TFX Cost May Exceed Estimate

Press, Volume CII, Issue 30291, 18 November 1963, Page 15

TFX Cost May Exceed Estimate

(N.Z. Press Association—Copyright) WASHINGTON, November 16. The 24 TFX fighter-bomber aircraft ordered by Australia could cost more than the 125 million dollars estimated this week by the Australian Defence Minister (Mr Townley), United Press International reported today.

United States Defence Department officials explained today that the October 24 agreement to sell the supersonic aircraft to Australia was based on a formula, which could rise or fall, rather than remain at a fixed price. So far cost trends for the TFX have steadily risen. Original estimates were that the 1700 TFX aircraft ordered last year by the

United States Secretary of Defence (Mr McNamara) would cost the United States between 6500 million dollars and 7000 million dollars. But new Defence Department estimates indicate that total spending under the controversial TFX aircraft programme might rise to between 8000 million dollars and 9000 million dollars.

Mr McNamara predicted that costs would exceed estimates when he testified before Senate investigators on the contract. Spending on the TFX will be spread over seven years, to 1970, with delivery of aircraft continuing into the 1970’5. No production contract will be signed until prototypes have been tested. U.P.I. said that figures given to the Australian Parliament this week by Mr Townley were known to be based on the latest estimates of probable costs. Officials said that in the event of further increases Australia would be given the benefit of any doubt in the event of any questionable costs.

The figures showed that the Australians would be paying just over 5.200.000 dollars for each plane. This figure includes some training and ground handling equipment not considered a major part of the price. Senate Investigation

The Senate Investigations Sub-committee will resume its inquiries into the TFX contract on Monday, when the first witness will be the Under-Secretary for Defence, Mr Roswell Gilpatric The committee, headed by Senator John McClellan (Democrat, Arkansas), is expected to question Mr Gilpatric in detail about possible conflict of interest, including his former legal work for General Dynamics, which was awarded the contract Another witness next week will bf rhe Navy Secretary. Mr Fred Korth. who resigned last month as critics questioned his action in using Defence Department stationery in connexion with private business matters.