This is a partial transcript of "The Big Story With John Gibson," July 5, 2005, that has been edited for clarity.

JUDGE ANDREW NAPOLITANO, GUEST HOST: Revamping our military strategy. According to The New York Times, the Pentagon (search) may be rethinking the way we prepare our troops for war.

Currently, our military is set up to fight two major campaigns at one time. But what if another conflict suddenly arises? And what about the War on Terror (search)?

Here to discuss possible changes is retired U.S. Marine Lieutenant Colonel and FOX News Channel military analyst Bill Cowan.

Colonel, what revamping are they talking about? What do they want to change?

LT. COL. BILL COWAN (RET.), FOX NEWS MILITARY ANALYST: Well, these are difficult times, Your Honor.

We know that we have got major commitments overseas right now. We know we have got issues like Iran and North Korea kind of standing in front of us. And yet, we're really at the end of our resources. We're really overextended with manpower. We don't have all the kinds of things we need.

So the military is standing back and taking a good hard look at where we are and where we think we want to be in the future. And this all has to do with the budget.

NAPOLITANO: Why, Colonel, would we be contemplating longstanding strategic changes now, in the middle of a war?

COWAN: Yes. Well, that's a good question, Judge.

And I think the reality is that Iraq has overstressed us right now. We entered 9/11 (search), the days preceding 9/11, with this strategy, decades-long strategy of being able to fight two wars simultaneously around the globe. And, suddenly, here we are really committed to the max in Iraq, really seeing a drain, $5 billion a week, excuse me, $5 billion a month, 138,000 troops over there, another 18,000 troops in Afghanistan, other troops around the world right now fighting in the War on Terror, and the reality that if North Korea or Iran became a sudden major problem for us, we'd have a tough time doing what we needed to do.

NAPOLITANO: Suppose China decides to overrun the Straits of Taiwan and take over Taiwan. Suppose North Korea invades the south. Suppose Iran aims nuclear weapons at Israel. Can we resist these tyrannies while at the same time fighting in Afghanistan and fighting in Iraq today?

COWAN: Well, I think the Pentagon right now would say, "Oh, yes, we can do it. We'll find a way to do it."

I think the reality for those of us who have long ago left the military, are not part of the government, but still are watching this carefully, would say we would be extremely hard-pressed. No question about it, if one of those scenarios you just suggested there came about in the short term, we would have to draw down in what we have going on in Iraq, therefore impacting on Iraq and in the long term on the global War on Terror itself.

So there's no question that we have to reallocate things. And, Your Honor, one of the problems is we're spending massive amounts of money on big weapons systems and platforms that are of questionable value right now in terms of the current conflicts we're doing.

Secretary Rumsfeld (search) is big about transforming the military from a heavy, slow-moving force to a lighter, more agile one. He has a lot of people in the Pentagon waiting for him to leave because they are opposed to those kinds of policies.

This particular review that is ongoing now will have major, profound impacts for our future.

NAPOLITANO: We only have a few seconds left. What's the answer, more manpower, more technology or more money?

COWAN: Well, I wish I knew. I'm not part of that annual review. And I think there's a lot of arguing, a lot of going back and forth among all these brilliant minds that people — the Secretary, the Pentagon — has put together to come up with the answers.

We won't know until it comes out next year. And when the QDR, the Quadrennial Defense Review (search), does come out next year, there is going to be a lot of complaining about it from a lot of people.

We can't all be satisfied.

NAPOLITANO: Colonel Bill Cowan, thanks very much.

COWAN: Thanks, Your Honor.

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