First is the evolution of the U.S.-Japan security relationship itself into something that is now more approaching an active alliance. You see this in the guidelines for defense cooperation and in PKO activities. These are developments that make interoperability, e.g., not just a somewhat academic concern, or a matter of common hardware, but go across the spectrum of planning, connectivity, what are referred to as C4I communications issues, as well as common equipment. The second development is, of course, the decline in defense budgets. Particularly in defense acquisition budgets in the U.S., in Japan, and among our NATO allies as well.
Fewer resources make ideas of autonomy in defense production and development unrealistic.
Finally, you have changes in the structure of the defense industry. Major consolidation of the U.S. defense industry is now largely completed. There is ongoing consolidation of the defense industry in Europe. There is also more commercialization of defense procurement. The barriers between the defense and commercial sectors, in access to technology, research and development, and manufacture, are much lower than they used to be.