What Others Are DoingeHow You Can Help America’s Defense Shouldn’t Depend On Foreign Goods by William R. Hawkins (NAPSA)—Howresources, in- dustry, wealth and technology are distributed around the world forms the material basis of the international balance of power. In his classic book The Wealth of Nations, Adam Smith advised, “It is of importancethat the kingdom depend as little as possible upon its neighbors for the manufactures necessary for its defense.” Yet, with nearly Hawkins $1 trillion worth of manufactured imports displacing American production each year, there is a growing dependence of our defense industry on foreign components. President Bush acknowledged this dangerous trend when he intervened in the dock dispute last October, saying, “Defense contractors receive components and materials through the West Coast ports that are necessary to supply the military’s needs.” The U.S. has always insisted that foreign-designed weapon components be produced in America, but major defense contractors are tempted, like other industries, to outsource to cheaper overseas vendors. Foreign firms have also bought up hundreds of American defense contractors and high-tech companies, moving their research and technology offshore. The authority to stop such debilitating trends exists in current law and must be enforced. Defense dependency is more dangerous as international politics becomes more unstable. Today, even long-standing alliances are in flux. The use of economic leverage is on the increase. The U.S. uses such leverageitself and the denial of weapons systems or the spare parts needed to operate them has proven a potent tool. America must not be vulnerable to the samepressures. A growing concernis trade with potential enemies. Last year the U.S.-China Security Review Commission reported to Congress, “The U.S. may be developing a reliance on Chinese imports that could in time undermine the U.S. defense industrial base.” If the United States is to preserve its dominant military capabilities and political independence, it must maintain firm controlof its own industrial base and promote its continued advancement. William R. Hawkins is Senior Fellow at the U.S. Business and Industry Council in Washington, D.C.
