US embassy cable - 05THEHAGUE2434

UNCLAS SECTION 01 OF 02 THE HAGUE 002434 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PARM, PREL, NL 
SUBJECT: NETHERLANDS: MAJOR MILITARY REORGANIZATION 
 
 
1. Summary: The Dutch military has implemented a major 
reorganization that strengthens the role of Chief of Defense 
Gen. Dick Berlijn by giving him operational control over the 
Army, Air Force and Navy -- powers that previously rested 
with the service chiefs.  The three services fought a losing 
battle against the changes, which were formally announced 
September 5.  This command consolidation is part of a massive 
Ministry of Defense reorganization scheduled to be completed 
in 2006.  By streamlining the chain of command and 
consolidating functions like staff, the Dutch hope to save 
money, improve efficiency, and eliminate competition among 
services.  Reforms are also planned for the Coast Guard.  End 
Summary. 
 
Relinquishing Command 
--------------------- 
 
2. During a September 5 ceremony, the Royal Netherlands Navy, 
Army, and Air Force relinquished command and control of their 
services to CHOD Gen. Berlijn, who now has complete 
operational control of the military, including crisis 
management and humanitarian operations.  He will report to 
Minister of Defense Henk Kamp.  The three service chiefs now 
report to Berlijn and not directly to Kamp. 
 
3. The three services resisted the changes when proposed 
several years ago but were overruled.  The September 5 change 
of command was attended by Kamp, Minister of Foreign Affairs 
Bernand Bot, senior civil servants and military officers, and 
the diplomatic corps.  The televised proceedings appeared 
designed to erase any doubts that Berlijn was now in charge. 
 
4.  The services will be headed by Vice-Admiral Jan Willem 
Kelder of the Royal Netherlands Navy, Major General Peter Van 
Uhm of the Royal Netherlands Army, and Major General Hans De 
Jong of the Royal Netherlands Air Force.  They will continue 
to be responsible for the primary duties of the armed forces, 
such as providing combat power, training and support.  But 
Berlijn will oversee the execution of crisis management and 
humanitarian operations and, with the Director of General 
Policy Affairs and the Director-General of Finance and 
Control, will take charge of the policy, planning, and 
budgeting cycle.  He also will have final say on setting 
acquisition priorities. 
 
5. The Royal Netherlands Marechaussee (RNLM), or military 
police, is considered a separate branch of the Dutch 
military.  Due to its police functions -- such as guarding 
Schiphol Airport -- the RNLM will not be affected by the 
reorganization.  The RNLM Commander-in-Chief will continue to 
report to Defense Minister Kamp, and on some issues to the 
ministers of Justice and Interior. 
 
The Case for Reform 
------------------- 
 
6. During a recent interview for a Dutch newspaper, Gen. 
Berlijn defended the reorganization, citing the need to work 
more efficiently and to eliminate an entire layer of 
bureaucracy.  He acknowledged that the consolidation would 
weaken the role of the service commanders and their ability 
to promote their own service branch.  But, Berlijn continued, 
having separate services also meant the branches worked 
alongside one another -- but not necessarily together -- 
often developing their own plans for the future in isolation. 
 This created competition, especially following the budget 
cuts announced in 2002.  Berlijn stated that he would fight 
to ensure that the "strong and proud tradition" of the 
services continues, but "like an orchestra, they should play 
well together in order to bring about something truly good." 
 
7. Not all have welcomed the reorganization, including the 
labor unions.  Chairman Jan Kleian of the military 
sub-committee for the Christian Labor Federation (one of 
largest unions in the Netherlands) publicly warned that the 
reorganization would accentuate differences among the 
services once the command staff is consolidated.  Chairman 
Jean Debie of the Labor Union for Defense Personnel notes 
that while Gen. Berlijn's responsibilities increase, he also 
has a more modest standing in the upper levels of the MOD, as 
more directors "sit around the table" and report to the State 
Secretary.  In a sense, Debie suggests that Berlijn's 
 
SIPDIS 
position has actually become diffused by the reorganization. 
Defense expert Kees Homan of the Clingadael Institute warned 
that at this point in the reorganization, the chain of 
command is not clear. 
 
Why Reform? 
----------- 
 
8. The reorganization of the Dutch Ministry of Defense began 
in earnest in 2003 following the findings of the Fransen 
Committee, which determined that an MOD consisting of the 
three separate military branches was competitive and 
redundant.  Overall cuts to the military budget announced in 
2002 exacerbated competition among services as they competed 
for even more limited funding.  In addition, many efforts 
were duplicated by staff in the three separate service 
commands, which compounded administrative friction.  The 
Fransen Committee recommended that the Dutch MOD look to its 
British and Canadian counterparts as models, and place the 
services under one supreme commander with expanded 
responsibilities.  As a result, the Dutch MOD determined that 
change was in order. 
 
9. At current levels, the three separate service commands 
employ 6,000 people as part of their respective headquarters 
staffs.  The reorganization calls for the consolidation of 
the service commands -- the Army command in Utrecht, the Air 
Force command in Breda, and the Navy command in Den Helder -- 
to be folded into a central staff in The Hague.  MOD Director 
of General Policy Affairs Lo Casteleijn confirmed that this 
will eliminate up to 2,000 positions from the service command 
staffs.  The Dutch MOD estimates that approximately 12,500 
positions will be eliminated through-out all levels of the 
MOD, eventually saving 380 million Euros per year. 
 
10. The elimination of these positions has not been 
controversial, as the cuts have been phased over several 
years and include attrition.  Defense Minister Kamp stated 
August 29 that no one has been forced to retire to 
accommodate the staff reduction; a new personnel system will 
assist in re-assigning those whose positions have been 
eliminated. 
 
MOD Executive Level Line-Up 
--------------------------- 
 
11. The current line-up of the MOD executive level includes: 
 
- Minister of Defense: Henk Kamp 
- State Secretary for Defense: Cees van der Knaap 
 
- Secretary General: Antonius (Ton) Annink -- highest-ranking 
civil servant; runs the Central Staff supporting the 
political leadership and advises them in their capacity as 
members of government. 
 
- Central Staff: 
-- Director of General Information: J.B. Veen 
-- Director of Legal Affairs: S.B. Ybema 
-- Director of the Defense Audit Board: L. van den 
Nieuwenhuijzen 
-- Director of the Defense Intelligence and Security Service: 
Maj. Gen. B. Dedden; Maj. Gen. Pieter Cobelens replaces him 
in May 2006. 
-- Director General of Policy Affairs: Lo Casteleijn 
-- CHOD: Gen. Berlijn 
-- Director of Personnel: B. Volkers 
-- Director of the Defense Materiel Organization: P.E. de la 
Chambre 
-- Director-General of Finance and Control: H.J. Hulshof 
 
- Inspector General: Lieutenant General Ad van Baal -- 
ombudsman of the defense organization; offers advice to the 
Minister of Defense.  Independent of the Central Staff. 
 
Coast Guard Reorganization 
-------------------------- 
 
12. The Dutch Cabinet on August 26 directed the Ministries of 
Defense, Finance, Agriculture, and Transportation to work 
together to reorganize the Dutch Coast Guard and have the new 
organization fully operable by March 1, 2006.  According to 
the reorganization scheme, the Ministry of Defense will have 
responsibility over the deployment of personnel and resources 
used for Coast Guard purposes.  The Coast Guard will be 
granted unconditional control of Dutch planes and vessels 
deployed overseas on Coast Guard missions, and can also seek 
the use of ships and aircraft from the armed forces for such 
missions.  The Ministry of Transportation will be responsible 
for the Coast Guard's policy plans, activities, and budget, 
which is subject to Cabinet approval.  The Ministries 
involved in the reorganization will also examine an option to 
build a new shipyard to manage Dutch government ships. 
 
BLAKEMAN