Tap Steps) be GEES would result in a reduction in the total level of military personnel. The President also inquired as to what changes were being made in the atomic submarine SEA WOLF which the President understood was a first class vessel. Secretary Gates indicated that the power plant of the SEA WOLF was considered to be dangerous and that it was proposed to change the type of atomic power plant in that submarine. The President said that he kept hearing in the course of the presentation that the Defense Department was going to continue with both the TITAN and the ATLAS ICBM programs and also continue both the THOR and the JUPITER IRBM programs. The President said that it was his understanding that these ICBM and IRBM programs were only to be developed to a point which would enable us to choose the most effective of the ICBM and IRBM missiles. Secretary McElroy replied that we would indeed choose one or another of these missile programs or possibly both if both proved successful. The President warned that he did not wish large numbers of these missiles to be procured until they had been proved out in tests. The President likewise stressed his conviction of the need for greater centralization of research and development in the Defense Department. This, he believed, would effect great savings of money and of the time and energy of our scientists. Secretary McElroy indicated that the Defense Department would soon be gaining valuable experience as to the desirability of the President's view as a result of the Department's experience with its centralized outer space research programs. The President then observed philosophically that the presentation indicated that we were facing a very tough situation. The problem sometimes seemed to be almost insoluble. The Council would remember that only 23 years ago the Joint Chiefs of Steff had gone off to Puerto Rico and had come up with the statement that 38 billion dollars @ year would do what was necessary, at least as a minimm. Now, here we are only 2} years later with a minimum well beyond the 38 billion dollar figure and beyond the additional resources which we could anticipate from the annual increment of our Gross National Product. Accordingly, the President expressed his satisfaction that the Depart- a se 2?ep ment of Defense would now go over carefully the service estimates of additional funds which they felt were required. REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY eeya TOP SECRET At General Cutler's suggestion, Secretary Herter expressed the keen interest of the Department of State in the problems of maintaining our overseas deployments and the high level of equipment and the high quality of equipment of these forces. He believed that if we could maintain our existing deployment for approximately an additional 200 million dollars, this was a highly desirable course of action. ~8- lone: . pt nt FM eraiHyey be Pon ame NET RR ees eres ome