From 1951 to 1953, Carney served as commander-in-chief of the North Atlantic Treaty Organization (NATO) forces in Southern Europe, where he was responsible for the fleets of five countries and the armed forces of Italy, Greece and Turkey.
Over the next several years, Carney's various assignments, coupled with his personal interest in industrial participation in the defense effort, resulted in close contact with industry including the position of Chairman of the Board, Bath Iron Works, Corporation.