With Eli Okun, Connor O’Brien, Jacqueline Klimas and Wesley Morgan

HAPPENING TODAY — TRUMP TO UNVEIL NATIONAL SECURITY STRATEGY, write POLITICO’s Darren Samuelsohn and Michael Crowley: “President Donald Trump is set to unveil a national security plan Monday that reflects the most inward-focused vision of American foreign policy in recent memory – with a heavy emphasis on economic strength and defending U.S. borders.

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“At the same time, the official document presents relatively conventional views at odds with Trump’s own positions — including praise for the role of diplomacy and warnings about Russia’s malign intentions.

“The strategy ‘is wildly inconsistent with Trump administration behavior,’ said Kori Schake, a former State Department official now at Stanford University’s conservative Hoover Institution who is familiar with portions of the document.

“A draft excerpt of the document, formally known as the National Security Strategy, sternly declares that Russia, along with China, ‘challenge[s] American power, influence and interests, attempting to erode American security and prosperity.’”

The president plans to accuse China of “economic aggression” reports the Financial Times.

But China defends its trade with the U.S., Reuters adds.

BREAKING OVERNIGHT — GUNMEN STORM A BUILDING IN KABUL, reports The Associated Press: “Islamic State gunmen stormed a partially constructed building near an intelligence training center in the Afghan capital on Monday, triggering a gun battle with security forces.

"Nasrat Rahimi, deputy spokesman for the Interior Ministry, said the fighting ended when Afghan security forces shot and killed the three attackers without suffering any casualties.

"He said the gunmen, who launched their assault with a car bomb and rocket-propelled grenades, appear to have been wearing police uniforms. The militants took up positions at the construction site in order to fire down on the training center."

— CAR BOMBER ATTACKS A NATO CONVOY IN AFGHANISTAN, Reuters reports: “A car bomber attacked a NATO convoy in the southern Afghan city of Kandahar on Sunday, killing one civilian and wounding four others but without causing casualties among international forces, officials said.

“Qudratullah Khushbakht, a spokesman for the Kandahar governor, said the attack happened on the airport road, killing a woman and wounding four other people. However a spokesman for the NATO-led Resolute Support mission said there had been no injuries among troops in the convoy.”

And the Taliban kill 11 Afghan police in attack on checkpoints, the AP reports.

Meanwhile, U.S. commandos carry out thousands of operations in Afghanistan, writes Military Times.

IT’S MONDAY AND WELCOME TO MORNING DEFENSE, where we're always on the lookout for tips, pitches and feedback. Email us at ghellman@politico.com, and follow on Twitter @greg_hellman, @morningdefense and @politicopro.

MD TRIVIA: Tony Pankuch was the first person to correctly point out the president has vetoed the National Defense Authorization Act five times in the past: 1979, 1989, 1996, 2008 and 2015.

Tune in Friday for this week’s question.

COMING THIS WEEK — SHUTDOWN CLOCK TICKS AWAY, POLITICO's Rachael Bade, Seung Min Kim and Jennifer Haberkorn report: “Republican leaders in both houses of Congress face a sticky situation this week as they try to avert a government shutdown: Each side has promised its members things that will not fly in the other chamber...

“[House Speaker Paul] Ryan, meanwhile, green-lighted a short-term spending strategy that funds the Pentagon but does nothing for Democratic priorities — and suggested House members could leave town to try to ‘jam the Senate’ into accepting their bill. But McConnell needs eight Democrats to pass anything, so the House plan is sure to fail in his chamber..."

“Leaders in both chambers hoped to strike a deal to raise strict spending caps for both by Friday. But the so-called Big Four — Ryan, Pelosi, McConnell and Schumer — have yet to agree on those numbers. The most likely outcome, some Republicans now say, is kicking everything into 2018: They predict another short-term funding bill, leaving a broader spending and immigration agreement until January.”

— REPUBLICANS ARE ON CUSP OF TAX REFORM, writes POLITICO’s Bernie Becker: “For the large contingent of Washington supply-siders and tax-cutters, the sweeping tax overhaul that President Donald Trump is poised to sign into law this week has been a generation in coming — and the culmination of half a life’s work that started during Ronald Reagan’s 1980s...

“Now, the 2017 tax revamp will bring the American tax system more into lockstep with those conservatives’ thinking than perhaps ever before — making the idea that what works for corporate America will work for the country at large a central plank of U.S. policy for decades to come, maybe even a generation or more.”

The votes lined up when the GOP bill was finalized, report our colleagues Brian Faler, Seung Min Kim and Colin Wilhelm.

The full text of the final tax bill is here. And an explainer is here.

MCCAIN LEAVES WALTER REED, RETURNS TO ARIZONA, reports POLITICO’s Brent D. Griffiths: “The office of Arizona Sen. John McCain said Sunday the Republican senator is returning to Arizona for ‘physical therapy and rehabilitation.’

"McCain has been undergoing treatment for brain cancer.

“‘Senator McCain has returned to Arizona and will undergo physical therapy and rehabilitation at Mayo Clinic,’ the statement said. ‘He is grateful for the excellent care he continues to receive, and appreciates the outpouring of support from people all over the country. He looks forward to returning to Washington in January. ...

"Senator McCain has responded well to treatment he received at Walter Reed Medical Center for a viral infection and continues to improve," said Dr. Mark Gilbert, chief of Neuro-Oncology at the National Institutes of Health's National Cancer Institute. "An evaluation of his underlying cancer shows he is responding positively to ongoing treatment."

THE TRUTH IS OUT THERE, AND THE PENTAGON WAS LOOKING, writes our colleague Bryan Bender: “The Pentagon, at the direction of Congress, a decade ago quietly set up a multi-million dollar program to investigate what are popularly known as unidentified flying objects—UFOs.

“The ‘unidentified aerial phenomena’ claimed to have been seen by pilots and other military personnel appeared vastly more advanced than those in American or foreign arsenals. In some cases they maneuvered so unusually and so fast that they seemed to defy the laws of physics, according to multiple sources directly involved in or briefed on the effort and a review of unclassified Defense Department and congressional documents.”

And former Senate Majority Leader Harry Reid (D-Nev.) defends the program, telling The New York Times that if the U.S. “doesn't take the lead” in finding out answers about UFOs, then other countries will.

TOP DOC — HAGEL SIGNS ONTO A BRIEF AGAINST TRANSGENDER BAN, reports our colleague Jacqueline Klimas: “The Trump administration’s proposed ban on transgender military personnel would negatively impact readiness and unit cohesion, dozens of former officers and national security leaders said in a brief filed [Friday] with the United States Court of Appeals for the District of Columbia. Among the 46 signatories are former Defense Secretary Chuck Hagel and retired Gen. Michael Hayden, ex-head of the CIA.

“‘Imposing a ban on transgender troops will significantly disrupt and distract from the core mission of the military services,’ the brief says. “

** A message from CSRA: CSRA is delivering tomorrow's cloud solution for the DoD, milCloud®2.0, today. A complete cloud ecosystem, available now with commercial pricing, performance, multiple vendor capabilities, and continuous innovation. Uniquely equipped to expand the warfighter's technological advantage. Learn more at CSRA.com/milcloud **

MATTIS: NORTH KOREA SHORT OF AN IMMINENT MISSILE THREAT, via the AP: “North Korea’s latest missile test, which U.S. experts say indicated an increasing technological sophistication, did not demonstrate an imminent threat of nuclear attack on the United States, Defense Secretary Jim Mattis said Friday.

“‘No, not yet,’ Mattis said when a reporter asked whether the Nov. 29 test indicated a full capability to strike the U.S.

“‘It has not yet shown to be a capable threat against us right now,’ Mattis added. His remark suggested he believes the Trump administration has additional time to pursue diplomacy before resorting to military options for eliminating the North’s nuclear arsenal.”

Here are the rocket men: the team building North Korea’s nuclear missile, via the NYT.

An Australian tried to sell missile parts to North Korea according to police, reports the NYT.

And U.S. and South Korean forces hold a drill for removing North Korea's weapons of mass destruction, adds Yonhap News Agency.

— TILLERSON: NORTH KOREA MUST ‘EARN ITS WAY BACK’ TO TALKS, via The Washington Post: “Secretary of State Rex Tillerson on Friday called on Russia and China to sever their economic pipeline to North Korea, and said Pyongyang must “earn its way back” to negotiations by ceasing missile tests for a sustained period.

“Speaking at the United Nations Security Council in a session called for foreign ministers, Tillerson backpedaled from a position he outlined earlier this week. In New York, he did not repeat an assertion he made Tuesday that the United States has no preconditions to starting talks. That remark was undercut by the White House, which said there had been no change in position.”

Meanwhile, sanctions are hurting aid efforts — and ordinary people — in North Korea, writes The Washington Post.

But North Korea is unmoved as the world unites against its nuclear ambitions, writes the AP.

U.S. PLANS BUILDUPS AT EUROPE AIR BASES, reports the Air Force Times: “The U.S. is planning to spend more than $200 million to repair and build U.S. military structures and installations on air bases that dot much of Eastern Europe, part of an ongoing initiative to deter Russian aggression.

“The fiscal 2018 annual defense legislation, signed into law Dec. 12 by President Donald Trump, authorizes the Air Force secretary to purchase land and build installations outside of the United States. This year’s defense spending plan includes roughly $214 million to construct installations in Iceland, Norway and much of Eastern Europe. The funds are part of the European Deterrence Initiative, or EDI.”

Three things the U.S. military needs to fight in Europe, reports Defense One.

Russia's naval updates threaten undersea communications networks, a top British military officer says, via Defense News.

MAKING MOVES — U.S. ARMY EUROPE READIES FOR A NEW COMMANDER, reports Defense News: “Maj. Gen. Christopher Cavoli, the commander of the 25th Infantry Division, will take command of U.S. Army Europe, according to information provided by a Defense Department official.

“The Congressional Record on Dec. 14 shows Cavoli’s third-star promotion was voted out of committee. Lt. Gen. Ben Hodges is retiring this week after serving as the U.S. Army Europe commander since November 2014.”

THORNBERRY CONFIDANTE RETURNS AS HASC STAFF DIRECTOR, and talks about her role with our colleague Connor O’Brien in POLITICO Pro Q&A: “The new staff director for the House Armed Services Committee is no stranger to the staff, lawmakers or the Republican chairman, Rep. Mac Thornberry...

“Aides describe her as a ‘longtime confidant’ of Thornberry. And in working with the top House leaders, Stewart said she forged a strong bond with the Texas congressman when they worked together on cybersecurity legislation while he was on both the House Armed Services and Intelligence Committees.”

WAR REPORT — MATTIS WARNS OF UNSAFE RUSSIAN MILITARY FLIGHTS OVER SYRIA, via the AP: “Defense Secretary Jim Mattis is warning against dangerous flights by Russian fighter jets over what is considered a safe zone in Syria, questioning whether recent close calls were mistakes or deliberate. Mattis told Pentagon reporters Friday that the U.S. and Russia are still using a phone line to coordinate flight movements over crowded Syrian skies as the U.S.-led coalition goes after remaining Islamic State group militants.

“Two Russian Su-25 fighters flew through an unofficial line separating Russian and American air forces in eastern Syria on Wednesday coming dangerously close to U.S. aircraft.”

A cease-fire zone offers little protection in Syria, writes The Intercept.

Meanwhile, U.S. partner forces kill ISIS fighters near a small U.S. garrison in Syria, reports Military Times.

Syrian troops march into the rebel-held province of Idlib, reports the AP.

At least nine civilians are killed in airstrikes against the rebel-stronghold, according the Syrian activists, also via AP.

And Turkey’s President Recep Tayyip Erdogan says his country will clear its border of Syrian Kurds, the AP adds.

TOP DOC II — REPUBLICAN LAWMAKERS URGE MATTIS TO RECONSIDER QATAR OPS CENTER: Four Republican House members are urging the Defense secretary to consider other options besides Al Udeid Air Base in Qatar to host U.S. Central Command’s Combined Air Operations Center.

The lawmakers cite Qatar’s reported support for Sunni militant groups and ties with Iran for examining other options for the base, in a letter provided to Morning D.

“The United States must be careful about relying too heavily on a host nation which finances terror itself and is increasingly aligned with the world’s leading sponsor of terrorism,” according to the letter, which was signed by Republican Reps. Doug Lamborn of Colorado, Don Bacon of Nebraska, Elise Stefanik of New York and Ron DeSantis of Florida.

A huge military buildup in Qatar is underway. But who will man the systems? asks Defense News.

INDUSTRY INTEL — AIRBUS CEO TO STEP DOWN AFTER CONTRACT ENDS, reports Defense News: “The head of Airbus will leave the European aircraft manufacturer in February, while the chief executive of the parent company will not seek a renewal when his contract ends in 2019, Airbus said Friday...

“Chief Operating Officer Fabrice Bregier will leave Airbus’ commercial aircraft division in February, with the head of Airbus Helicopters, Guillaume Faury, taking up the post, the company said.”

— AIR FORCE BEGINS WORK ON SIXTH-GENERATION FIGHTER, writes Scout Warrior: “The Air Force has begun experimenting and conceptual planning for a 6th generation fighter aircraft to emerge in coming years as a technological step beyond the F-35, service leaders said...

“The new aircraft, engineered to succeed the 5th-generation F-35 Joint Strike Fighter and explode onto the scene by the mid 2030s, is now in the earliest stages of conceptual development with the Air Force and Navy.”

SPEED READ

— The secret backstory of how then-President Barack Obama let Hezbollah off the hook: POLITICO

— Global defense spending is projected to increase to $1.67 trillion in 2018 – the most since the end of the Cold War, according to the annual Jane’s Defense Budgets Report: IHS Markit

— Russia thanks Trump for a CIA tip that stopped a terrorist attack: POLITICO

— A Tillerson slip offers a peek into secret planning on North Korea: NYT

— Sgt. La David Johnson apparently fought to the end in Niger: AP

— An Army study finds flaws with the military’s pivotal assault on Mosul: The Wall Street Journal

— Former Special Operations chief retired Adm. Bill McRaven is resigning as chancellor of the University of Texas system in May: Texas Tribune

— Nigeria arrests more than 400 tied to Boko Haram: AP

— An Islamic State attack kills eight at a Pakistani church: NYT

— The Pentagon’s anti-Islamic State cyberattacks could provide a template: The Washington Post

— Israel strikes Hamas targets in Gaza after Palestinian rocket attacks: Reuters

— Mexico strengthens its military’s role in the drug war, outraging critics: NYT

— AIM is dead. But it was a critical lifeline for troops in Iraq and Afghanistan: The Washington Post

— China’s air force drills in the Sea of Japan and again around Taiwan: Reuters

— Hoping to extend its maritime reach, China lavishes aid on Pakistani town: Reuters

— The Air Force turns to the Boneyard to train thousands of new maintainers: Air Force Times

— Navy Secretary Richard Spencer seeks the repeal of an obscure statute after ship collisions: Breaking Defense

— The Navy brings the electromagnetic rail gun into field demonstrations: Scout Warrior

— Argentina sacks its navy chief over its missing submarine: AP

— The majority of French air force aircraft are unfit to fly: The Telegraph

— France built a fake Paris to fool German bombers in World War I: The Daily Beast

** A message from CSRA: CSRA is delivering tomorrow's cloud solution for the DoD, milCloud®2.0, today. A complete cloud ecosystem, available now with commercial pricing, performance, multiple vendor capabilities, and continuous innovation. Uniquely equipped to expand the warfighter's technological advantage. Learn more at CSRA.com/milcloud **