General Cutler observed that the stated objectives of Continental Defense have always been higher than the programs to implement same, and it was his view that the purpose of Dr. Killian's raising and suggesting the language under discussion was to call attention to our technological capabilities and limitations in this area-of the over-all Continental Defense progran. The Director of the Office of Defense Mobilization indi- cated that he favored the inclusion of the "high percentage" phrase. He joined with Dr. Killian in the latter's concern lest anyone feel we have a greater capability in the air defense area than we actually possess. He thought the real question to be considered did not involve diverting funds from other military programs to the one under discussion; rather, the bigger question to be considered was whether we want to raise the budget ceiling for Continental Defense purposes. Secretary McElroy indicated, in response to the last point ‘mentioned by Mr. Gray, that this immediately raised questions as to whether any such increase in funds should be used for the programs under consideration here, or for other relatively more important programs. General Cutler noted that since this Administration assumed office it has increased greatly expenditures on Continental Defense. It was the Vice President's thought that the discussion on this issue indicated quite clearly that everyone is aware of the problem. As a consequence, the contested language might be eliminated from the final statement of policy on the subject, with the understanding that those concerned do desire and will strive to achieve improved air defense capabilities. , General Cutler indicated that the contested language would be eliminated from the paper as finally submitted to the President for approval; but, at the time of such submission, the President would be informed as to the pro's and con's of the Council discussion on paragraph. a ae ee . =¥ _-REPRODUCED WT THE DwTgiER D. TESENUOWE > we . nn ow -* : 2 prt my * . anata eet 4 yn TE wan cies - ify 4 As a closing note on the Council discussion of this phase of the subject, Dr. Killian noted that the problem related inevitably to the shelter program and to our general defensive capabilities. As a consequence, he thought the question o& our air defense capabilities would inevitably arise when the shelter program is again considered by the Council. General Cutler next referred to peragraph 8-b of NSC 5802, which called for the defelopment of "an anti-ICBM weapons system operational capability as a matter of the highest national priority". -T- OP SECRET