Washington:Defending themassive Budget outlays for fiscal 2008, Secretary of Defence Robert Gates hasargued that apart from the global war on terror, the 'uncertain paths' ofcountries like Russia and China are among the challenges faced by the United States.

"In addition to fighting the global war on terror, we also face the dangerposed by Iran and North Korea's nuclear ambitions and the threat they pose notonly to their neighbours, but globally because of their record ofproliferation, the uncertain paths of Russia and China, which are both pursuingsophisticated military modernisation programmes, and a range of other potentialflash points and challenges.

"In this strategic environment, the resources we devote to defence shouldbe at the level to adequately meet those challenges," he added.

Gates also expressed concern over China's recent anti-satelliteweapon testing.

"I think that the Chinese ASAT test is very troubling. And perhaps what isas troubling as the technical achievement is how one interprets it as a part oftheir strategic -- their own strategic outlook, and how they would anticipateusing that kind of a capability in the event of a conflict a nd theconsequences for us of that," Gates told Senators at the Senate ArmedServices Committee.