host: we want to welcome dan blumenthal with the american enterprise institute. a couple of weeks ago you had this in the "the washington post," "what to do about north korea." this is before the developments over the last couple of days. you said that we would support military action against north korea missiles and missile sites if we had prepared ourselves over the past few years to protect our allies against possible north korean retaliation. can you elaborate? guest: well, yes. we referred to what former secretary of defense perry and current undersecretary of defense ashton carter had written in the washington post a few years ago. right before a missile launch by the north koreans. and they advocated a strike we basically took the position that that would not be responsible right now because of the retaliation that the north koreans could take if we did strike them. host: i want to share with you and with our audience one of the many photographs from the "baltimore sun." it's an a.p. photo in south korea as they watch the news developments of two u.s. citi

. >> i know you said no comments, but i can't help, i am compelled to take issue with dan blumenthal's comment about designing things for export. as a company that lost one and a quarter billion dollars designing something for export that nobody wanted. the only way that our industry is going to make it in this internet, tough international business environment, is selling the stuff that the customers want and they don't want second great stuff ,-com,-com ma which is what the indians are currently getting from the russians. >> declared by my point i don't disagree. i don't disagree with you at all. my point is that we have an fms export system designed for the cold war that has to be upgraded. obviously, because we are moving into an era of war where we want arbors to be strong and have equipment that makes them strong, but i don't take issue with the fact that it has to be what the customer wants. i'm thinking of the f-22, for example, which is just, you know, which is just a tragedy in a way because we have these, all these restrictions from years past. we can't export an airplane, a

and for cleanup is dan blumenthal who's a resident fellow here in aei in asian studies. dan was the senior director in the office of secretary of defense for the office handling china, taiwan and mongolian affairs and is a long time serving member on the u.s.-china economic and security commission. since we only have about an hour, i've asked our panelists to speak for about eight minutes, which should leave us plenty of time for follow-up questions and discussion. but again, as danny said when we do turn to questions, please identify yourself and try to make it a question. so if that is an introduction, susan, you're up. >> good morning. i'm pleased to be here with a distinguished panel and certainly with the american enterprise institute, a private sector perspective on defense and security cooperation. having just returned from india this past weekend i can attest to the growing importance of u.s.-india discussions with respect to indian industry and an indian industry both including the public sector undertakings the psus as well as the enterprise to deal with the mul