mea erreee reenter
TOP SECRET
TOP SEGRE
1.
U.S. MILITARY PROGRAMS FOR FY 1959
(NSCAction No. 1516)
I
General Cutler introduced the subject and called upon Secretary
McElroy. Secretary McElroy informed the Council of what had transpired since the last NSC meeting when the Defense Departmens had
indicated to the National Security Council how it was tentatively
proposing to allocate funds to the several military programs in
accordance with the 38 billion dollar limit on New Obligational
Authority and on Expenditures. He reminded the Council that at
last week's meeting the heads of the Military Departments and the
Chiefs of Staff of the Services had gone on to indicate what each
In the
the 38 billion dollar limit of the Defense Department Budget.
This
days following last week's meeting, Secretary McElroy indicated that
after consultation with the Joint Chiefs of Staff, the Service Secretaries and other officials of the Defense Department, a selection had
been made among the add-on programs of those which represented the
highest urgency and need. Subsequent to this selection, these high
priority add-on programs had been discussed with the President himself.
Thereafter, these agreed add-on programs had been incorporated in the
recommendations which would be presented today by Assistant Secretary
of Defense McNeil. Secretary McElroy also pointed out that, as the
President and the Council would have expected, the Department of Defense
had tried to fund as many of these add-on programs as possible within
had not proved entirely possible and the Budget which would be presented
today for FY 1959 would be higher than the Defense Department Budget
for FY 1958.
He then called on Secre
McNeil. (A copy of Secretary
McNeil's presentation will be found in the official
pa
of the Military Departments believed to be required by way of additional
programs (add-ow) over and above the 38 billion dollar limit.
r
Minutes of the meeting).
Secretary McNeil made use of two charts. One was entitled "FY
1959 Budget Summary"; the second was entitled "FY 1958 Augmentation."
Referring to these charts Secretary McNeil produced the following in-
formation with respect to the proposed revision of the FY 1959 military
Budget.
1. The revised presentation for FY 1959 Military Budget:
NOA
$38 billion basis
REPRODUCED AT THE DWIGHT, D. RISENBOWER LIBRARY -
Adjustments
Transfers
Direct
Obligation
Expenditures
~ 38.60
61
+33
94
37.66
Agreed "add-ons" -
2.14
39.80
40.98
39.5
NOTES: 1. About $450 million is left in stock funds
2. At the end of FY 1958 there will be no free funds
to carry over - all $7 billion, though not "obligated,"
will have been committed.
-_
aeiedeas
lets wtdnetoneetl
Tgp SERRET
ceMt thinTRIett dite ane
’
\