TOP SECRET Ae ph iraes TG? Sepa By way of suggesting a consensus, General Cutler asked whether the Council action on this agenda item should state that the National Security Council found that the FY 1959 Defense Department Budget and programs were consistent with the requirements of our national security policies. ‘The President seemed to find General Cutler's sug,estion desirable but added that he wished Mr. Killian and Secretary McElroy to go over the figures which had been presented to the Council at this meeting with a view to seeing just how much of this money must be placed in the New Obligational Authority column for the FY 1959. Should the total figure be presented for NOA or should it be pertly presented for NQA and partly for Contingent Contract Authority in addition to NOA? The President went on to remind the members of the Council that when the Council had first become involved directly in the ballistic missiles programs he had expressed the opinion that the effect of ballistic missiles would be more important in the psychological area than in the area of military weapons. He still felt that as a weapon the manned bomber was superior to the missile. We were now, however, in a transitional period but it was still a question how much money we are justified in asking for on behalf of these missiles proIn conclusion the President again directed Secretary McElroy grams. to provide Mr. Killian with the crystallized views of the Department of Defense after which he wished these views to be considered at a restricted meeting. The National Security Council: &. Noted and discussed an oral presentation, pursuant to NSC Action No. 1816, of the recommendations by the Secretary of Defense as to the U.S. Military Programs for FY 1959 and augmentations for FY 1958, as presented at the meeting by the Secretary of Defense and Assistant Secretary of Defense McNeil. \ b. Agreed that, subject to normal budgetary review and final action by the President, the U.S. Military Programs for FY 1959 and the augmentations for FY 1958, as recommended by the Secretary of Defense at this meeting, were generally consistent with national security policy objectives. - Noted the President's request that the Secretary of Defense io REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBR ¥ ARY ya - Noted the President's desire that the Secretary of Defense assure himself that the amounts for the U.S. military programs for FY 1959 and the augmentations for FY 1958, to be recommended for final action by the President, represent what is necessary for the national security without reflecting excessive concern. review with the Special Assistant to the President for Science and Technology the amount of new funds that should be requested for each FY 1959 "augmentation program" (other than the Cordiner recommendations and the civilian pay increase) presented at this meeting. cae. Ne akennn, Nathan Ae sat stte eT, IC oe ee cat eee _ORI

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