WEBVTT -  Former US Defense Secretary Lloyd Austin Talks Middle East Conflict

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Welcome to Lloyd J. Austin, former US Defense Secretary and

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<v Speaker 2>co founder and CEO of Clarion Strategies. Secretary Austin, thank

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<v Speaker 2>you for speaking with us. Just this morning, President Trump

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<v Speaker 2>called for Israel and Iran to seize their fighting. What

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<v Speaker 2>does a continuing war in the Middle East mean for

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<v Speaker 2>US defense capabilities?

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<v Speaker 1>Well, certainly we would like to see this cease for

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<v Speaker 1>ourhold so that we can get negotiations completed and then

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<v Speaker 1>we can get the straight open again. I mean it's

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<v Speaker 1>important to you, not only to the United States, but

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<v Speaker 1>the entire global economy, and so the sooner we can

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<v Speaker 1>do that, the better. And we can't get there until

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<v Speaker 1>we stop stop fighting. So, as you know, Lebanon or

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<v Speaker 1>Israel has been attacking hisbela in Lebanon, and yesterday Ran

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<v Speaker 1>voiced its concern by launching an unprecedented attack on Israel.

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<v Speaker 1>Is a part of this, and Israel has responded. But

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<v Speaker 1>we'd like to see that tamp down so that we

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<v Speaker 1>can get on with the business of negotiating the agreement.

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<v Speaker 2>What are the military options to reopening the Strait of Horneys.

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<v Speaker 1>Well, certainly the United States Navy could could open a

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<v Speaker 1>straight for moves and holding it open for a long

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<v Speaker 1>period of time and would be UH would be pretty costly.

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<v Speaker 1>And so we'd like to see an international effort if

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<v Speaker 1>if that's the case, if we if we get it open,

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<v Speaker 1>we want to get allies and partners involved in that,

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<v Speaker 1>because freedom of navigation is not just important to the

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<v Speaker 1>United States of America, it's important to the entire globe.

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<v Speaker 1>You know, every country on this planets has an interest

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<v Speaker 1>in making sure that they can sail the seas and

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<v Speaker 1>fly the scot International skuys as they should be in accordance,

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<v Speaker 1>should be able to in accordance accordance with international law.

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<v Speaker 2>We spoke of an international effort. Europe is in the

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<v Speaker 2>middle of the two wars waging right now in the

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<v Speaker 2>Middle East as well as in Russia and Ukraine. Are

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<v Speaker 2>European nations doing enough and fast enough to increase their

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<v Speaker 2>defense capabilities.

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<v Speaker 1>What we're seeing in Europe right now is significant investment

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<v Speaker 1>in their own defense capabilities. There are a number of

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<v Speaker 1>countries that have increased their spending, and we see countries

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<v Speaker 1>far exceeding in some cases the UH the expected two

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<v Speaker 1>percent of GDP investment and so I'm pretty optimistic about

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<v Speaker 1>the direction of travel here. It'll be important that Europe

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<v Speaker 1>continue to work together. The country's worked together in Europe

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<v Speaker 1>to create a capability that allows them to operate on

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<v Speaker 1>an interactive basis going forward. So again, the investment is exciting.

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<v Speaker 1>It'll take the industrial base sometime to be able to

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<v Speaker 1>ramp up to create the kind of capability that Europe

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<v Speaker 1>believes it needs. So we're looking forward to that.

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<v Speaker 2>And how important is NATO for America and what's America's

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<v Speaker 2>involvement in it going to look like you think going forward?

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<v Speaker 1>Well, as you know, NATO is the most successful defensive

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<v Speaker 1>alliance in the history of the world, and you know

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<v Speaker 1>we have we have an interest in a transatlantic cooperation.

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<v Speaker 1>Europe has an interest in transatlantic cooperation, so it's important

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<v Speaker 1>to both of us. I am hopeful and somewhat confident

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<v Speaker 1>that NATO will not only sustain itself but continue to grow.

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<v Speaker 2>And do you think America needs to rethink its strategy

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<v Speaker 2>of having troops on the ground in Allied countries given

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<v Speaker 2>there is an increasing America first policy and the conflicts

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<v Speaker 2>are so global right now.

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<v Speaker 1>Well, each administration will assess its force posture and continue

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<v Speaker 1>to make adjustments as it sees fit and their opportunity costs,

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<v Speaker 1>you know, in whatever you do, and so it's always

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<v Speaker 1>kind of balancing the scales there to make sure that

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<v Speaker 1>you have the right capabilities in the right places. And

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<v Speaker 1>again I won't speak for the administration, that's something that

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<v Speaker 1>they'll do on a day to day basis.

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<v Speaker 2>Are you worried that there's an increased chance of China

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<v Speaker 2>and waiting Taiwan because of US vulnerabilities as it fights

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<v Speaker 2>the war in the Middle East?

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<v Speaker 1>I think, you know what we've seen as a result

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<v Speaker 1>the summit that was conducted in May, I think, you know,

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<v Speaker 1>there's probably less risk of escalation going forward here in

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<v Speaker 1>the near term. Having said that, there are a number

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<v Speaker 1>of things that we're going to have to continue to

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<v Speaker 1>work on with respect to our relationship with China. I

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<v Speaker 1>don't think that President she wants to take Taiwan by force,

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<v Speaker 1>That's my belief. I believe that if he could do

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<v Speaker 1>it through coercion and uh uh and demonstration of military capability,

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<v Speaker 1>that then he would he would do it that way.

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<v Speaker 1>If there's a fight in the in the Taiwan straight

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<v Speaker 1>or in the vicinity of the Taiwan straight. It will

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<v Speaker 1>have a much greater impact on the global economy than

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<v Speaker 1>what we've seen with the illustrate of hormos.

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<v Speaker 2>And what did you make of Secretary peat Hegset's D

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<v Speaker 2>Day anniversary remarks calling an immigrant invasion in Europe.

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<v Speaker 1>I don't have any comments on Secretary these uh remarks.

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<v Speaker 1>What I would say is that our European allies are

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<v Speaker 1>important to us. They've always been important to us. The

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<v Speaker 1>sacrifices that our troops made on D Day UH many

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<v Speaker 1>years ago, UH, I think set an example for the world,

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<v Speaker 1>and we remain grateful for uh. You know what what

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<v Speaker 1>allies and partners did as a part of that that

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<v Speaker 1>great effort. And so you know, we we honor that

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<v Speaker 1>that sacrifice each and every year. UH and and again, UH,

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<v Speaker 1>I am very appreciative of what our allies continue to

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<v Speaker 1>do for the United States of America.

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<v Speaker 2>And you know, speaking of the military, Secretary Headset is

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<v Speaker 2>also reported to have removed women and people of color

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<v Speaker 2>from promotional lists in the Army and the Navy. What

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<v Speaker 2>is the message you think that sends about the US military?

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<v Speaker 1>Certainly I leave it to the secretary to really playing why.

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<v Speaker 1>You know why he made those moves. All of us

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<v Speaker 1>serve at the discretion of the president and UH, and

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<v Speaker 1>so why those moves were made, I guess I won't

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<v Speaker 1>try to I want to try to comment on that.

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<v Speaker 1>I would just say that you know, we value, We've

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<v Speaker 1>always valued the the contributions of our of our officers.

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<v Speaker 1>They are the best in the world. We've seen that demonstrated,

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<v Speaker 1>certainly most recently as our military has has performed in

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<v Speaker 1>UH in impressive fashion. And that's it's performed that way

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<v Speaker 1>because it's been led by some very competent men and women.

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<v Speaker 1>I think our country has long regarded the military as

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<v Speaker 1>being the closest thing to a meritocracy in this country,

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<v Speaker 1>and I would hope that it remained that way again.

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<v Speaker 1>As you as you developed in groom officers for certain positions,

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<v Speaker 1>you want to select the best available talent, and I

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<v Speaker 1>think that's been done over the years. UH and UH.

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<v Speaker 1>When you lose that town, that talent, it takes a

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<v Speaker 1>long time to replace it. You know, the experience that

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<v Speaker 1>those those men and women have is I mean, there

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<v Speaker 1>are people will step up and assume assume those positions,

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<v Speaker 1>but but I think you know, the loss of those

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<v Speaker 1>people certainly has an

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<v Speaker 2>Impact Secretary Austin, Thank you for your time, Thank you

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<v Speaker 2>for joining