which i do not know has ever been or will ever be settled. you can find studies that talk about how the price of oil is globally determined. it is not determined by the u.s. production. and i think i think the oil and gas companies do pay taxes, in fact i know i do. were some people, is it enough? for some it won't ever be enough and for some it will be too much. host: if you want to learn more about the kogod tax center -- kautter is the managing director there at american university, thank you for joining us. that is it for today on no quote the washington journal." we will see you back here tomorrow morning at 7:00 a.m. [captioning performed by national captioning institute] [captions copyright national

cable satellite corp. 2014] >> news from ukraine this morning -- forces loyal to ukraine's interim government battled pro-russian militiamen today in the eastern ukrainian city of soviansk and four troops were killed and 30 wounded. broke out asghting the ukrainian government moved to regain control in the eastern part of the country. couple of ukraine -- related events to tell you about -- our coverage today includes the center for strategic and international studies hosting a discussion on the ongoing

tensions including the role of nato in the conflict. that is coming up at 1:30 p.m. eastern here on c-span at 3 p.m., state department, treasury, and defense department officials will testify for the senate foreign relations committee on the russian intervention in ukraine live on c-span three at 3 p.m. eastern. bring our viewers up to date on what's happening this week on capitol hill. i am joined by christina marcos. .it mourned to you guest: good morning. host: start with the house expected to come in tomorrow. what is on tap this week? guest: it's a busy week on capitol hill. the house is expected to hold former irs official lois lerner in contempt of congress for her role in the alleged targeting of the irs of nonprofits applying for tax exempt status.

the house will also go -- vote on a resolution to have eric holder appoint a special counsel to investigate the case. the house will also consider a standalone bill to extend the research and development tax credit has championed by the business community. they will also go on a charter school -- vote on a charter school reform bill. host: some of the votes you're --king about it is talking about how some of the boats will play out as the 2014 election looms. you ran through the house for us, what's going on in the senate this week? likely takee will

up an energy efficiency bill shaheen andjoe rob portman. it will expand building codes and train workers in energy efficient building technologies. the biggest hurdle for this bill will be senator david that are from louisiana --vitter insisting on a vote on his measure that would appeal subsidies for congressional staff to buy health care on the federal health-care exchanges. that is causing a lot of controversy. he will onlyng pull the measure of the senate votes on a finding measure to build the keystone pipeline. host: the headline from "the washington post." on on the benghazi

investigation this week? guest: speaker john boehner announced friday that the house would vote to create a special committee to investigate the benghazi attacks in september, 2012. it has been put on his house schedule but there is no official both sets. the house may or may not vote on a resolution to create that select committee this week. host: christina marcos is with "the hill" newspaper. c-span's newest book," sunday at eight," interviews with the top storytellers. >> when martha arrived in berlin was the family, she enthralled with the nazi revolution.

as a surprising thing given what we all know in hindsight. how could you be and scrolled with the nazi revolution but there she was. >> one of 41 unique voices from 25 notes. it's now available at your favorite bookseller. over 35 years, c-span brings public affairs events from washington directly to you, putting you in the room at congressional hearings, white house events, briefings and conferences and offering complete double to gavel coverage of the u.s. house all as a public service of private industry. we are c-span, created by the cable tv industry 35 years ago i brought you as a public service by your local cable or satellite provider. watch is in hd, like uson facebook, and follow us on twitter. >> german chancellor angela merkel was in washington last week meeting with president obama. she then spoke at the u.s.

chamber of commerce talking about u.s.-germany relations and the importance of the transatlantic trade and investment partnership. after comments, she took questions from the audience. >> ladies and gentlemen, please welcome her excellency, dr. angela merkel, chancellor of the federal republic of germany. [applause] [applause]

chancellor merkel, distinguished guests, ladies and gentlemen, welcome to the chamber of commerce of the united states. my name is tom donohue. on the president and ceo of this fine institution. i want to thank you for being here. i would like to extend a special welcome to those of you visiting our headquarters for the first time. oldchamber is 100 two euros -- 102 years old. it is a central rallying point for the u.s. business community. we host several hundred meetings here in this room alone every year. room we are gathered in today, the international all of flights, is rich in symbolism and history. the room takes its name, paul international hall of flags, of the banners of 12 great

explorers who blazed the first pats of trade. they planted the first seeds of commercial and industrial growth in the new world. these flags remind us that the transatlantic relationship has been around for a long, long time. today, we are reminded just how essential this relationship is. a strong u.s.-eu alliance is critical to global stability, peace, and freedom. this has been proven time and time again throughout recent history. changing andalways the transatlantic partners are being tested in new and difficult ways. we face a search of competitors who are vyiong for natural resources, human talent and markets and economic and geopolitical influence. to meet these challenges, we ,ust step up and offer strong

smart, and positive global leadership in commerce, diplomacy, geopolitics, security, and advocacy of our most cherished values. if we do not, others will fill that void. this brings me to our special guest, chancellor merkel. ince she assumed the office 2005, she has not only revitalized germany's massive economy, the largest in europe and the third largest in the world, but has put u.s.-german relations on a sounder footing. just as importantly, she has displayed exemplary leadership on transatlantic issues. in particular, she has been a forceful proponent of the transatlantic trade and investment partnership which we call ttip.

it will set the gold standard for trade and investment agreements. it will ensure the free flow of capital and talent and goods in data and it will ensure a more level playing field by reforming procurement rules, protecting intellectual property and the fostering regulatory cooperation. here at the chamber, we are right with the chancellor on the importance of this agreement. we are pressing for its advancement every day in washington. we will hold for global conferences in key countries including germany to demonstrate the business community's unity on this important ttip. chancellor merkel clearly understands that we need prosperity to pay for security and without security, we cannot have prosperity. ttip is critical to strengthen the economic foundation of our alliance and it is critical to

demonstrating our global leadership. some have suggested that europe needs this trade agreement more than the united states does and that is fundamental nonsense. let me be crystal clear -- america needs europe and we need this agreement for our own economy and to strengthen the partnership that has done more than any other to advance the cause of prosperity, liberty, and peace in the world. the world is watching from moscow to beijing, the actions of the transatlantic partners are being scrutinized very closely. while today's a time of uncertainty, there are some things we can be sure of. we can be certain that when the united states and the eu act together, we make a tremendous difference in world affairs. we can be certain that expanding our commercial relationship is

key to our ability to exert global influence and we can be certain that chancellor merkel will continue to provide real leadership and commitment to a stronger and deeper transatlantic partnership. i had the honor of seeing the chancellor on the opening a of the world's largest industrial fair in hannover last month where she spoke out strongly about this relationship. it is now my great pleasure to welcome her act of the u.s. chamber of commerce. we are all looking forward to hearing her message. ladies and gentlemen, the chancellor of germany, angela merkel. [applause] donohue, ladies and

to bemen i am delighted back in washington today and i'm equally delighted to be here as a guest of the u.s. chamber of commerce. we will look at the fact of how closely the united states of america and europe are linked as it applies to social context and political but also to economic context. our transatlantic relationship arrest sans shared values and on shared interests. we know that only together can theackle and master economic and political challenges in this globalized world. about a quarter of a century ago, the berlin wall fell and the confrontation of the two blocks when the cold war came to

an end and some that the time talked about an end of history thee know it and with crisis of ukraine 25 years after the postwar order is put into question. acceptance ofthe the principle of territorial integrity almost 50 years at the end of the second world war. i am confident that the rule of law in the end will prevail. we need to be in it for the long haul and we also need resolve to pursue our transatlantic aspect ofp in the

common values. ever since the beginning of the crisis in ukraine, both here and the united states together our resolve to stand up for a democratic order for a solution that is in keeping with the rule of law. we think they ought to be able to decide their own future on their own. this goes for the constitution of the country but the social orientation of the country. a solution -- the door to the solution remains open. should the situation be further destabilized, all of the partners in europe and the u.s. will not be weakening in their resolved to adopt further sanctions. i discussed this issue with president barack obama in our talk. the most important event here in the special elections in the 25th of may [inaudible]

which actually take face on the same day as elections of the parliament. free and fair elections can mean a new beginning. a new legitimacy. they can prepare the ground for a process of constitutional reform that includes all ukrainians. whoever wants a good future for ukraine will contribute towards elections on may 25 taking place in a secure environment. contributing through the mission we created for ukraine. it is right the imf, the european union, the u.s., japan have earmarked a substantial financial support for ukraine.

although right now all eyes are on ukraine, we must not forget that the transatlantic ownership also is called upon to bring a -- partnership also is called upon to bring a solution to the iran conflict area did -- conflict. iran in order to do this needs to go beyond abiding by the geneva joint plan of action. it needs to match its words with these. should you ran not fulfill its obligation or insufficiently we continue to stand ready to actually recall the suspension of sanctions and adopt new, even more far-reaching sanctions vis-a-vis iran. we ought to give negotiations a challenge. the civil war that has raged in syria for three horrible years

also calls upon us to stand together. this humanitarian catastrophe has claimed the lives of 140 thousand people already. millions of people have been turned into refugees. the stability of the neighboring countries, indeed of the whole region, has been called into the question and we will not accept this state of affairs. germany is participating in the multinational protection mission that is to destroy the inhumane chemical weapons on the american vessel and the number of the substances will be rendered unusable in germany. we cannot and must not accept the syrian tragedy also because respect for human rights and human dignity -- the individual freedom and rule of law is indeed the foundation on which our countries on both sides of the atlantic rest area this is a foundation that supports us also in those debates.

that should not be put to a test. as regards the debate over the collection of data by nsa countries,and other -- anyone in political responsibility is more than aware that the work is indispensable to secure the safety and freedom of our people but we are responsible for the protection of our citizens against a terrorist threat. we are responsible for attacks against privacy of our individual citizens and that is into and with our shared values of freedom and rule of law and democracy. we all know that there have always been -- they have been in conflict with each other. it is important to strike a balance and redefine a balance between individual rights and protection and security and

safety. this is even more true today with the digital revolution. these two aspects, these components have to be brought and rebalanced and our citizens are expecting us to do so. the state needs to abide by the principle of proportionality. let's be blunt about this. over the past few months, we have seen considerable differences of opinion and of interest between germany and the u.s. over the this issue. i do think that we will not have fully overcome this even after my visit. and we cannot actually come to a reconciliation on this one just by contacts between the intelligence communities. we need to enter a dialogue where we are clear about the dramatic changes and instances of the revolution not only on intelligence work but on the changes that this means for our societies, the way we do

businesses and -- business and politics and initiate a dialogue between our countries, and i am gratified to note this project. we need to be clear in our minds that it is a very ambitious target to tap this potential of the international data flow but to also see to it that we continue to be in a position to protect the freedom of the individual. this is what democracies are about, protecting individual rights, the dignity of man, and the safety and security of citizens. in a nutshell, an end never justifies the means and not everything that is technically feasible ought to be done. we discussed the balance between freedom and security and the rights of in -- the individual. it is a debate that is ongoing back home and here and between europe and the u.s.

despite the differences, i continue to abide clearly by the principal that europe, germany, and the united states could not wish for a more reliable partner respectively than we have ourselves in this transatlantic alliance. the alliance is a private -- of prime importance to all of us and this is the basis for our very close economic operation as well. our relations secure on the whole 15 million jobs on both sides of the atlantic. they are indispensable for our prosperity. german companies alone created more than 600,000 jobs over here and american companies and their affiliates have created 800,000 jobs as of now. the u.s. chamber of commerce is

an eloquent testament to these close integration of our two economic areas. the world has changed incredibly. on the one hand you have more of a political and economic weight of the economies. in the overall framework of the g-20. the economic crisis has impaired progress and growth in the industrialized countries and has a lasting impact. globally we see a strengthening of growth which is something we are pleased about. the imf is expecting growth of 3.6% for next year and 2.9%. this must -- 3.9%. in europe and the u.s., just as in other industrialized countries, we are still facing very grave challenges. this is no reason to be complacent. we have a far too high public indebtedness.

a big burden of unemployment in many countries, especially among the young generation and increasing competition on global markets, and the continued vulnerability of the global financial system. we will only be able to master those challenges if we continue to work closely on the basis of the transatlantic relationships. and the imf, world trade organizations, oecd come a and the framework of the g7. 2007, the transatlantic economic council was established not only on this very important area such did it contribute to a smooth

cooperation between business communities but it proved to be in a way the nucleus of a project that at the time was considered utopian by many. the project to take up negotiations on the transatlantic trade agreement. ever since last summer we have been negotiating and we are negotiating it -- about the transatlantic investment trade partnership and it is a key project of our cooperation. it will draw the two economic areas, europe and the united states, closer to each other and can strengthen both sides of that equation. i am very grateful to you. it is indeed in both our interests to promote this. the european and the u.s. have a close network of free trade agreements with third countries. further negotiations take place with other countries and i really think that we ought to be able to forge a transatlantic free-trade area between us.

i am saying this on our behalf, we want to make this possible until the end of 2015. it would be a clear signal of our resolve to draw down very -- barriers to trade. it would also be an important impetus to the global economy as a whole. it is crucial in this overall context to be ambitious and to be very comprehensive in one's approach. we want to draw down the still existing customs barrier between the european union and the united states that are still in place but they are no longer in keeping with the times trade we want to do more as regards nontariff barriers to trade. they ought to be drawn down over many decades on both sides. there have been a number of standards and regulations that have been promoted and put in place and due to this duplication of regulations on

both sides of the atlantic, that are not benefiting citizens, high costs and to our business community. a german company for example that wants to export machinery to the u.s. today needs to have registered individual components from cables to safety valves and development so that they correspond to american u.s. specifications. in many cases the function of these components is identical. that is the sort of opportunity that is opening up for us to actually free money that then can be invested in the future economies. we must go beyond simply reducing the traditional barriers to trade. this is why we want to liberalize services and public

procurement processes. we want to develop future oriented technologies, innovative technologies, and include as a means more than we have done hitherto. small and medium-sized -- companies have a hard time trying to access the market. for a small or medium-sized bury -- brewery, it is difficult to sell their beer. i am tempted to say that you do not know what you are missing due to that. ladies and gentlemen, looking at the negotiations of ttip, we not only concentrate on boosting competitiveness, it is important to feature those [inaudible]

those in gainful employment and on both sides also benefit. a joint transatlantic area will lead to lower prices and a broader range of products. for example under the auspices of the transatlantic economic council, we have been able to come to an agreement on mutual recognition of environmentally sound processes. trade has been made much easier due to this. many citizens in europe just as in the u.s. have been following negotiations for ttip with a critical and somewhat skeptical eye. these negotiations can only be brought to a successful conclusion if we show a high degree of transparency and also if we try to enlist the support and participation, so it is important that both partners to the negotiations have made it

clear that a free trade agreement will not lead to the drawdown of rules that protect the interests of consumers, of people who work, and the environment. also the has to be some kind of leeway for future regulation because it is not the aim of this free-trade agreement to give a prominence to the interests of companies vis-à-vis the interest of citizens. the aim is to learn from each other, to be in close dialogue, perhaps promoting new standards that go a long way toward improving the standard of living of citizens of both sides. if we are able to do that then we will also be able to, the two of us together, to set standards for the environment and protection. we have power that we can wield in global communications. our partners in the wto are

watching our negotiations with great attention. i can only assure you that our aim is and remains to come to as comprehensive a drawdown of their years, we have seen that bilateral negotiations offer -- of barriers to trade and of the bilateral negotiations offer better opportunities. i am convinced that any progress we make in ttip will not only reduce prospects [inaudible] but increase it. there seems to be a new kind of spirit in wto. there was a large share in the success that was possible in bali.

it's not as if our bilateral agreement with leaders to neglect bilateral intentions. trade policy can only be one building block of a comprehensive strategy to release the forces for growth in our countries. four other areas need to come into play. first, public budgets need to be put on a sound, sustainable level. the debt crisis we have seen in the euro area has shown us very clearly that durable prosperity can only happen on the basis of sound fiscal policy. in coping with the crisis in the euro area beyond any doubt, we have made important progress. we have adopted rules for a stable monetary union and important support programs for countries in need and building up a banking union of the european level. we now at the same time that the european crisis, the sovereign debt crisis is not yet overcome, at least not in a lasting way, the mistakes that were made more

than 20 years ago when the european monetary union came into place have not been completely addressed. we have to continue to work on this and our objective needs to be we must never see such a crisis repeat itself and again -- itself again. this is a long lasting exercise in europe and our partners outside of europe such as the u.s. and japan. i know part of your public -- this is part of your public debate. both europe and the u.s. are facing great challenges. the labor market, it the educational area, creating the most positive environment for investment. we need -- the task is the same. rendering our companies of holding their own in global

company vision. europe and america can benefit a lot from each other and can learn a lot from each other. europe and the u.s. -- germany can learn from the u.s. in terms of giving seed money to innovative companies. i am please that apparently the good affairs we have made with our training scheme has been looked at very favorably here by the americans as well. what is also important to see is and achieving a secure supply of affordable energy. we are interested to work together with the u.s. here. the ttip negotiations ought to give us an opportunity to deepen our energy cooperation. in europe when we look at the crisis in ukraine, we also think about how we can make ourselves more independent of unilateral energy supplies and gas delivery from russia.

the transatlantic mentorship also offers great opportunities. we are duty bound to make global financial systems more resilient particularly in the g 20. we have made great headway. there are a number of areas where we still have considerable need for further reform. i am much interested in seeing regulation, bout on the shadow banking sector. we need to also do more on regulations where we see to it that any financial institution that gets into difficulties and irrespective of its size can actually be [inaudible] wound down without taxpayer money. you have made enormous strides here and we have made some progress. this needs to be continued. all of these foreign and security policy challenges can only be mastered if we act

as together. the transatlantic partnership is and remains also in future the crucial key to peace, freedom, security, and prosperity for all of us. it is particularly in this year, 2014, that we are more than aware of this fact. 100 years after the beginning of the first world war, 75 years after the beginning of the second world war, and 25 years after the fall of the berlin wall. we must never forget what a treasure for both peace and freedom, for peace in freedom, what a treasure this kind of venture is and we feel committed to cherish and nurture this treasure politically and economically in germany and america. this is what this great transatlantic partnership is all about. thank you for your attention. [applause]

>> that was wonderful. now we have a great chance to answer a few questions, and i will start to give everybody a chance to get settled. i really am very interested for message from you on the practical things that the business community in this country and the business community in europe can do on their own to go out and drive us closer and faster to this agreement. >> well, i think that at the end of the day, the business

communities to feel committed to this aim. -- do feel committed to this aim. i have been assured of support i have seen [indiscernible] this in tech as well but how can companies which those people who see so much concern, who are skeptical so i would ask you to talk to their own labor force and asked the companies to talk to their own labor force and bring home to them who actually in the world already has such a trade agreement and what benefit they can reap from this. they are not aware especially in the asian area that indonesia has and free-trade agreements with china. there are many others of this kind. we need to make it understood that we are not trying to cut down certain standards that have been achieved with a lot of work

over time. we are trying to secure the future of what as we know it jobs as we know it in our countries. it would be important to talk to trade unions in germany about this because they are able to do quite a lot for people they talk to. go out of the box if you like and not meet only with your own people because they all know your viewpoint anyway, but go outside, go and talk to the public. bring this to [inaudible] the wider audience. and companies have a hard time. they are looking after their own and their own interests. we have seen that in negotiations with korea. that is also the case with japan. what will this mean for us if the south koreans are able to penetrate our markets and so on. it is interesting that there is this south korean trade agreement.

the german automotive suppliers has an enormous growth rate. to south korea. the other bit of what they feared has come to pass and that is what the industry in general needs to see. we made the experience that sets free-trade agreements revive business. >> we have been told i our labor unions that when we negotiate that we should negotiate labor standards that are like the european standards. we have been telling the labor unions we have got that done now so support this agreement. and we will continue to remind them. so one more question and then we'll go to the audience. in

recent days in meetings here and meanings we have had with others, we talked about the fact -- the effective the circumstances in ukraine on the negotiation of this trade agreement. will it compete it or will it stimulate it and perhaps even move it faster? >> it's not going to get any more difficult. whether it is easy is something the jury is still out on. on energy, i think you may well have a positive effect, actually. that is where i see possibly the greatest benefit. we're currently talking a lot about what sort of lessons do we learn and particularly here in

washington, i understand you are talking about the next sanctions, the next possible step. we ought to join forces. we were saying we want to ring -- bring about a good solution. for the ukrainian people. sanctions can never be and then itself but we should not underestimate present sanctions already taking effect, have an effect. they have an effect that goes far beyond the sanction proper because right now, corporation with an economic areas such as russia, which basically seem to be moving up, getting more intensive than getting better is called into question and the question of whether a company would invest in russia into the future, that is something that now they would have to -- second thoughts about.

we in europe have imposed sanctions that have taken effect and work for six months but in europe there will be a rethink on their own energy supplies. they do not want to continue to be 100% dependent on russia. it may well be that the long-term looking at the energy supply also in the united states, we may well have much closer cooperation with you. people have to be told if we do not have a free trade agreement it will take a very long time before we can have the first deliveries of liquefied natural gas and when we have a free trade agreement, -- this could go a long way toward convincing european countries. >> thank you. this is a very unique sitting arrangement because usually i can see over the lights.

because of the price -- press, we have extra lights. we're going to have to put you on your best honor. i can see you. who would have the first question? going once. you had better put your hand up or i will start the next question. thank you. when you stand up you introduce yourself and where you are from so the chancellor might know what you really want to ask. [laughter] >> i will do it in german. i come from berlin. thank you for your keen words on ttip. there were discussions as regards lowering of standards and other issues mentioned that

is something that is talked about back home and the lack of trans parents he -- transparency of those negotiations. this scheme is discussed at a very controversial matter back home. what is your viewpoint on this? >> we reacted in a very reserved way in regards to a particular area of investment protection. it has been blown a little bit out of proportion. that in a way stands for something that we need to do, we need to do more. we can do without this if it is not needed. if it is not needed we need to do it. there are individual components

taken up by people who are skeptical, who want to use this by proving that something that is dear to our hearts back home, it is in many ways impaired by this agreement. if you talk to people about free trade agreements we have with other countries, that goes a long way toward addressing such skepticism. we must be aware that during the whole of these negotiation process, people will tend to highlight different aspects and explained there is something horrible happening. we need to be transparent and explain more. negotiations cannot be happening at an open stage. one has to protect one's own interests as well. one should not be too secretive about it either. so that people are worried about our holding something from them.

again try and say there are other trade agreements and tell people you were fearful than but these fears were not justified. >> the history of sanctions are pretty clear. sanctions are truly multilateral. there is a chance of success. if sanctions are unilateral, companies or countries often tried to game the system to win temporary advantage at the expense of the companies that are under great restrictions. where we stand today is the u.s. has more strict sanctions and other countries. how can the united states and

germany be on the same page with the same sanctions so that we have a chance to really make a difference with truly multilateral sanctions where the major countries have the same restrictions on their companies so that there is a chance to move forward? >> well, after all, we try to coordinate very closely. there are very different sort of situations in place in europe and the u.s. but we have been able to align our policies pretty well. what is the difference? we are not talking about companies now. we are talking about sanctions against individual persons, the american laws are different than those in the eu. in the uu we can impose sanctions on persons that have direct responsible -- responsibility for what is happening on the peninsula or

what is destabilizing. in regard to iran we have always been shot down by the courts when we went too far in their minds. we are currently working in the eu on such a legal framework and trying to broaden that somewhat and making it somewhat similar to what you have in the united states. secondly, in europe, we have 28 member countries. we have to come to unanimous decisions over anything that we plan to do. the impact that sanctions have also by way of repercussions are very different. if you talk about possible financial sanctions, germany is not particularly affected. if you talk about energy sanctions, germany is a little bit more effect it.

-- affected .in europe we have an interest if matters come to such a pass that we need to go further that we have a mix of sanctions where each and every country is -- suffers little bit. not one country suffering a little bit and not one country suffering at all. we have worked with russia and we give them credit lines and also european bank investment. we could take a moment and think whether we should not do certain changes as regards the way we treat russia. that is something the u.s. is not able to do. there is not 100% alignment between what we do but there has to be some kind of fair balance. that some companies are affected 100% and some not at all.

the eu is tearful and preparing work and looking at that aspect on the whole, trade between europe and russia obviously is much more closely developed then trade between the u.s. and russia. >> shall we go to the side? we shall move back here where they seem to have people with more questions. how much time do we have? back there. >> i am a russian journalist. i'm hearing from my friends who work in germany that the business trinity is against sanctions. -- community is against sanctions. they do want to go to saint petersburg and take heart in the

next meeting. what do you -- art in the next meeting. what do you say to your own community? >> i think -- i do not know if that is the case in any other parts of the world. people who want to do business and that is what the business community is about. i am not among -- exactly longing for sanctions. some people are also against sanctions against iran. that is true now for russia. all of the top ceos of the business community and industry have said if that is the case if you decide on that than we will abide by your decisions and the community knows this. although they have envisaged a different kind of relationship. if two years ago you had asked me whether we would discuss such

issues today i would have said that is not very probable. one needs predictability. and one needs certain framework conditions for investments. so many in the business community, i cannot talk obviously reliably on their behalf but many of them are aware that reliability and the basic acceptance of the european postwar order, namely territorial integrity, is a very important thing and the business community in doing business cannot completely neglect that. they are open and the possibilities are there. let us work together with russia for the elections taking place in ukraine on may 25 so ukrainians are in a position to decide their future course of their country themselves and we do not need to introduce her their sanctions.

-- further sanctions. no one is longing for that. do you think politicians like to talk about this? we cannot just sit back and watch. basic principles that ought to be prevalent in europe are being brought into question. and since the first sanctions have been actually suspended against iran, the german business community was happy. it would be a strange community that is longing and working for sanctions. the business community, should we have to impose sanctions, will abide by them. >> i wanted to add that in the u.s. we hear from many of our companies the same thing the caterpillar representative said. it should be balanced and there should not be people taking advantage during sanctions. people understand that if we do not deal with this challenge in an orderly and a broad-based

way, we will deal with lots of other more difficult challenges. i believe as the chancellor said, that the leaders of the american business community will rally around this collaborative approach to dealing with the problem in the ukraine, and we will make sure that they do. we think we can take one or two more. someone else. right there. someone is bringing you a microphone very quickly. thank you. >> thank you. i am with the european union delegation. as you have seen yesterday, there was the report [inaudible] datadesta on big commissioned by obama that was

just released in the report goes much beyond just the question of intelligence, of course, addressing what can we do with this data, what are the challenges and opportunities for our economies and our societies. i would like to have your views about how do you see the future in this area, also in cooperative terms of both sides of the atlantic on how can we strike the right towns between privacy and security on economic opportunities? thank you. >> thank you. i believe that the current debate in the u.s. has actually already taken effect. the american president issued a presidential order making a few changes and now the question is obviously what does this mean for citizens outside, people outside of the u.s.? the interim debate has shown first results. i think it is a good thing that between germany and the united

states, there is a good thing that a cyber-dialogue will take place. we will look at a data management and questions, how do we use the data, what sort of attacks are we open to and vulnerable. in europe we have to admit we have the following problem. we are developing a lot of these health technologies -- these technologies. those that are behind those, the drivers of this particular line of technology are either in asia or more importantly even in the u.s., so we need to find ways to be in a position to give our only -- our own contributions to this technology and it will be easier for us also to set standards and how to use them. it is easy to make best possible use of such technologies and in

the end complained that there is not some kind of standard that governs how they are used. we need to be out there developing our own. there needs to be a dialogue on this. the foreign ministers will walk on this. --ill personally be involved >> we are now going to take the last question. we will go to the side. back there. >> i am marjorie krause. i was interested in the comments about energy security and how those efforts are moving forward, and i understand what is going on is going to help in the longer-term. i wondered if you could comment

on any shorter-term phone abilities that europe will face -- vulnerabilities that europe will face until some of the new terminals and pipelines, online that will create a better path for energy security in the future. >> it is not actually for the first time that in the context of ukraine we have been working on the better and more secure energy supply and better connections within europe as regards hype lines. a few years ago, we already had a first gas supply crisis. they were difficulties between russia and ukraine in wintertime. slovakia did not receive any gas. at the time, we said we will explore these -- the phenomenon of reverse flow which enables you to also supply countries with gas that may not directly be connected to the pipeline.

we have tried to take measures that will avoid such a situation recurring again where other countries are cut off from supplies. someone is doing that sort of scheme right now. due to -- we have also tried to supply ukraine because there is a possibility of this reverse flow barrier. 50% of deliveries to europe from russia come through the ukraine so there is a high dependency there and we are closely linked because we have a gas storage tanks in ukraine which in summer needs to be replaced so that -- in winter, you have sufficient gas to supply europe. have to look at the individual dependence of individual countries. we have 37% dependence on gas. six countries are 100% dependent.

there are other european union members were more than 50% dependent. we have to increase the building of the terminals. we have a so old frame other -- we have a so-called framework on the energy package. even an owner of a pipeline will not be allowed under that scheme to use the pipeline only for his own gas, but there are certain features of that capacity that he can use for his own supply come but the rest has to be tendered for a public bidding

process to take place, and you have to see that others use the pipeline so there is not a monopoly. this leads to russia being interested in seeing the pipeline being used more from russia, and there is one measure we have taken. these negotiations were stopped on how they can be used by russia because we said we want to see the political progress before. we have done something and we are going to continue to work in that direction for a five- to 10-year plan to think how to do this. also, a polish proposal of also developing clout regards consumer position. we have individual contracts with russia for individual member countries, but we can also pool our markets which will then render a stronger consumer and call for uniform gas prices to europe. it is a broad range that goes from $300 to $490 per cubic meters come and that is the same

gas supply that is sold to individual countries by individual companies. >> chancellor, we have a lot of questions. this has been an important visit you have paid us. we are very anxious to know when you will be coming back. the sooner you come back, the sooner we can keep pushing this forward. we want to thank you very much for visiting. i want to thank you very much for your very candid and very helpful comments, and we want to thank your colleagues and your associates for everything they did to help put this event together. we look forward to seeing you again very soon. [applause]

>> coming now in about 10 minutes the pacific air force herbert carlyle -- carlisle will be speaking. the first major electoral class since 22012 -- clash and 2012 and the parties that was meant -- have met.

about the senate governors and house races around the country from this morning's washington journal. >> back again is nathan does all is to talk about the 36 races taking place in 2014. before we get to the specific races please set for us how many governor mansions are democrats defending and how many mansions defending?

he want to follow along in the segment on race ratings as we discussed the 12 races you can we're going to go through several of the states in the segment. we will start with targets for democrats as they are a top three here. maine, pennsylvania and florida. elected in 2010, and indicate in -- paula paige started by getting lesson 40% of the vote. this time, democrats are trying

to avoid the same thing. democrats really feel like he's in a better position to consolidate that democratic support than what their nominee was last time. eliot cutler, the independent, is running again. we'll see if he tends peaks another term without having to get that speaker. right now, a businessman and tell more is a front runner. he is self funding. he went on the air earlier with that. allyson schwartz goes on the air. we'll see if she can close some of the cap. host: a lot of reports say this is possibly the most endangered governor in the country. reports say this is possibly the most endangered governor in the country. why is it that way? polling numbers are low.

he is suffering from democratic voters and even republican voters. he was attorney general during the penn state scandal. atmanaged to handle things the private level. maybe governor quinn illinois, who i'm sure will talk about, some of the numbers are battling for that most vulnerable position. he is definitely near the top. scott., governor rick he is facing former governor charlie crist, a former republican governor of the state, now running as a democrat. it will probably be one of the most expensive and nasty races in the country. it is one the democrats really want. ever since a katherine harris 2000 president election days, symbolic oflmost what both parties want to win.

it was--versus kind of one of the beginning fights between the establishment and the antiestablishment crowd within the republican party. the independent is trying to get elected very i think democrats are excited that he is on their to take this back in and you are in the very extensive state -- a very expensive state. he sees this as a passing back to higher office. as we do, we are opening up our phone lines. open, 202

nathan gonzales at the rothenberg political report. republican top targets. >> i think the first one is arkansas. republican senate primary, but the front runner is former republican asa hutchinson. there is a recent democratic poll last week that came out where president obama's job approval rating was 33%. is a lot to overcome, even in a gubernatorial race, which is sometimes separate. she's a very credible candidate. i think is hoping that a popular .overnor host: do they overlap in congress at all? guest: they did some.

mike ross just left a couple of years ago. they're both trying to claim that outsider mantle. emocrats are charging -- host: you mentioned illinois before is one of those endangered governors out there. what happening in the illinois race? polling ispublic slim. he has been struggling. he was a surprise winner in the 2010 10 cycle. to win.ple expected him the primaries are already over. a guy named bruce rounder is very wealthy here democrats are hoping to make that an issue in the race. it is up to quinn. we counted quinn out in that a national election. the clicky wasn't even going to win the democratic riemer in this cycle, but he won the

fields. it is one of the republicans tiltingin tossup democrats category, the main race were talking about, a question on the race ratings. how do you rate a race? >> it is not a magic formula. we take as many factors into consideration as possible. it is a mature polling, public polling, private polling, we look at fundraising. we take that all into consideration. also, the national atmosphere has a play. gubernatorial races used to be more separate from government -- from federal issues. now we're seeing some of that come together in the national environment. get closer to election

day, it is all about polling and >> we need to figure out what comes next in 2018, 2000 19, 2020. work to identify the spectrum that needs to start right now. reference the projections. they are staggering. that between now and 2018 the demand for mobile wireless will increase eightfold. traffic will increase between now and five years from now groovy would say we need new roads.

>> what is next for the wireless industry, tonight on the communicators and 8:00 eastern on c-span two. you can now take c-span with you wherever you go with our free c-span radio app for your spot own or tablet -- smartphone or tablet. the schedule of each of our networks, so you can tune in whenever you want. podcasts afteray our signature shows. download our free app. here on c-span would take you live to the center for strategic and international studies in washington for the first and two events that we will cover here today.

be herbertone will the air talking about force chatterjee in the asia-pacific region -- prodigy .n the asia-pacific region the joint chiefs will be up on capitol hill. they will be testifying before the armed services committee. that will be tomorrow, live on c-span three at 9:00 a.m. eastern.

>> testing, testing. good morning. welcome to the center for strategic and international studies. i'm the director of our national security program on industry and resources here. it is my pleasure and privilege to welcome me this morning. -- you this morning. please remember to turn off your in the room,ere those of you watching on video and do whatever you want. when we get to the question time, remind you that we are using note cards. we write a lot here. we can get you a pen. cane of you on the web

dbateau, with your questions. our guest this morning is herbert carlisle. every level,ed at squadron cogo group, wing, numbered air force. he has done a number of rough assignment, including two liaisons with the u.s. congress which what i would think is the most dangerous assignment we can give. i had the privilege of running colonelram when

carlisle was a star student at the maxwell school. we have asked them to present you this morning, and then we will turn it over in a dialogue with him and dr. michael green. is our japan chair and the senior vice president of our asian team here. then we'll take questions from the floor. i look out at this audience and i do not think we will have trouble filling the time of questions this morning. without any further ado, please welcome general herbert carlisle. [applause] good morning, it is great to be here. hopefully everybody can hear me ok. i appreciate this opportunity. talk your chief little while ago, just about a --th ago, so i will try to

he covered the air force at large the bible talk significantly about the asia-pacific area and to be honest, i have not changed the slide and it should say into asia-pacific. indo asia pacific. the term we say is we have hollywood to bali wood and penguins to polar bears. the other thing i would like to do is thank michael and david here afterme to come mustache march was over. mine was embarrassing, i have tried to burn pictures, but i did not do well. i appreciate not having to have that when i was here. some people have not figured out that yet. [laughter]

this topic, i will do a couple of things, but i'm looking forward to your questions. that the time i have spent in the asia-pacific time of the century for the united states. the asia-pacific century for the united states, and everybody knows the importance of the asia-pacific to the future of the united states. i do not think it can be overstated. whether it is the economic, the trade type of and is everything that is incorporated as a part of that. things as simple as the tpp that is not necessarily temple but the transpacific partnership. the economies that are addressed in the asia-pacific region, some of the largest economies in the world, china, united states,

japan, india, russia, that speaks to its importance. also the trade of the amount of commerce that goes through the re. i will try to cover all those things in the ways that makes sense to folks. as i said, what i will do to start with is doing over give --r -- do an overview here wait, we are not there yet. living.rplanes for a [laughter] i cannot work a clicker. we will leave it here, and hopefully will get to the next light soon -- slide soon. issues we're dealing with, we will start in tappa and worker way

further south and west. area and work our way further south and west. in the challenge for us asia-pacific as well as europe. we have had a conversation a week and a half ago for about two hours. it he is not having a lot of fun, as you can imagine. what russia is doing in ukraine and crimea has a direct effect on what is happening in the asia-pacific. we have long-range aviation, and increasing in those areas depicted in green, theumnavigating guam, number of long range aviation patrols have gone around the japanese island as well as korea have increased drastically. there has been a lot more in the way of ship activity as well. the combination of things is to demonstrate the capability and cases to intel and in

work with the japanese and korean allies. we relate a lot of that to what going on in ukraine. versede is pretty well in what is going on in coria. -- korea. what they have done with their missile program and the nuclear test. there are missile launches and space launches. of the entire family and the purge within the government. talking to all of the strain and that

tension is as tight as it has ever been. --s it appears to be giving it appears to be getting worse to us, and more of a challenge. there are a couple of things that have happened in the east china sea, and one of that is that it was declared sovereign by trying them -- by china. ways, and us in three it was done with no consultation close nations in the proximity, not with japan, not north korea, they just developed this. the rules they operate in do not follow international law, they are not consistent with international norms. and finally, as part of the declaration, there was an undefined threat. it is basically follow our rules and do what we tell you to do, and we have brought -- the right

to use special defensive measures. it has not been defined, but it has been laid out there. we see that as a challenge. agents the potential for -- very have today open with our allies about how that is not a good idea, and it needs to be in consultation with their neighbors and other countries. where ita point also overlaps, and there is a triangle with the republic of korea, japan, and china all overlap. a disputed territory between china and the republic of korea. is disputedthat between china, japan, and taiwan.

it is something we think about just about every day. the number of territorial disputes go from the islands all overall reef -- scarborough reef. you can see these disputed territories, and read about how they are being solved. any ofe on it is that those disputes need to be solved in a peaceful manner under international rules. aggressiveve and behavior of nations is not the best way to sell those and we continue to reiterate that. you can go through all of the disputed areas as we walked down there. this is also the new fisheries law that also takes about 200 square kilometers in the south china sea and applies a fisheries law to with which means that any fisheries that

come into international waters have to get clearance through the regulatory commission. the other challenges we face and we counter piracy, have a fairly successful move in the streets of the streets of milan go with multination support out of singapore. we have cut down drastically the number of i receive tax within the straits of malacca, but they are also an ongoing challenge. there is unrest in bangladesh, unrest in burma and myanmar and what that will look like as they continue to make progress is a stable nation. the political turmoil that exist in thailand between the --ential for prime minister the prime minister and the cabinet.

distance is the term that we like to use in the pacific, that you could do it every land mass of the planet in the pacific ocean and still have room left over for another north american continent and african continent. it is a challenge in and of itself. you also have the ring of fire, and it is not a question of if there will be another natural disaster but when and where. like the great east japan earthquake and tsunami, or the typhoon in the philippines or earthquakes in indonesia. wherever it occurs. we have learned and we believe that the united states, as we face these challenges, that we're required to be closer with our allies and partners. as we face sequestration and

budget restrictions, that the importance of this part of the world is critical to the united states. we need to have more presence as we continue through this. this is going to be a long briefing if we have to late for the flights -- have to wait for these slides. that has several engagements that we are participating in. i think it goes to the point of use thatthat we often as a statement that virtual presence of actual absence. we have to be forward in this area, and we have to engage. about 400 2014, different engagements in the , andpacific region

everything we are doing. you can probably almost see it up there, but if you see a line from alaska down to anderson over to why back up to alaska, that is commonly referred to as the strategic triangle. it is u.s. soil that dotson to do pacific that allows us to engagement and everything we need to do as we protect and the -- project into the pacific region. heard some of the things that have happened recently, we are doing a force posture initiative to engage with australia, where we will have at a rotational presence there. we just signed the enhanced defense cooperation agreement with the philippines. we have resins in singapore that we operate out of. we have continuous engagement with thailand, and we continue

to do that. we're not building any more bases in the pacific, we will not build any more bases in the pacific, but we will have a rotational presence. the in the gray days of cold war we had a program called checkered flag where we went take stateside-based units and locate them in europe about every 18 months to two years. do that andng to becoming successful about doing that in the asian pacific region. units rotate every two years through the pacific rate this is an example of some of the places we are doing that. have bilateral exercises with the japanese. we also included a minute. ,ssistance in that exercise new zealand will participate in that. we will continue to move further

west. rimpac will happen july of this year with 26 nation, including the people's republic of china. right now we have about 180 54 this year him and we have about 200 left as we move on. 185 for this year, and we have about 200 left as we knew move on. i will not spend a lot of time on this but this is what we call the three by five strategy. the objectives of our national command authority allows me to

do these things. access to international environments both air and maritime. security in the region, and defend u.s. interests and our allies. hats, which means that everything that flies into the pacific theater is under the pac, 52% of the world is an area to be defended. those five lines going across of the five things that i have to be able to do every day in order to meet with the national command authority

expects me to do. spirit of incorporation is that we would you expect -- is exactly what you would expect, everything you do to maintain access and good relations and the ability to operate with our friends, partners, and allies. missile defense goes to the air defense commander, and this is one of bothers me every day. the largest this'll arsenals in the world are russia, china, and north korea in that order. most of the more pointed at either us or our friends and allies. the ability to defend against is a hugele attack challenge. you can see what north korea does even today with respect to their growing missile arsenal. public protection is our commitment to mobile vigilance -- global vigilance. get assets in place and ours,

not days, to be able to provide for intelligence, surveillance, reconnaissance, to be able to provide motility -- mobility. lexical -- flexible c2 , we have not had to worry about commander control of our forces. 80 feet off the ground we have on. and now that is not the case. it will be contested in a variety of ways. the number of calm satellites that exist in the asia-pacific region is paltry compared to anywhere else in the world. job on top of that tonight communications, and integrated environments. how do you go from centralized

command to distributor control? you control the forces that you doe in the field and decentralized execution to meet the commander's intent and stay inside the decision live of your potential adversary because you cannot operate faster than he can. in theairmen that exists pacific theater, they are the greatest asset this nation has. they will dazzle you everyday. one job and life is to make sure they're taking care of. to make sure they are durham and their families are taking care ken care of, and so are their families. our ability to engage, training exercises, subject matter exchanges, our ability to do all

of those things. combat capability is hard so how do you do that? sure that theke dollar you spend that gives you the most capability because you may not have another dollar to spend. today i believe that we have more mission than we have money, medicare, or time -- manpower or time. our ability to focus our efforts to get the most out of everything we are doing with the time that we invest has to be to give us the greatest capability. the air force aerospace, how do we integrate those across them? hi integrated air missile defense? i do take advantage of the still life forms -- how do we take advantage of the stealth platforms, and in its integration amongst us and our allies? when the industry leans -- the

35, andans bought the f the japanese are going to buy them, how do you integrate with those partners? i do bring them to the greatest capability you can integrate and operate at the same time? we will get to questions here shortly. people's travel photos is not everybody's greatest time. you do not want to do this, but i will just go through some pictures of things we have done. it is indicative of the engagements we're doing in the asia-pacific. another general and myself. we visited china in the fall of this year, it is the first chief of staff visit in the last 15 years. it was a great engagement, it was enlightening, it was construct it, it was the stance

in china in 2009 and i have not and back since. i was dazzled by the changes. it was amazing. if there's any doubt that chen is on the rise, there should not be. it is obvious. we got to see a lot of their military operations in the cities that we visited that large. there is also a level of we had a chance to meet with the head of the air force central military commission, one of the four virtues of the air force -- a former chief of the air force. at the end of the day we walked away saying that the military forces have the opportunity to upgrade significantly more in

] he to each other. and calculation is great, to deal with that friction we must do better to matters that friction. we do not want something like another island incident that happened before. it was a great visit, we got to see a lot of the equipment, and spend a lot of time with their military. it is obvious the nation is doing extremely well. a closey, australia is partner that we fought closely with in world war i. it is an amazing partnership, if you look at what they have for their nation. they have named a new defense chief for the air force of

australia. that is good for the united states government have a great relationship with us. many nations were represented, all of our allies, and many of our friends and partners from throughout the region. it was incredibly valuable. those are a set of twins from a guy named flight officer mobs be. he was australian pilot that flew with the 90th squadron out of toppling the getting -- poppel in new guinea in world war ii. the rest of the flight got silver stars, he did not. his family petition for that, and i was able to award the silver stored to his two daughters. they never got to meet him, they'd were born about six months after he deployed.

our relationship illustrate leah is growing shorter although time. with australia is growing stronger all the time. a great visit. was very of staff opening and welcoming about the entire country was. they were noticeably appreciative of our efforts to engage with them. there are legal ramifications, and things we have to watch by law with what we can do with the vietnamese. there are many areas were "that relationship -- where we can grow that relationship. it was incredibly productive. we are looking at some of the i had somesets and training environments that we're looking at the 10 chile helping him with -- looking at helping them with.

the pacific angels are events ,here we take doctors, dentists that marion, and go to places that need some help. we do huge medical engagements, engineering engagements, and that is as valuable as we bring in the host nation military and government officials to grease their bills ability with their own population -- increase their visibility with their own population. thailand, another of our treaty , this is the trilateral exercise with singapore, you the united states, and thailand.

finally, this is the symposium. have 14 pacific air achieves that met me in hawaii and then we headed to the south united , incredibly valuable. 14 air chiefs from around the region. uppericture in the right-hand corner, and the picture in the bottom left is the boneyard. a tremendous engagement, a tremendous opportunity to spend time with them. , thei would tell everyone thesis of the basis of this whole talk is as we face budgetary problems that we have and we see sequestration and those things him a our relationship with our friends, partners, and allies have to be closer. we need a greater understanding of each other's challenges,

and operate closer and closer as we move forward. the take away that i will leave you with, and then be more than happy to answer your questions, the rebalance in the pacific, it is alive and well. i know people talk about is it actually happening, it has happened. the amount of engagement we are doing has gone up drastically. emphasis, whether it is the president's trip, secretary hagel, secretary kerry, it is certainly an active rebalance that has happened. exercise ofncel the indians were going to participate in and that was a devastating blow to me.

that is something we regret still, but they're going to participate in one and fy 15 and so we are continuing. i think we have managed it as best we could. into 2014, we are able to go back into the full engagement scenario and set up that we had to shrink the footprint of a little bit because of the reduction in the budget. overall it is going well, the key is relationships. that, it is from experts,atter exercises on the grand scale to smaller exercises and everything we do. that is it. i appreciate your attention. that i hope i finish speaking before you finish listening. i look for to answering your questions. thank you very much. [applause]

>> while they are moving the podium, if you have written question, raise your card. them,n as you have they will get them to us. i will turn it over to dr. green. >> thank you very much. we will be posting the general's slides on our website. busy,as a very robust and but not too long, agenda for engagement. it prompted me to ask first a broad question about the culture and philosophy as the air force . in the 90's you had this idea elegant presence.

at times the store canadians like the air force has approached forward presence and engagement with a little more distance than some of the other services. but what you're describing is quite depressed. could you put this in the store context of the ways the air force overall? history andgo to my what i grew up with and then where i see it today. it is when i mentioned with the checkered flag mentality. here,is some of this in but when we were stationed and it was torough, figure out where your forward operating rotation was and what gapd happen when the occurred. and the air force was the key component to that. taking on the same kind of model in some ways, more about engagement, security and stability, and forward residents

and goes to the actual presence rather than virtual presence. bases, but more places. our ability to cooperate out of places in the philippines, singapore, thailand, it is that rotational presence. see, thee will drawdown in europe as to go as -- asas a possibly go it possibly could go. the main bases operate today, and it is the same thing. our presence will maintain the newest technology that they have so far. bases will stay at the robust stations of their at now

-- that they are now. we will do it today with theater security packages, and we will do the same thing in the future. force isition area air one that we have been working continuously some hiccups with it and it should not have gone as it did. viable in they asia-pacific and part of that is distance along that. my navy brethren and they do incredibly great things for us, but the trouble in days when it takes us hours. you have to be there rapidly and have the ability to respond, and sometimes hours makes the difference. >> let me try to put a little fuel on that interservice rivalry, and note that the

admiral of the naval symposium, when they reached what could be a significant agreement on how to handle unintended incidents at sea. that it doesunced not cover the south china sea. that was a pretty impressive outcome for the russian naval symposium.im -- what kind of confidence living measures could you foresee coming out of these kinds of f discussions? thee talking seconds in air, not minutes, days, or hours. >> part of the reason we are in interaction. it was a constructive visit in many ways.

when you look at what happens in isa today, and whether it scrambled in response by the we have manyty, airplanes in close proximity. one off the korean finance law -- and then slow where we had forces within close proximity, and the only reason people who knew everybody was us. we're trying to work on that to increase the information sharing so we have a common picture. that is one way we can start a dress and work on that, and picked her -- and work on that .ommon picture notification for something out , all of thosey

things we're working on to , since there is the increased potential for miscalculation. >> how do we integrate with our allies and partners particularly with high-end partners like japan or japachina? operating is more expensive. how do you foresee integrating these for alliances and partnerships and recognizing their political sovereignty. the capabilities are becoming network, or should be network. thing we'rene working on is going from bilateral to more lateral. we had the red flags were we get

world will -- where we will get multiple flags. the republic of korea deployed fighters off the peninsula for the exercise that was the first in a while. we had all three platforms working together which is unheard of resenting -- resenting this picture =-- picture.g this some of the most recent announcements and equipment they're going to procure makes it easier. the symposiums, we get a lot of understanding and some of the information passing in exercises for how it is great to talk about it but actually to try to do it is better.

you have civil public of korea and the korean peninsula. we have looked at that incorruptibility and that information sharing. rossa, youtinuous never finished that we got to keep working at it. you can never say we are an operable. you always have to work on it and continue to do it. i think some of the things we're doing with respect to engagement exercises and wargames am a we're getting better at it does become forward. a project across our regional programs in federated defense great when your budget is not growing, when the technology is more complicated,

not much of an opportunity to get more deterrence for your capabilities,ed do we have some hard questions? >> the questions have been pouring in, including those from viewers on the web. a whole series of questions about china. about howomments rapidly they have moved forward and how we engage with them. are they really an expansionist power or are in fact based reasonable guard their flank? int do you look for

terms of signals? that is the broader question , what you look for in expansionist tendencies versus cooperative tendencies? >> if you look at the declaration, if you look at the the aircraftof carriers, if you look at their mission actions at some of the exercises they have done that have gone significantly farther out to what they call the second island chain, and they have continued to expand their ability to operate farther and farther away. time in theall the south china sea with their ability to operate further and --ther south very with the south.

the territorial disputes are ones that we have concern over. the ability to solve that in a withinl manner international norms, that is one that we clearly think about. we have not really delete gill -- the legal basis line, i amine-dash not sure of the legal basis for that. china isa look that continuing to move to be able to solve those disputed islands. concerningt of it is with respect to what they are doing. on the same hand their engagement, they are participating in -- this year. they just have a