[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] : this week on "defense news," the ambassador to the ukraine on growing russian aggression, and the balance of f-35 funding and production. welcome to "defense news." i am jill aitoro. the pegasus tanker has been cleared for production, proving among other things, it can refuel at -- an f-16 and a can of the moon and taken fuel from akc 10. the tests were delayed after they struggle to deliver fuel to have your aircraft. while the one was able to -- while bowing was able to design a path that contribute to better fuel flow, there was a delay. 18 tankers were delivered

august. tensions between russia and the ukraine have reached their highest level since russia annexed crimea in 2014. with ukraine ordering troops to be on the highest level of readiness. russia accusedr the ukraine of watching military attack in crimea. to find out more on the state of tension, i spoke to the ukraine ambassador to the u.s., and i asked him, how has the conflict .nvolved in the last two years valeriy chaly: we approach it the attempt to maintain the international border. anynt to remind you compromise was with a friendship with russia, and all compromise, would not lead us

russia is not the tension. it is the occupation and the territory. the u.n.country's in reject this attempt, and still we are at front for a restoring international law. unfortunately from my point of view, there is compromise -- a compromise, but not enough of a position of international community -- community by means. means leavematic russia open to another attack on the eastern part of ukraine. the main problem -- which means should be used to restore international order, territorial integrity? are -- maybe it is good. it was one of the reasons

we have lost 10,000 in the region, and the ukrainian people are asking us what we should do, what we plan to do? that is why i also want to ask the international community will we need to do additionally to stop russia from this occupation of crimea. jill: we had an interview with a defense analyst recently from iscow said the basis of this advocating for russians in ukraine. how do you respond to that claim? once again, i wanted to bring attention to the situation, not only the last two years, but russia has tried to push ukraine to have a carrier of nuclear weapons in crimea.

any plans to do it -- we rejected any plans to do it. now, unfortunately, we have some information that russia planned and did some things to have the possibility to use a nuclear weapon in this peninsula. that it isemind close to the european countries, and we are concerned that it is not controlled, frankly. we can have another threat of using this nuclear carrier, and for one day, 24 hours, to bring the weapon to the territory of ukraine. using are responsible to weapons. i want to remind you of the georgia russia conflict. it is not only about tensions once again. it is about the violation of human

norms, everything. territory. faces forget it could now, the ukraine still stands on the very front position supported by the united states that crime area is, was, and will be -- crimea is, was, and will be a ukrainian territory. jill: what kind of response did you get on the united states? mr. chaly: there was immediate response from the president, barack obama, the state department, and congress. specialpted many projects. have not only clear position, but also the very important role of the united states. to

observers, participation in the so-called election. so, we appreciate that we are satisfied that this is staying in focus. when you return, more from my conversation with the ukraine ambassador. you are watching "defense news'' mr. chaly: somehow it felt like everything was moving in slow motion. if i didn't react, things could have gotten messy in a hurry. i mean just got that sweet ride with a great rate from navy federal. i was not about to let anything happen to her.

just looking out for my wingman. he's still in training. open to the armed forces, the dod and their families. navy federal credit union. jill: welcome back to "defense news." -- more with my interview from my interview with valeriy chaly about increased aggression from russia. i asked him what he thought russia was hoping to accomplish by accusing ukraine of a terrorist attack in primary -- crimea. mr. chaly: it is a continuous information work, continuous attempts to blackmail our

partners, mostly not in the net states, but europeans -- the united states, but europeans. i remember the same situation before the negotiations. diplomatic ways to discuss this issue, and russia tried to avoid responsibility, and has not proposed other this to go to next steps for implementation of the peace plan. i think it is like -- it would be good if it did, but another expert says that russia is preparing its next full-scale operation. it is not only this information preparation -- i can remind you of the same situation when, unfortunately in the european territory of world war i and world war ii, they also went through such preparation to accuse someone of a terrorist attack. the

planned to use crimea. me,nderstand, and believe when russia puts military troops on the territory, tries to make a military base, they have intelligence -- it is simply impossible. russia plans to pay for terror in the ukrainian territory. that is a problem. so, it's attempt to make another side responsible, but it is impossible, because we see and responseiate a firm from the state department, european partners. so, i think i have failed in this situation. unfortunately, we see that russia, sometimes, before negotiations, tries to make higher the position and use of military means. it was

where mr. putin said you were surrounded by military forces, and in this position tries to lead negotiations. no. no chance, because not everybody understands. russiaect response from and putin. second, russia needs to go further to secure possibility for political means, and the two hird to stop and propose full-scale war. jill: what do you predict will be ukraine's response as the tension, war intensifies. which respect from the ukraine and its allies? mr. chaly: with the ukraine should do now is an promilitary capabilities,

proof military capabilities. combinationronger in terms of intelligence. it is easy to understand this is blackmail, attempts to accuse ukraine. everybody understands, we need to exchange information. we need to be prepared for any development of this situation. it is relative to the 21st century, and russia's approach in geopolitics. what we need to do also, we stand against the violation of human rights, including crimea. the ukrainian state now even goes further. we are ready, and president poroshenko mentioned -- i believe they will go back to this territory and i believe this

-- will lean closer to europe. we mostly pay attention to development. development, and make the ukrainian territory more traffic for everyone, including some people in -- more attractive for everyone, including some people in crimea. salaries,think about and they say the ukraine was the key in not proposing this -- now they understand this was not true, and russian propaganda will not change it. so, once again, we are not thinking about militarizing, but continuing diplomatic ways, developing the economy, anticorruption measures, and making the rest of the ukraine attractive for people. and at the same time, we applied for the international course. now when the

will fight for crimea, but in any case, we will stop russia. but can you imagine what would be sacrificed if a nuclear power decided to go further? we further need international solidarity, support, including two of our capabilities. jill: henry returned, valerie incentive speaks about the latest in f 35 funding and production. you are watching "defense news."

jill: the come back to "defense news." recently, lockheed announced they funneled $1 billion of its own money into f-35 production, and defense news reporter valerie insinna asked jim hasek of the atlantic council how common it is for the defense coming to further their own dollars?

money in as a defense contractor is an unusual things. one of the things about being in that business is that the government, not to -- not just the u.s. government, but for averments as well, basically take care of your working capital environments. this is not wholly unknown and commercial airspace, of course. you get advanced payments from customers, but it is very unusual for a defense contractor fund that kind of money. of course, the joint program, if we're talking about putting together working capital, it is going to be that kind of size. i understand it is an unusual occurrence, but does that illustrate a larger trend? mr. hasek: i think we should hope it is not a trend, and we can also be confident it is not a trend. here is why -- the joint program office and lockheed

been at an impasse about pricing, terms and conditions about lots nine and lots 10 of reduction. negotiations have been dragging on for months. we're not entirely sure of what. if the government and lockheed want to keep producing like they do, someone has to pay the suppliers. without another arrangement, the money was going to have to come from somewhere, and lockheed decide they did not want to play a game of chicken with the government, so they came up with $1 billion. mentioned, the pentagon announced they had given lockheed about $1 billion to pay back and reimburse some of those expenses. or normal is that, and is anything unusual about that payment? is unusualwell, it only because the impasse in the contract negotiations were unusual. it was going to be difficult to expect lockheed to do this again if the contract negotiations

back-of-the-envelope math, and think about how the program wants to buy about 50-something strike fighters this year, and excluding the engine, that is a $100 million airplane. that is $5 billion worth of airplanes. the parts alone are going to cost you more than $1 billion, so lockheed was not going to be able to put out that kind of money again. the company's cash position at any one time as may better than $1 billion, but not a lot. this is a big deal for the company. do you think the fact that the pentagon decided to front this money to lockheed -- does that signify the negotiations might stretch out quite a bit longer? it depends on close to a proes

the program was getting, and because we do not have details of how much money was sent to each supplier and which supplier might have been on a critical path, it is hard to know. we know the air force, the navy, the royal navy, a bunch of other customers, very much one he's just. -- these jets. lockheed wants to produce these jets. it is about one quarter of lockheed's future -- financial returns. a deal is going to get done, but it was not going to get done that way, so someone was going to have to come up with cash. the u.s. government, unduly, has $1 billion lying around from time to time. locking requires a lot of management. valerie: that makes a lot of sense. $1 billion is quite a bit of money, even a big portion of what they estimated, anywhere from $14 billion to $15 billion. does the size of the contract -- does this signify that the advance

getting bigger, or, again, is this another one-time occurrence? i hope it is a one-time occurrence. i think it is a one-time occurrence because of the impasse. you have to member the government was going to be making these payments. what is unusual is not the money was sent at all. it is going to be sent to pay for parts and suppliers. what is unusual about it is it had to be done in this undefended ties sort of way, or exactly, a promissory note that we will figure things out later. there are probably fly-by-night operators that you do not want to do that with. you know, if you are thinking about supply chain management as it discipline, you don't put lockheed martin in that category. they are good for it. as many complaints of people might have, the planes might get built one way or the other. moneyon this week's minute, jeanette mac

how to use a certificate for short-term savings goals. jeanette: you often hear about the importance of saving long-term, but what about saving for your short-term goals question a saving certificate offers higher rates than a savings account, which mix it more attractive if you have a big purchase on your mind, or maybe you have other short-term savings goals, like buying a new car, or a vacation with your family. determining the goal will help decide what rate and term works best for you. a little research is what it takes. most banks and credit unions office of the that range from a few months to five years or more. most require a minimum requirement to start saving, but saving a good amount -- setting a good amount of time -- aside let's your certificate grow. if you can, continue to deposit up until you think matures, increasing your return in the end, and that way you'll be able to reach your goal and then some. jill:

we' i've been a soldier for 3 years. i've scaled the toughest terrain and faced plenty of my fears as part of my training. and for the past two years i've been a navy federal member. so even out here i can pay securely with mobile pay linked to my free checking account. i don't know about this, it's ... [screams] what did she say? she said "i don't know about this." i couldn't hear over my helmet. your ears are completely exposed. mm-hmm, yeah i just ... open to the armed forces, the dod and their families. navy federal credit union.

jill: welcome back to "defense news." the air force recently declared initial operational capability for the-35 fighter. kalerie insinna asked jim hasi of the atlantic council how significant a milestone is that. mr. hasik: it is absolutely a milestone. it is not the first service to declare this. when we talk about for operations or for combat, i agree, but it is a fighter jet, so if we are talking operations, we hopefully are talking about the potential for combat. i do, however, think, all that said, that it is a little bit of a stretch to suggest well, now, they could be sent to syria, where they could be sent to the south china sea, or wherever, to face a potenti

lane has not quite its last software block just yet. we have pilots that are trained to fly it, but they have not been operating as a squadron for a large -- long period of time. it is an initial capability. i think what this really signifies is that a squadron of operational pilots, not test goots, have been released to play with the plane, figure it out, not through a scripted test regime that had to hit certain milestones, but in a way that sets go out and try to figure out how this thing is really going to work in combat. they are going to get there. they are eventually going to declare a full operating capability. this is an important milestone along the way. we shouldn't think we are going to cf-35's in combat just yet. valerie: how combat kimball is that

when will we see these used in combat operation? mr. hasik: last year in november, they tested the gun. that is probably the last part of the airplane that is useful. if you are having to use it, -- it is like a bayonet on a rifle -- have to use it, something has on wrong. a few things have been integrated, but it does not have the full panoply of capabilities that a commander in an air operations center would want to -- in to a fee is tasking go into if he is tasking to bomb targets. the fact that isis doesn't have an air force or really any kind of air defense force means the low, observable qualities of airplane are not going to be essential in a middle eastern scenario. unless they were worried about ground fire from syrian's

anti-aircraft or tangling with the russians -- they are supposed to be our friends in this thing, so that probably is not a huge issue. it would be nice to have it along, but you have to consider the possibility, that as with a 22's that had gone over to syria earlier, you are exposing an airplane that is a secret ace in the hole, it has capabilities that are hard to observe. you don't want the russians following along very closely. i printed it is going to be a little bit of time before we see these on operational deployment. it is going to be, even potentially, a matter of years. valerie: so, you know that the f-35 has to first a long, rocky road to me this milestone. i know you everything about it in the past. can you talk about some of the long-standing challenges this program has had? mr. hasik: in some ways, the biggest one has been the affordability of the plane, and that would gets a little trite after a while, but the budget in real terms is

predicted it is going to be anything but that. this airplane is much more expensive to produce than the airplanes that it is replacing. it is much more expensive to maintain and to repair than the re--- airplanes it is replacing. it is a heck of a lot more capable, but that has been a big issue. now, within that, there have been all of these technical challenges as well, right? the engine, the ejection seat. and with the navy version, there was a bit of an embarrassment. all of these problems seem to have been, more or less, result. you would not be at a point where you were declaring i'll see if they hadn't and more or been-- ioc if they hadn't more or less resolved. that does not mean they are done with the aircraft. they are still developing the last block of software. that gets us back to the point of the long-term challenge is going to be the operation and maintenance budget, and getting that to a point where it looks more like an f-

an f-22. valerie: that brings me to my next question in a great way, general carlyle has said he would like to see more f-35's get bought faster, and that is not scheduled until the early 2020's. you think it is a good idea to buy these faster to drive down the price? one buys: so, when things faster, we drive down the price of the individual aircraft, but there is not necessarily lower amount of money being laid out. the question here, not if the general was saying, but as the secretary was saying a few weeks ago, not about the f-35, but about another airplane --an attack aircraft, one for replacement of the a-10 -- it is a lovely idea, but something ha

the -- budget. that applies for the f-35 as well. you have to figure out a budget offset. there is money line on the table for the government, particularly for the aircraft -- air force. they think they have, far too much my basic the structure. they would love to shut down some airfields. could that playing -- pay for the airfields -- could that pay for the airplanes? i think that could pay for some of the airplanes. reducing the infrastructure burden on the force --in long ways finding ways to reduce the operations and maintenance budget -- that is twice the size of the air force procurement agenda the moment. that is a bit of an issue. reefing back and operational activities overseas, that is another way to find the money, but that is a political question, and difficult to get into. jill: that is all this week for "defense news," and be sure to watch next week when we dig into what some consider to be a fighter pilot shortage of the air force. i am jill aitoro. thanks for watching.

[music] >> dr. charles stanley: being a god-called person or being a godly person doesn't mean that you're gonna be perfect. none of us are, never will be, but here's the difference. a godly person is going to immediately admit, confess what's happened, repent of it and if they need to go to someone else and deal with it and say i need to ask you to forgive me, they're going to do it. >> male announcer: next on "in touch", "obedience in the life of the believer". >> announcer: join us during the program and follow along with the sermon notes. go online to intouch.org/followalong where you can create your own notes and access the integrated bible verses from today's message. >> dr. charles stanley: the first lesson on obedience is