- ol TOP SEGHET 2. Detail of agreed "add-ons": Pay increases for military & Total Army Navy A.F. DOD civilian personnel - -70 dispersal - 18 Increase SAC alert and Ballistic missile detection - .10 Ballistic missile acceleration-.57 Increased research & 14 development - -O7 Force levels Satellite & Outer Space Program - 25 15 -13 2.06 3st -18 -Oh -26 -10 .31 .OL .08 03.04 -10 210 Anti-submerine warfare Pentomic Divisions - 0619s =) Ths 15 765 __ 90 Til 3. End strengths for Services at the end of FY 1959: Arny 870,000 Navy 630,000 Air Force 850,000 Merine Corps 175,000 These strengths will permit theretention of 2 Divisions in Korea and 5 Divisions in NATO, and the minimum Air Force requirements of Norstad through CY 1959. Note that there will be reduction in the National Guard and Reserves The present agreed expenditure allocation for FY 1958 is $38.670 billion. To carry out several augmentation programs now scheduled, 1t will be necessary to make approximately $411 million more NOA available during FY 1958. Possibly one-half of this amount could be met by transfers of existing funds. The other half will have to be met either by a supplemental appropriation request or deferring certain FY 1958 programs so as to utilize the funds thus made available. The total NOA of $411 million would increase the present FY 1958 expenditure allocation of $38.670 billion, by $91 million. [ REPRODUCED AT THE DWIGHT, D. EESENHOWER LIBRARY Secretary McElroy pointed out at the conclusion of Secretary McNeil'‘s presentation that it was going to be very difficult to come to a definite decision with respect to acceleration of the Intermediate Range Ballistic Missile Program. The 570 million dollars for IRBM acceleration would permit 16 squadrons of JUPITER or THOR by 1963. Before deciding on further acceleration, Secretary McElroy thought he needed more discussion -3- TOPSECIET

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