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I agree with you analysis as far as it goes but think DoD will still lose any IW battle with the Chinese and probably the Russians. Not a new problem as you know but as a measure of progress see the following quotes.

1. The Commission considers the security of information systems and networks to be the major security challenge of this decade and possibly the next century and believes there is insufficient awareness of the grave risks we face in this area [Redefining Security a report by the Joint Security Commission, February 28, 1994].

2. The Joint Security Commission . . . called attention to the grave risks we face in this regard [readiness]. ... we have prepared the enclosed issue paper that spells out the level of resources we believe are required to counter the current and future information warfare thereat to the operational readiness of the Defense components. The alternative we propose to mitigate the information warfare threat represents less than two-tenths of a percent of the annual cost of the forces that depend upon the Department's information infrastructure for the execution of their mission. [Memorandum for Deputy Secretary of Defense, FY 1996-2001 Program Review, signed by Lieutenant General Short, Director of DISA and Vice Admiral McConnell, Director, National Security Agency].

3. We conclude that there is a need for extraordinary action to deal with the present and emerging challenges of defending against possible information warfare attacks on facilities, information, information systems, and networks of the United States which would seriously affect the ability of the Department of Defense to carry out its assigned missions and functions. [DSB Task Force in IW-D, November 1996].

4. If the U.S. military is to maintain a competitive combat advantage in future conflicts then the information and information services upon which the U.S. military depends must be protected commensurate with the intended use. Exploiting this dependency relationship is the basis of information warfare [Ron Knecht 1992].