This report examines the effects of the changing international environment on the U.S. military and the U.S. Army in particular. The report argues that the dilemma of dealing with changing threats and dramatically reduced budgets that confronts the U.S. military confronts the Army more acutely — it must broaden its capabilities, adjust its roles and missions, and compete with the other services, all in the face of manpower and budget cuts. While the Army will respond through such internal means as relying more on technology and rethinking its use of the reserves, the report argues that cooperation between the American armies could counteract some of the effects of the drawdown and decreasing defense budget. For example, sharing rather than duplicating disaster-relief equipment and training, combining counterdrug operations, and leveraging off the Canadian Army's expertise in international peacekeeping could help optimize limited resources. The report concludes that before any of these efforts can take place, the countries of the region must redefine their political and military relationships to prevent being constrained by the residual fears of imperialism.