TOP SECRET

TOP. SECRET.
1.

U.S. MILITARY PROGRAMS FOR Fy 1959

General.Cutler indicated that at this meeting the Defense
Department would make the initial presentation of the U.S. Military

Programs for FY 1959.

After indicating the order of the speakers,

General Cutler pointed out that at the end of the presentation, there

would be ample opportunity for the Council members to express their

views on the FY 1959 military program.

General Cutler also emphasized

that the President would like to obtain at this meeting the benefit

of the corporate judgment of the members of the Council. Such a
course would likewise be helpful to the Defense Department in making
its final determinations which would be presented at the next Council
meeting. He thereupon called on Secretary McElroy (A copy of General

Cutler's introductory remarks are filed in the minutes of the meeting).
In his cpening remarks Secretary McElroy explained that the

figures in the proposed FY 1959 Budget were based on the 38 billion

dollar overall limit. The Budget did not contain a figure for the
cost of the implementation of the Cordiner Report. Secretary McElroy
added that the military departments would also separately present
certain programs which it was their conviction we should implement

but which could not be included under the 38 billion dollar ceiling

which the Secretary of Defense had instructed the military departments to observe.

Twining.

Thereafter Secretary McElroy called on General

General Twining explained the background against which the FY 1959
Budget had been developed, referring in the course of these general
remarks to a chart entitled, "Force Levels for the FY 1959 Budget."
;
He added that the substance of his report would be presented by Colonel
Nigro, USAF, and Captain J. W. O'Grady, USN. Colonel Nigro discussed
the following subjects with the aid of charts: (1) Major Amny Forces.

Among other things he pointed out that the 18 Army divisions which had
been in existence on June 30, 1957 would be reduced to 14 by June 30,

1959. On the other hand, missile commands would increase from 2 to 4.
The overall personnel strength of the Army which amounted to 998,000

on June 30, 1957 would have to be reduced to 850,000 by June 30, 1959.

(2) Major Naval Forces. Colonel Nigro pointed out that the overall

personnel strength of the Navy would have to be reduced from the FY

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1957 figure of 877,000 to 800,000 in FY 1959.(3) Colonel Nigro's

next chart portrayed Major Air Forces. In his comments Colonel Nigro
pointed out that under the FY 1959 Budget planning, SAC wings would

be reduced by 7 from the 50 of June 30, 1957 to 43 on June 30, 1959.

In part this was compensated for by significant increases in missile

programs.

There would be a very significant reduction in tactical

Air Force wings and in the total personnel of the Air Force from 920,000

to about 850,000.

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