Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: Welcome to Lloyd J. Austin, former US Defense Secretary and
Speaker 2: co founder and CEO of Clarion Strategies. Secretary Austin, thank
Speaker 2: you for speaking with us. Just this morning, President Trump
Speaker 2: called for Israel and Iran to seize their fighting. What
Speaker 2: does a continuing war in the Middle East mean for
Speaker 2: US defense capabilities?
Speaker 1: Well, certainly we would like to see this cease for
Speaker 1: ourhold so that we can get negotiations completed and then
Speaker 1: we can get the straight open again. I mean it's
Speaker 1: important to you, not only to the United States, but
Speaker 1: the entire global economy, and so the sooner we can
Speaker 1: do that, the better. And we can't get there until
Speaker 1: we stop stop fighting. So, as you know, Lebanon or
Speaker 1: Israel has been attacking hisbela in Lebanon, and yesterday Ran
Speaker 1: voiced its concern by launching an unprecedented attack on Israel.
Speaker 1: Is a part of this, and Israel has responded. But
Speaker 1: we'd like to see that tamp down so that we
Speaker 1: can get on with the business of negotiating the agreement.
Speaker 2: What are the military options to reopening the Strait of Horneys.
Speaker 1: Well, certainly the United States Navy could could open a
Speaker 1: straight for moves and holding it open for a long
Speaker 1: period of time and would be UH would be pretty costly.
Speaker 1: And so we'd like to see an international effort if
Speaker 1: if that's the case, if we if we get it open,
Speaker 1: we want to get allies and partners involved in that,
Speaker 1: because freedom of navigation is not just important to the
Speaker 1: United States of America, it's important to the entire globe.
Speaker 1: You know, every country on this planets has an interest
Speaker 1: in making sure that they can sail the seas and
Speaker 1: fly the scot International skuys as they should be in accordance,
Speaker 1: should be able to in accordance accordance with international law.
Speaker 2: We spoke of an international effort. Europe is in the
Speaker 2: middle of the two wars waging right now in the
Speaker 2: Middle East as well as in Russia and Ukraine. Are
Speaker 2: European nations doing enough and fast enough to increase their
Speaker 2: defense capabilities.
Speaker 1: What we're seeing in Europe right now is significant investment
Speaker 1: in their own defense capabilities. There are a number of
Speaker 1: countries that have increased their spending, and we see countries
Speaker 1: far exceeding in some cases the UH the expected two
Speaker 1: percent of GDP investment and so I'm pretty optimistic about
Speaker 1: the direction of travel here. It'll be important that Europe
Speaker 1: continue to work together. The country's worked together in Europe
Speaker 1: to create a capability that allows them to operate on
Speaker 1: an interactive basis going forward. So again, the investment is exciting.
Speaker 1: It'll take the industrial base sometime to be able to
Speaker 1: ramp up to create the kind of capability that Europe
Speaker 1: believes it needs. So we're looking forward to that.
Speaker 2: And how important is NATO for America and what's America's
Speaker 2: involvement in it going to look like you think going forward?
Speaker 1: Well, as you know, NATO is the most successful defensive
Speaker 1: alliance in the history of the world, and you know
Speaker 1: we have we have an interest in a transatlantic cooperation.
Speaker 1: Europe has an interest in transatlantic cooperation, so it's important
Speaker 1: to both of us. I am hopeful and somewhat confident
Speaker 1: that NATO will not only sustain itself but continue to grow.
Speaker 2: And do you think America needs to rethink its strategy
Speaker 2: of having troops on the ground in Allied countries given
Speaker 2: there is an increasing America first policy and the conflicts
Speaker 2: are so global right now.
Speaker 1: Well, each administration will assess its force posture and continue
Speaker 1: to make adjustments as it sees fit and their opportunity costs,
Speaker 1: you know, in whatever you do, and so it's always
Speaker 1: kind of balancing the scales there to make sure that
Speaker 1: you have the right capabilities in the right places. And
Speaker 1: again I won't speak for the administration, that's something that
Speaker 1: they'll do on a day to day basis.
Speaker 2: Are you worried that there's an increased chance of China
Speaker 2: and waiting Taiwan because of US vulnerabilities as it fights
Speaker 2: the war in the Middle East?
Speaker 1: I think, you know what we've seen as a result
Speaker 1: the summit that was conducted in May, I think, you know,
Speaker 1: there's probably less risk of escalation going forward here in
Speaker 1: the near term. Having said that, there are a number
Speaker 1: of things that we're going to have to continue to
Speaker 1: work on with respect to our relationship with China. I
Speaker 1: don't think that President she wants to take Taiwan by force,
Speaker 1: That's my belief. I believe that if he could do
Speaker 1: it through coercion and uh uh and demonstration of military capability,
Speaker 1: that then he would he would do it that way.
Speaker 1: If there's a fight in the in the Taiwan straight
Speaker 1: or in the vicinity of the Taiwan straight. It will
Speaker 1: have a much greater impact on the global economy than
Speaker 1: what we've seen with the illustrate of hormos.
Speaker 2: And what did you make of Secretary peat Hegset's D
Speaker 2: Day anniversary remarks calling an immigrant invasion in Europe.
Speaker 1: I don't have any comments on Secretary these uh remarks.
Speaker 1: What I would say is that our European allies are
Speaker 1: important to us. They've always been important to us. The
Speaker 1: sacrifices that our troops made on D Day UH many
Speaker 1: years ago, UH, I think set an example for the world,
Speaker 1: and we remain grateful for uh. You know what what
Speaker 1: allies and partners did as a part of that that
Speaker 1: great effort. And so you know, we we honor that
Speaker 1: that sacrifice each and every year. UH and and again, UH,
Speaker 1: I am very appreciative of what our allies continue to
Speaker 1: do for the United States of America.
Speaker 2: And you know, speaking of the military, Secretary Headset is
Speaker 2: also reported to have removed women and people of color
Speaker 2: from promotional lists in the Army and the Navy. What
Speaker 2: is the message you think that sends about the US military?
Speaker 1: Certainly I leave it to the secretary to really playing why.
Speaker 1: You know why he made those moves. All of us
Speaker 1: serve at the discretion of the president and UH, and
Speaker 1: so why those moves were made, I guess I won't
Speaker 1: try to I want to try to comment on that.
Speaker 1: I would just say that you know, we value, We've
Speaker 1: always valued the the contributions of our of our officers.
Speaker 1: They are the best in the world. We've seen that demonstrated,
Speaker 1: certainly most recently as our military has has performed in
Speaker 1: UH in impressive fashion. And that's it's performed that way
Speaker 1: because it's been led by some very competent men and women.
Speaker 1: I think our country has long regarded the military as
Speaker 1: being the closest thing to a meritocracy in this country,
Speaker 1: and I would hope that it remained that way again.
Speaker 1: As you as you developed in groom officers for certain positions,
Speaker 1: you want to select the best available talent, and I
Speaker 1: think that's been done over the years. UH and UH.
Speaker 1: When you lose that town, that talent, it takes a
Speaker 1: long time to replace it. You know, the experience that
Speaker 1: those those men and women have is I mean, there
Speaker 1: are people will step up and assume assume those positions,
Speaker 1: but but I think you know, the loss of those
Speaker 1: people certainly has an
Speaker 2: Impact Secretary Austin, Thank you for your time, Thank you
Speaker 2: for joining