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 Te _ REPRODUCED AT THE DWIGHT, D. BISENBOWER LIBRARY v x 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. -2- TAP SEnReT