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This report examines the prospects of NATO cooperation in the development and production of tactical missiles. It presents the quantitative background of arms production and trade among the four major arms producers in NATO: France, FRG, UK, and US. The views of senior European government officials concerning arms cooperation are presented using their public statements on the subject made on both sides of the Atlantic. The study then turns to NATO tactical missiles. After tracing the history of missile development since World War II, the study then measures the interest and capability of the four countries in the various types of tactical missiles, based on production, exports, development spending, and force levels--using both recent figures and totals for the last 30 years. Estimates of development cost savings are made for the past based on a program of complete four power cooperation. Estimates of development cost savings are made for the future by comparing a program of complete cooperation with an expected or most likely program. Conclusions are presented concerning the difficulty of attaining further cooperation beyond that already achieved.