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H.R. 13456
TO AUTHORIZE APPROPRIATIONS DURING THE FISCAL
YEAR 1967 FOR PROCUREMENT OF AIRCRAFT, MISSILES,
NAVAL VESSELS, AND TRACKED COMBAT VEHICLES, AND
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR
THE ARMED FORCES, AND TO MAINTAIN PARITY BE-
TWEEN MILITARY AND CIVILIAN PAY, AND FOR OTHER

PURPOSES

BEFORE THE

COMMITTEE ON ARMED SERVICES
HOUSE OF REPRESENTATIVES

EIGHTY-NINTH CONGRESS

SECOND SESSION

HEARINGS BEFORE THE FULL COMMITTEE MARCH 8, 9,
10, 15, 31, APRIL 5, 6, 19, 20, 21, 26, 27, 28, MAY 2, 1966, AND
HEARINGS BEFORE SUBCOMMITTEE NO. 3 ON RESEARCH,
DEVELOPMENT, TEST, AND EVALUATION, JANUARY 24, 25,

26, FEBRUARY 21, 23, 24, 25, 28, MARCH 2, AND 3, 1966

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EPOSITED BY THE

UNITED STATES OF AMERICA

[No. 64]

HEARINGS ON MILITARY POSTURE AND H.R. 13456, TO AUTHORIZE APPROPRIATIONS DURING THE FISCAL YEAR 1967 FOR PROCUREMENT OF AIRCRAFT, MISSILES, NAVAL VESSELS, AND TRACKED COMBAT VEHICLES, AND RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE ARMED FORCES, AND TO MAINTAIN PARITY BETWEEN MILITARY AND CIVILIAN PAY, AND FOR OTHER PURPOSES

HOUSE OF REPRESENTATIVES,

COMMITTEE ON ARMED SERVICES,

Washington, D.C., Tuesday, March 8, 1966. The committee met at 10:20 a.m., the Honorable L. Mendel Rivers, chairman, presiding.

The CHAIRMAN. Let the committee come to order.

Members of the committee, I understand that you had a good meeting with Admiral Raborn, the Director of CIA, on yesterday. I will be interested in reading that transcript.

Today we have the pleasure of having with us Secretary of Defense McNamara and the Chairman of the Joint Chiefs of Staff, General Wheeler.

As you know, and as Mr. Philbin indicated yesterday, it is my hope that we can complete these hearings in expeditious fashion, perhaps in about 2 weeks. That is why I have asked the Secretary to cooperate with us, and he has in getting this material to us so we can have access to it and know the general way things would probably go as we went along.

It is my suggestion that we let Secretary McNamara proceed with his statement to some appropriate breaking point, at which time he will stop and we will question him prior to his continuing. I think we should continue this process throughout the hearings.

Secretary McNamara and General Wheeler, we are glad to have you with us today and I suggest that you, Mr. Secretary, proceed with your statement at this time.

Secretary McNAMARA. I think we can break the discussion of the statement into two parts, the first part dealing with the introduction and the strategic offensive-defensive forces, these being the foundation of our deterrent; the second part treating with the remainder of the statement. On that basis I would like to present the first two sections of my statement, highlight certain portions and submit to your questions on that material.

The CHAIRMAN. That sounds all right, and I understand that you have an appointment. When we reconvene this afternoon it will be at 2:30.

(7287)

50-066-66-No. 64

1

We will proceed that way, Mr. Secretary. We are glad to have both you and General Wheeler, and we will proceed in this fashion, and you may begin.

Secrtary McNAMARA. Thank you very much, Mr. Chairman.

Mr. ARENDS. Are you going to refer to your charts when you go through here, and refer to the pages?

Secretary McNAMARA. I am, Mr. Arends; I will give you page numbers and tell you what portions of the page I am referring to. But, first, I believe it would be helpful if you would turn to the first table in the back of the statement, which summarizes the financial budget for fiscal 1967 and compares it with the budgets of the years 1961 through 1966. I will comment on the total budget as shown on that table.

The tables have been bound separately, and I think you can separate them from the remainder of the text, and have them in front of you. We will be referring to them periodically.

The CHAIRMAN. The tables are here in the front of the book, gentlemen.

Secretary McNAMARA. On table 1 you will see the budgets of the fiscal years 1961 through 1967. I want to draw your attention to the line labeled "Total expenditures," about a third of the way down the page. On that line you will see in the last column under fiscal year 1967, the figure $58.3 billion. This is the estimated total expenditure for fiscal year 1967 associated with the program that we are presently presenting to you.

The CHAIRMAN. This is over and above the 4.8, of course?

Secretary McNAMARA. The total expenditures for fiscal 1966, including the effect of the 1966 supplemental, is shown in the second from the last column.

The CHAIRMAN. Is that 54.2?

Secretary McNAMARA. $51.2 billion is the estimated expenditure for 1966.

Mr. BATES. This is total ?

Secretary McNAMARA. This is the total including the fiscal year 1966 effect of the supplemental; that is correct.

These two figures, $54.2 billion and $58.3 billion, while large in absolute terms are smaller in relation to our gross national product than any of the fiscal years 1961, 1962, 1963, or 1964. The 1966 and 1967 defense expenditures, as a percentage of gross national product, are 7.7 and 7.8 percent, respectively. Those percentage figures don't show on your table. The 7.7 and 7.8 percent of the gross national product, which is represented by the budgets of 1966 and 1967, are lower than any of the years from 1960 to 1964. In each of those years the expenditures ran between 8.2 and 8.9 percent of the gross national product.

Mr. PHILBIN. Mr. Secretary, what gross national product are you referring to, which one?

Secretary McNAMARA. Fiscal 1967.
Mr. PHILBIN. Fiscal 1967. What do you anticipate it will be?
Secretary McNAMARA. It will be well over $700 billion,
The CHAIRMAN. You believe it will be over $700 billion?
Secretary McNAMARA, I believe so.
Mr. Phillin. Seven percent of the gross national product?

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