Panetta: Bigger defense cuts would be devastating

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WASHINGTON (AP) — Bigger defense cuts triggered by failed deficit

reduction negotiations would have “devastating” effects on the

nation’s security, Defense Secretary Leon Panetta said

Tuesday.

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In a rare joint appearance at the National Defense University,

Panetta and Secretary of State Hillary Rodham Clinton made their

case for limiting their budgets’ exposure to the political battles

in Congress over identifying additional ways of reduce future

government spending.

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Panetta said the Pentagon is prepared to make $350 billion in cuts

over the next 10 years, as agreed by Congress. But he warned of

dangers to the national defense if bigger reductions are

required.

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The deficit compromise reached between the White House and Congress

set up a special bipartisan committee to draft legislation to find

more government cuts. If the committee cannot agree on a

deficit-reduction plan by year’s end or if Congress rejects its

proposal, it would trigger some $500 billion in additional

reductions in projected national security spending.

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“This kind of massive cut across the board – which would literally

double the number of cuts that we’re confronting – that would have

devastating effects on our national defense; it would have

devastating effects on certainly the State Department,” Panetta

said.

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Clinton said Americans should understand that in addition to

preserving the nation’s military strength, it is in the nation’s

security interests to maintain the State Department’s role in

diplomacy and development. She suggested that the political

stalemate over spending cuts has put that in jeopardy.

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“It does cast a pall over our ability to project the kind of

security interests that are in America’s interests,” she said.

“This is not about the Defense Department or the State Department

… This is about the United States of America. And we need to have

a responsible conversation about how we are going to prepare

ourselves for the future.”

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Panetta was asked about news reports that the Pentagon is

considering reducing military retirement benefits, which, along

with military health costs, have ballooned in recent

years.

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Though those payments have been considered sacrosanct – part of the

bargain the nation makes with those who protect it – the economic

and debt crises have put those issues squarely in the crosshairs. A

private sector advisory panel last month drafted a plan to

eliminate the current system under which those who retire with 20

years of service get immediate, lifetime payments of some 50

percent of their salaries and those with less than 20 years get

nothing.

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Though the report is not complete and it is non-binding at any

rate, the board recommends the system be scrapped and replaced with

a 401K-type defined contribution plan, grandfathering in the

disabled and retirees.

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“It’s the kind of thing you have to consider,” Panetta said. He

quickly added that it must have a grandfather clause so the

government does not “break faith” with the military

force.

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Clinton and Panetta were responding to questions posed by Frank

Sesno, director of the School of Media and Public Affairs at George

Washington University, and by members of the National Defense

University audience, which included members of the military and

civilian officials.

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Asked about the situation in Libya, Panetta said the anti-Gadhafi

forces are on the move toward Tripoli and “regime forces are

weakened.”

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—

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Associated Press writers Matthew Lee and Pauline Jelinek

contributed to this report.

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