U.S. DEFENCE BUDGET

Press, Volume XCVIII, Issue 29055, 18 November 1959, Page 12

U.S. DEFENCE BUDGET

Research May Be Cut (N.Z. Press Association—Copyright) AUGUSTA (Georgia), Nov. 16. President Eisenhower and the United States Defence High Command today agreed on- a 1961 military budget of about 41,000,000,000 dollars (about £18.306,000).

The agreement was reached at the vacation White House at Augusta with the strong prospect of having to reduce or eliminate one or two major research programmes to meet the rising cost of other new weapons, United Press International reported.

The conference also discussed manpower cuts in two branches of the armed forces, but apparently reached no decision. The Secretary of Defence (Mr Neil McElroy) would not say which of the military services were in line for a reduction in staff. He said that they had themselves volunteered to make small reductions. American Associated Press reported that the Air Force was one and the Army the other. The possible cut in research was also unspecified.

Mr McElroy, who met with the President and other officials in the big trophy room of the Augusta National Golf Club, flew back to Washington after telling reporters that general agreement had been reached on the over-all size of the defence budget. It would be, he said, about the same as defence spending in the present financial year. Mr McElroy added that the manpower reductions in the services would be small.