~ ml
With respect to the Outer Space Program, the President expressed
satisfaction that the Department of Defense was to have 100 million
dollars for this program. On the other hand, the President said he
did not believe that the Air Force as such should have one cent for
this program. Secretary McElroy explained that the Air Force was not
going to proceed with its own Outer Space Program (apart from the
Department of Defense Program) but at the appropriate time would trans-
The President said that there was another part of his question
with respect to the Outer Space Program. Did Secretary McElroy and
Mr. Killian believe that as much as 200 million dollars would be necessary for the Outer Space Program in FY 1959?
Mr. Killian said that
he was not in a position to give a firm answer to the President's question
as yet but he thought that the 200 million dollars was necessary.
The President indicated that he was not so sure and he pointed cut
that he had that morning received a very gloomy letter from one of the
NSC's "old associates" complaining about the growing lack of confidence
by U.S. business in the Administration and warning that we were going
to go to Hell as a result of our large Government expenditures.
Secretary Anderson then raised the question of the use of certain
stockpile materials for military production. This suggestion seemed
to have merit in the eyes of Secretary Anderson but it was pointed out
by Mr. Gordon Gray and others that such use of stockpile materials would
not prevent the suppliers from continuing to put into the Government
stockpile materials under their contracts. The only advantage to be
gained by using stockpile
materials for military purposes would be to
The President asked Mr. Gray whether it was not a fact that the
contracts for stockpile materials were originally entered into so that
the Government could supply materials like aluminum to the aircraft
companies under certain circumstances. Mr. Gray replied that the primary
motive was to achieve expansion of productive capacity.
Referring to forthcoming Congressional hearings, the Vice President
predicted that strenuous efforts would be made by members of Congress
to find areas where certain defense programs could move faster even on
@ crash basis. Congressmen might argue for more rapid production of
'
>
‘
é
b
\
.
REPRODUCED AT THE DWIGHT D. BISENHOWER LIBRARY
ta.’
avoid continuing to carry a surplus of materials in the stockpile.
vt a eT
om
fer Air Force funds into the Department of Defense Budget for the Outer
Space Program. The President stated with great firmness that he thought
this was Secretary McElroy's business and not the business of the Air
Force. Secretary McELroy again explained that the appearance of a
figure in the Air Force Budget for an Outer Space Program simply indicated that he, Secretary McElroy, did not wish to interrupt progress
on the Air Force Outer Space program until such time as the Department
of Defense was ready to take over the Outer Space Progran.