Tuesday, April 29, 1997 9:00 a.m
Hyatt Regency Crystal City Hotel
Regency A Ballroom
2799 Jefferson Davis Highway
Arlington, Virginia

Mr. Kim Holmes
Heritage Foundation
Vice Admiral John J. Shanahan
Center for Defense Information
Lt. Gen. Thomas G. McInerney
Business Executives for National Security
* * *


Chairman Philip Odeen
Richard Armitage
Richard Hearney
David Jeremiah
Robert Kimmitt
Andrew Krepinevich
James McCarthy
Janne Nolan


CHAIRMAN ODEEN: Good morning and thank you all very much, and speakers in particular, for being here today. We appreciate your taking the time and the effort to take part in this event this morning. We had a session like this two weeks ago. We felt it was a very useful exchange, a lot of interesting points. We had a good discussion, good questions, and also the audience took an active part as did the press, so we thank you, again, for being here.

I am Phil Odeen, the Chairman of the National Defense Panel. We have five other members. I believe two others are going to be joining us here shortly, so we will have most of the panel here. One member had to be in New York on business this morning, but the rest I expect will be here.

The format will be the same as last week and, basically, what we will do is ask each of the three speakers to spend a maximum of 30 minutes making a presentation. And, as I told them individually, we really have to stick to our schedule, so there is a trap door under the podium up there and at 30 minutes I press a button and you end up in the sub-sub-basement. You thought you were in the basement before, but there is even one below this. So, I will cut you off at 30 minutes. And, again, as I said, you don't have to talk 30 minutes. That's not required.

What we'll probably do is take a short break and it will be short, 10 minutes max, after the three speakers. The Panel will then ask questions, we'll then turn to the audience and let them ask questions and finally to the press. So, we'll do it in that sequence. And, again, we appreciate your being here. We will hold questions, although I think for the Panel, at least, if there is some clarification kind of issues, if something -- you're confused, you don't understand something, don't be shy about saying, "We don't understand." Or, "Please clarify." But only those kind of questions we'll hold those during the presentation.

Our first speaker is Kim Holmes from the Heritage Foundation. And, Kim, again, thank you for being here and we look forward to your comments.

(A brief recess was taken.)