NATO Secretary-General Lord George Robertson reports that the member nations are taking the need for defense modernization seriously. Few nations are planning defense cuts; most are at least keeping pace with inflation. While Germany is reducing defense spending, its restructured Army will be able to deploy more troops abroad than at any time since 1946. NATO nations were embarrassed in the Kosovo War when only the US and Britain could conduct precision strikes, and none of the nations had enough airlift to fully handle the demands of front-line commanders.--Stephen V Cole