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ACTION NARRATIVE

TAPE 02-1, SIDE A
Number 001

CO-CHAIR GARY WILKEN called the Joint Armed Services Committee
meeting to order at 1:40 p.m. Members present were Senators
Phillips, Leman, Davis, Stevens, and Wilken; Representatives Joule,
Murkowski, Harris, and James; Dean Owen, Frank Love, Jake
Lestenkof, George Vakalis, John Hoyt, and Chick Wallace. Senators
Halford, Olson and Cowdery and Representatives Williams and Foster
were also present, as well as Adjutant General Oates of the
Department of Military and Veterans Affairs and Janice Nielsen of
USARPAC were present.

SENATOR LEMAN moved to approve the minutes of the November 15, 2001
meeting. There being no objection, the motion carried.

CO-CHAIR WILKEN then turned the gavel over to Co-Chair Mulder.

CO-CHAIR MULDER thanked everyone for attending and announced that
the committee is privileged to have Lieutenant General Norty
Schwartz, Commander of Alaska Command, Commander of the Alaska
North American Aerospace Defense Command Region and Commander of
th
the 11 Air Force, all headquartered at Elmendorf Air Force Base,
with them today. Lieutenant General Schwartz is a 1973 graduate of
the United States Air Force Academy. He has commanded special
operations forces at every echelon. He served four tours in the
Pentagon and, prior to assuming his current position, he was deputy
commander in chief, U.S. Special Operations Command, MacDill Air
Force Base, Florida. A command pilot with more than 4200 flight
hours, the General has flown both rotary and fixed wing aircraft.
He is also a jump-qualified parachutist. His major awards and
decorations include the Defense Distinguished Service Medal, the
Defense Superior Service Medal, and the Legion of Merit.

CO-CHAIR MULDER said on a personal note, Lieutenant General
Schwartz and Suzie Schwartz are true Alaskans. They represent all
that is right about Alaska and its cooperative relationship with
the military.

CO-CHAIR MULDER then introduced Major General Willie B. Nance, Jr.,
the National Missile Defense Program Executive Officer and System
Program Director for the Ballistic Missile Defense Organization,
Department of Defense. Co-Chair Mulder explained that Major General
Nance is responsible for development and deployment of the National
Missile Defense System. Major General Nance entered the Army in
1968 as a member of the Mississippi all-volunteer company,
graduated from officer candidate school and served 13 years as
infantry officer until branch-transferred to the Ordinance Command
in 1981. He has earned undergraduate and graduate degrees in
business administration and is a graduate of the United States Army
Infantry Officer Advance Course, the Army Command General Staff
College, the Defense Systems Management College and the Industrial
College of the Armed Forces. Co-Chair Mulder then recited an
extensive list of awards and decorations that Major General Nance
has earned.

LIEUTENANT GENERAL NORTY SCHWARTZ then gave the following
presentation to the committee.

IT IS A PLEASURE TO BE BEFORE YOU AGAIN. I AM HONORED TO
SPEND A FEW MINUTES DISCUSSING YOUR MILITARY IN ALASKA.
AS YOU CAN IMAGINE, THESE HAVE BEEN CHALLENGING TIMES FOR
US, FOR ALL OF US. WE APPRECIATE YOUR UNWAVERING SUPPORT
HERE IN THE STATE CAPITOL AND IN YOUR COMMUNITIES
THROUGHOUT THE LAST YEAR.

FIRST I NEED TO TELL YOU SOMETHING I HAVE MENTIONED OFTEN
IN THE LAST FEW MONTHS - YOUR MILITARY IS READY NOW...
ANTICIPATING THE FUTURE NEEDS OF AMERICA. AND CLEARLY,
ALASKA WILL PLAY A SIGNIFICANT ROLE IN FUTURE DEFENSE OF
THE NATION.

TODAY I WANT TO DESCRIBE SOME OF THE MANY WAYS ALASKA'S
MILITARY IS ENGAGED THROUGHOUT THE STATE AND AROUND THE
WORLD. I'LL ALSO DISCUSS THE FUTURE OF MILITARY
OPERATIONS IN ALASKA AND HOW IT MAY AFFECT YOU AND YOUR
CONSTITUENTS.

WHAT HAS CHANGED IS OUR PERCEPTION OF MORE DIRECT THREATS
TO AMERICA'S SECURITY AS WELL AS OUR ABILITY TO ACT MORE
DIRECTLY TO COUNTER THESE THREATS. SINCE 9-11 OUR
INTELLIGENCE AGENCIES ARE FOCUSED AS NEVER BEFORE ON
GLOBAL TERRORIST ORGANIZATIONS. SLOWLY, WE ARE MAKING THE
CONNECTIONS LINKING ORGANIZATIONS AND ACTIVITIES FROM
AFGHANISTAN, TO THE PHILIPPINES, TO INDONESIA AND
MALAYSIA. IN SHORT, THERE ARE BAD ACTORS AROUND THE WORLD
AND SOME IN THE PACIFIC THEATER OF OPERATION.


WHILE WE DO NOT SEE AN IMMEDIATE, DIRECT THREAT TO
ALASKA, WE CANNOT AFFORD TO BE COMPLACENT. I AM CONVINCED
THAT THE ENHANCED SECURITY POSTURE IN ALL 50 STATES HAS
PREVENTED SOME ATTACKS. BUT THE ENEMY IS DETERMINED,
SOPHISTICATED, CLANDESTINE AND UNPREDICTABLE... AND HAS
THE LUXURY OF TIME. THAT MEANS WE MUST REMAIN VIGILANT
AND TAKE EVERY PRUDENT MEASURE TO ENHANCE THE SECURITY OF
OUR PEOPLE AND FACILITIES.

AT EIELSON, AIRCRAFT AND PERSONNEL FROM THE 18th AND THE
355th FIGHTER SQUADRONS ARE CURRENTLY DEPLOYED AS PART OF
THEIR REGULAR AIR EXPEDITIONARY FORCE ROTATION IN KUWAIT
SUPPORTING OPERATION SOUTHERN WATCH. THEY ARE DUE BACK IN
MARCH...AND THREE OF YOUR AIR NATIONAL GUARD KC-135
TANKERS ARE PRESENTLY DEPLOYED TO GUAM.

THE LAND COMPONENT IS EQUALLY TAXED AS THE UNITED STATES
ARMY ALASKA IS SUPPORTING OPERATIONS IN SARAJEVO, SAUDI
ARABIA, KUWAIT, VIETNAM, HONDURAS, LAOS AND CAMBODIA.


I KNOW GENERAL OATES TALKED WITH MANY OF YOU ABOUT THE
ACTIVITIES OF THE NATIONAL GUARD, BUT I'D LIKE TO
ACKNOWLEDGE THE COMMITMENT AND CONTRIBUTION OF THE 210th
RESCUE SQUADRON, WHICH ACTIVATED AND DEPLOYED TO KUWAIT
FULFILLING A CRITICAL SEARCH AND RESCUE ROLE FOR
OPERATION SOUTHERN WATCH...AS WELL AS THE 168th AIR
REFUELING WING MENTIONED EARLIER. -


THE U.S. COAST GUARD, DISTRICT 17 -ALASKA'S NAVAL
COMPONENT-HAS ALWAYS BEEN OUR LEAD AGENCY FOR MARITIME
HOMELAND SECURITY.

HOMELAND SECURITY


FROM A STRATEGIC PERSPECTIVE, WE IN ALASKAN COMMAND ARE
FOCUSED ON HOMELAND SECURITY EFFORTS, MILITARY ASSISTANCE
TO CIVILIAN AUTHORITIES AND POTENTIAL REGIONAL
CONTINGENCIES.

IN RECENT MONTHS, WE HAVE STRENGTHENED OUR RELATIONSHIPS
WITH STATE AND CIVIL AGENCIES. THE COOPERATION AND ACTIVE
INTERACTION AMONGST THE FAA, FBI, LAW ENFORCEMENT,
DEPARTMENTS OF JUSTICE AND INTERIOR, STATE DES, THE
ALASKA STATE TROOPERS, AND OTHERS HAVE BEEN TREMENDOUS.
WORKING TOGETHER, WE HAVE IMPROVED PROCEDURES, CONDUCTED
ROUTINE MEETINGS, AND PLAN AND EVEN TRAIN TOGETHER.

IN TYPICAL ALASKA FASHION, PEOPLE HAVE PULLED TOGETHER
TOWARD A COMMON GOAL. THIS TEAMWORK IS THE KEY TO
SUCCESSFUL FUTURE RESPONSE TO TERRORIST ACTIONS.

AS YOU KNOW, MILITARY ASSISTANCE TO CIVILIAN AUTHORITIES
IS A NATIONAL PROGRAM.

AS AMERICA WORKS TO PROTECT ITS CRITICAL INFRASTRUCTURE,
NATIONAL LEADERS HAVE IDENTIFIED THE MARINE TERMINAL IN
THE PORT OF VALDEZ AS A CRITICAL ASSET DUE TO ITS
UNIQUENESS, LOCATION AND ECONOMIC IMPORTANCE TO THE
NATION. AS A RESULT, WE HAVE FOCUSED CONSIDERABLE
ATTENTION IN THAT AREA.

THE AGENCIES RESPONSIBLE FOR PROTECTING THE TERMINAL
SINCE 9-11 ARE DOING A CREDIBLE JOB BASED ON THE THREAT
WE SEE RIGHT NOW. BUT IF THE SITUATION CHANGES, AS THE
JOINT REAR AREA COORDINATOR (JRAC) I COULD PROVIDE
ASSISTANCE USING MILITARY RESOURCES.

OVER THE PAST FEW MONTHS THE ALASKAN COMMAND STAFF, IN
CONJUNCTION WITH MANY OTHER DOD, FEDERAL, STATE AND LOCAL
AGENCIES HAVE PRACTICED HOW WE WOULD RESPOND TO CHANGES
IN THE THREAT. WE HAVE DEVELOPED A GAME PLAN TO ENHANCE
AIR, MARITIME AND GROUND DEFENSE OF THE TERMINAL SHOULD
EVENTS REQUIRE.

WE'VE WORKED THROUGH MANY QUESTIONS SUCH AS "WHAT EVENTS
DICTATE THE USE OF THE FEDERAL TROOPS?"

IT CAN BE USED DURING NATURAL DISASTERS, MEDICAL
EMERGENCIES, EVACUATIONS, AND SECURITY ENHANCEMENT
OPERATIONS AT PLACES LIKE VALDEZ. BASICALLY IT PROVIDES A
LEVEL OF CAPABILITY ACROSS THE SPECTRUM OF CRISIS
RESPONSE-A CAPABILITY THE STATE AND DOD DO NOT PRESENTLY
ENJOY. IT PROVIDES US THE MEANS TO ENSURE THE INTERAGENCY
RELATIONSHIPS BUILT AROUND THE CONFERENCE TABLE ARE
SUSTAINED IN THE FIELD.

ALASKA MISSIONS

THE ALASKA LAND MOBILE RADIO (LMR) INITIATIVE IS UNIQUE
... AS IS THE GREAT STATE IT IS DESIGNED TO SUPPORT.
ALASKA, FROM A MILITARY PERSPECTIVE, IS SPECIAL IN OTHER
WAYS. YOU HAVE HEARD ME MENTION ITS IMMENSE VALUE IN
TERMS OF ITS STRATEGIC LOCATION. BECAUSE OF THIS, WE ARE
SEEING NEW INITIATIVES AND ADDITIONAL MISSIONS COMING OUR
WAY.

ONE I KNOW YOU ARE KEENLY AWARE OF IS MISSILE DEFENSE.
THERE HAVE BEEN MANY CHANGES IN THE LAST YEAR, BUT TWO
STAND OUT ABOVE THE REST. ONE IS THE TEST BED CONCEPT
ADVANCED BY THE BUSH ADMINISTRATION.

THIS IS A MAJOR CHANGE FOR OUR ARMY FORCES AND THEIR
ROLE. THIS NEW MISSION WILL REQUIRE THE ARMY TO TRAIN AND
EQUIP THEIR PERSONNEL DIFFERENTLY TO ENSURE THEY CAN
PROVIDE THEATER COMMANDERS A JOINT-CAPABLE FORCE THAT CAN
RESPOND QUICKLY, WORLDWIDE AND PREVAIL ACROSS THE
SPECTRUM OF OPERATIONS.

ONE OF THE REASONS THE INTERIM BRIGADE COMBAT TEAM IS
COMING TO ALASKA IS THE FANTASTIC RANGES WE HAVE IN
ALASKA AND THE OPPORTUNITIES THEY PROVIDE FOR INTEGRATED
GROUND AND AIR TRAINING. TO ENSURE THESE OPPORTUNITIES
CONTINUE, WE HAVE EMBARKED ON A LONG-TERM RANGE
MODERNIZATION PLAN.

NOT ONLY WILL THE MODERNIZATION HELP IMPROVE THE RANGES,
WHICH IN TURN WILL IMPROVE TRAINING, BUT THE CHANGES WILL
BENEFIT YOU, YOUR CONSTITUENTS AND VISITORS TO ALASKA WHO
SPEND TIME IN THE AIR FLYING AROUND THE STATE. RADAR
IMPROVEMENTS WILL MAKE IT SAFER AND EASIER FOR ALL OF
ALASKA'S AVIATORS TO SHARE USE OF AIRSPACE-BUSH PILOTS
AND FIGHTER PILOTS ALIKE.

MORE SO THAN ANY OTHER TIME IN MY 28-YEAR CAREER, I HAVE
WITNESSED THE RESOLVE OF THE AMERICAN PEOPLE. IT MAKES ME
PROUD TO BE ABLE TO SPEAK WITH YOU TODAY ON BEHALF OF ALL
THE MILITARY MEN AND WOMEN IN ALASKA.

MR. CHAIRMAN, WITH YOUR PERMISSION, I WILL PASS THE
MICROPHONE TO MAJOR GENERAL NANCE FOR HIS COMMENTS, AND
THEN WE WILL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY
HAVE. THANK YOU.

MAJOR GENERAL WILLIE NANCE JR. then gave the following presentation
to committee members.


MR. CHAIRMAN, DISTINGUISHED MEMBERS, LADIES AND
GENTLEMEN, IT IS AN HONOR TO BE INVITED TO SPEAK TO YOU
TODAY ABOUT OUR MISSILE DEFENSE PROGRAM. I HAVE VISITED
ALASKA IN AN OFFICIAL CAPACITY SEVERAL TIMES, AND I
ALWAYS ENJOY SPENDING TIME IN ALASKA AND AMONG ALASKANS.
I'VE SPOKEN TO MANY OF YOU DURING THESE TRIPS, AND I LOOK
FORWARD TO CONTINUING OUR EXCHANGE OF VIEWS.

I AM ESPECIALLY PLEASED TO APPEAR BEFORE YOU IN THE
COMPANY OF GENERAL NORTY SCHWARTZ. THE MISSILE DEFENSE
AGENCY STAFF AND I WORK VERY CLOSELY WITH GENERAL
SCHWARTZ AND HIS STAFF IN PLANNING ALL MISSILE DEFENSE
AGENCY ACTIVITIES IN ALASKA. HE AND GENERAL PHIL OATES,
YOUR ADJUTANT GENERAL, HAVE HELPED US FORMULATE OUR PLANS
WITH ALASKA'S REQUIREMENTS IN MIND.

I'D LIKE TO TALK TO YOU TODAY ABOUT THE PROTECTION OF OUR
HOMELAND, OUR DEPLOYED FORCES, AND POTENTIALLY, OUR
FRIENDS AND ALLIES, FROM BALLISTIC MISSILE ATTACK.
SPECIFICALLY, I WILL UPDATE YOU ON THE DEPARTMENT OF
DEFENSE'S NEW APPROACH TO MISSILE DEFENSE AND DISCUSS THE
IMPORTANT ROLE ALASKA PLAYS IN THIS ARENA.

TODAY, OUR NATION HAS NO ABILITY TO DEFEND ITSELF AGAINST
A BALLISTIC MISSILE LAUNCHED AGAINST OUR HOMELAND. WE CAN
DETECT A BALLISTIC MISSILE IMMEDIATELY AFTER IT IS
LAUNCHED, DETERMINE WHERE THAT MISSILE IS GOING, AND
GAUGE WHEN IT WILL HIT. BUT WE ARE HELPLESS TO PREVENT IT
FROM STRIKING OUR HOMELAND.

THE BALLISTIC MISSILE THREAT WORLDWIDE IS REAL AND
GROWING. IN 1972, ONLY A HANDFUL OF STATES POSSESSED
BALLISTIC MISSILE TECHNOLOGY. TODAY, OVER TWENTY-FIVE
NATIONS EITHER POSSESS BALLISTIC MISSILES, ARE DEVELOPING
BALLISTIC MISSILES, OR ARE PURSUING MISSILE-RELATED
TECHNOLOGY. TODAY'S BALLISTIC MISSILE THREAT CAN TAKE
MANY FORMS - IN THE SHORT AND MEDIUM-RANGE MISSILES LIKE
THOSE USED AGAINST OUR SOLDIERS IN THE GULF WAR, IN
INTERMEDIATE-RANGE MISSILES THAT COULD THREATEN EUROPE
FROM THE MIDDLE EAST, AND IN THE INTERCONTINENTAL
MISSILES THAN CAN SPAN THE OCEANS AND THREATEN OUR
HOMELAND.

DURING THE COLD WAR, THE UNITED STATES FACED A THREAT
ONLY FROM ESTABLISHED NUCLEAR POWERS - FIRST THE SOVIET
UNION, AND LATER, CHINA. SINCE THE END OF THE COLD WAR,
THE BALLISTIC MISSILE THREAT HAS EXPANDED TO INCLUDE
THREATS FROM SMALLER, LESS-STABLE COUNTRIES.

THE MOST RECENT NATIONAL INTELLIGENCE ESTIMATE OFFERED
THESE KEY JUDGMENTS ON THE BALLISTIC MISSILE THREAT.
FIRST, MOST INTELLIGENCE AGENCIES PROJECT THAT THE UNITED
STATES WILL MOST LIKELY FACE NEW INTERCONTINENTAL
BALLISTIC MISSILE THREATS BEFORE 2015. SECOND, SHORT AND
MEDIUM-RANGE MISSILES ALREADY POSE A SIGNIFICANT THREAT
OVERSEAS TO U.S. INTERESTS, FORCES, AND ALLIES. THIRD,
NORTH KOREA'S TAEPO DONG TWO - CAPABLE OF REACHING PARTS
OF THE UNITED STATES WITH A NUCLEAR WEAPON-SIZED PAYLOAD
- MAY BE READY FOR FLIGHT TESTING. FOURTH, SEVERAL
COUNTRIES COULD DEVELOP A MECHANISM TO LAUNCH MISSILES
FROM FORWARD-BASED SHIPS OR OTHER PLATFORMS, AND A FEW
ARE LIKELY TO DO SO BEFORE 2015. THE REPORT ALSO STATED
THAT IRAQ WANTS A LONG-RANGE MISSILE AND THAT IRAN IS
PURSUING SHORT- AND LONG-RANGE MISSILE CAPABILITIES.
FINALLY, THE INTELLIGENCE COMMUNITY SAID THAT NON-MISSILE
MEANS FOR DELIVERING WEAPONS OF MASS DESTRUCTION DO NOT
PROVIDE THE SAME PRESTIGE, DETERRENCE, AND COERCIVE
DIPLOMACY AS INTERCONTINENTAL BALLISTIC MISSILES.

REGARDLESS OF WHETHER A COUNTRY SEEKS BALLISTIC MISSILES
AS WARFIGHTING WEAPONS, FOR DETERRENCE, FOR DIPLOMATIC
BLACKMAIL, OR JUST FOR NATIONAL PRESTIGE, IT IS
REASONABLE TO THINK THAT ANY POTENTIAL ADVERSARIES THAT
NOW POSSESS OR DESIRE SHORT-AND MEDIUM-RANGE MISSILES
WILL SEEK INTERCONTINENTAL MISSILES AS WELL.

WOULD A NATION ACTUALLY USE A BALLISTIC MISSILE AGAINST
US? NO ONE CAN SAY FOR SURE, BUT HISTORY SUGGESTS THE
POSSIBILITY. IN 1944, GERMANY FIRED V-2 ROCKETS AGAINST
ENGLAND AND BELGIUM. DURING THEIR WAR FROM 1980 TO 1990,
IRAQ AND IRAN USED MISSILES AGAINST EACH OTHER. IN 1987,
LIBYA FIRED A SCUD MISSILE AT AN ITALIAN ISLAND. IRAQ
USED ITS MISSILES AGAIN IN 1991 DURING THE GULF WAR, THIS
TIME AGAINST COALITION FORCES IN SAUDI ARABIA AND AGAINST
CIVILIANS IN ISRAEL. IN FACT, THE GREATEST SINGLE LOSS OF
AMERICAN LIFE IN THAT WAR CAME IN A SINGLE BALLISTIC
MISSILE ATTACK THAT KILLED 28 OF OUR SOLDIERS AND WOUNDED
99.

WOULD A COUNTRY RISK USING BALLISTIC MISSILES AGAINST THE
UNITED STATES, KNOWING THAT SUCH USE COULD RESULT IN
MASSIVE U.S. RETALIATION? AGAIN, NO ONE CAN ANSWER WITH
CERTAINTY, BUT HISTORY AGAIN GIVES US PAUSE. AFTER PEARL
HARBOR, HITLER UNILATERALLY DECLARED WAR ON THE UNITED
STATES, A GRAVE MISCALCULATION THAT ENDED WITH THE
DESTRUCTION OF THE NAZI REGIME. AFTER THE TERRORIST
TH
ATTACK ON SEPTEMBER 11, THE TALIBAN REGIME CONTINUED TO
SUPPORT AL QAEDA, LEADING TO ITS DESTRUCTION. IT IS NOT
UNREASONABLE TO THINK THAT OTHER REGIMES MIGHT MAKE
SIMILAR MISJUDGMENTS IN THE FUTURE.

AS MISSILE TECHNOLOGY SPREADS AROUND THE WORLD, BALLISTIC
MISSILES COULD FALL INTO THE HANDS OF TERRORISTS. THE
NATION OF AFGHANISTAN WAS ESSENTIALLY TAKEN OVER BY
TERRORISTS AND USED AS A BASE TO PLOT ATTACKS ON
AMERICANS AT HOME AND ABROAD. JUST THINK OF WHAT MIGHT
HAVE HAPPENED IF AFGHANISTAN HAD POSSESSED A BALLISTIC
MISSILE SYSTEM!

IN HIS STATE OF THE UNION ADDRESS LAST WEEK, PRESIDENT
BUSH SAID, "THE UNITED STATES OF AMERICA WILL NOT PERMIT
THE WORLD'S MOST DANGEROUS REGIMES TO THREATEN US WITH
THE WORLD'S MOST DESTRUCTIVE WEAPONS." THE DEPARTMENT OF
DEFENSE IS AGGRESSIVELY PURSUING A DEFENSE AGAINST
BALLISTIC MISSILE ATTACK.

AFTER TAKING OFFICE LAST YEAR, SECRETARY OF DEFENSE
RUMSFELD MANDATED A COMPREHENSIVE MISSILE DEFENSE REVIEW.
THE SECRETARY GAVE THE REVIEW VERY BROAD PARAMETERS AND
VERY FEW CONSTRAINTS. HE WANTED EVERY OPTION LOOKED AT,
EVERY IDEA DISCUSSED. I WAS A PART OF THAT REVIEW, AND I
WOULD TELL YOU THAT IT WAS BOTH DELIBERATE AND INCLUSIVE.
WE CONSIDERED THE OPINIONS OF EXPERTS IN THE DEPARTMENT
OF DEFENSE, OF EXPERTS OUTSIDE THE DEPARTMENT, AND OF OUR
CRITICS. WE LOOKED AT TECHNOLOGIES - NEW AND OLD - AND
EVALUATED HOW THEY MIGHT BE APPLIED TO THIS DIFFICULT
PROBLEM.

DURING THE REVIEW, WE RECOGNIZED THAT OUR PREVIOUS
APPROACH TO THE PROBLEM HAD BEEN VERY LIMITED. WE HAD
ARTIFICIALLY BROKEN OUR MISSILE DEFENSE EFFORTS INTO TWO
PARTS, ONE TO DEVELOP MISSILE DEFENSE SYSTEMS THAT COULD
PROTECT OUR FORWARD DEPLOYED FORCES - CALLED THEATER
BALLISTIC MISSILE DEFENSE SYSTEMS - AND A MISSILE DEFENSE
SYSTEM THAT COULD PROTECT OUR HOMELAND - CALLED THE
NATIONAL MISSILE DEFENSE SYSTEM. THEATER MISSILE DEFENSES
WERE CONSTRAINED FROM CONTRIBUTING TO OUR HOMELAND
DEFENSE. THE NATIONAL MISSILE DEFENSE SYSTEM WAS
CONSTRAINED TO A GROUND-BASED, SINGLE SITE SYSTEM. THE
REVIEW RECOGNIZED THAT TECHNOLOGIES ARE AVAILABLE TO
EXPAND THE CAPABILITIES OF THE THEATER SYSTEMS AND TO
BRING TO BEAR SEA, AIR, AND SPACE-BASED CAPABILITIES TO
PROVIDE A GREATER CHANCE TO DEFEND OUR NATION FROM
BALLISTIC MISSILE ATTACK. THE REVIEW DETERMINED THAT WE
MUST GET AWAY FROM A HODGEPODGE OF DIFFERENT MISSILE
DEFENSE SYSTEMS OPERATING INDEPENDENTLY OF EACH OTHER,
AND WE MUST CREATE A SINGLE, INTEGRATED BALLISTIC MISSILE
DEFENSE SYSTEM.

WE ALSO RECOGNIZED THAT WE HAD LIMITED OUR DEFENSES TO
ONLY PART OF A MISSILE'S FLIGHT PATH. WE SAW THAT TO BE
MOST EFFECTIVE, WE MUST DEVELOP A SYSTEM THAT GIVES US
MULTIPLE OPPORTUNITIES TO ATTACK A BALLISTIC MISSILE ALL
THE WAY ALONG ITS COURSE - AS IT BOOSTS THROUGH THE
ATMOSPHERE, AS IT COASTS THROUGH SPACE AT ITS MIDCOURSE,
AND AS IT RETURNS TO THE EARTH IN ITS TERMINAL PHASE. BY
ATTACKING A MISSILE AS IT IS BOOSTING, WE CAN DESTROY IT
REGARDLESS OF WHERE IT IS GOING. ATTACKING IN ITS
MIDCOURSE PHASE ALLOWS US TO DEFEND WIDE REGIONS OF THE
EARTH. BY ATTACKING IT IN ITS TERMINAL PHASE, WE CAN
DEFEND LOCALIZED AREAS AND CRITICAL ASSETS.

WE ARE NOW EXPLORING A VARIETY OF TECHNOLOGIES TO ACHIEVE
THIS LAYERED DEFENSE. WE ARE LOOKING AT MISSILE DEFENSE
CAPABILITIES THAT CAN BE DEPLOYED FROM PLATFORMS AT SEA,
ON THE GROUND, IN THE AIR, AND POTENTIALLY, IN SPACE.
WE'RE ALSO LOOKING AT A VARIETY OF SENSORS - RADARS AT
SEA AND ON THE GROUND, AND SATELLITES IN SPACE - THAT
WILL GIVE US CONTINUOUS GLOBAL COVERAGE FOR EARLY WARNING
AND CONTINUOUS TRACKING OF A BALLISTIC MISSILE AND ITS
PAYLOAD. AND WE ARE WORKING ON A COMMAND AND CONTROL
SYSTEM THAT WILL INTEGRATE ALL THE TECHNOLOGIES INTO A
MORE CAPABLE MISSILE DEFENSE SYSTEM. PUTTING ALL THESE
ELEMENTS TOGETHER IN A SINGLE SYSTEM ALLOWS US MULTIPLE
OPPORTUNITIES TO KILL AN INCOMING MISSILE, INCREASES OUR
CHANCE OF SUCCESS, COMPLICATES THE MISSILE DEVELOPMENT
EFFORTS OF OUR ADVERSARIES, AND COULD HELP US OVERCOME
COUNTERMEASURES.

IN JANUARY OF 2002, THE SECRETARY OF DEFENSE ISSUED NEW
GUIDANCE TO IMPLEMENT THIS NEW APPROACH. THE SECRETARY
SET FOUR OBJECTIVES FOR THE MISSILE DEFENSE PROGRAM. HE
DIRECTED THAT A SINGLE ACQUISITION PROGRAM BE ESTABLISHED
TO DEVELOP AN INTEGRATED MISSILE DEFENSE SYSTEM UNDER A
NEW MISSILE DEFENSE AGENCY. HE SAID THAT THE DEPARTMENT
MUST ASSIGN THE BEST AND BRIGHTEST PEOPLE TO THIS WORK.
HE DIRECTED THE MISSILE DEFENSE AGENCY TO APPLY A
CAPABILITY-BASED REQUIREMENTS PROCESS FOR MISSILE
DEFENSE. HE ALSO DIRECTED THE AGENCY TO DEVELOP THE
MISSILE DEFENSE SYSTEM AND DIRECTED THE MILITARY
DEPARTMENTS TO PROCURE THE SYSTEM AND PROVIDE FOR ITS
OPERATION AND SUPPORT.

THE SECRETARY ESTABLISHED FOUR MISSILE DEFENSE
PRIORITIES. THE FIRST PRIORITY IS TO DEFEND THE UNITED
STATES, ITS DEPLOYED FORCES, AND OUR ALLIES AND FRIENDS.
THE SECOND PRIORITY IS TO EMPLOY A BALLISTIC MISSILE
DEFENSE SYSTEM THAT LAYERS DEFENSES TO INTERCEPT MISSILES
IN ALL PHASES OF THEIR FLIGHT, AGAINST ALL RANGES OF
THREATS. THE THIRD PRIORITY IS TO ENABLE THE SERVICES TO
FIELD ELEMENTS OF THE BALLISTIC MISSILE DEFENSE SYSTEM AS
SOON AS PRACTICABLE. THE FOURTH PRIORITY IS TO DEVELOP
AND TEST TECHNOLOGIES AND TO USE PROTOTYPE AND TEST
ASSETS TO PROVIDE AN EARLY CAPABILITY, AND TO IMPROVE THE
EFFECTIVENESS OF A FUTURE DEPLOYED CAPABILITY BY
INSERTING NEW TECHNOLOGIES AS THEY BECOME AVAILABLE OR
WHEN THE THREAT WARRANTS.

TO ACCOMPLISH THE SECRETARY'S FOURTH PRIORITY, THE
MISSILE DEFENSE AGENCY WILL BUILD A BALLISTIC MISSILE
DEFENSE SYSTEM TEST BED, AN INTEGRATED SET OF COMPONENTS
AT WIDELY DISPERSED AND OPERATIONALLY REALISTIC LOCATIONS
THROUGHOUT THE PACIFIC AND WITHIN THE UNITED STATES. THE
PURPOSE OF THE TEST BED IS TO SUPPORT ROBUST, REALISTIC
DEVELOPMENT OF AN INTEGRATED, LAYERED MISSILE DEFENSE
CAPABILITY.

COMPRISED OF PROTOTYPES AND SURROGATES OF SYSTEM
ELEMENTS, AS WELL AS A SUPPORTING TEST INFRASTRUCTURE,
THE TEST BED WILL ALLOW REALISTIC TRAJECTORY, SENSING,
INTERCEPTION, AND BATTLE MANAGEMENT SCENARIOS THAT
RESEMBLE OPERATIONAL CONDITIONS. THE TEST BED WILL
PROVIDE A NEAR-OPERATIONAL ENVIRONMENT FOR VERIFYING
COMPONENT HARDWARE AND SOFTWARE INTEGRATION UNDER
STRESSING CONDITIONS. IT WILL ALLOW EVALUATIONS TO OCCUR
IN A GEOGRAPHICALLY DISPERSED ENVIRONMENT AND PERMITS
TESTING OF MULTIPLE SIMULTANEOUS ENGAGEMENTS. BECAUSE OF
ITS REALISM, THE TEST BED COULD BE OPERATIONALLY EMPLOYED
IN AN EMERGENCY, IF DIRECTED. IN OTHER WORDS, THE TEST
BED ITSELF WILL HAVE AN INHERENT, THOUGH LIMITED,
OPERATIONAL CAPABILITY.

THE MISSILE DEFENSE AGENCY PLANS TO CONSTRUCT OR RENOVATE
FACILITIES AT FORT GREELY, EARECKSON AIR STATION ON
SHEMYA, AND POTENTIALLY, THE KODIAK LAUNCH COMPLEX. THESE
WILL BE DEVELOPED AND CONSTRUCTED INCREMENTALLY AS PARTS
OF THE TEST BED. EACH WILL ASSIST THE DEVELOPMENT OF AN
EFFECTIVE MISSILE DEFENSE. I'D LIKE TO HIGHLIGHT SOME OF
THE ACTIVITIES THAT THE MISSILE DEFENSE AGENCY PROPOSES
FOR THE TEST BED. AT FORT GREELY, WE PROPOSE TO CONSTRUCT
OR RENOVATE EXISTING FACILITIES TO PROVIDE MISSILE LAUNCH
SILOS, CONTROL FACILITIES, MISSILE ASSEMBLY BUILDINGS,
FUEL STORAGE BUILDINGS, AN ELECTRICAL SUBSTATION, MISSILE
STORAGE IGLOOS, A WATER SUPPLY BUILDING, A DEFENSE
SATELLITE COMMUNICATION STATION, AND A COMMUNICATIONS
SYSTEM DATA TERMINAL. AT EARECKSON AIR STATION, WE
PROPOSE TO ESTABLISH ANOTHER DATA TERMINAL AND DEFENSE
SATELLITE COMMUNICATION STATION, AS WELL AS TO UPGRADE
THE CURRENT COBRA DANE RADAR AND THE POWER GENERATION
PLANT. ADDITIONALLY, WE PLAN TO REPAIR TEST
ADMINISTRATION AND WAREHOUSING SPACES. IF WE USE THE
KODIAK LAUNCH COMPLEX, WE WILL COMPLY WITH NEPA
REQUIREMENTS AND PREPARE AN ENVIRONMENTAL IMPACT
STATEMENT. AT KODIAK, WE PROPOSE TO CONSTRUCT MISSILE
LAUNCH SILOS AND ALTER THE EXISTING LAUNCH CONTROL CENTER
AFTER COMPLETING THE APPROPRIATE ENVIRONMENTAL PROCESS.
WE ALSO PROPOSE TO ESTABLISH ANOTHER DATA TERMINAL AND
DEFENSE SATELLITE COMMUNICATION STATION, TO ALTER THE
EXISTING MISSILE ASSEMBLY BUILDING, AND TO UTILIZE THE
BOOSTER STORAGE AREA, FUEL STORAGE BUILDINGS, AND TEST
TELEMETRY FACILITIES.

THE MISSILE DEFENSE AGENCY IS WORKING CLOSELY WITH THE
ALASKAN COMMAND, THE UNITED STATES ARMY CORPS OF
ENGINEERS, AND THE STATE OF ALASKA TO MEET ALL FEDERAL,
STATE, AND LOCAL REQUIREMENTS FOR THESE ACTIVITIES. SOME
ARE MONTHS OR YEARS INTO THE FUTURE. SOME, LIKE THE
CLEARING OF LAND AT FORT GREELY, HAVE ALREADY BEGUN.

AS YOU WOULD EXPECT, THESE ACTIVITIES WILL BRING MONEY TO
ALASKA. IN CONSTRUCTION FUNDS ALONE, WE ANTICIPATE
SPENDING ALMOST $198 MILLION DOLLARS AT FORT GREELY, $48
MILLION AT SHEMYA, AND $8 MILLION AT KODIAK DURING FISCAL
YEAR 2002. IN ADDITION TO THIS CONSTRUCTION MONEY, WE
ANTICIPATE SPENDING ALMOST $10 MILLION DOLLARS FOR
COMMUNITY IMPACTS AT FORT GREELY AND DELTA JUNCTION TO
DEVELOP A MUNICIPAL LANDFILL, ADD A FIRE STATION, UPGRADE
COMMUNICATIONS, AND MAINTAIN A SCHOOL. IN FULFILLING
MANAGEMENT OVERSIGHT OF CONSTRUCTION ACTIVITIES, WE WILL
SPEND $28 MILLION AT FORT GREELY, FORT RICHARDSON,
KODIAK, AND EARECKSON. THE DIRECT SALARIES OF MISSILE
DEFENSE-RELATED MILITARY AND CIVILIAN PERSONNEL RESIDING
IN ALASKA, FORMERLY AROUND $1.5 MILLION DOLLARS, WILL
RISE TO ABOUT $3.5 MILLION DOLLARS BY APRIL OF THIS YEAR.
OUR PERSONNEL BASED OUTSIDE OF ALASKA WILL SPEND ANOTHER
$700,000 IN OFFICIAL VISITS TO THE STATE.

THE EXTREMELY AMBITIOUS CONSTRUCTION SCHEDULE FOR THE
TEST BED DEMANDS THAT WE UTILIZE DIVERSIFIED CONTRACTORS
AND SUBCONTRACTORS WITH ACCESS TO A MULTI-SKILLED AND
EXPERIENCED WORKFORCE. THE CRAFT AND SKILL MIX REQUIRED
OF THE WORKFORCE WILL BECOME MORE SPECIALIZED AS THE TEST
BED MOVES FROM PURE CONSTRUCTION TO EQUIPMENT
INSTALLATION AND CHECKOUT, THEN ON TO ACTUAL OPERATION.
ON JANUARY 27, 2002, THE U.S. ARMY CORPS OF ENGINEERS
ISSUED A REQUEST FOR PROPOSAL FOR A SINGLE CONSTRUCTION
CONTRACT FOR PART OF THE WORK AT FORT GREELY AND
EARECKSON AIR STATION. A VARIETY OF COMPANIES HAD
PREVIOUSLY EXPRESSED INTEREST IN COMPETING FOR THIS WORK.
THESE INCLUDE COMPANIES IN CALIFORNIA, WASHINGTON, IDAHO,
AND TENNESSEE, AS WELL AS AT LEAST EIGHT ALASKA-BASED
COMPANIES. THE REQUEST FOR PROPOSAL REQUIRES A SMALL
BUSINESS PARTICIPATION PLAN, AND THE WINNING PROPOSAL
MUST MEET ALL STATE OF ALASKA REQUIREMENTS FOR HIRING
LOCAL WORKERS. THE 2002 DEFENSE APPROPRIATIONS BILL ALSO
REQUIRES HIRING LOCAL PEOPLE WHEREVER POSSIBLE.

THE BOEING COMPANY PLANS TO USE BECHTEL CORPORATION AS
ITS PRIME CONTRACTOR FOR OTHER WORK AT FORT GREELY AND
THE KODIAK LAUNCH COMPLEX. BECHTEL WILL SOLICIT BIDS FROM
ALASKAN SUBCONTRACTORS. FURTHER CONSTRUCTION WORK AT
EARECKSON AIR STATION WILL BE MANAGED BY THE AIR FORCE,
WHICH WILL ALSO USE FULL AND OPEN COMPETITION.

IN CONSTRUCTING THIS TEST BED IN ALASKA, THE MISSILE
DEFENSE AGENCY IS DETERMINED TO BE A GOOD NEIGHBOR. WE
WILL LISTEN TO YOUR CONCERNS AND SEEK TO ADDRESS THEM
CONSTRUCTIVELY. WE HAVE HELD PUBLIC FORUMS IN AREAS THAT
WILL BE IMPACTED BY OUR WORK, AND WE WILL CONTINUE A
CONSTRUCTIVE DIALOG WITH CITIZENS, LOCAL GOVERNMENTS, AND
STATE AGENCIES. WE WILL COMPLY WITH ALL FEDERAL AND
STATE ENVIRONMENTAL REGULATIONS - IN SPIRIT AS WELL AS IN
DEED. WE WILL OBTAIN REQUIRED STATE PERMITS FOR ALL OUR
ACTIVITIES. WE WILL PREPARE COMPREHENSIVE SAFETY PLANS TO
PROTECT YOUR CITIZENS AND HOMES. AMONG OTHER ISSUES, WE
WILL ADDRESS CITIZEN CONCERNS FOR DUST AND EROSION AT
FORT GREELY, FOR ENVIRONMENTAL IMPACTS ON SHEMYA, AND FOR
IMPACTS ON MARINE LIFE, WETLANDS, AND THE FISHING FLEET
AT KODIAK. WE WILL EARN YOUR TRUST - AND I HOPE YOUR
RESPECT - IN THE WAY IN WHICH WE OPERATE IN YOUR STATE.

THE MISSILE DEFENSE AGENCY HAS WORKED CLOSELY WITH YOUR
ADJUTANT GENERAL. ALASKA GUARD PERSONNEL HAVE CONTRIBUTED
TO OUR PLANNING FOR SYSTEM REQUIREMENTS AND FOR THE
FACILITIES AND PERSONNEL REQUIREMENTS THAT MAY RESULT
FROM THE TEST BED. GUARD MEMBERS HAVE PARTICIPATED IN A
SERIES OF EXERCISES AT UNITED STATE SPACE COMMAND
DESIGNED TO TEST THE HARDWARE AND SOFTWARE OF THE GROUND-
BASED MIDCOURSE ELEMENT. THE GUARD HAS ALSO PROVIDED THE
LEAD OFFICER FOR OUR RECENTLY ESTABLISHED SITE ACTIVATION
COMMAND AT FORT RICHARDSON, A JOINT VENTURE BETWEEN THE
MISSILE DEFENSE AGENCY, THE CORPS OF ENGINEERS, AND
BOEING.

MISSILE DEFENSE IS AN IMMENSE CHALLENGE - AS TOUGH A JOB
AS OUR NATION HAS EVER UNDERTAKEN. IT IS A CONCEPTUAL
CHALLENGE, A TECHNICAL CHALLENGE, AND AN ENGINEERING
CHALLENGE. IN MY VIEW, IT IS AS COMPLEX A TASK AS THE
MANHATTAN PROJECT OR THE APOLLO MOON-LANDING PROGRAM.
THERE ARE LITERALLY HUNDREDS OF THOUSANDS OF PIECES TO
THE PUZZLE THAT MUST FIT TOGETHER PRECISELY FOR THIS TO
WORK. HOWEVER, OUR SUCCESSES IN THE MANHATTAN PROJECT AND
THE APOLLO PROGRAM SHOWED WHAT AMERICANS CAN ACHIEVE ONCE
WE SET OUR MINDS TO A GOAL. AS A PEOPLE, WE HAVE THE
INTELLECTUAL CAPACITY, THE INVENTIVENESS, AND THE
IMAGINATION TO OVERCOME THE MISSILE DEFENSE CHALLENGE.

WE'VE ACHIEVED SOME REAL SUCCESSES. JUST TWELVE DAYS AGO,
WE ACHIEVED THE FIRST INTERCEPT OF A MISSILE IN SPACE
WITH AN INTERCEPTOR LAUNCHED FROM A NAVY SHIP. THE
PATRIOT PROGRAM HAS PROVEN ITSELF IN A SERIES OF
DEMANDING TESTS, WITH FIVE SUCCESSES AGAINST AERIAL
TARGETS AND FIVE HITS ON BALLISTIC MISSILE TARGETS IN SIX
ATTEMPTS. THE THEATER HIGH ALTITUDE AREA DEFENSE ELEMENT
HAS DEMONSTRATED TWO SUCCESSFUL HIT-TO-KILL INTERCEPTS IN
ITS OWN DEMANDING TESTING PROGRAM. THE GROUND-BASED
MIDCOURSE DEFENSE ELEMENT RECENTLY ACHIEVED ITS THIRD
SUCCESSFUL INTERCEPT IN FIVE ATTEMPTS - AND THE SECOND IN
A ROW - AGAINST A TARGET WARHEAD IN SPACE. WE ARE TAKING
A DELIBERATE, STRUCTURED APPROACH TO LEARN AS MUCH AS WE
CAN FROM THESE EARLY TESTS - WHETHER SUCCESS OR FAILURE -
TO IMPROVE OUR CAPABILITIES, INCREASE TEST COMPLEXITY
OVER TIME, AND GIVE THE NATION A SYSTEM THAT WILL
EFFECTIVELY DEFEND AGAINST BALLISTIC MISSILES.

EVERY YEAR, THE DEPARTMENT OF DEFENSE WILL CRITICALLY
EXAMINE OUR PROGRESS, TECHNOLOGY BY TECHNOLOGY. BASED ON
THE RESULTS OF THIS STRINGENT EVALUATION, WE WILL
ACCELERATE PROGRAMS THAT SHOW PROGRESS. CORRESPONDINGLY,
WE WILL TRUNCATE OR STOP WORK IN AREAS WHERE RESULTS ARE
UNSATISFACTORY OR WHERE THE DEVELOPMENT EFFORT SHOULD BE
SHIFTED TO ANOTHER ELEMENT TO PERMIT ITS ACCELERATION. WE
BELIEVE THAT WE ARE TAKING A DISCIPLINED AND PRUDENT
APPROACH TO THIS VERY CHALLENGING PROBLEM.

UNDER THIS APPROACH, WE WILL GIVE THE NATION AN
INTEGRATED BALLISTIC MISSILE DEFENSE SYSTEM THAT LAYERS
DEFENSES TO INTERCEPT MISSILES IN ALL PHASES OF THEIR
FLIGHT.

HOW CAN YOU HELP OUR MISSILE DEFENSE EFFORTS? LAST YEAR,
THE LEGISLATURE EXPRESSED ITS SUPPORT OF MISSILE DEFENSE
IN A JOINT RESOLUTION. I THANK YOU FOR THAT SUPPORT. THE
STATE CAN HELP BY EXPEDITIOUSLY REVIEWING THE
ENVIRONMENTAL IMPACT DOCUMENTS REQUIRED FOR OUR
ACTIVITIES. SIMILARLY, EXPEDITIOUS PROCESSING OF PERMIT
APPLICATIONS WOULD BE HELPFUL. PLEASE NOTE THAT WE ARE
NOT ASKING ANYONE TO CUT CORNERS, JUST TO UNDERTAKE THESE
REVIEWS IN AN EXPEDITIOUS MANNER. THE PROMPT AND
EFFICIENT MAINTENANCE OF STATE ROADS IN OR NEAR THE AREAS
WHERE CONSTRUCTION WILL TAKE PLACE WOULD ALSO BENEFIT THE
PROJECT. CONTINUING THE FINE WORKING RELATIONSHIP BETWEEN
FEDERAL, STATE, AND LOCAL LAW ENFORCEMENT AGENCIES IS
ALSO IMPORTANT.

THE STATE CAN ALSO ASSIST TEST BED CONTRACTORS IN HIRING
THE WORKFORCE NEEDED FOR CONSTRUCTION AND OTHER
ACTIVITIES. ON A BROADER SCALE, THE STATE CAN CONSIDER
HOW ITS EDUCATION OPPORTUNITIES MIGHT SUPPORT THE
FORMATION OF A BASE OF EXPERTISE IN THE TECHNOLOGIES USED
BY MISSILE DEFENSE EMPLOYERS. AS THOSE EMPLOYERS BEGIN
WORK, SEEK OUT PARTNERING ACTIVITIES THAT WILL HELP TO
GROW THIS BASE FROM WITHIN. THE STATE MIGHT CONSIDER
HOSTING INDUSTRY FORUMS, FAIRS OR CONFERENCES, BOTH TO
INTRODUCE COMPANIES TO ALASKA AND TO HIGHLIGHT ALASKA'S
ROLE IN MISSILE DEFENSE.

AS IT APPROACHES ITS FIFTIETH ANNIVERSARY OF STATEHOOD,
ALASKA - AMERICA'S FINAL FRONTIER - IS TODAY A FRONTIER
IN THE DEFENSE OF OUR ENTIRE NATION. ALASKA'S
PARTICIPATION IS ABSOLUTELY VITAL TO THE SUCCESSFUL
DEVELOPMENT AND TESTING OF OUR NATION'S BALLISTIC MISSILE
DEFENSE SYSTEM. I PLEDGE TO YOU THAT THE MISSILE DEFENSE
AGENCY WILL CONTINUE TO WORK CLOSELY WITH THIS GREAT
STATE TO FORGE A DEFENSE TO PROTECT OUR NATION FROM
BALLISTIC MISSILE ATTACK.

THANK YOU FOR THE OPPORTUNITY TO SPEAK TO YOU TODAY.

2:20 p.m.

CO-CHAIR MULDER thanked Lieutenant General Schwartz and Major
General Nance and announced the presence of Representatives Coghill
and Chenault.

REPRESENTATIVE MURKOWSKI asked Major General Nance, regarding
workforce development and educational opportunities to train
Alaskan workers, what the military is looking at in terms of
numbers.

MAJOR GENERAL NANCE said that by the end of this year, the military
has projected the workforce at the Ft. Greeley-Delta Junction area
to grow to about 200, including both construction crews and
technical experts in both management and installation. The military
expects that number to grow to 350 by the end of 2003 and to
sustain that level of activity through 2005. At Eareckson Air
Station at Shemya, the military expects to be up to 100 by the end
of 2002 and potentially up to 150 by the end of 2003. Once the
construction activity at Shemya is complete, he expects the
personnel level to go below 100 to sustain that activity. The
military is currently assessing Kodiak and has no projection yet.

SENATOR PHILLIPS commented that criticism toward the government
after the September 11 attacks focused on its emphasis on
technology rather than intelligence. He asked what is being done
on the intelligence side to defend ourselves externally or
internally.

LIEUTENANT GENERAL SCHWARTZ replied,

...but, fundamentally, I think the point to make is true
- that we are a technically oriented society and for some
number of years it was easier for us to stare at somebody
from space than to get up close and look at them in
person. The truth is, you've got to have a balance in
your means of collection and that's been re-emphasized.
It's not an easy chore to get on the inside of Al Qaeda,
even under the best of circumstances and, frankly, we'll
probably have to be a little bit less fastidious about
who it is we hire to do this work. But, in balance we
will maintain our values and do a better job.

REPRESENTATIVE HARRIS asked Lieutenant General Schwartz what
Alaskans and the Legislature can do to boost the military's
efforts.

LIEUTENANT GENERAL SCHWARTZ said the answer has two parts. The
first part is psychological and has to do with the fact that people
in the Armed Forces in Alaska feel welcome and that their work is
valued by their counterparts in the community. Consequently, many
people who come here in the services to work in the various
communities stay. That is very significant and needs to continue
to be cultivated. He stated that today's meeting is not the norm;
he knows of no other state that asks senior military
representatives in their state to come explain what is happening.

TAPE 02-1, SIDE B

LIEUTENANT GENERAL SCHWARTZ said the second part of the answer is
that there is a tendency for one's focus to become narrow. There
are a handful of economic engines in the state, one of which is the
Armed Forces. Everyone must be extremely careful to prevent
fratricide between the various economic engines. When talking
about development or improvements, it will be important to consider
the consequences on military training, access to installations, and
other encroachment concerns with airspace and land areas. The
"coin of the realm" is the ability of military forces to train
effectively and use the vast expanses of Alaska effectively. That
does not mean exclusive use - it means shared use governed by
cooperation of all parties. If all parties communicate and
understand each other, fratricide will not occur.

2:30 p.m.

CO-CHAIR WILKEN asked if Ft. Greeley will be a test bed.

MAJOR GENERAL NANCE said it will initially be a test bed but the
military may consider test launching out of there, but that would
require a full set of analyses of safety and corridors for safety
and environmental considerations. Those decisions are down the
road and will be made with full compliance of all requirements and
full disclosure to Alaskans.

SENATOR LEMAN said he has appreciated the opportunity to serve
Elmendorf Air Force Base.

CO-CHAIR MULDER said that he heard about the potential of a new
Commander-in-Chief (CINC) and ramifications on NORAD on CNN that
morning. He asked General Schwartz to comment.

LIEUTENANT GENERAL SCHWARTZ said he has not been involved in the
consultations personally, but he does know that 9/11 brought into
focus something that has been percolating for awhile: the notion
that we need a military boss for homeland security. He said
homeland security is fundamentally a civil-military partnership in
which civilian leadership is always in charge. To his
understanding, there is a commitment that has not yet been approved
by the President to establish a homeland security command called
the Northern Command. The North American Air Defense will roll into
that organization and, in fact, the Commander of the Northern
Command will wear dual hats with the Northern American Air and
Space Defense Command. The guidance explicitly states that forces
in Alaska, less air defense, will remain subordinate to the Pacific
Command. There will be no fundamental change in his relationships
with either the Pacific Command or CINC-NORAD, except that the
CINC-NORAD individual will now have other responsibilities related
to homeland defense.

CO-CHAIR MULDER said his understanding is that at some level "they"
are discussing greater involvement of the National Guard in
relation to this new CINC.

LIEUTENANT GENERAL SCHWARTZ said that is possible. The
implementation guidance is not on the street yet. The question is:
Will the National Guard be gaining by Pacific Command units or by
Northern Command units? He deferred to Major General Oates for
details, but noted he will have a foot in both camps and that it
should not raise any anxiety on the legislature's part. He stated
the bottom line for Northern Command is that Alaska should be part
of a North American command. Not only is Alaska part of North
America, it is part of the Pacific-Asia realm. They have done their
best to sustain both pieces, one being homeland defense of North
America, the other is the recognition that if we fight, it is
likely to occur in the Pacific theater of operations.

CO-CHAIR MULDER said he noticed that a significant portion of the
President's proposed $50 billion increase in military funding for
next year will go to Major General Nance's budget. He asked General
Nance what insights he could give committee members about
congressional leaders' positions on ballistic missile defense.

MAJOR GENERAL NANCE said last year's discussion about missile
defense was insightful - the military had good support for its
missile defense budget. Regarding the test bed activities in
Alaska, the military had strong support among all congressional
committees. He expects Congress to have questions about military
activities in 2003 given the amount of funding requested. His goal
is to complete the test bed activity and have it ready for
operations by the end of 2004.

CO-CHAIR WILKEN asked Lieutenant General Schwartz to share his
story about the 9/11 events with committee members as it is an
extraordinary example of how the military works in Alaska. He then
informed participants that he and Co-Chair Mulder plan to sponsor a
citation in honor of, and thanking, the people of the Yukon and
Canadian governments.

LIEUTENANT GENERAL SCHWARTZ recounted the story as follows.

Ladies and Gentlemen, 9/11 began for me with - as you
recall this was prior to the first snow - I was out
running about 5:00 or so and I happened to come around my
route and back toward the headquarters building, and this
was around quarter to six, now. And there was more
activity at the headquarters at quarter to six than there
typically is so I stopped and the operations officer was
in the parking lot and I said to him, what's the deal?
He said, haven't you heard? And I said, what about? At
this point the Pentagon hadn't been hit - this was the
two towers. So I said okay, let me run home and get some
clothes on, which I did and we came back.

What developed specifically, with regard to Korean Air
085 was simply this - and I won't go into excruciating
detail but the airplane communicated to its corporate
headquarters that - via a system that they have onboard
the aircraft - that it might have been a hijacked
airplane. Now we were sitting - at this point the
Pentagon had gone down and we were posturing ourselves to
defend Alaskan airspace. We launched an airplane, as many
of you in the Anchorage area recall. We also assumed
control of the airspace. Typically, in America, the FAA
runs the airspace but in an emergency, such as we had on
9/11, the Department of Defense asserted control over
American airspace. Essentially, I was in control of
Alaskan airspace.

The bird was coming in over open ocean areas and we
launched a couple of fighters and intercepted the
aircraft as it came in what we call feet dry - it coasted
in off of the Gulf of Alaska and we had two birds in
trail about a mile, shadowing the aircraft so that it was
not known to the crew or the passengers that there were
two fighter aircraft in close proximity.

Ordinarily - typically, for those of you who are airmen
you know that there is a manner in which air traffic
control will attempt to confirm whether or not an
ambiguous indication of hijack is, in fact, true. That
is exactly what air traffic control did. They called the
crew and they said, confirm squawking xxxx - the four
digit code for hijacking, and to us who are most familiar
with the FAA procedures, they would have come back and
said, negative, negative, I am not squawking that number
and it would have been clear that the ambiguous
indications were a mistake. But what the Korean crew did
- they understood that communication to be guidance and
they understood it to be, squawk xxxx, at which time they
did. So now, you have the FAA with two indications of a
possible hijack.

Now, please understand that we just had three attacks on
the East Coast and perhaps a fourth. It was completely
plausible to me that so sophisticated an operation on the
East Coast could be replicated on the West Coast. So
this was a plausible threat. The one thing that made the
difference in this particular instance was that the crew
adhered to our instructions. We told them to turn left,
they turned left. We told them to turn right, they turned
right.

As a result, it turned out that we simply watched and put
them in between Anchorage and Fairbanks, away from
metropolitan areas, and our initial plan was to bring the
airplane to Yakutat. The logic was all of the other
aircraft were going to Whitehorse. If you recall at this
time that the National Command's authority said no
airplanes coming in from overseas land in the U.S., go to
Canada. The Canadians, the wonderful partners they are,
said fine. So all those airplanes, about 8, or 9, or 10,
as I recall, went to Whitehorse. Now you can imagine
that in a perfect world, if I've got an unknown
situation, like KAL 085, I don't want to mix good guys
and bad guys. So the logic was I'll send the airplane to
Yakutat, we'll keep it separate, and we'll find out what
the situation onboard is.

It turned out that Yakutat's weather was not as reported.
It also turned out that Yakutat's nav-aids weren't up,
which we thought they were. So here I had a Korean
airliner going into a field that the pilots had no
approach plates for, weather was less than ideal, nav-
aids probably not working properly and we had to make a
decision on whether - what we were going to do. We made
the decision that we could not put the bird into Yakutat
because the risk of scraping it off on the terrain down
there, as some of you know very well, is a serious risk.

So we elected at this point to put - the airplane had
less than an hour's of gas on board and we elected to put
the airplane into Whitehorse. Now you can well imagine
that the Canadians didn't warm up to this idea. I talked
with my counterpart. I explained what the dilemma was
that we had - that we had the ambiguous indication of
hijack but that there were other indications that led me
to believe that these might be erroneous, i.e. they were
doing what we told them to do. As a result, after some
discussion, the Canadians said okay, send them on. This
is an indication of the level of cooperation we've had,
both between the Yukon Territory and northeast Alaska,
between Canadian Air Force and the U.S. Air Force, the
NORAD elements and so on, and we put the bird in - you
saw in on TV going into Whitehorse. We left the two F-
15s overhead in case the airplane tried to depart
suddenly - it didn't. It turned out that the Royal
Canadian Mounted Police sorted it out for us and
confirmed that it was not a hijack situation.

The short story of all this is that rulebooks work in
most instances. The truth is that you need people - and
this is not - you need to understand how everybody on the
team knew that serious decisions needed to be taken and
each person from the person on the radar scope to the
person who is drawing circles on the board to the weather
person was committed to making sure that the leadership
had the information we needed to do the intelligent
thing. My guidance from my boss in four words was: do
not be precipitous. I think we fulfilled that guidance.
Had the airplane deviated from flight path, it would have
been a different story. Fundamentally what happened was
- is that I think we were measured. We exercised the
authority that we had with care and diligence and we got
the magnificent support of the Canadians to allow us to
put a suspect airplane in amongst a dozen other machines
and where we had quadrupled the population of Whitehorse,
Canada. So that's the story line.

CO-CHAIR WILKEN recognized the presence of Major Mark Kunkosky
(ph), executive officer to Major General Nance, Lieutenant Colonel
Les Kodlick and Captain Brenda Campbell, executive officers to
Lieutenant General Schwartz.

CO-CHAIR MULDER thanked General Schwartz and General Nance for
their presentations.

2:49 p.m.

CO-CHAIR WILKEN introduced Bill Brophy, new JASC member, who
replaces Gordy Lewis; Dave Lewis, Lance Harrington and Dennis
Mitroken, members of the civilian advisory board; Chris Nelson,
Department of Military and Veterans Affairs; former Senator Tim
Kelly, the "father" of the JASC; Kelly Kane, Institute of the
North; Ruth Burnett from Senator Ted Stevens' Fairbanks Office;
Charlie Fannon, Wasilla Police Department; and he noted that Chick
Wallace, JASC member, was participating via teleconference.

CO-CHAIR MULDER informed participants that Dennis Mitroken was
recently appointed to the Citizens Advisory Board and that Dave
Lewis is the deputy project officer for Pacific Emergency Mobile
Radio System, a Department of Defense component of the Alaska Land
Mobile Radio System. He welcomed Senator Ben Stevens as a new
member of the JASC Committee and then asked Ms. Stinson to give her
presentation.
LAND MOBILE RADIO PROJECT

MS. JULIE STINSON, Department of Administration, gave a power point
presentation; the highlights are as follows.

The problem at hand is one of interoperability of communications in
emergency situations and on a daily basis. "Interoperability"
means the ability of agencies to efficiently communicate with each
other when necessary. A 1997 State of Alaska Emergency Response
Commission report found interoperability to be an issue at that
time. Prior to September 11, the issue of interoperability of
communications had become a priority. Recent examples of
interoperability issues include the avalanches during the winter of
2000, the Talkeetna Railroad oil spill, wildfires at Big Lake, and
day-to-day emergencies. Alaska has many different radio systems;
the problem is analogous to the phenomenon in technology where
people are either a PC user or a MAC user. Systems are designed
around what is needed at the time but as new technologies become
available, problems arise because systems are incompatible with
others. She is looking for federal funding for this project since
60 percent of land in Alaska is federally owned. In addition,
Alaska's distance from other states makes a military presence here
especially important during a disaster.

The Alaska Land Mobile Radio (ALMR) Executive Council was created
in 1995 and is comprised of four parties: the Department of
Defense, the non-DOD (BLM, USFWS, National Parks), the Alaska
Municipal League, and the State of Alaska. In 1997, the council
signed a Memorandum of Understanding (MOU) to plan and design a
system for Alaska. In April of 2001, the MOU was renewed to
implement the system. That MOU was signed by Lieutenant General
Schwartz as well. The council's goal was to create partnerships
across the federal, state and local jurisdictions to build and
operate an interoperable land mobile radio system. She anticipates
the number of participating agencies to grow over time and expects
private agencies, such as Alyeska Pipeline, to participate.

Project Objects are to create a cost share partnership across the
federal, state and local jurisdictions as no one agency can afford
to pay for a system. In 1997 the federal government mandated
federal agencies to use narrowband frequencies because they are
more efficient in the spectrum realm. Infrastructure and costs will
be shared throughout the system phases and federal, state and local
assets will be pooled. All participants will share a common
infrastructure with pre-defined talk groups. Benefits to users
include increased system reliability, wide area networking, system
management and control, and flexible expansion.

The project was initially designed to be built in four phases:
north, south, southeast and statewide. The ALMR Council has added a
concept demonstration of building a business model to show how the
system will be maintained and operated. The demonstration will also
allow for equipment testing. The ALMR Council expects to have a
full implementation plan and report completed by next January 1.
DOD received $4.5 million to initiate implementation in the north
so the first nine sites will be built in the next six months. The
ALMR wants a concept demonstration pilot project separate from the
DOD project because they do not want one to be dependent on another
for success or failure. During Phase 4, the system will be
connected to the FAA Annex system.

The total cost of the project will be $151 million. The
infrastructure of the system will cost $67 million. The state and
DOD are trying to pick up that cost: the state will be responsible
for $43 million while DOD will be responsible for $24 million.
There is not much grant money available for infrastructure but
grant money is available for subscriber units and equipment.

System testing will begin in late summer, a draft business plan
will be ready in October and a final plan done by the end of the
year. ALMR Council hopes to have homeland security funding so that
it can move right into phase 1. Local agencies are concerned that
they do not have money to get on the system.

SENATOR PHILLIPS asked, "...Did you ever mesh with Yukon and
Northwest Tel?"

MS. STINSON said she has not.

SENATOR PHILLIPS requested that she do so as he has used that
system from his radio-phone for an emergency and that she get back
to him about their response.

TAPE 02-2, SIDE A

CO-CHAIR MULDER asked Ms. Stinson to respond to a concern that the
new system will be obsolete by the time it is operational.

MS. STINSON said the standard technologies that were selected for
this system are forwards and backwards compatible, meaning that it
might not be the latest and greatest technology right now, but that
technology is not able to go backwards. The system must be able to
migrate slowly into the digital world, and P-25 standards allow for
that.

CO-CHAIR MULDER said he has a draft letter from the committee to
Senator Stevens encouraging further investment in the land mobile
radio by the federal government. He asked for members' concurrence
to send the letter.

REPRESENTATIVE MURKOWSKI asked if there is any merit in waiting
until the project demonstration is completed at the end of the
year. She expressed concern that even though the state's share is
only $53 million, she does not want to see the state make that
commitment by urging the congressional delegation to go forward.

3:18 p.m.

MS. STINSON said the ALMR Council would like to see continuity in
service, which can only happen if there is no break in the funding.
She explained that the state has requested funds through homeland
defense and is asking for a 90/10 split. The ALMR Council does not
need all of the money at once; DOD has budgeted its portion of the
project on a five-year cycle. The ALMR Council believes it will get
$2.5 million from the Department of Public Safety in July from
federal funds and $2.7 from homeland security money for '02. It has
requested $17.4 million for '03 and '04 from the state. She
explained that grant money is available for the $12 million cost of
subscriber units.

CO-CHAIR MULDER responded to Representative Murkowski's concern and
said the test Ms. Stinson is referring to is not similar to
ballistic missile defense; this system will work but the first
phase will be tested before the entire system is implemented. He
said the real question is whether to go forward with this type of
approach. He commented that for national security reasons, he
believes it is.

REPRESENTATIVE MURKOWSKI clarified that her concern is that if the
state is going to commit to this, recognizing the total dollar
cost, it needs to make that commitment now. The state cannot get
half-way into this project and decide it is too costly. She
indicated that a presentation should be made before the full
Legislature if this is going to be a priority.

CO-CHAIR MULDER commented that this project has been part of the
homeland defense package that Major General Oates has presented to
committees.

REPRESENTATIVE HARRIS said he supports sending the letter to the
congressional delegation but he does have a problem with the price
tag and the amount the state will be obligating itself to.

SENATOR DAVIS asked if the cost for the radio system is above the
amount presented to legislators in the homeland security package.

CO-CHAIR MULDER said it is part of the package.

MAJOR GENERAL OATES, Commissioner of the Department of Military and
Veterans Affairs, informed the committee that DOD was mandated to
use the narrow band approach. That narrow band will take the system
into digital communications. Fundamentally, the state will have to
go with DOD to have the ability to communicate with DOD. The ALMR
is a unique partnership of four major players: the federal
entities, DOD, the municipalities and the state. Alaska is leading
the nation in interoperable communication initiatives in which all
four entities will be able to communicate. The test will not be a
test of technology, it will be a test of the business model and how
these entities can work together efficiently and effectively. He
stressed the need for the demonstration project to figure out the
best way to have the four teams come together. He stated his belief
that communications will become the foundation of homeland
security.

CO-CHAIR MULDER thanked Ms. Stinson and Major General Oates and
asked Janice Nielsen to present to the committee.

MS. JANICE NIELSEN, Director, Governmental and Legislative Affairs,
USARPAC, highlighted the following points concerning the
transformation of the Army. Lieutenant General Smith, the Commander
of the U.S. forces in the Pacific and Major General Lovelace,
Commander for Army forces in Alaska, are working hard to be part of
the transformation in which the focus from legacy forces, the
current heavy forces, will change to objective forces, a lighter
more mobile force. This transformation is expected to take 15 to 20
years. During the interim period, the Army is establishing interim
brigade combat teams, which will be stationed around the country in
three to six years. The first step in the process is to do the
environmental documentation. She anticipates that a notice of
intent will be filed within the next few weeks for the
environmental impact statement (EIS). While the EIS is being
formulated, USARPAC will do initial design planning and programming
for the facilities. The estimated cost of the proposed land
acquisition and construction in Alaska is $570 million and it is
expected to take about five years.

CO-CHAIR MULDER asked Ms. Nielsen to discuss the upcoming change of
command.

MS. NIELSEN said no firm date has been set for the change of
command of General Smith, but she anticipates it will occur in
March or April. Major General Campbell will be taking over as the
Commander of the United States forces in the Pacific.

CO-CHAIR WILKEN asked if Alaska's designation as the second interim
brigade means Alaska will have an airlift component.

MS. NIELSEN said an airlift component for Alaska is being studied.
It is more aligned with the Air Force and National Guard, where the
C-17s will be stationed. Although that is separate and distinct
from the Army's transformation, it is integral to training and
rapid movement.

CO-CHAIR MULDER said when committee members asked General Lovelace
and Lt. General Schwartz last fall about whether there will be an
airborne component of the interim brigade, they were told the
interim brigade was still a developing concept. He asked if that
is still the position.

MS. NIELSEN said that answer still holds.

MAJOR GENERAL OATES told committee members that a federal decision
and commitment has been made to buy more C-17s. The current plan
is to have C-17s in both Alaska and Hawaii and the goal of the PAC
Commander is to have eight aircraft. The debate is still underway
as to whether this will be a National Guard platform or an active
Air Force platform. This is a very important building block in
Alaska's total military strength; those forces will make it very
deployable. He suggested the committee consider, some time in the
future, the other pieces of the internal aviation structure and
issue a statement.

CO-CHAIR MULDER thanked Ms. Neilsen and asked Mr. Vakalis and Mr.
Owen to update the committee on the National Association of
Installation Developers (NAID) conference.

MR. GEORGE VAKALIS said DOD has scheduled Base Realignment and
Closure (BRAC) to occur in 2005. During the NAID conference, two
tracts were focused on: BRAC and, if a base is closed, how to make
maximum use of what is left behind. He said he focused on the BRAC
aspect of the conference. A timeline of the events that will take
place through 2005 was provided. The BRAC process that will be
used is the same process that was used in 1991, 1993, and 1995,
meaning the DOD will decide what kind of information it desires.
DOD is now looking at what force structure it will need in the out
years, but it has outwardly said it has a 25 percent excess of
infrastructure. The game plan is to reduce as much of that 25
percent as possible. Once DOD gets through the initial planning
phase, it will require the installations to provide data, which
will be incorporated into the COBRA model. Where Alaska's bases
were marginal during the last BRAC rounds was in the cost of the
infrastructure in Alaska compared to other places. The criteria
for the next BRAC round will be very much the same except that in
the past, DOD did not look at joint forces. DOD is trying to
integrate "jointness" of forces as relevant to deciding what bases
will remain open.

MR. VAKALIS said presenters at the NAID conference reviewed what
base communities traditionally do and what they should and should
not do during the BRAC process. Alaska has been advocating the
need for firm and strong community support. When it comes down to
cutting post-camps and stations, lack of community support is a
significant factor in deciding whether or not to close the camp.
He informed members that the chambers of commerce of both Anchorage
and Fairbanks are working on a series of pamphlets. One pamphlet
would educate communities about the worthiness and benefits derived
by military presence in a community. The second pamphlet will show
what Alaska does for the military and the accomplishments of the
military's mission. The chambers will also produce a series of
slides to show any visiting corporate representatives or interested
parties so that everyone is working from the same sheet of music.
Other chambers have been invited to participate in this project.
Once the first pamphlet is ready, he will distribute copies to
committee members and solicit suggestions to cover printing costs.
He emphasized the importance of increasing community support for
military presence in Alaska in light of the upcoming BRAC.

3:40 p.m.

MR. OWEN added that the next BRAC round will not be about
installations as much as force structure. He pointed out it is
early in the process but not too early to organize a strategic plan
of approach.

CO-CHAIR MULDER said he has discussed the publication costs with
Mr. Owen and Mr. Vakalis and indicated his willingness to work with
them to try to secure funding to produce and distribute sufficient
quantities of the pamphlets. He also told members he asked Senator
Ted Stevens about the status of BRAC last month. Senator Stevens'
attitude was that Alaska needs to seize upon the opportunity to try
and attract further protections to "BRAC-proof" itself over the
next four years. He said to be cognizant of it but to not focus
solely on it.

MR. VAKALIS added that the new legislation allows the services to
"warm" base an installation if it comes up for closure instead of
disposing of it. The new legislation also allows in the transfer
of installations that are closed, there is to be no cost to the
government.

CO-CHAIR WILKEN called members' attention to a 2000 update to a
white paper produced in 1997 by General Gambell, entitled Alaska's
place in National Security, in committee packets.

CO-CHAIR MULDER noted that General Meyers will be the featured
speaker at the salute to the military next Friday. He then asked
Major General Oates about the status of the new position funded by
the Legislature last year.

MAJOR GENERAL OATES said a board has considered all-Alaskan
military members that met the requirements for that position and
has forwarded a name to the Governor. He said he anticipates a
decision to be made very soon.

CO-CHAIR WILKEN asked teleconference participants if they had any
further comments or questions.

MR. CHARLIE FANNON, representing the Wasilla Police Department,
thanked committee members for meeting with the military. He agreed
that Alaska has a window of opportunity to develop its AMLR
project. He recently stepped down from his position as Chief of
Police because he acquired a sizeable grant with which to put a
consolidated dispatch center into Wasilla. The Wasilla Police
Department hopes it will dovetail into the state's project. He
would like the B Detachment Troopers to be part of the Wasilla
Police Department's system for reasons of interoperability. Almost
daily, they work on incidents that cross jurisdictional boundaries.
This is a homeland security issue, driven by a public service need.
He said Alaska can learn from other consolidated dispatch centers
that are being used in other parts of the country.

CO-CHAIR MULDER announced the next JASC meeting will be scheduled
in early April in Juneau and will incorporate a mini-salute to the
Coast Guard.

REPRESENTATIVE HARRIS informed members that this year, Northern
Edge will be in Valdez and he hopes the committee can spend a day
at that event.

CO-CHAIR WILKEN pointed out that event is scheduled for the last
few days of April and the first few days of May, a difficult time
for legislators to leave Juneau.

There being no further business to come before the committee, CO-
CHAIR MULDER adjourned the meeting at 3:52 p.m.


Senate

02

JASC

05/03/02

1340

ALASKA LEGISLATURE
JOINT ARMED SERVICES COMMITTEE
May 3, 2002
1:30 p.m.


SENATE

MEMBERS PRESENT

Senator Gary Wilken, Co-Chair
Senator Randy Phillips
Senator Loren Leman
Senator Ben Stevens
Senator Alan Austerman

SENATE MEMBERS ABSENT

Senator Bettye Davis

HOUSE

MEMBERS PRESENT

Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative John Harris
Representative Jeannette James

HOUSE MEMBERS ABSENT

Representative Reggie Joule

OTHER LEGISLATORS PRESENT

Representative Gary Stevens
Representative Ken Lancaster

PUBLIC

MEMBERS PRESENT

Mr. Frank Love
Mr. George Vakalis
Mr. Dean Owen
Mr. John Hoyt

COMMITTEE CALENDAR

Speakers:

Mr. Pat Ladner, Director Alaska Aerospace Development Corporation

Mr. George Vakalis' presentation of the "Advantage to Alaskans"
brochure

Mr. Larry Crawford, Anchorage Economic Development Corporation

th
Admiral Thomas Barrett, U.S. Coast Guard 17 District

WITNESS REGISTER

Mr. Pat Ladner
Alaska Aerospace Development Corporation
4300 B Street
Anchorage, AK 99503

Mr. George Vakalis
JASC Committee Member
PO Box 196614
Anchorage, AK 99519

Mr. Larry Crawford
Alaska Economic Development Corporation
th
900 W 5 Ave., #300
Anchorage, AK 99501

Mr. Michael Kean
Anchorage Economic Development Corporation
th
900 W 5 Ave., #300
Anchorage, AK 99501

Mr. Paul Fuhs
1635 Sitka #301
Anchorage, AK 99501

Ms. Janice Nielsen
Governmental & Legislative Affairs
USARPAC
Fort Shafter, HI

ACTION NARRATIVE

TAPE 02-3, SIDE A
1:40 p.m.


CO-CHAIR GARY WILKEN called the Joint Armed Services Committee
(JASC) meeting to order at 1:40 p.m. and recognized the presence of
Representatives John Harris, Gary Stevens and Lisa Murkowski and
Senator Ben Stevens. He announced that Co-Chair Mulder, Senator
Leman, and Senator Phillips were attending another meeting. He then
welcomed JASC public members Mr. George Vakalis and Mr. Frank Love;
Mr. Dave Lewis from the Civilian Advisory Board; Ms. Janice Neilsen
from USARPAC; and Barb Mee, JASC committee staff. Mr. John Hoyt
and Mr. Dean Owen were participating via teleconference.

SENATOR STEVENS moved to approve the minutes from the previous JASC
meeting dated February 5, 2002. There being no objection, the
minutes were approved.

CO-CHAIR WILKEN informed members that their packets contain an
article from AIR FORCE Magazine entitled, "The Defense Budget at a
Glance," and noted the Department of Defense's budget will increase
from $299 billion in FY 2001 to $384.2 billion in 2007, a
significant increase.

Senators Leman and Phillips arrived.

CO-CHAIR WILKEN asked Mr. Pat Ladner to address the committee on
missile defense at the Kodiak Launch complex.

1:43 p.m.

MR. PAT LADNER, President and CEO of the Alaska Aerospace
Development Corporation (AADC), gave the following background on
the AADC launch site.

The AADC was created by statute in July of 1991. He came on board
in August of 1992. The AADC has struggled, but he is proud to say
the launch complex construction was completed in 1998 without any
general fund money from the State of Alaska. Regarding future
possibilities as they pertain to missile defense in Alaska, he
noted the Northern test bed was funded this year and work has begun
on the environmental impact statement for the Northern test bed,
which includes Kodiak. Scoping meetings were held in Kodiak and
Anchorage about two weeks ago. Those meetings went well.

MR. LADNER then showed a video of the Kodiak launch site facility
and grounds and an actual launch. [A handout that accompanied the
video is available in the committee file.]

MR. LADNER informed members that if everything goes according to
plan, the infrastructure of the Kodiak launch site can be doubled.
The launch complex was built for $40 million; that could not be
done again. Expansion of the facility will create many jobs. The
U.S. Air Force estimated the last launch at the Kodiak site brought
$5 million to the state. Future plans include construction of a
missile assembly building, possibly two additional target pads and
two silos to intercept, a motor storage facility, and a maintenance
and storage facility. Eight launches are planned during a 12-month
time period.

CO-CHAIR WILKEN asked when that will begin.

MR. LADNER said the environmental impact statement is supposed to
be finished in February of 2003. He stated, "We're trying to tell
them right now you need to start designing facilities to be ready
to start construction, you know, like we did on the launch complex.
30 days after the record of decision's signed, we ought to be
pouring concrete. So we're pushing them on that." He noted the
Kodiak Synchronization Workshop was held last month as a kick-off
for infrastructure and operations planning for Kodiak. The AADC
took it upon itself to start the initial design process and came up
with a notional for the missile assembly building.

CO-CHAIR WILKEN asked what the new construction is contingent upon.

MR. LADNER explained:

There's two contingents. There's one - there's an
interceptor and then there's the targets. The targets are
going to happen. We're already doing those. There are
some studies, continuous studies and studies and studies,
by Boeing to determine whether or not they want to put
two silos and interceptors - test interceptors - at
Kodiak. Now, the infrastructure that I showed you, if,
for whatever reasons Missile Defense and Boeing decide
that we don't want to put two silos at Kodiak, we're just
going to do it at Vandenberg, then the only things that
won't happen is that IFIC building and the two silos. The
target pads, the missile assembly building, the motor
storage facility and - one of the things I didn't point
out because I didn't have a picture - is it would
probably increase the size of the launch control center.
So the majority of the infrastructure probably is going
to happen just to support targets so we're working very
closely and, in fact, since our next launch is not
scheduled until August of '03, my VP of operations, Ed
Allen who is 30 years in this business, is going to be
spending a majority of his time in Huntsville working
very closely with Boeing and the Missile Defense people
because what we found out is if you don't have a
presence, people tend to make assumptions and we know all
about assumptions. So, as I told the General, we want our
people down there so that if you make a bad assumption,
then it won't be our fault. So we're pretty happy with
that.

CO-CHAIR WILKEN asked what the committee can do to help.

MR. LADNER said that Senator Therriault has proposed allowing the
AADC to begin construction without coming to the Legislature for
approval. The statute that established the AADC requires it to get
approval from the Legislature during the legislative session before
spending funds for a project that will cost more than $1 million.
Therefore, if a customer comes to the AADC after session and is
willing to spend hundreds of millions of dollars in Alaska but
wants work to begin immediately, the AADC must wait to get approval
the following January, at the soonest. Mr. Ladner said the AADC has
been a good steward when it comes to funding, managing its affairs,
and the environment. The AADC's business is primarily with the
federal government, which has accounting system requirements in
place. Contracts are audited by the Department of Defense. The
state accounting system does not have the same requirements. AADC
recently installed an accounting system that is compatible with the
state's.

CO-CHAIR WILKEN thanked Mr. Ladner for his presentation and
recognized the presence of Representative Lancaster and Major
General Phil Oates of the Department of Military and Veterans
Affairs. He then asked Mr. Vakalis to present to the committee.

2:14 p.m.

MR. GEORGE VAKALIS, public member of the Joint Armed Services
Committee, gave the committee the following update on a brochure
being produced by the Anchorage and Fairbanks Chambers of Commerce.

This brochure is being produced in a three-phase approach for the
purpose of informing the public of the benefits derived from having
military bases in Alaska. During the Base Realignment and Closure
(BRAC) process, BRAC commissioners have the opportunity to visit
different military sites proposed for closure. The commissioners
hold town meetings to get feedback on how supportive the community
is of the military in that location. Such support helps formulate
their decisions and recommendations.

The brochure points out the advantages of having a military base
located in a community. Even though Anchorage and Fairbanks are
highlighted in the brochure, coastal Alaska is also mentioned.

MR. VAKALIS distributed copies of the final brochure and asked
members to provide recommendations regarding changes or additions.
He stated the committee has discussed providing funding for the
production of the brochures and estimates of the cost have been
made available.

MR. VAKALIS said the second phase of this project entails a second
brochure that will explain why it is advantageous for the military
to be located in Alaska and what Alaska has to offer. Again, he is
working with the Anchorage and Fairbanks Chambers of Commerce on
Phase 2. They are also creating a power point presentation to be
used when interfacing with decision makers so that everyone is
working from the same sheet of music. He encouraged members to
offer suggestions while both projects are underway.

CO-CHAIR WILKEN recognized the presence of Co-Chair Mulder and
acknowledged that the funds for the first brochure were provided.
He mentioned that Ms. Mee has suggested the funds for the second
brochure be solicited from industries that would be involved.

CO-CHAIR MULDER complimented Mr. Vakalis on the brochure and
suggested looking into the cost of having the brochure inserted in
all of the major newspapers throughout the state.

SENATOR PHILLIPS asked Mr. Vakalis to meet with him to review a
survey he took of his constituents regarding support for spending
money to protect Alaska's military interests through the BRAC
process. He noted he represents the largest military district in
the state and he was surprised at the results.

MR. VAKALIS responded that through the BRAC process, it has been
found that many communities that have benefited most from military
bases have not realized the benefits so the public needs to be
educated early on.

CO-CHAIR WILKEN recognized the presence of Senator Austerman and
then asked Mr. Larry Crawford to present to the committee.

MR. LARRY CRAWFORD, President of the Anchorage Economic Development
Corporation (AEDC), introduced Michael Kean of the AEDC and Paul
Fuhs, a consultant to the AEDC.

TAPE 02-3, SIDE B

MR. CRAWFORD gave the following introduction and a power point
presentation.

AEDC began the Military/Commercial Global Logistics Initiative in
2000 and is now completing Phase 2. Funding has been provided by
the state and private sector. The AEDC Board has been very
supportive of this project. Steering committee members are from
Anchorage, Fairbanks, and the Mat-Su Borough, so the focus has been
on the Railbelt. During Phase I, initial efforts were focused on a
military logistics study that was done by Price Waterhouse Coopers
(PWC). PWC concluded that opportunities exist in the areas of
distribution and maintenance. PWC recommended that the AEDC work
with third party logistics providers and with Department of Defense
prime source vendors because it is clear that the military is using
a considerable amount of commercial infrastructure.

With those recommendations, AEDC moved into Phase 2 and engaged a
company with experience in transportation issues to look at the
global logistics operations as they currently exist worldwide. The
company did an analysis of the growth and trends of logistics and
of the strengths and weaknesses of the Anchorage area. It also
established a set of criteria to identify and pre-qualify a number
of companies it would meet with to discuss how Anchorage would fit
into their supply chains. They are also preparing a sales plan,
which is a detailed approach to meeting with interested companies.

The conclusions of the Phase 2 study were to continue to focus on
high value time sensitive products and to target specific
industries. AEDC is looking at narrowing its focus to aviation,
automotive, electronics, information technology, pharmaceuticals
and high value consumer goods. The study also recommended targeting
specific services and operations: aircraft maintenance, parts
distribution, packaging of components, automotive parts
distribution and others. The study recommended that AEDC conduct
structured site visits and present opportunities available in the
Railbelt to specific companies. The last recommendation was to
facilitate formulation of joint ventures.

AEDC will be entering Phase 3 in the first part of July. That will
entail following up with prospective companies it has already met
with to have more detailed discussions about how they might benefit
from being located in the Railbelt. The AEDC plans to do more
marketing in Asia and will conduct site visits to Anchorage for
Asian companies. AEDC will also be working with major cargo and
passenger airports. The consultant has recommended that the
Anchorage airport partner with other airports such as Los Angeles,
that make more money on passenger traffic, so that those airports
do not have to handle as much cargo.

MR. CRAWFORD concluded by saying that facilitating joint ventures
involves packaging, that is, putting together a specific package
that includes a logistics provider, manufacturers and shippers as
customers, and a developer with an interest in financing and
operations. AEDC has done a lot of marketing, knows the
opportunities and who the players are and is at a point where it is
ready to start packaging and getting involved in specific sales.
Potential benefits include jobs and a larger tax base.

MR. CRAWFORD said that AEDC has advertised the fact that Anchorage
is nine hours from 95 percent of the industrialized world often.
After further analysis, the AEDC found that Anchorage is very close
to a majority of the world's gross product, so it is in the center
of most of the world's buying power.

SENATOR LEMAN asked where the consultant will meet with the AEDC on
May 22.

MR. CRAWFORD said it will probably be held in CIRI's conference
room in Anchorage.

SENATOR LEMAN asked the name of the transportation consultant.

MR. CRAWFORD replied the consultant is a company named Transfair.

MR. KEAN clarified that the Los Angeles airport is landlocked and
does not have room to expand its harbor facilities. If the harbor
transfer work is done in Anchorage, flights could terminate in Los
Angeles, download, upload and take off again to their place of
origin. He added that the military may be able to piggyback onto
the maintenance and recalibration work, from the standpoint of
having parts recalibrated within the state, rather than in another
state, as is the case now.

MR. CRAWFORD added that the AEDC has worked closely with Fairbanks
and the Mat-Su Borough to make this a Railbelt project. The Mat-Su
Borough would benefit from any development at the airport and
Fairbanks would benefit because it markets a lot of fuel to the
Anchorage airport. When AEDC makes presentations to groups, it
shows slides of the Fairbanks airport as well.

MR. PAUL FUHS, consultant to the AEDC, pointed out the military is
in the "midst of a revolution" regarding how it treats parts in
storage. Right now, when an aircraft is purchased, it is purchased
with a complete contract for maintenance and parts supply so when
Mr. Crawford explained the concept of packaging, a manufacturer,
logistics distributor and carriers are necessary to compete in this
new world. He added the AEDC learned from the Pacific Command about
the issue of maintenance of aircraft parts, and how that is where a
bottleneck occurs. Aircraft parts are constantly being switched out
and sent for testing and recalibration so that offers Anchorage an
opportunity to be a global maintenance facility for all
international air traffic in Anchorage.

CO-CHAIR WILKEN thanked Mr. Crawford, Mr. Kean, and Mr. Fuhs and
asked Major General Oates to address the committee.

MAJOR GENERAL PHIL OATES, Commissioner of the Alaska Department of
Military and Veterans Affairs (DMVA), gave the following update on
the Alaska National Guard and the military as a whole.

He just returned from Washington, D.C. where he received an award
for the youth talent program in the Alaska National Guard. Alaska
has received this award three years in a row. Also, Alaska's
aviation battalion in the Army Guard is being recognized as the
best Army aviation battalion in the entire Army Air Guard
nationwide. A new combined support maintenance shop was recently
opened in Ft. Richardson. That shop is absolutely the best in the
entire Department of Defense. It will allow the National Guard to
expand and do maintenance operations and repairs for the entire
military in Alaska. Alaska's 104 Civil Support Team was just
certified and, in fact, the fifth Army came down and certified
them. They certified every team in the country and, in their words,
the team in Alaska is the best they have seen yet. That team is
critical to rapidly assess, identify and detect nuclear,
biological, chemical, radiological or high explosive events, set up
a command post, and operate in a hazard protective environment and
give advice and recommendations to DMVA.

MAJOR GENERAL OATES continued.

We recently had the National Guard bow and I went through
three pages of one-line bullets of what we had done over
the last year and it was absolutely staggering. And the
National Guard, as you know, is your military. There's a
lot of military here but, you know, the National Guard is
the legislative and the state military and it's because
of your strong support that we've done as well as we
have. There are also some changes that you see happening
in Alaska that go back, I would say, to the mid-80s,
probably with Senator Stevens back when Barb was working
for him, and seeing a vision of what Alaska could be, not
only in the Guard but in the active military and a lot of
what you see coming together now is the vision from back
in that era and now you see us adding to it the component
of a Pacific test bed. And that adds to our ability to
have a fully integrated missile defense testing and
exercise capability here. It allows us to integrate that
with our air and ground test facilities and it allows us
to take advantage of - the real jewel in the crown is our
broad expanse of training areas from the air, the land
and the sea.

All that is happening right now as we think about the
military here but there's also another dimension of this
that is just happening that you may not be aware of - is
we've got another 'CINCdom' [Commander in Chief -
Northern Command] coming to Alaska. We have both unified
and combatant commands, our four star war fighters if you
will, and we will now have four of those with a foothold
here in Alaska, a mission in Alaska and force structure
in Alaska.

Now adding to PACOM's presence here, Pacific Command,
where we're missioned to go to the Pacific, added to
NORAD's presence here to defend our air sovereignty and
our air defense, added to U.S. space commands presence
here with clear and the rapidly evolving missile defense
activity, will come Northern Command and Northern Command
is being stood up by our nation as a combatant command to
provide our homeland security. It will cover the United
States, it will include Alaska less Hawaii, and it will
also have as its air of operation Canada, Mexico, part of
the Caribbean, and 500 nautical miles out to sea. This
command, it looks like it will be located in Colorado,
and it's very important that we make Alaska a very, very
strong presence in that command and you can see it's easy
from a military perspective to be an afterthought when
the Lower 48 is the center of the universe, if you will.

So one thing that's important for this committee and
important for the military is make sure our needs are
known well in that command and as that is evolving and
standing up this October, I think that's probably worthy
of your time to get more information. And what this
command will do, it will bring the military support to
civilian authorities and it will provide the federal
military assistance to the agencies on the crisis
response, which is headed by the Department of Justice
and the consequence management response, which will be
headed by FEMA. We're doing a lot in homeland security
but, again, added to everything we have in Alaska, we
have four unified or combatant commands that are located
in Alaska as well in this area of operation, which has
really become a microcosm of the Department of Defense.
We've got a joint subordinate unified command here, we've
got a combined presence with Canada. We've got full
service representation. We've got broad training areas
that are becoming more and more used and we've got a
fully integrated National Guard.

And let me just conclude with just talking about the
National Guard and where we're going. There are really
three legs to our mission. The first [is] our
mobilization or go to war missions and for us that's our
tactical airlift, our combat search and rescue, our
combat communications, our aerial-refueling, and our
critical site security in our Army aviation battalion.
Those are our mobilization and go to war missions where
all our war planned in those missions. In fact, some of
our forces now are currently deployed in their war plan
areas for the ongoing fight against terrorism. The second
mission area [is] where we're a force provider. We're
very, very unique in Alaska and I think leading the
nation as a force provider.

Now what do I mean by force provider? The National Guard
recruits the forces, initially trains the forces, equips
the forces, professionally develops the forces, takes
care of the families and then we provide a package to the
active duty on a daily and operational basis but those
forces are still available to the state and to the
governor through a memorandum of agreement. Which areas
of those? It's the rescue coordination center, it's the
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aerial-refueling mission, rescue coordination for 11
Air Force aero-refueling for NORAD and now beginning the
second year of manning the regional air operations
center. It's the space surveillance mission at Clear that
we just started to recruit for and it's also the missile
defense activity that we'll man once this becomes more
than just a test bed operation.

And then the third area that's very unique is homeland
security and we're uniquely structured for that with our
rd
103 Civil Support, our scout group that is organized
for critical site defense in a hazardous environment, our
Army aviation, our communications capability and our
rd
103 Civil Support team. So we're becoming very unique
and integrated in the National Guard for homeland
security.

So, I will conclude by saying that a lot of this is
possible because of you and those that preceded you, not
only the support that you give to the military, but the
fact that you make it a very key part of the legislative
process here and I'd like to thank you for that.

MAJOR GENERAL OATES informed members that Boeing is starting the
process of opening offices in Anchorage and Fairbanks and asked
members to encourage that effort.

CO-CHAIR WILKEN noted that last year the Legislature funded a
second one-star position for missile defense and asked for an
update.

MAJOR GENERAL OATES said the nominee, Jim Welsh, is going through
the legislative confirmation process right now. Mr. Welsh, an
executive with British Petroleum, was selected by the Governor. He
has an extensive background in project management and has unique
military and industry skills.

CO-CHAIR WILKEN asked about the status of legislation that allows
the state to pay the difference in wages when National Guard
members who are state employees are called to duty.

REPRESENTATIVE JAMES thought the bill was still in the House State
Affairs Committee.

MAJOR GENERAL OATES informed members that due to many deployments,
National Guard members no longer serve just one weekend a month and
two weeks a year. Many businesses are realizing the critical need
of having individuals ready to serve our country, and that those
individuals should not be penalized for doing so. Many of those
individuals earn less while on military duty, yet they incur the
same financial obligations that civilians do, such as home
mortgages. Nationwide, the trend is to help pay some of the burden
for those who serve; many other states have passed similar
legislation. He noted it is not unusual for National Guard members
to be called to duty for 9 to 12 months in a year's time.

CO-CHAIR MULDER asked Major General Oates if he was familiar with a
bill that relates to the Army site at Eagle River.

MAJOR GENERAL OATES said he was not.

SENATOR STEVENS clarified that legislation is SB 371 .

MAJOR GENERAL OATES noted a major environmental clean-up occurred
in that area because of white phosphorous fired into it. He thought
the military has become more environmentally conscientious but he
noted the more Alaska restricts the military's ability to train,
the more the military will be driven to train elsewhere.

CO-CHAIR WILKEN noted that legislation will be heard at 3:30 in the
Senate Resources Committee. He then thanked Major General Oates for
his service and asked Ms. Nielsen to address the committee.

MS. JANICE NIELSEN, Director of Governmental and Legislative
Affairs for USARPAC, Fort Schafter, Hawaii, gave the committee the
following update on some movements within the military.

Yesterday, the Commander in Chief of the Pacific had a change of
command. Admiral Dennis Blair relinquished command to Admiral
Fargo, who was the Commander of CINCPAC fleet at Pearl Harbor.
Also, President Bush, in conjunction with Secretary Rumsfeld,
announced recently that General Keane will replace General Shinseki
as Chief of the Army next year. Regarding the change of command for
the Commander of the Pacific of the Army, no date has been set of
when Lt. Gen. Smith will relinquish his command to Lt. Gen.
Campbell. She will work with the committee to arrange a visit by
Lt. Gen. Campbell once a firm date is set.

CO-CHAIR MULDER said that when General Myers was in Anchorage
during the Salute to the Military, he was asked for suggestions
regarding what Alaska could do to enhance its position nationally.
General Myers recommended hosting an annual event in Washington,
D.C. for Pentagon officials to put names to faces and locations and
heighten awareness. The committee has discussed hosting such an
event in September. He asked Ms. Nielsen to assist the committee in
organizing that event and said he intends to appropriate funds to
the Joint Armed Services Committee for that purpose.

MS. NIELSEN agreed to work with the committee and noted that she
has helped the Hawaii Chamber of Commerce host a similar event
every year.

CO-CHAIR MULDER said the committee intends to host the event with
the Anchorage and Fairbanks Chambers of Commerce. Co-Chair Mulder
then apologized for having to postpone the first Salute to the
Military - Southeast Style event until next year.

CO-CHAIR WILKEN thanked Mr. Love and Mr. Knapp for the work they
did on that event. He then asked Ms. Mee to update the committee.

MS. MEE said the problems at Eagle River are one reason that the
brochure was created. She then announced that she plans to depart
as staff in the near future but will help put the September event
together in Washington, D.C. She noted that three things were on
her priority list when she began working for the committee last
June. The first was to get Anchorage and Fairbanks talking. She
believes the work the two chambers did on the brochure is a good
start. The second priority was to make sure all players in Alaska
are "playing from the same sheet of music" and she believes that is
being accomplished. The third priority is to entertain the "movers
and shakers." The committee will have an opportunity to touch base
with some movers and shakers from Washington, D.C. on June 2 who
will be coming to Alaska. She encouraged committee members not to
get ahead of Senator Ted Stevens, who is working tirelessly with
Senator Inouye and others to see that the military is placed where
it should be. She said it is important to continue to make people
aware that Anchorage is 7.5 hours from any possible hot spot in the
country. Although she believes the military structure and
components in Alaska may change over the next decade, she still
believes Alaska remains the "best game in town" so keeping each
other informed will help keep it here.

CO-CHAIR MULDER asked members to plan to attend the June 2 event as
it will provide a great opportunity for committee members to touch
base with Senators Reed, Hagel, and Thompson and Congressmen Kolbe,
Tauscher and Snyder. Also, on June 3, Anchorage kicks off its
military appreciation week with a Chamber of Commerce luncheon. Co-
Chair Mulder then thanked Ms. Mee for her wonderful work as
committee aide.

CO-CHAIR WILKEN announced that Major General James Lovelace has
been promoted to Assistant Deputy Chief of Staff, the G-3 position
in the Pentagon. He also announced that Admiral Tom Barrett will be
receiving his third star and moving to the Coast Guard headquarters
as Vice Commandant. He will be replaced by Rear Admiral James
Underwood. Last, Brigadier General Doug Fraser has left the Third
Wing at Elmendorf and has been replaced by Colonel Dutch Remkes.

TAPE 02-04, SIDE A

CO-CHAIR WILKEN noted the Legislature recently passed a resolution
in appreciation of the Yukon government's assistance to Alaska when
allowing a Korean Air jet to land in Whitehorse on September 11.
His office worked very closely with Premier Duncan's office to make
sure that everyone who participated was thanked. He then asked
members if they had further comments or questions.

MR. VAKALIS said he plans to have the second brochure and power
point presentation finished before the committee hosts its
September event in Washington, D.C. so they will be available for
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the committee's use. In addition, on June 7, the Anchorage Chamber
of Commerce will feed about 8,000 military members and their
families. This event has been held for the past three years. He
noted that volunteers are needed.

MR. LOVE informed members that Admiral Barrett's change of command
will take place on Monday [May 6] in Juneau. His successor is an
Alaska veteran who formally commanded the Sweetbriar out of
Cordova.

REPRESENTATIVE HARRIS noted, regarding Northern Edge, the marine
aspect of that program in his district is going very well.

CO-CHAIR MULDER asked for suggestions for the next meeting.

MS. MEE said the committee had hoped to go to Kodiak before Admiral
Barrett left. If the committee meets in Kodiak, it could visit the
world's largest Coast Guard base and the Alaska Aerospace
Development Corporation.

SENATOR LEMAN commented that the Coast Guard base is not only
large, it is incredibly clean.

MR. DAVE LEWIS, Citizens Advisory Committee, encouraged committee
members to think homeland defense priorities and although it will
take a lot of money, it would be a shame to approach the
anniversary of September 11 less prepared. He urged members to
leave it up to the folks who really know what needs to be done to
protect Alaskans. As current chairman of the Armed Services YMCA of
Alaska, he thanked all participants for their efforts on the YMCA's
behalf. He noted this year, the Armed Services YMCA of Alaska
worked with Ft. Wainwright and Eielson Air Force Base; next year it
will work with the Coast Guard.

CO-CHAIR WILKEN pointed out that discussions about homeland defense
funds are underway in the Legislature at this time.

MR. LADNER said he would e-mail members with an update about the
June 2 workshop in Kodiak.

MR. VAKALIS noted the bill referred to by Senator Stevens [SB 371 ]
is very important because if the suing party prevails in the Eagle
River military range case, it will set a precedent, affecting the
military throughout the United States.

CO-CHAIR WILKEN acknowledged that bill is in committee members'
sites.

CO-CHAIR MULDER introduced Admiral Thomas Barrett, and informed
members he will be receiving his third star, a tremendous
promotion. Committee members congratulated Admiral Barrett.

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ADMIRAL THOMAS BARRETT, U.S. Coast Guard, 17 District, introduced
Rear Admiral Jim Underwood, presently the National Security Advisor
to the Secretary of Transportation. Rear Admiral Underwood will
relieve Admiral Barrett on Monday; he knows Alaska and will do well
by Alaska.

ADMIRAL BARRETT thanked the Alaska Legislature, and the members of
the Joint Armed Services Committee in particular, for their support
of the Coast Guard. He also thanked members for their support of
the military in general. No other state in the nation provides
better support to men and women in uniform, whether that be
resource support to get the infrastructure, training, or equipment,
or better services for their families. Admiral Barrett then gave
all committee members a medallion commemorating the Coast Guard's
commitment to operational excellence in Alaska in appreciation of
members' efforts.

ADMIRAL BARRETT then gave a power point presentation to update
members on what the Coast Guard is doing in Alaska at this time.
The highlights of that presentation are as follows.

The cutter Monroe is underway in the Bering Sea, headed up to
the maritime boundary with Russia to patrol. Ships are coming
to the area as the ice has fallen back.
The icebreaker Healy is in transit to Nome and is scheduled to
arrive within two days. The Healy will be going further North
to do polar research with a National Science Foundation team.
The Acushnet, another cutter, just left for law enforcement
patrol in the Aleutians.
The cutter SPAR is doing law enforcement and navigational aids
work in Unimak Pass.
An HC-130 is flying today over the Western Aleutians and the
Bering Sea and a Canadian Orion is staged out of Shemya doing
high seas drift net patrols. So far, it has not seen any drift
net activity in that area.
The Coast Guard has an H-60 in the Eastern Aleutians
supporting the Acushnet.
The Liberty is on patrol in Prince William Sound; another
cutter, the Mustang, is just leaving there after working with
Northern Edge.
Two new small boats have been deployed in Valdez for port
security and a helicopter and crew was deployed to Cordova for
the summer months to provide support to the fishing industry.
The Coast Guard is providing vessel escort for submarines.
An H-60 is flying out of Sitka, doing law enforcement and
cruise ship watch patrol.
The cutter Sycamore is en route to Cordova.
Other activities involve presenting boating safety awards and
participation in contests involving school children.

ADMIRAL BARRETT noted that key areas of homeland security from the
Coast Guard perspective are the Valdez Marine Terminal and the
tankers transiting to and from there. The Coast Guard just
completed participation in Northern Edge, which focused for the
first time on port security. He noted Alaska is ahead of the rest
of the country on port security. The Coast Guard was the lead
federal agency in that training exercise, and ALCOM, the Alaska
Army National Guard, the Air National Guard, U.S Army, Navy and
Marines dive teams and boat units from the "Lower 48" participated,
as well as the FBI, Alaska State Troopers, Alyeska Pipeline Service
personnel and the Valdez Police Department. He complemented
Representative Harris and the community of Valdez for their
support. Safety and environmental concerns with oil transportation
is a major issue for Alaska. He believes Valdez is the safest oil
transport port in the country.

Passenger vessels are also an issue. In addition to security risks,
there is a personnel protection issue. Those ships carry 2,000 to
3,000 passengers. The risk of fire or a grounding is of concern to
the Coast Guard, for which it exercises a high capacity Search and
Rescue Transponder (SART) system. Again, because of the work of a
lot of people, Alaska has a much better posture with regard to the
environmental concerns with cruise ships. Senator Murkowski closed
the "donut holes" with federal legislation last year. On the state
level, the Legislature worked to get a better regime in place. In
addition, the Legislature passed a recreational boating law two
years ago. The boating related death rate has decreased by 40
percent since that legislation passed.

Fisheries remain a big issue for the Coast Guard. The Coast Guard
has had some good operational successes over the last year when
working with the Russians. It is trying to show Russians to see how
the U.S. regulates fisheries and, for the first time, the Coast
Guard brought in some representatives from Russia to appear and
testify before the North Pacific Fisheries Management Council with
the Coast Guard. The net result is fewer incursions on the MBL
(Maritime Boundary Line). The Coast Guard has reached an agreement
with the state to delay openings in high-risk fisheries when
weather conditions require such action. The Coast Guard deploys
helicopters to St. Paul and Cold Bay during the winter fisheries.
The Coast Guard is very proactive on boating safety, including
charter boats and small vessels. The number of SAR cases is slowly
decreasing. The Coast Guard is still saving about 200 to 250 lives
per year, but the caseload is starting to decrease as the result of
prevention efforts.

Regarding the Coast Guard's budget, President Bush and the Alaska
Legislature have been highly supportive of the Coast Guard, which
will see about an 18 percent increase in FY 03. That increase will
not immediately solve the homeland security issues confronted by
the Coast Guard on a nationwide basis, but the Coast Guard hopes to
ramp up to that level over the next three years. About 6,000 people
will be added nationwide, as well as several thousand reservists.

The Coast Guard needs better support in the St. Paul area. Fueling
capability is not adequate. This winter, the Coast Guard had to fly
a fuel truck from Kodiak to St. Paul to refuel its helicopters, an
expensive and unreliable way to do business. Penn Air has always
been willing to help out the Coast Guard. The Coast Guard is
looking for private and public partnerships to address its housing
problem. An ice radar project is coming on line in Valdez - that
will solve a major problem for the Coast Guard. The port was closed
to transits a few days this week because of ice in the shipping
lanes. The Coast Guard has partnered with the weather service in
Alaska so that it can broadcast weather from its high sites, which
increases range by about 300 percent.

REPRESENTATIVE GARY STEVENS asked Admiral Barrett to elaborate on
the housing needs.

ADMIRAL BARRETT estimated the number of housing units needed in
Kodiak is about 200. Congressman Young and President Bush have been
supportive of improving housing. In Cordova, the number is about
30.

CO-CHAIR WILKEN thanked Admiral Barrett on behalf of the committee
and welcomed Rear Admiral Underwood. There being no further
business to come before the committee, he adjourned the meeting at
3:40 p.m.


Senate

02

JASC

11/01/02

1230

ALASKA LEGISLATURE
JOINT ARMED SERVICES COMMITTEE
Susitna Club, Elmendorf AFB
NOVEMBER 1, 2002
12:30 P.M.

SENATE

MEMBERS PRESENT

Senator Gary Wilken, Co-Chair
Senator Loren Leman

SENATE MEMBERS ABSENT

Senator Randy Phillips
Senator Ben Stevens
Senator Bettye Davis

HOUSE

MEMBERS PRESENT

Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative John Harris
Representative Jeannette James

HOUSE MEMBERS ABSENT

Representative Reggie Joule

PUBLIC

MEMBERS PRESENT

Tom Case
George Cannelos
Jake Lestenkof
Dean Owen
Chick Wallace

PUBLIC MEMBERS ABSENT

Frank Love

CITIZENS ADVISORY BOARD

MEMBERS PRESENT

Mitch Abood
Chris Gates
Lance Herrington
Dave Lewis
Gerald Myers
Tom Morgan
Roger Schnell
Mead Treadwell

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