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>> Sreenivasan: THE DEPARTMENT

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OF DEFENSE HAS A PROPOSED BUDGET

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OF $686 BILLION FOR 2019, AND,

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AS YOU CAN IMAGINE, THE LION'S

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SHARE OF THAT MONEY GOES TO

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PLANES, SHIPS, WEAPONRY AND

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PERSONNEL TO FIGHT A

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CONVENTIONAL WAR.

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BUT THE U.S. AND ITS ALLIES

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ARE ALSO PREPARING FOR A NEW

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KIND OF WARFARE FOUGHT NOT ON

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LAND AND SEA AND AIR, BUT ACROSS

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COMPUTER NETWORKS.

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NEWSHOUR WEEKEND SPECIAL

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CORRESPONDENT CHRISTOPHER

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LIVESAY HAS THE STORY FROM

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TALLINN, ESTONIA.

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>> Reporter: THE CLOCK IS

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TICKING AS NATO JUMPS INTO

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ACTION TO PROTECT ONE OF THEIR

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OWN.

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>> THERE ARE NATO NATIONS THAT

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HAVE DETERRENCE FORCE TROOPS ON

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THE ISLAND OF BERYLIA, AND THEY

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ARE TRYING TO DETER AGGRESSION

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FROM CRIMSONIA.

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>> Reporter: BERYLIA'S POWER

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GRID HAS BEEN HACKED, ITS WATER

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SYSTEM CONTAMINATED...

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>> THE DRONES, THEY NEED TO FLY

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THEIR MISSION!

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>> Reporter: ...AND ITS

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SURVEILLANCE DRONES SENT OFF

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COURSE, LEADING EUROPE TO THE

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BRINK OF WAR.

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>> IT MAY BE ATTACKED THIS WAY.

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>> Reporter: NO, YOU HAVEN'T

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MISSED THE LATEST NEWS FROM

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EUROPE.

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THIS IS NOT REAL WAR; IT'S A WAR

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GAME, THE LARGEST LIVE-FIRE

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CYBER DEFENSE EXERCISE IN THE

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WORLD, INVOLVING MORE THAN 1,000

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EXPERTS FROM 30 NATIONS.

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IT'’’S CALLED LOCKED SHIELDS.

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THE NERVE CENTER OF THE

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OPERATION IS A HOTEL BALLROOM IN

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THE PICTURESQUE EASTERN EUROPEAN

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CITY OF TALLINN, ESTONIA.

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IT'S THE HOME OF THE EVENT'S

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ORGANIZERS, THE NATO COOPERATIVE

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CYBER DEFENSE CENTER OF

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EXCELLENCE.

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>> THE MOST SERIOUS THREATS ARE

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COMING FROM NATIONS AND

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NATION-STATES' AFFILIATED

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GROUPS.

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>> Reporter: THE CENTER'S

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DIRECTOR, ESTONIAN MERLE MAIGRE,

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SAYS IN A WORLD MORE AND MORE

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DEPENDENT ON THE INTERNET, THESE

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WAR GAMES ARE MORE IMPORTANT

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THAN EVER.

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>> THE MOST DANGEROUS TARGETS

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ARE IN CRITICAL INFORMATION

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INFRASTRUCTURE-- OUR BANKING

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SYSTEMS, OUR TRAFFIC CONTROL

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SYSTEMS, OUR PORTS, AIRPORTS.

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ALL OF THIS IS RUN BY SYSTEMS

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THAT WERE SET UP IN THE '70s OR

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'80s WHEN CYBER SECURITY

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MEASURES WEREN'T REALLY THE

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FIRST PRIORITY, AND THEREBY THEY

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ARE VULNERABLE TO CYBER ATTACKS

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AS MORE AND MORE SYSTEMS ARE...

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ARE LINKED UP WITH INTERNET.

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>> Reporter: SO, HYPOTHETICALLY

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SPEAKING, A... AN ATTACKER COULD

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TARGET THE AIR TRAFFIC CONTROL

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SYSTEM OF A COUNTRY AND CAUSE A

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PLANE CRASH.

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>> ABSOLUTELY.

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THEORETICALLY SPEAKING, YOU

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DON'T REALLY NEED TO START A WAR

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BY TARGETING THE MILITARY.

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A CODE CAN RENDER YOUR FIGHTER

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PILOTS INCAPABLE EVEN BEFORE

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THEY TAKE OFF.

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>> Reporter: THE C.C.D.C.O.E.

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HAS BEEN RUNNING LOCKED SHIELDS

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EVERY YEAR SINCE 2010 WITH A

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SIMILAR SCENARIO: THE FICTIONAL

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COUNTRY OF CRIMSONIA WHICH SEEKS

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TO DOMINATE THE REGION LAUNCHES

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A MASSIVE CYBER ATTACK AGAINST

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THE EQUALLY FICTIONAL BERYLIA.

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BERYLIA CALLS ON ITS NATO ALLIES

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FOR HELP.

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ALTHOUGH THE SCENARIO ISN'T

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REAL, THE ATTACKS ARE MEANT TO

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MIMIC THREATS THAT ARE, THREATS

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LIKE THOSE NATO FACES FROM

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POTENTIALLY HOSTILE COUNTRIES

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INCLUDING RUSSIA.

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>> THAT IS EXACTLY WHAT HAPPENED

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TWO YEARS BACK IN UKRAINE WHEN

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THE ATTACKS AGAINST THE POWER

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GRID HAPPENED.

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>> Reporter: 22 SO CALLED "BLUE

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TEAMS" FROM NATO AND E.U.

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NATIONS MUST DEFEND BERYLIA.

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THEY'LL BE RANKED ON HOW WELL

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THEY PROTECT ITS ELECTRICITY

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GRID, EMERGENCY COMMUNICATION

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SYSTEM, SURVEILLANCE DRONES AND

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WATER SUPPLY FROM THE HACKERS.

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AMERICAN COMMANDER MICHAEL

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WIDMANN IS ONE OF THE

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COORDINATORS.

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>> THESE ARE THE ACTUAL MOCKUPS

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OF THE WATER GENERATION PLANTS

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THAT WE'RE USING DURING THE

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EXERCISE.

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YOU CAN SEE THE BLUE TEAM

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NUMBERS CORRESPONDING TO THE

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TEAMS THAT ARE TRYING TO DEFEND

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THEM.

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THIS ONE HERE HAS BEEN

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COMPROMISED.

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THE WATER'S TURNED GREEN, SO

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IT'S NOT SUITABLE FOR HUMAN

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CONSUMPTION.

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>> Reporter: BLUE IS SAFE.

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GREEN MEANS THERE'S TOO LITTLE

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CHLORINE IN THE WATER SUPPLY;

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RED, TOO MUCH.

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>> FROM OVERALL, LOOKING AT THE

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MODELS HERE, THREE TEAMS HAVE

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LOST CONTROL OF THEIR WATER

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PURIFICATION PLANTS.

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>> Reporter: AND THAT'S LEADING

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TO BIGGER PROBLEMS.

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>> CITIZENS FROM BERYLIA HAVE

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GOTTEN SICK.

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THE DETERRENCE FORCE PERSONNEL

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THAT ARE ON THE ISLAND ARE NOW

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HAVING TO DEAL WITH SICK

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PERSONNEL, SICK BERYLIAN

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CITIZENS.

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THEY'’’RE ALSO DEALING WITH RIOTS.

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THEY'RE ALSO DEALING WITH A... A

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PROXY GROUP FROM CRIMSONIA THAT

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ARE ETHNIC CRIMSONIANS WITHIN

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BERYLIA.

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AND THEY ARE TAKING THE

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ADVANTAGE OF THE INCIDENTS THAT

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ARE OCCURRING TO DESTABILIZE

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THE GOVERNMENT, ESSENTIALLY.

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>> Reporter: DURING THE LOCKED

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SHIELDS EVENT, DEFENDERS USUALLY

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COMPETE REMOTELY FROM THEIR HOME

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COUNTRIES.

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THE ESTONIAN TEAM WAS IN SECURE

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ROOMS AT C.C.D.C.O.E

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HEADQUARTERS IN TALLINN.

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THAT'S WHERE WE FOUND THE

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AMERICAN TEAM, AS WELL.

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IN PAST YEARS, THE U.S.

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COMPETED ON ITS OWN AND DIDN'T

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ALWAYS FARE WELL.

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IN 2017, IT CAME IN 12th.

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THIS YEAR, THE U.S. TEAMED UP

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WITH THREE BALTIC COUNTRIES,

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INCLUDING ESTONIA, WHICH CAME IN

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SECOND LAST YEAR.

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>> THE MORE WE CAN LEARN FROM

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ONE ANOTHER...

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>> Reporter: U.S. ARMY COLONEL

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BRIAN VILE SAYS IT JUST MADE

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SENSE.

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>> REALLY THIS YEAR WAS A

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COMPLETE CHANGE IN TACTIC.

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WE SAID WE'RE NOT GOING TO

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COMPETE INDIVIDUALLY.

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INSTEAD, WHAT WE'RE GOING TO DO

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IS WE'RE GOING TO COOPERATE,

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LEARN FROM ONE ANOTHER.

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AND THAT WAY, IF WE FINISH FIRST

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OR WE'RE WITH THE TEAM THAT

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FINISHED FIRST, WE MAKE SURE

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THAT WE FIGURE OUT WHAT THEY ARE

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DOING THAT'’’S SO GOOD.

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AND WE CAN TAKE IT BACK TO

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OURSELVES AND HOPEFULLY PUSH

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THAT BACK OUT TO ALL THE OTHER

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TEAMS THAT WE WORK WITH AND ALL

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THE OTHER ALLIES.

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>> Reporter: THE GAME LASTS TWO

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DAYS.

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IN THE END, EACH TEAM DEFENDING

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BERYLIA TOOK HITS.

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ALL THE SURVEILLANCE DRONES AND

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EMERGENCY COMMUNICATIONS SYSTEMS

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WERE COMPROMISED IN SOME WAY, AS

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WERE A LITTLE OVER HALF THE

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ELECTRICITY AND WATER SYSTEMS.

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>> THERE'S A LOT OF LEARNING,

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ACTUALLY.

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>> YEAH, THERE IS A LOT.

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>> Reporter: THE U.S./ESTONIA

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TEAM CAME IN FOURTH.

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BUT COLONEL VILE SAYS WINNING IS

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NOT THE POINT OF LOCKED SHIELDS;

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LEARNING IS.

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>> IT'’’S ALL ABOUT COOPERATION.

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IT'S ALL ABOUT INFORMATION

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SHARING.

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NONE OF US IS AS SMART AS ALL OF

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US.

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>> SOMETHING IS VERY, VERY

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WRONG.

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>> SO, THE GREAT THING THAT WE

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ARE GETTING OUT OF THIS IS THE

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ABILITY TO WORK WITH THE

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PARTNERS SO IF SOMETHING EVER

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DOES HAPPEN IN THE REAL WORLD,

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WE'RE THAT MUCH BETTER PREPARED

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FOR IT.