STATEMENT ON THE
DEFENCE CAPABILITIES INITIATIVE

1. We reviewed the implementation of the Defence Capabilities Initiative(DCI). Launched at last year's Summit in Washington, this initiative isdesigned to ensure that the Alliance has the capabilities required to meetthe security challenges of the 21st century across the full spectrum of theAlliance's missions. Recent operations, especially in Kosovo, haverevealed the need for improvements in a number of areas, particularly inNATO's ability to move forces quickly where they are needed, to supportthem as long as necessary and rotate them as required, to provide them withthe means they need to fulfil their missions properly and to ensure thatthey are better protected, and to enable them to communicate and operatesmoothly and effectively with one another. DCI sets out specific stepsthat the Alliance as a whole and the Allies individually must take toimprove our defence capabilities and to enhance the interoperability of ourforces.

2. We are strongly committed to the success of the DCI. Achieving itsobjectives will also strengthen European defence capabilities and theEuropean pillar of NATO, so that European Allies will be able to make astronger and more coherent contribution to NATO. It will also improvetheir capability to undertake EU-led operations where the Alliance as awhole is not engaged. The EU's Headline and Capability Goals and theobjectives arising from DCI will be mutually reinforcing. In addition, theInitiative will improve the ability of Allied and Partner forces to operatetogether in NATO-led crisis response operations. We therefore welcome andencourage our Partners' improvements of their military capabilities in linewith the DCI.

3. We received a report from the Chairman of the High Level Steering Groupcharged with overseeing the implementation of the Initiative. We welcomethe progress the report shows. Early examples include progress in thefields of strategic transport, air-to-air refuelling, precision guidedmunitions, air defence, exchanges of information on multinationalformations and work towards the harmonisation of defence planningprocesses. The Initiative has given added impetus and direction to theefforts of the nations and of the Alliance as a whole towards achievingthose improvements that are most urgently required. We welcome the reportsthat nations have provided on how they are approaching DCI. These provideclear evidence that Allies are taking the Initiative into account in theirnational plans. We note with interest the recent US Defence Trade SecurityInitiative, we will examine it and look forward to the positive effect itmay have on the enhancement of transatlantic defence industrial co-operation.

4. However, there is still much to be done, and a greater and prolongedcommitment will be essential if substantial capability improvements are tobe ensured. Nations bear the main responsibility for the implementation ofDCI. All Allies must stand ready to provide the resources necessary toachieve DCI objectives through the most efficient use of availableresources and where necessary the provision of additional resources. Themost efficient use of resources will require, as appropriate, thereprioritisation and/or reallocation of resources, increased use ofmultinational, joint and common funding (including contributions in kind)and other efficiency measures such as pooling and sharing of resources aswell as co-operative procurement. We believe that multinationalarrangements will provide the most viable solutions to some of the moreexpensive current capability shortfalls, while also enhancinginteroperability and facilitating the participation of all Alliedcountries. In this context we welcome the continuing adaptation of thecommon funded programmes to Alliance security requirements as set out inthe new Strategic Concept and the Defence Capabilities Initiative,including improvements in resource management.