BRUSSELS, Belgium (AP) -- U.S. Defense Secretary William Cohen, armed with the latest U.S. intelligence, warned the NATO allies Thursday about the increasing missile threat from rogue states and outlined Washington's plans for a defense system to combat it.

Those plans, however, worry not only the Russians, but some of America's allies as well.

``I think it's very important for the allies to understand that the threat is real,'' Cohen told reporters after briefing defense ministers from the other 18 NATO nations.

He also outlined Washington's National Missile Defense program, now under development, a limited system aimed at intercepting and destroying ballistic missiles launched from a rogue nation.

The ministers, gathered here for their regular year-end meeting, also discussed European efforts to close the military capabilities gap with the United States, Europe's desire for more defense autonomy, and the situation in Bosnia and Kosovo.

Washington's latest intelligence shows North Korea has embarked on a program to develop long-range ballistic missiles, according to an unclassified summary of the report. They are working on a new missile that could reach large parts of the United States and some of Europe.

Iran also has a program and within the next decade will have a missile capable of striking all of NATO territory, the report says. Iraq, which has expelled U.N. inspectors, could develop such a missile too. Nuclear tests by India and Pakistan are also a worry.

No decision on the American missile defense plan will be made before next summer. But if it goes ahead it would require renegotiation of part of the U.S.-Russia Anti-Ballistic Missile treaty, something Moscow opposes.

Russian Foreign Minister Igor Ivanov says the treaty ``represents the core of strategic stability. Should this core be disrupted, then strategic stability could also be disrupted.''

Cohen acknowledged that ``there is by no means a consensus in the alliance'' about the American missile system.

Lord Robertson, the NATO secretary-general, said ``some of the European allies have some profound questions to ask.''

``We are conscious of the arguments put forward by the United States,'' he said. ``There is room for debate here.''

French Defense Minister Alain Richard said it remained to be seen if the system the Americans envisage ``will be a gain in security equivalent to the expenditure. We remain cautious.''

The ministers discussed the European Union's plans to develop the capability for taking military action on its own in cases where the Americans are not interested in participating. This is part of a program originated in NATO four years ago called the European Security and Defense Identity.

The United States supports the principle of Europe developing such a capability, which coincides with a new push for the European NATO members to close the military capabilities gap with the United States. But Washington does have concerns that the EU's entry into military matters may eventually draw the European allies away from NATO.

``We welcome this as long as it is understood ... that this is done within the context of having a European capability that will strengthen NATO itself,'' Cohen said. ``We would not want to see the development of a separate capability which is not compatible with the NATO capability.''

The NATO air campaign against Yugoslavia this spring, in which the United States bore by far the heaviest burden, highlighted European shortcomings in all-weather air attacks, precision-guided weaponry, communications, intelligence and logistics.

The allies have pledged to close the gap, but that will cost money and European defense budgets will have to swell.

``The time for the peace dividend is over, because there is no peace that is permanent,'' said Robertson, adding that the Europeans will have ``to spend more and to spend it on the right things.''

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