations 

Last year, US Northern Command (NORTHCOM) reached full operational capability in their mission to deter, prevent and defeat threats and aggression aimed at the US and its territories.  Upon SECDEF approval, NORTHCOM can now deploy Quick Response Forces (company-sized units) and Rapid Response Forces (battalion-sized forces) to support time-sensitive missions such as defense of critical infrastructures or consequence management in support of the Department of Homeland Security (DHS).  To improve interagency collaboration, DOD has been working with DHS to develop and implement the National Response Plan, a national-level, all-hazards plan that will integrate the current family of Federal Domestic Emergency Response Plans into a single plan.  

The Joint Staff has developed a CONPLAN for consequence management operations, and NORTHCOM and PACOM have developed supporting plans.  NORTHCOM's Joint Task Force Civil Support maintains strong interagency relationships to integrate command and control of DOD forces with federal agencies to manage the mitigation of Chemical, Biological, Radiological and Nuclear and High-Yield Explosive (CBRNE) incidents.  This past summer, DOD, Nevada National Guard and Reserve units, FEMA, 27 other Federal agencies, and Nevada State and local agencies participated in a consequence management exercise in Nevada called DETERMINED PROMISE 2003.  I was thoroughly impressed by the coordination and cooperation among active and reserve component forces, and Federal, State and local authorities. We are conducting similar exercises across the country.  

In regards to anti-terrorism and force protection measures, the Joint Staff is working to ensure that Combatant Commanders at home and abroad have the resources to mitigate threats and respond to emergent requirements through the Combating Terrorism Readiness Initiatives Fund.  My staff is involved in developing and updating anti-terrorism standards and policies to reflect current worldwide operations and lessons learned so that we can address any vulnerabilities.  We coordinate with various agencies in the areas of training, planning, operations and intelligence sharing, all essential for developing sound anti-terrorism policies.  

In an effort to improve the security of US military installations and personnel around the world, the Joint Staff has created the Antiterrorism Enterprise Portal, an evolving web-based portal that aggregates the resources and programs required to support the DOD Antiterrorism Program.  This portal is fast becoming DOD's one-stop location for antiterrorism/force protection information.    

A program that complements this portal capability is the Joint Protection Enterprise Network (JPEN).  Operated by NORTHCOM, this network provides the means to share unclassified force protection information rapidly between military installations in the Continental United States, increasing their situational awareness and security significantly.  Although currently operating only on military installations, JPEN has the potential to be expanded to share terrorist information with Federal, State and local agencies as well. 

The WOT requires collecting relevant data and turning it into knowledge that will enable us to detect and preempt the plans of an elusive, skilled enemy dispersed across the globe.  Although many obstacles remain, we are making significant progress in the area of information sharing.  The Joint Intelligence Task Force for Combating Terrorism (JITF-CT) at DIA is a prime example of effective intelligence cooperation in the WOT.  In the area of counterterrorism, we are making significant progress toward transparency and full information sharing.  JITF-CT has experts from 12 intelligence and law enforcement organizations, and JITF-CT personnel are embedded in 15 other organizations, including some forward deployed personnel.  

Readiness for Future Operations

 Our Nation's number one military asset remains the brave men and women serving in our Armed Forces.  This past year, they demonstrated to the world their dedication, perseverance and compassion as they liberated the Iraqi people and worked to bring peace and prosperity to the region.  The Administration, Congress and DOD have made raising their standards of living a top priority.  The 2004 budget provided an average military pay raise of 4.15 percent and targeted increases of up to 6.5 percent for some enlisted personnel.  The 2005 budget's proposed reduction of out-of-pocket housing expenses from 3.5 percent to 0 is a sound investment, as are future pay increases based on the Employment Cost Index plus .5 percent.   

DOD has a focus group that continues to look at programs to enhance the combat effectiveness and morale of service and family members associated with OIF and OEF.  Areas where we have made significant progress are Rest and Recuperation Leave, danger area benefits to include incentive options for extended tours of duty in Iraq and Afghanistan, exchanges, childcare and communications initiatives.  

All Services generally met or exceeded active duty and reserve component recruiting and retention goals in both Fiscal Years 2002 and 2003 and entered fiscal year 2004 with healthy Delayed Entry Program levels.  However, recruiting and retention of both active and reserve personnel will continue to require attention and continued investment as we face the challenges of an improving economy and the high operations tempo associated with the war.  I view all of the Quality of Life issues as inseparable from overall combat readiness, and we greatly appreciate Congressional support for all of these initiatives.    

The overall readiness of our armed forces - whether forward deployed, operating in support of contingency operations, or employed in homeland defense - remains good.  Our forces are the world's best trained and, possess the requisite personnel, equipment, and resources necessary to accomplish the military objectives outlined in the Strategic Planning Guidance.  Challenges do exist, especially with regard to ground forces in Iraq.  We are currently in the midst of rotating our combat troops in Iraq - a feat that will rival any in history.  We will continue to examine force levels and size them appropriately as security dictates.  

We continue to rely heavily on our Reserve and Guard personnel, who are playing critical roles in Homeland Defense, and serving with distinction around the world in the War on Terrorism.  Some missions like the ones in Bosnia-Herzegovina and Kosovo are almost exclusively made up of Reserve and Guard units, and they are doing a magnificent job.  We are well aware of the strains on members, their families, and their employers, and continuously seek better ways to support them.  

There are several initiatives underway, collectively by DOD, the Services, Combatant Commands, and the Joint Staff to reform the mobilization process and to relieve the stress on the force.  USJFCOM, in conjunction with the Services, is leading the mobilization reform effort by evaluating policy changes and identifying other solutions to streamline the mobilization/demobilization process, and preliminary recommendations are expected in early 2004.  Two Operational Availability sub-studies were conducted last year and identified the Active Component/Reserve Component Mix and Low Density/High Demand assets as two areas of immediate concern to relieve stress on the Reserve Component forces.  As an example, the Army has already begun converting some Reserve Component artillery forces into Military Police forces to meet one of the expected high demand roles of the foreseeable future.  This, and other ongoing rebalancing efforts will ensure that active and reserve forces continue to complement each other.  The Services are actively engaged in reviewing how much of a given capability they need for this new security environment, and which capabilities belong in each component.  Other key DOD areas of concern are reducing the need for involuntary mobilization of the Reserve Component early on in rapid response operations, establishing a more rigorous process for reviewing joint force requirements, and ensuring efficient use of mobilized Reserve Component personnel.  A comprehensive Rebalancing the Force Report by ASD (RA) will summarize these efforts, while a study by ASD (HD) will define Reserve Component requirements for Homeland Defense.  

US Armed Forces are capable of achieving all assigned objectives in the Defense Strategy.  However, current stresses on the force remain considerable. The increased demands of the War on Terrorism, sustaining post-conflict operations in Iraq and Afghanistan, and other global commitments are unlikely to change significantly in the near-term.  Moreover, while committed globally, our Armed Forces must continue to defend the homeland, reconstitute forces returning from contingency operations, transform to meet future challenges, strengthen joint and combined warfighting capabilities, and maintain readiness.  Today, given these commitments and requirements, we are carefully managing the risk in executing an additional major combat operation.  

When units return home from combat operations, they must undergo a reconstitution process, which generally means a drop in their readiness.  However, this does not necessarily indicate that a unit is either unavailable for or incapable of executing part or all of their assigned wartime missions.  We have initiated new measures in the current readiness reporting system to identify Service and combatant command requirements, determine the scope of required reset actions, and develop appropriate solutions to mitigate shortfalls and manage risk.  Our workload remains high, but we remain prepared to accomplish those missions assigned to us. 

Army units returning from OIF I/OEF require focused maintenance efforts to return them to pre-hostility readiness levels, while continuing to meet Combatant Commanders' maintenance requirements.  The Army's goal is to return OIF I/OEF active duty units to pre-deployment readiness within 6 months and reserves within 1 year after return to home station.  However, some critical aviation systems may require additional time in order to complete depot level repairs.  Funding was programmed from the 2004 Supplemental for these organizational and depot level maintenance requirements.  Army Materiel Command is the lead agency for developing a plan to repair major equipment items from OIF I/OEF.  Approximately 1,000 aviation systems, 124,400 communications & electronics systems, 5,700 combat/tracked vehicles, 45,700 wheeled vehicles, 1,400 missile systems, 6 Patriot battalions, and 232,200 various other systems are included in this repair plan.  As OIF II and beyond maintenance requirements are further defined, DOD will refine estimates and update costs.  

Combatant Commanders and the Services identified preferred munitions as one of their risk areas of concern via periodic readiness reporting.  Supplemental funding, as well as augmented annual budget requests, have allowed us to meet our requirement for Joint Direct Attack Munitions and laser-guided bomb kit demands.  In the near term, we are focused on improving how we determine our munitions requirements.  Over the long-term, we plan to field improved guided munitions systems that build on our already superb precision-delivery capabilities. 

Our military training areas are facing competition from population growth, environmental laws, and civilian demands for land, sea, and airspace.  The Services are proud of their success in protecting the environment, endangered species and cultural resources.  We are grateful to Congress for their assistance in the FY04 Defense Authorization Act, which precluded designating certain DOD lands as critical habitat, and preserved valuable Navy training while ensuring protection of marine mammal species.  Having the world's most sophisticated weapons systems and simulators cannot substitute for our most important military training activities, air, land and sea maneuver and live-fire training.  Some installations, ranges, and training areas are losing critical military value because encroachment is impairing their capability to provide useful readiness and operational support.  Such facilities should be reviewed during the next round of Base Realignment and Closure.  We will continue to seek Congressional support that balances environmental concerns and readiness. 

Our Nuclear Readiness continues to evolve.  In December 2001, the Nuclear Posture Review established a New Triad composed of Offensive Strike capabilities (both nuclear and non-nuclear), Defenses (active and passive) and Responsive Infrastructure in order to respond to a wide range of contingencies.  DOD is in the midst of a Strategic Capabilities Assessment to assess the progress in fielding the New Triad and determine the number and types of forces to meet the President's goal of 1700 to 2200 operationally deployed strategic nuclear warheads by 2012.   

We continue our efforts to ensure we can operate effectively in a CBRN environment, since our potential adversaries, both nation states and terrorists, seek to acquire and develop weapons of mass destruction, including biological warfare agents.  Vaccinations represent an important countermeasure against biological threats and provide our military personnel with the best available protective measures.  To date, approximately 695,000 military personnel have been vaccinated against anthrax and more than 520,000 military personnel have received smallpox vaccinations.  The anthrax and smallpox vaccination programs are very successful, and it is imperative to develop effective countermeasures against other biological threats to protect our warfighters.                   

While our warfighting team has always included contractors, their involvement is increasing.  The Joint Staff is leading a joint group to develop overarching DOD policy for management of contractor personnel during contingency operations.  

We must also reexamine our ability to get to the fight.  The Mobility Requirements Study 2005, completed in 2000, is the current baseline mobility requirements document.  DOD is actively engaged in conducting a new full-scale mobility study that reflects our current defense strategy and incorporates lessons learned from OEF and OIF to further clarify strategic lift requirements.  The goal is to complete a new Mobility Capabilities Study by June 2005, in time to influence preparation of POM-08.  

Sustaining our overseas presence, responding to complex emergencies, prosecuting the global war on terrorism, and conducting operations far from our shores are only possible if our ships and aircraft are able to make unencumbered use of the sea and air lines of communication.  Our naval and air forces must be able to take advantage of the customary, established navigational rights that the Law of the Sea Convention codifies.  We strongly support US accession to the Convention. 

Although C-17 production is not planned to terminate until FY-08, production of several C-17 long lead items is planned to close in FY-06.  The Air Force and DOD are studying the benefits and risks (including financial and war fighting) of continuing or terminating the C-17 long lead items production line, and plan to complete this assessment in time to inform the FY-06 POM and the Enhanced Planning Process. 

Increasing