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C O N F I D E N T I A L SECTION 01 OF 02 USNATO 000084 
 
SIPDIS 
 
E.O. 12958: DECL: 02/16/2017 
TAGS: MARR MCAP NATO PARM PREL
SUBJECT: USD(P) FLOURNOY'S FEBRUARY 17 MEETING WITH NATO 
SYG RASMUSSEN 
 
Classified By: Charge d'Affaires John Heffern for reasons 1.4(b),(d) 
 
¶1. (C) Summary.  Under Secretary of Defense (Policy) Michele 
Flournoy discussed NATO reform, nuclear posture, NATO's 
Strategic Concept, Missile Defense, Afghanistan and export 
controls with NATO Secretary General Rasmussen in a February 
17 meeting that followed USD(P) Flournoy's briefing to the 
NAC on the Quadrennial Defense Review (QDR).  End summary. 
 
REFORM TO STAY RELEVANT 
-------------------------- 
¶2. (C) Secretary General Rasmussen stressed to U/S Flournoy 
that his main ambition is to reform NATO in a way that 
strengthens the Alliance's flexibility and vitality.  He 
shared Secretary Gates' passion for reform, he said, and 
agreed that reform is essential to enable Allies to spend 
NATO resources wisely.  Defense Ministers' tasking at the 
February 4-5 Istanbul ministerial gave him a solid political 
platform for presenting far-reaching reform proposals, 
including on NATO command structure.  Rasmussen said he 
planned to ask NATO military authorities to lay out their 
ideal command structure, which he would then present to 
Defense Ministers in June for discussion, not decisions. 
 
¶3. (C) Civilian headquarters reform proposals, including 
extensive committee reform, are also under consideration, 
Rasmussen said. His staff had abolished over 80 dormant 
committees since he took office and hoped to whittle down the 
remaining 300 committees to 100.  Reform would be tough -- he 
had already met with resistance from several countries, 
including "some parts of the USG."  Strong support from the 
US would be essential for reform efforts to succeed, he 
emphasized.  Flournoy cautioned that focusing too heavily on 
command structure reforms first might exhaust the political 
capital needed for reforms essential to bolstering NATO 
capabilities; starting with less contentious issues might 
produce more results, more quickly.  EUR PDAS Nancy 
McEldowney added that Foreign Ministers need to be engaged on 
reform proposals as well. 
 
¶4. (C) Resource reform would also be instrumental in 
strengthening NATO, Rasmussen said, adding the NAC must move 
ahead firmly to implement the Defense Ministers' decision at 
Istanbul.  He intends for Allies to make clear resource 
decisions in March and report back to Defense Ministers, who 
approved a four-point package at Istanbul.  Some costs would 
have to be pushed over to 2011, and NATO would improve 
efficiencies where possible.  But Rasmussen made clear that 
the Alliance remains underfinanced; he applauded a Defense 
Ministers' agreement to infuse new funds. 
 
NPR IN THE NATO CONTEXT 
----------------------- 
¶5. (C) Rasmussen also raised the Nuclear Posture Review 
(NPR), noting this would be an important topic in the 
Strategic Concept process and one likely to generate heated 
debate. Flournoy cited the President's 2009 Prague speech as 
the framework for US nuclear weapons policy, with a focus on 
preventing proliferation and terrorism.  She noted that the 
US is taking steps to reduce the role of and reliance on 
nuclear weapons, as well as their numbers, but added that the 
President recognizes nuclear weapons will continue to play a 
role in the near to mid-term.  Given that reality, the US 
also needs to invest in the nuclear infrastructure to ensure 
a safe and effective nuclear arsenal, she said. 
 
¶6. (C) On non-strategic nuclear forces (NSNF), Flournoy 
stressed the US intends to stay in step with NATO and to work 
within an Alliance context; the indivisibility of the 
Alliance would remain at the forefront in deciding on a way 
forward.  The NPR, expected to be completed by March 1, would 
not get ahead of the Alliance or Strategic Concept process on 
NSNF in Europe.  She also noted that several Allies' current 
aircraft procurement plans appear headed toward de facto 
divestment, as they do not include Dual Capable Aircraft 
variants; NATO would need to consider national investment 
programs in making decisions on the Alliance's approach. 
Rasmussen suggested that the US may end up playing the honest 
broker between the two extremes in Europe, with Germany on 
one side and France on the other. 
 
STRATEGIC CONCEPT PROCESS 
-------------------------- 
¶7. (C) Rasmussen intends to strike the right balance in 
drafting NATO's Strategic Concept between the "one pen 
 
USNATO 00000084  002 OF 002 
 
 
principle" to ensure coherency and buy-in from other 
stakeholders.  In keeping with the Strausbourg-Kehl tasking 
that the process include consultations, he and PermReps would 
discuss the Group of Expert report at an "away day" in May 
that would be followed by three or four Ambassador-level 
discussions on selected topics over the summer.  In 
September, Rasmussen would embark on the final drafting 
process.  He expects to call a Defense Ministerial in 
September and Foreign Ministerial in October to give 
guidance.  While the Strategic Concept would be relatively 
short, Rasmussen said a more comprehensive implementation 
document might be necessary to translate the principles in 
the text into clear policies, actions and operations. 
 
MISSILE DEFENSE GOALS 
--------------------- 
¶8. (C) Flournoy reaffirmed that the US wants the Alliance to 
adopt territorial missile defense as a NATO mission at the 
November Lisbon Summit.  Approval of funding for the MD 
options paper is a positive step forward in making missile 
defense a NATO project, which is essential for countries such 
as Turkey.  The US views NATO's continued investment in 
ALTBMD and endorsement of territorial defense as a NATO 
mission as key Lisbon Summit outcomes.  Rasmussen 
acknowledged achieving these goals would require extensive 
engagement, noting that some Allies would use the financial 
costs and Russia's response to missile defense to resist 
supporting a NATO initiative.  It would be important to keep 
the offer of cooperation with Russia on the table.  Flournoy 
said upcoming ministerials would provide opportunities to 
reassure Allies, address their concerns and clarify what the 
MD mission will require.  McEldowney noted it would be 
particularly useful for Foreign Ministers to discuss missile 
defense at the April Tallinn meeting because they have not 
yet had a substantive exchange on the issue. 
 
MORE TRAINERS 
------------- 
¶9. (C) Flournoy thanked Rasmussen for his efforts to generate 
ISAF contributions.  Despite a positive response to meet 
troop requirements, critical shortfalls in trainers remain 
that will have a direct impact on ISAF's ability to grow the 
Afghan security forces.  Rasmussen agreed to ramp up his 
efforts, which include sending letters to NATO/ISAF Defense 
Ministers and calls to key Ministers.  Using a SHAPE 
assessment of contributions for each Partner and Ally, he had 
focused on the top ten potential contributors with calls and 
meetings.  Allies stepped up to meet force needs in December; 
Rasmussen was optimistic about filling current needs, once 
clearly identified, as well. 
 
EXPORT CONTROL REVIEW 
--------------------- 
¶10. (C) Rasmussen concluded the meeting by noting an upcoming 
review of US export control laws.  He urged the US to 
consider a regime that promotes rather than impedes 
cooperation.  Two new European Union directives on technology 
transfer and cooperation might offer an opportunity to 
harmonize the US and EU approaches.  Flournoy said Secretary 
Gates is very engaged on the issue, viewing it as both a 
national security and an competitiveness issue. The review is 
an opportunity to define more carefully the unique 
technologies that deserve protection, improve controls on 
those and adjust restrictions on others, many of which are 
available on the open market.  This approach would enhance US 
competitiveness and improve Allied cooperation on defense 
capabilities. 
 
¶11. (U) USD(P) Flournoy has cleared on this cable. 
HEFFERN