so it was clear early on that we would focus this forum on the state of the transition, the first 100 days of the next administration. >> does that create more challenges? at least from the start, were people reluctant to participate? >> challenges and opportunities. there was concern we did not quite know who would be there, but we have over 600 people here -- republicans, democrats, people from congress and the pentagon, and we knew they would be a great addition to talk about the president-elect us defense policy. >> of course, the reagan forum in only four years has gained quite a reputation in terms of the quality of the content. what is the ultimate goal? you mentioned the transition, but what are you trying to deliver? >> we are here at this forum at the library. what we aim to do the national defense community including leaders of the pentagon, military, civilians, leaders in congress, industry, and thought leaders. >> i notice you have a panel in some instances -- some emphasis on the international community. was that intentional in terms of getting a stay from the global community in terms of where we stand? >> we were focusing on two things. first, there was a lot of discussion during the campaign season about allies. get a, we have tried to perspective of national defense from a different view, one that is not typical. we did a view of national defense from wall street a couple of years ago. this year, we wanted to have friends of allies, and we had three ministers of defense here. the last fewer years, what are the topics that are essential to cover and how you kind of keep it fresh as the year goes by we always end up talking about some form of acquisition policy, and a lot of the reform agenda we see going through the defense authorization bill or what this current pentagon with secretary carter focused on. then we look at the issues of the day. bes year, there will emphasis on powers like russia and china and how they are changing the landscape. wonkish sidem the and something from the global security policy side as well. >> you have a president coming and that is interesting and people have a lot of thoughts and opinions on and are very curious about the direction you will take some of these long-standing issues. do you expect that to dominate? >> absolutely. it's going to be very timely. we expect to nominate the next secretary of defense on monday. we have a lot of op other campaigns talking about president-elect trump plus defense agenda. one of the ways to rebuild the military and the last president who talked about rebuilding the military was president reagan. >> when we return, the i knew it could rough in there, but how rough? there was no way to know for sure. hey guys.... daddy, it's pink! but hey. a new house it's a blank canvas. and we got a great one thanks to a really low mortgage rate from navy federal credit union. pink so she's a princess. you got a problem with that? oorah oorah open to the armed forces, the dod and their families. navy federal credit union. >> the u.k. is l massive modernization relying heavily on u.s. manufacturers. can the u.k. of audit? our associate editor asked michael fallon, secretary of defense for the u.k. >> this is a 10-year equipment program, as you said, to modernize our forces and get them the planes and ships and equipment that they need. we plan it over 10 years. it is probably financed over those 10 years. obviously, we take some precautions. >> are you looking at this planning is kind of a worst-case scenario as if the exchange rate drops a certain amount, you will have to start cutting by a certain amount? >> it's too early to start speculating exactly where sterling will end up. the referendum was only a few months ago, and already, there's some signs the sterling has increased in value against the euro, for example. we certainly take precautions against fluctuations in currency. >> amo industrial-based issues here is the question of if the u.k. should be getting more back from u.s. contractors. forward, is there a target percentage of how much you would like to see from the u.s. coming back to the u.k.? >> we would like to see it all coming back. let's be clear about that. a lot of our expenditure is going to the united states to american companies hoping to support american jobs. it is very important to us, but it is a two-way street, that we in theme contractors united states investing in british companies and their supply chains and doing their best to choose british when they can, create jobs back in the united kingdom. >> is there any plan for that has to india be made in india, which is a formal process to encourage people to buy their stuff and encourage domestic growth -- is similarything for a plan in brittany? >> we have tb defense industry and a strength of the defense industry in the united states is it is built on exports and open trade and we have to be careful about any overt protectionism of the kind you describe. but we understand that they have to accept that they have to do more to give british companies a fair crack of the whip when it comes to their supply chains. >> what is the reaction from those companies that go have they accepd at or is there concern? >> we struck the first agreement .ith boeing they have pledged to increase their investment in the u.k., to increase the number of jobs available in the united kingdom and to look properly again at their supply chain so they can do more with reddish companies. we want to see similar theements with announced today to put $125 billion to begin the process of 10 more protector systems based on the predator system. what is the importance of getting those things into u.k. hands as quickly as possible caps on >> they are a key part of our daeshgainst isil -- the campaign in the middle east, the unmanned aircraft. we have been flying day and night for the last couple of years providing vital intelligence gathering and also carrying out airstrikes in support of ground forces. this is now a very important weapon in the hands of the raf, and we want to modernize and double the size of our fleet. >> one of the weapons the aircraft will carry us the brimstone, which has received great reviews from u.s. and u.k. users. working on or hopefully see moving -- movement on in the future? >> we are working on that. suddenly there's huge appetite from the u.s. military to see brimstone fitted to american .ircraft we continue to push it here with a new administration that has proved a great success. the rocket is a very high position weapon and i think we will see is soon being used by american aircraft. >> any particular time i'd you are hoping to see for that? >> support for the u.s. military, they have recognized its value, seen it used in the iraq and syrian campaigns. they want it, and we want to sell it. >> with president-elect trump coming in next month, he has set some comments that have some nato allies with concerns. you expressed you believe the relationship will remain strong. what are the signals you have seen that continue to back the mission? >> there has already been a conversation between the united nations secretary-general and president-elect trump. i have no doubt that this new administration, like all its predecessor administrations, will continue to play a leading role in nato, but the criticisms president-elect trump has made of nato, we share. we believe, like the united states, that other european countries should be doing more. we are spending 2%. there are many european countries that are not spending 1.5%, and there are many countries that are not spending 1% of gdp. we agree with president trump. europe does need to be spending more on its defense and we need to continue to reform nato to , ae it less bureaucratic much more reactive alliance than it has been in the past. >> norway and the united states government -- particularly the pentagon -- have enjoyed a very strong alliance. will that continue with the new administration? norway's defense minister spoke associatee news'" editor about what they expect from trump leadership. >> we have achieved a very close elation ship of the u.s. through different administrations and different presidents and we have done so over decades, and i feel confident we will continue to deepen that relationship in the years to come because it various policyy points and structures like the intelligence cooperation, like practicing exercise and training and also international operations in addition to many other issues. >> one of the interesting things there's there will be 330 marines in temporary rotation. that is kind of a new standard being set because there have not been u.s. troops stationed there before, right? >> we have had a lot of u.s. troops coming in and out, doing differentses and kinds of training. we have been doing that for decades as well, and the u.s. are not the only allies we have had visit. because it ishat important for the development of our armed forces, and we also see that allies cherish the .pportunity around 330 marines will be close to the pre-positioning program where we have the pre-positioned equipment, and that is something that we think will be good. we feel that it can be a good way of operational capability alongside the u.s. operational capability. >> have you gotten any reaction from russia to that announcement? people say it's the direct result of action taken over the last couple of years. >> this is actually a direct result of what is normal in norway. exercisesge allied and training in norway and this is one of many examples we have had. we have had british helicopter pilots training in the north since 1995. the been doing this on a very regular basis every year following a tightened and normal schedule and routine. there is no reason for russia to react on this. this is something we do on a regular basis, and it's normal. obviously, nato remains one of the premier forces of military action in the united -- in europe. we here about the 2% gdp requirement -- not requirement, request or defense spending. norway isov able to maintain that kind of budget going forward? >> we have recently gotten big support in parliament for a long-term defense plan. both when it comes to the annual itget but also the part of which goes to investments, we will be increasing in the years to come. at 25%already investments of our defense budget and we will increase that in the future because we are poised to give high-end capabilities that are very important for the defense in norway but also nato. >> is there any idea of using the national pension fund for example or other ways to increase defense spending, or do you believe that level is enough as it is? >> we're also using money set aside that we have set aside for many years now. surplussing some of the from the fund to fund the normal activities norway, but the most important gottens that we have now a very strong majority of parliament to actually spend more on defense, and i feel confident that would be a very good investment in our common security in nato in the years to come. >> what kind of actions have you seen from russia for the last tuneup or three years? i'm talking about little green men we have seen elsewhere in europe. have you seen that, and how are you going to react to that? >> overall, we can say russia is more capable and less predictable than it used to be. that has a lot of consequences for many different countries inside and outside of nato, of course. the most important change that we see is the strategic challenge that comes in the north atlantic and the high north. that does not mean that we see activity today that we regard as a military stressed to norway, but we are concerned about the implications about the new military capabilities, the new testing of capabilities up north, and also the fact that systems developing being tested in our neighborhood that can potentially reach the whole of europe and the fact that they also have new especially submarines that can be denial or stick control. >> one of things that can counter that is to work more closely with allies in the region. there was a plan about more intelligence sharing. where does that stand right now? >> we hope from both the norway and sweden sides that within the nordic framework, we will be able to do more of that intelligence sharing. of course, we have to account that two of the countries are not nato members. that's why we have to move at the right pace and we have had to do things correctly. the fact that we are in the same region and have seen much of the same picture around this of course makes it valuable for us to be able to share intelligence . of course, there are other things we do together that strengthen our operational capabilities, but the fact that in the high north and north atlantic -- they are in ways connected, so things one place get the attention also in the other places. >> quickly, is there something we can do right now where we can start to see action right away? >> thinking about nordic countries? i do think it is safe to say that over the past two and a half years, we have developed our security that is also important because we see some challenges, but in addition to that, we are doing more training exercises. we have long -- large swedish contingence participating in the big annual exercises, and we have others that are a bit smaller. the fact that we share the same security outlook at the moment is, of course, very valuable for our ability to do closer cooperation. >> this week cost money minutes sponsored by navy federal credit union, a personal finance expert explains how to use a certificate for short-term savings goals. you often hear about the importance of saving long-term, but what about saving for your short-term goals eco a savings certificate usually offers higher rate than a regular savings account, which makes it more attractive if you have a big purchase on your mind or maybe you have other goals like buying a new car or a vacation with your family. determining that goal will help best for you. a little research is all it takes. most banks and credit unions offer certificates with terms that range from a few months to five years or more. most require a minimum deposit to start saving, but setting a good amount of money aside for events you from spending it while you are trying to save. once you have made your initial deposit, your certificate is ready to go. if you can, continue to deposit runs until your certificate pictures. that increases your funds in the end. >> thanks, jeanette. we will see you next being detected was not an option. if i was recognized the whole operation was blown. the element of surprise was imperative. wow. he won't even recognize you. seriously. i don't even recognize myself. and thanks to my cashrewards credit card from navy federal with never-expiring rewards it's gonna be a killer honeymoon. woo! maui!! boom d their families. navy federal credit union. 2, the houser overwhelmingly passed a defense authorization act. what is in and what is out? chairman of the house armed services committee during the reagan national defense forum to find out. >> well, the bill is billion more than the president asked for. that's not nearly enough, and as you mentioned, and earlier house version dealt with some personnel shortfalls as well as shortfalls in procurement and a whole variety of areas. in order to get the bill done quickly and get it done before the end of the year, some of those things had to fall out, so the priority was put on people. what the bill does versus what the president asks for is give the military the full pay raise to which they are statutorily entitled. a's the largest pay raise and number of years, the first time in a number of years that there will be -- that it will be trimmed back. in-strengths the cuts. it's important to do now so we do not continue to lose experienced people out of the military. it also makes up some of the shortfalls in our name. some of the munition shortfalls, for example. in my view, that ought to be at the top of the list come new administration. ns is important because you need the support dollars so you do not have a hollow force. >> that's right. all of that is contained in there for just stop the bleeding , stop losing people in the services. >> there are also some important structural changes at the pentagon that are included in this bill i think may be overlooked. they have been pursuing a fairly aggressive tack. a more you have taken deliberative approach or more incremental approach, but the bill went a decent way. can you talk about some of the changes? >> broadly, i think there is really significant reform in a number of areas. acquisition reform, next steps, rerouting the uniformed military code of justice, commissary reform, and the organizational reforms you are mentioning include a proposal that would break up html basically into three pieces. the concern we have gotten from a number of places is you cannot have the person who is primarily responsible for innovation and creating new things, also the person responsible for proficient operation of procurement of old things that when you try to put too much under one umbrella, both options suffer. we have a delayed implementation of some of those html changes, buwe naming the joint chiefs of staff as being the person responsible for giving military advice across all of the areas of the globe. so there's a number of goldwater, nickel's type changes that are in this bill. i think what is in the bill has , butcarefully thought out i'm not saying this is the only thing that needs to change. there may be additional ones in the years to come. >> two things i ask you having to do with the president-elect. what is the prospect of increased defense spending under and thepresidency, other is his pick for defense secretary. first, you have talked about hope that there will be supplemental spending. have you gotten any signal -- beyond any hope, have you gotten any signal from the incoming administration, and what signal clear his mission is to rebuild the military. in order to rebuild the military, it's going to take more money. my advice is let's get a head start on that. we have a number of these things that are fully vetted. they have been very receptive to the argument. i don't think they have made the decision. they are not to that point yet, but i hope that even though we are going to pass a continuing resolution into the spring that we can go ahead and finish the appropriation bills early in the year. you do not have to wait until the cr expires to do that. i hope we can get a supplemental request in the spring for those procurement items that fell out. and then have an 18 budget that starts on the way up. thatat is interesting is he is going to require some kind of waiver in order to serve -- i reported,as been well but there has been some pushback on t that his appointment would be wrote the civil/military balance, and your democratic counterpart even called for an investigation. what role might the house have in this confirmation, and what credits? say to the >> both the house and senate him to pass a law to allow to serve. the senate separately would have to confirm him for the position. in it gives the house a role this particular nominee that we do not usually have, and i think the issues are serious. civilian control of the military is an important principle, but the congress came together with general marshall in 1950 and said with this exceptional individual in these times, we do not want -- we want to take advantage of him, so they passed a bill to allow him to serve. ishink general mattis times, and i think it is important for us to have a full discussion, but to go ahead and say that he can serve without changing the underlying world that still says you have to be out seven years before you can be secretary of defense. it is hard to grant that exception. you have to pass a new law. i think we should, but we also are not going to try to ram it through. we are going to fully talk with the experts, legal scholars, and others and do it in due course. >> that is this week's "defense news [music] >> dr. charles stanley: the longer we live, the deeper should be our understanding. the deeper our love for him. the--and the truth is that no matter where we are in life, we ought to be thinking one of these days i'm going to meet the lord jesus. hallelujah! no matter what happens, i'm going to meet the one who went to the cross and died on the cross and saved me from my sin and changed my eternal destiny, hallelujah! >> male announcer: next on "in touch," "understanding who jesus is." >> announcer: join us during the program and follow along with the sermon notes. go online to