America is determined to prevent the next wave of terror. States that sponsor terror and pursue WMD must stop. States that renounce terror and abandon WMD can become part of our effort. But those that do not can expect to become our targets. This means directing firm international condemnation toward states that shelter--and in some cases directly sponsor--terrorists within their borders. It means uncovering their activities that may be in violation of international treaties. It means having a direct dialogue with the rest of the world about what is at stake. It means taking action against proliferators, middlemen, and weapons brokers by exposing them, sanctioning their behavior, and working with other countries to prosecute them or otherwise bring a halt to their activities. It means taking law-enforcement action against suspect shipments, front companies, and financial institutions that launder proliferators' funds. And it requires, above all, effective use, improvement, and enforcement of the multilateral tools at our disposal--both arms control and nonproliferation treaties and export control regimes.

Multilateral agreements are important to our nonproliferation arsenal. This Administration strongly supports treaties such as the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), the Chemical Weapons Convention, and the Biological Weapons Convention. But in order to be effective and provide the assurances they are designed to bring, they must be carefully and universally adhered to by all signatories. Therefore, strict compliance with existing treaties remains a major goal of our arms control policy.

December 17: The U.S. Army has disclosed that officials at the Dugway Proving Ground in Utah have been producing weapons-grade anthrax - virtually identical to that found in the letters mailed to Senators Tom Daschle and Patrick Leahy - for nearly a decade. This is the first such admission since the U.S. offensive biowarfare program was cancelled in 1969. A spokesperson for Dugway has stated that all of the facility's anthrax is well protected and accounted for. Officials claim that the small amounts of anthrax produced at Dugway are used for defensive research and that the research complies with all current treaty obligations.

If the US adopts the 'axis of evil' as its slogan, the EU's equivalent is the 'arc of instability' on its eastern and southern borders. These two images, and the policy mechanisms they imply, are so very different. One is aggressive and categorical, the other apprehensive and cautious. But what happens when they overlap? Can they be coordinated?

What is at issue here, I suggest, is a confusion over what I characterise as expansive and `imploding' phases of world capitalist development. My argument is that the expansive phase of world capitalism is over. The expansive phase of capitalism was characterised by the extension of the fundamentals of economic activity, namely trade and productive investment ever further into more and more areas of the globe; that phase has now been succeeded by a phase of deepening, but not widening capitalist integration.