Legislature(1999 - 2000)
07/19/1999 09:15 AM House ASC
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT ARMED SERVICES COMMITTEE
July 19, 1999
9:15 a.m.
SENATE MEMBERS PRESENT
Senator Tim Kelly, Co-Chair
Senator Drue Pearce
Senator Pete Kelly
Senator Gary Wilken
HOUSE MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
PUBLIC MEMBERS PRESENT
George Vakalis
Dean Owen
Jake Lestenkoff
John Hoyt
Alan Walker
Chick Wallace
MEMBERS ABSENT
Senator Al Adams
Representative John Harris
Representative Gene Therriault - Attended tour on 7/20/99
Representative Reggie Joule - Attended tour on 7/20/99
COMMITTEE AGENDA
Selection of Committee Co-Chairs, Military Issues Update,
Sub-committee Structure and Organization, Upcoming Activities, New
Business, Briefings and Base Tour.
ACTION NARRATIVE
TAPE 99-1, SIDE A
Number 001
SENATE PRESIDENT DRUE PEARCE called the Joint Armed Services
Committee (JASC) meeting to order at 9:15 a.m. Senate members
present were Tim Kelly, Gary Wilken via teleconference, Pete Kelly,
and Drue Pearce. The House member present was Lisa Murkowski.
Public members present were George Vakalis, Alan Walker, Dean Owen,
John Hoyt, Chick Wallace and Jake Lestenkoff.
SENATOR PEARCE asked for a motion to elect Senator Tim Kelly and
Representative Eldon Mulder as co-chairs of the committee.
SENATOR PETE KELLY so moved. There being no objection, Senator Tim
Kelly and Representative Eldon Mulder were elected as co-chairs of
the Joint Armed Services Committee.
CO-CHAIR TIM KELLY announced that Representative Mulder was en
route from Kenai and would be arriving shortly. He asked Chris
Nelson to introduce the guests to committee members.
CHRIS NELSON, staff support for the Joint Armed Services Committee,
and staff to the previous Joint Committee on Military Bases,
introduced two guests: Mr. Mead Treadwell, the managing director
of the Institute of the North; and Ms. Janice Neilsen, the director
of Government Affairs and legislative liaison for U.S. Army Pacific
from Fort Shafter, Hawaii. Mr. Nelson asked committee members to
introduce themselves.
Number 034
ALAN WALKER, a retired captain of the U.S. Coast Guard, stated he
currently has a consulting business in Juneau, Alaska. He
indicated he has traveled extensively around the State, has a keen
interest in base realignment and the communities of the State, and
looks forward to serving on the committee.
DEAN OWEN, a retired U.S. Army Colonel, said he is currently
working for the Alaska Department of Transportation and Public
Facilities.
GEORGE VAKALIS, manager of the Municipality of Anchorage, informed
committee members he is a retired U.S. Army Colonel and commanded
three Army posts in Alaska during the last eight years of his
service.
JOHN HOYT told committee members he is a retired Brigadier General
of the Army National Guard and the current Pacific Region President
of the Association of the United States Army.
REPRESENTATIVE LISA MURKOWSKI introduced herself and noted she
currently serves as the Chair of the House Special Committee on
Military and Veterans Affairs.
CHICK WALLACE, Civilian Aide to the Secretary of the Army for the
State of Alaska, informed committee members he is from Fairbanks
and looks forward to serving on the committee.
SENATOR PETE KELLY introduced himself and noted he was a member of
the former Joint Committee on Military Bases.
JAKE LESTENKOFF, former Adjutant General of the Alaska Department
of Military and Veteran Affairs, noted his appreciation to serve on
this committee and stated it is extremely important that the
legislative and executive branches of the state support the
military. He is particularly interested in the Base Realignment
and Closure (BRAC) issue.
Others attending the meeting introduced themselves as follows:
John Manley, staff to Representative John Harris; Matt Gill and
Dennis DeWitt, staff to Representative Eldon Mulder; Amy Erickson,
staff to Representative Murkowski; Michael Morter, staff to
Senator Parnell; Mike Pauley, staff to Senator Leman; Anita Porter,
Special Assistant to the Department of Military and Veterans
Affairs; and Jim Chase, Special Veterans Assistant, Department of
Military and Veterans Affairs.
CO-CHAIR KELLY announced the alternate Senate member will be
Senator Leman.
CO-CHAIR KELLY moved to hire Christopher Nelson, former Lt. Colonel
Army Reserve, as the committee's chief of staff. There being no
objection, the motion carried. CO-CHAIR KELLY asked Mr. Nelson to
update the committee on military issues.
Number 077
CHRIS NELSON informed committee members the former Joint Committee
on Military Bases was primarily focused on Base Realignment and
Closure (BRAC). Although the BRAC issue remains the focus of the
JASC, the need for legislative involvement in additional military
issues in Alaska prompted its formation. After extensive
congressional debate on the BRAC issue during 1998, the U.S. Senate
voted to reject authorization of BRAC rounds for the years 2001 and
2003; however, within the Department of Defense, continuing
pressure exists to conduct a BRAC round in the year 2001. In the
1995 BRAC round, Alaska lost a Naval Air Facility at Adak, and Fort
Greeley was chosen for realignment. Alaska cannot afford to lose
any more bases therefore vigilant monitoring of the BRAC process on
Capitol Hill will remain a priority. Further BRAC action is
unlikely during the remainder of this Administration; that reprieve
provides Alaska with an opportunity to prepare for the next round.
MR. NELSON noted that Mr. Vakalis was instrumental in bringing the
BRAC situation to the attention of the Alaska Legislature.
MR. NELSON stated the second issue the committee will address is
ballistic missile defense. Alaska could be chosen as the site of
the ground launch interceptors for the National Ballistic Missile
Defense Initiative. JASC members will receive a briefing in
Washington, D.C. in early August on the status of that initiative.
Four sites are under consideration; the Air Force Station at Clear
and the range area of Ft. Greeley are being looked at most closely.
The military estimates that $56 million will be spent to construct
the ground launch interceptors.
MR. NELSON said the committee's third agenda item is the Defense
Reform Initiative. After reviewing the policies of military base
structure, U.S. Department of Defense Secretary William Cohen
recently published a series of initiatives in an attempt to make
the military more cost competitive. The initiatives provide
opportunities for Alaska, one being privatization of military
housing. Housing facilities at Eielson Air Force Base have been
built and run by Alaska companies, i.e., VECO. As the military
looks to reduce its capital expenditures in construction projects,
the JASC can explore whether the Alaska Housing Finance Corporation
(AHFC) is an appropriate vehicle to provide capital to the armed
forces to build housing on bases. Co-Chair Tim Kelly sponsored a
bill two years ago that authorized the University of Alaska at
Anchorage to borrow money from AHFC to build dormitories. AHFC is
being repaid from dormitory fees. Legislation could be proposed to
authorize AHFC to begin such discussions with the U.S. Department
of Defense and the U.S. Coast Guard. Such an arrangement could
encourage the stationing of more military personnel in Alaska and
improve the quality of life for those personnel.
MR. NELSON explained the second major item in the Defense Reform
Initiative is the privatization of utilities on bases. Alaska
suffered in the three previous BRAC rounds because of its high cost
of utilities in comparison to bases in other states. The
Department of Defense owns and operates antiquated power plants on
each of its Alaska bases. The JASC needs to explore whether public
utilities in municipalities can provide services to the bases at a
lower cost to make Alaska bases more cost-competitive. This
particular issue will be addressed at a conference of the National
Association of Installation Developers (NAID), of which JASC is a
member. NAID is comprised of private developers looking at re-use
of closed bases, and it is aggressively moving into the area of
defense reform and cooperation between state and local governments
and military bases. The JASC could be a catalyst for providing
government services to bases to reduce costs to the Department of
Defense.
MR. NELSON discussed state and local government activities and
referred to a report from the State of Texas. Texas, which has a
much larger military infrastructure, took some very heavy hits
during previous BRAC rounds. The Texas report is full of very good
ideas, however some of the recommendations contained within it are
things the State of Alaska has already done. Alaska is not unique,
but it is one of the first state governments to address its
relationship with its military bases. MR. NELSON said he plans to
talk to personnel at the National Conference of State Legislatures
to share information about what activities states are undertaking
in relation to their military bases. He repeated that Alaska needs
to find ways to help military bases operate more economically.
MR. NELSON informed committee members of the committee's proposed
travel schedule. From August 4 through 11, five members of the
committee will travel to Washington, D.C. and then to Jacksonville,
Florida. On August 4-6, committee members will visit members of
Alaska's congressional delegation, Pentagon officials, and
representatives of the National Ballistic Missile Defense System.
The NAID conference from August 7-11 will consist of two days of
seminars on privatization of public utilities and housing on bases.
He plans to arrange one committee meeting each quarter for two days
so that committee members can tour Alaska's military bases. In
October the committee will look at the two ground launch facilities
at Fort Greeley and the Clear Air Force Station. In addition, the
committee should view the ongoing army activities taking place at
Ft. Greeley. MR. NELSON asked Mead Treadwell to brief the
committee on the Pacific Missile Defense Economic Security
Conference in Hawaii.
Number 241
MEAD TREADWELL, managing director of the Institute of the North,
stated the Institute of the North is involved in three
international projects. The first is support for the Northern
Forum Arctic Council of the U.S. Arctic Research Commission, which
is a longstanding project devoted to arctic policy. The second is
a project sponsored by the National Oceanic and Atmospheric
Administration (NOAA) regarding international fisheries; this
project results in an international fisheries conference comprised
of fisheries ministers from the Pacific Rim and Alaska. The third
is a continuing set of studies the Institute has been doing with a
group of think tanks around the country on ballistic missile
defense issues. He informed committee members that several
significant events regarding defense have occurred since the
Pacific Missile Defense Economic Security Conference late last
June. The Institute has been following threats to the United
States and its allies in Japan, Korea, and Taiwan, and the response
of those nations to the threats. Last year a conference was held
which included Senator Stevens, Representative Floyd Spence, Chair
of the Armed Services Committee, a number of members of the
Rumsfeldt Commission, Adjutant General Lestenkoff and others. The
issue of how the Anti-Ballistic Missile (ABM) Treaty will
essentially prevent Alaska from being defended if a national
ballistic missile site is located in North Dakota was discussed.
Concern has been raised by the Alaska Legislature that a 1995
national intelligence estimate omitted Alaska and Hawaii. Right
after the Commission met, the Rumsfeldt report was released which
detailed the threats and showed that North Korea would have time
and the ability to bomb Alaska and Hawaii and probably targets as
far east as Nevada and Wyoming. On August 31, 1998 the North
Koreans launched a missile which flew right over Hokkaido into the
Pacific. A measure sponsored by Senator Inouye and Senator Cochran
would make it a policy of the United States to deploy a national
missile defense system when technologically feasible. That bill
was filibustered last year but passed the Senate earlier this year.
The Cox report, which discusses the growth of Chinese capabilities
with the unwitting help of the United States, was released. Last
week the Deutsch report, prepared by a bipartisan commission
appointed by Congress and the President, was released. It
discusses the deliberation of weapons of mass destruction.
President Clinton and Boris Yeltsin agreed that the ABM Treaty
would be renegotiated. The United States is on a track right now
to renegotiate that treaty with the idea that it may be up to
Congress to look at it again next June.
MR. TREADWELL stated one issue the committee must look at is what
the threats are to Alaska and what Alaska's capabilities are to
defend against those threats. He noted it is important for the
JASC to pay close attention to the ABM Treaty renegotiations
because if the treaty does not allow inter-operability with other
sites, multiple sites, and the ability for Alaska to tie into the
theater based missile defense system, Alaska will have a less
effective system with which to defend this state and country. He
repeated that important issues affecting the security of Alaska
will be raised during the ABM Treaty renegotiation.
MR. TREADWELL informed committee members that Japan's wake-up call,
the North Korean missile launch last August and the prospect of
another this summer, has prompted the United States to negotiate a
memorandum of understanding with Japan on research and development
for a theater based system. Secretary of Defense Cohen will be
traveling to Japan in late July; it is expected the memorandum of
understanding will be signed this summer. The Japanese will fund
the project, however they are in a bit of a political stalemate in
that the LGP Prime Minister has a coalition government that wants
to move slowly on this. Japan needs to move forward now because
this technology is not only for the protection of Japan and South
Korea, but also for Alaskans.
MR. TREADWELL repeated that a lot of events have occurred in the
past year pertaining to military issues that affect Alaska. The
Taepo-Dong launch pad in North Korea is of tremendous concern and
was front page news everyday last week in Japan.
MR. TREADWELL informed committee members that the Institute of the
North has decided to follow up on the Pacific Missile Defense
Economic Security Conference in Hawaii which is designed to
accomplish a couple of different directives. First, it will bring
together United States' experts and experts from Japan. The
official U.S. - Japanese discussions at the Track 2 level are very,
very limited by the Japanese Constitution, which allows military
activity for self-defense purposes only. The discussions are also
limited by the political situation in Japan, yet there is a strong
understanding that a number of issues need to be worked out. The
conference also provides an opportunity to look at
inter-operability issues. The National Missile Defense system to
be deployed in Alaska would be managed by the Alaska National
Guard. Military forces within Alaska, as well as Japanese and U.S.
military forces, will be working together for the first time. The
Institute's objectives are to review the issue of impediments,
review the status of the threats, and review what's going on in
both countries to help JASC members, as decision makers, to
understand the issues and decide what position Alaska should take.
MR. TREADWELL made the following suggestions. Representative
Garcia, Chair of the House Military Affairs Committee in the Hawaii
Legislature, proposed a resolution patterned after a resolution
passed by the Alaska Legislature. The Hawaiian Legislature has not
passed it because of a lack of understanding. The Hawaiian Military
Affairs Committee indicated an interest in meeting with the JASC or
with Senator Murkowski to discuss several issues during the
interim. He suggested that if a trip to Hawaii is a possibility
for some members of the committee, the Hawaii Legislature would be
receptive to holding a joint meeting. MR. TREADWELL said that the
U.S. Senate Foreign Relations Committee plans to take some sort of
tour of Hawaii at the time of the conference to follow the ABM
negotiations. Second, MR. TREADWELL pointed out that Alaska has a
host committee in Hawaii and that it may make sense for the JASC to
invite an Alaskan delegation to join the conference. The conference
consists of both public sessions and invitation-only sessions to
accommodate Japan's comfort level.
MR. TREADWELL said the third thing he wanted to report to the
committee pertains to the Deutsch report and how we can stem the
threats facing us. One of the main things the commission looked at
was the source of North Korea's money to build its new weapon. A
lot of the money is coming out of the Pacinko parlors of Japan
which are owned by former Korean nationals who are shipping money
back through China. President Clinton raised this issue at his
last meeting with Prime Minister Obuchi. The commission also found
that the Japanese banks are undergoing a crisis at this time. Many
Korean-owned banks, smaller second or third tier banks, are sources
of financing. The commission also found China is getting money to
build this system from the U.S. and Japanese bond markets. The
Deutsch report, following up on the Cox report, suggested that we
need more transparency in our own financial markets. One company
named CITIC (China International Trust Investment Company) reports
to the People's Liberation Army in China, and is headed by a man
who cannot get a VISA to the United States because the FBI found
that his company or its subsidiaries tried to run AK 47s to street
gangs in the U.S. This company was able to raise $800 million on
U.S. bond markets and $2.2 billion on Japanese markets.
Congressman Baucus has introduced a bill to require transparency
and asks states to review their portfolios to see if any
investments are being made in these Chinese corporations or
subsidiaries. MR. TREADWELL thanked committee members for their
time and offered to answer questions.
Number 450
JAKE LESTENKOFF expressed concern about how Alaska will be
protected during the seven to nine years it takes to deploy the
National Ballistic Missile Defense system. He asked whether the
JASC should be looking into positioning naval assets in Alaska.
MR. TREADWELL replied Alaskans need to understand the AEGIS system
for two important reasons. Many people suggest that ground launch
interceptors at Clear or Fort Greeley are unnecessary because all
defense can be accomplished using ships. The AEGIS system is
configured to defend against lower level missiles. The Navy
theater system is moving to configure that system higher, but again
this is an issue where Alaska's stand on the ABM Treaty is very
important because the renegotiation could "dummy down" some of the
existing systems. The AEGIS cruisers are expected to be a part of
the defense; they are also being talked about as an alternate
system. They may not be able to do the job unless the United
States negotiates a better treaty.
Number 507
CO-CHAIR KELLY thanked Mr. Treadwell for his presentation and then
informed the public members of the committee about the procedure
for travel and per diem reimbursement. He asked committee members
to consider attending the meetings in Washington, D.C.,
Jacksonville, Florida, and Hawaii.
MR. NELSON discussed two potential items to be placed on the
committee's calendar for the year. Last year the armed forces
budgeted for a joint exercise field trip to both Northern Edge
training sites in Interior Alaska for the combined arms assault in
Simpsonville and the naval exercise in Seward. Traditionally the
combined arms assault occurs in late February or early March.
Northern Edge is Alaska's premier training exercise.
MR. NELSON welcomed Alan Walker to the committee and stated the
Alaska Legislature needs to recognize Coast Guard participation in
Alaska. He asked Mr. Walker to help arrange a tour of the U.S.
Coast Guard facility in Juneau in April.
TAPE 99-1, SIDE B
SENATOR PEARCE asked if the October meeting would last one day.
MR. NELSON replied that meeting will most likely last two days
because the committee will see Black Rapids and Bolio Lake, review
prison issues, and tour the ballistic missile site.
CO-CHAIR KELLY appointed the membership of subcommittees as
follows.
Base Realignment and Closure: Co-Chair Therriault, Co-Chair Pete
Kelly, and George Vakalis and Senator Tim Kelly.
Ballistic Missile Defense: Co-Chair Pearce, Co-Chair Harris, and
Jake Lestenkoff and Chick Wallace.
Defense Reform Initiative: Co-Chair Murkowski, Co-Chair Adams, and
John Hoyt, Dean Owen and George Vakalis.
Suggested Legislation: Co-Chair Wilken, Co-Chair Joule, and Alan
Walker and Representative Mulder.
CO-CHAIR KELLY asked subcommittee members to prepare a preliminary
report for the October meeting, and to complete a full report by
the next legislative session.
MR. VAKALIS indicated he would be willing to volunteer his
assistance to those working on privatization of utilities.
CO-CHAIR KELLY appointed Mr. Vakalis to the Defense Reform
Initiative subcommittee.
CO-CHAIR KELLY informed committee members the JASC enabling
legislation also allows the committee to appoint a citizens
advisory board. He asked members to recommend names of people who
would like to serve.
MR. NELSON reviewed the schedule for the remainder of the day.
CO-CHAIR MULDER arrived at 10:07 a.m.
CO-CHAIR KELLY noted his appreciation for Captain Walker's
membership because he believes the U.S. Coast Guard's role in
Alaska is the least understood.
SENATOR WILKEN asked that the October meeting be scheduled prior to
October 15 as he will be unavailable for the remainder of that
month.
ALAN WALKER suggested that committee members tour the Kodiak Coast
Guard installation in the future as it is the largest in the world
and it is co-located with the Alaska Aerospace Launch Complex.
SENATOR PEARCE noted the first launch is scheduled in September at
the same time as the proposed special session.
CO-CHAIR KELLY asked Mr. Nelson to put together a fact finding
mission at the Kodiak Coast Guard installation to be led by
Representative Murkowski.
CO-CHAIR KELLY adjourned the meeting at 10:10 a.m. to a date
uncertain in October.
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