COM AND FILE POST 1 JAN 46 DECLASSIFIED DEPARTMENT OF THE NAVY OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON 2 5 D C IN IIEPLY IUl' EII TO 2 APRIL 1958 SECRET PERSONAL - FOR OFFICIAL USE ONLY CNO PERSONAL NO 36 To Flag and General Officers Subj Dope ITEM 1 OFFICIAL USE ONLY CNO Advisory Board CAB About two years ago a CNO Advisory Board CAB was established to advise the CNO on budgetary matters This Board has been one of the most important reasons why Navy budgets have been so solid and fairly devoid of soft spots The Board is comprised as follows Members VCNO Chairman the Deputy hiefs of Naval Operations Chief of Naval Material ACNO General Planning Deputy Comptroller and Representative of the Commandant of the Marine Corps Associate Members Chiefs of the Bureaus COMSTS ASW Readiness Executive ACNO Personnel ACNO Naval Intelligence ACNO Research and Development Director Naval Communications Director Long Range Objectives Group Assistant Comptroller Director of Budget and Reports Chief of Naval Research and Chief of Industrial Relations DECLASSIFIED SECR r IFIED ITEM 4 - FLAG OFFICERS ONLY - HOLD CLOSELY - SECRET Request for Additional DOD Supplemental Funds On 20 March the Secretary of Defense approved a list of high priority items for each Service which he is submitting through the President to Congress in a request for augmentation of the regular FY 1959 budget These funds if approved by Congress will be a shot in the arm for some of our programs particularly ASW The total amount of money being requested for the Navy is $634 6 million which is approximately 34% of the total funds being requested This proposed add-on to the FY 1959 budget got started on 27 February when the SECDEF turned over to the JCS for review a list of priority projects gathered from requests which the Services had apparently ·submitted individually to SECDEF to be considered for supplemental funding I do not know if the other Services made formal requests for all the additional funds that appeared on that list however in the case of the Navy we had submitted a letter to the SECDEF on 30 January recommending that the POLARIS program be further accelerated and augmented to provide among other things six submarines in addition to the three currently authorized and that if approved a request for supplemental funds for FY 1958 and FY 1959 be submitted to Congress to the extent of approximately $1 2 billion 7 DECLASSIFf EIJCRET SECS LASSIFIED The sum total of the projects of all Services was approximately $6 billion and included anti-ballistic missile missiles satellites ballistic missiles manned space vehicles more B-52's and KC-135's and lot of Army modernization The list included only two items for the Navy these being further accel- eration of the POLARIS program and funds for anti-submarine warfare The SECDEF requested JCS to review his list and to recommend projects and funding amounts under the two assumptions that a $1 5 billion would be the limit and b $2 5 billion would be the limit The following paragraphs give a summary of the various reviews leading up to the final decision by SECDEF and also indicate what the funds for the Navy will provide The Chiefs agreed to submit their own list of priority projects requiring additional funding and further agreed to submit three such lists The first list would contain those items which each Service considered it needed without regard to a budget limitation requested The other two lists would be as SECDEF Instead of an agreed-upon package under each head- ing it was decided to present to SECDEF this time the views of each Service on its owu requirements including each Chief's views on the other Services' submissions The Chiefs met on this problem several days in succession each day strengthening the arguments for his own requests and 8 DECLASSIFI SICllEtSSIFIED his arguments againstthe soft spots in the other Services From the beginning the Navy had a pretty solid request In the final paper to SECDEF each Service claimed the lion's share of the two limited categories Each Service's views on how the pie should be cut is illustrated below In millions of dollars Total Navy Submission NAVY VIEVIS on on on on the the the the Navy Army Air Force Marine Corps TOTAL Under $2 5B Category 596 5 1541 362 l 596 5 83 0 23 0 3786 4 2522 6 2605 501 9 Under $1 5B Category 875 284 5 364 0 1523 5 Marine Corps requested $83 million under each category ARMY VIEWS on the on the on the on the Navy Army Air Force Marine Corps 2850 TOTAL 813 488 1872 7 400 4 1145 5 133 4151 2761 1 1622 5 Navy Army Air Force Marine Corps 1137 1830 3216 1 478 1656 9 245 256 1193 9 TOTAL 6183 1 2501 9 1694 9 488 344 AIR FORCE VIEWS on on on on the the the the 367 9 DECLASS ET ·· SIFIED We stated our requirements under each category to be as follows In millions of dollars Total Navy Submission 611 400 71 71 71 957 553 305 114 114 99 259 192 2 605 1 541 II Naval Radio Research Observatory IV Pacific Missile Range V Guided Missiles Under $1 5B Category 1 204 I POLARIS Acceleration III ASW Augmentation Under $2 5B Category 875 The $1204 million tor POLARIS together with funds already programmed would provide nine submarines by the end of 1961 plus the missiles for these submarines an operating base at Charleston an FBM submarine tender facilities for missile and test vehicle production personnel training system development test and evaluation and communications and associated facilities The $71 million for NRRO would finance a project which would greatly increase the available intelligence on Soviet military activities and technology and would be of utmost importance to all intelligence agencies of the government The $957 million for ASW would enable us to complete Project CAESER replace some of the equipment with improved equipment increase Project CAESER back-up forces with new 10 SECRET DECLASSIFIED · ' I DECLASSIFIED SECRET 1 improved ships aircraft and equipment and accelerate ASW research and development to accelerate the completion of this range the establishment of which was directed by SECDEF with the Navy as Executive This range will support test evaluation and training for development of selected missiles and satellites of all the Armed Forces The major components of the range complex will be the Naval Air Missile Test Center Point Mugu the Naval Missile Facility Point Arguello San Nicholas Island and missile impact areas located in the Pacific Ocean The $259 million for guided missiles would provide improved offensive and defensive guided missiles in most categories from one to two years earli r These missiles would include REGULUS II TALOS 6B2 SPARROW III Advanced TERRIER Advanced BULLPUP EAGLE RAVEN 1· The $114 million for the Pacific Missile Range would be Agent I The funds would also provide for installation of surface-to-surface missiles in five guided missile cruiser conversions and accelerate the construction of three REGULUS guided missile submarines In the JCS memo to SECDEF the Army and Air Force fully supported us in the funds requested for NRRO and they also supported some funds but not much for POLARIS acceleration and ASW under all three lists In colllllenting to SECDEF on the Navy's submissions the Army and the Air Force seized the oppor- SECRET 11 DECLASSlrlED SE LASSIFIED tunity to expound upon their pet peeves against the Navy particularly carriers which was not an item up for discussion a On POLARIS the Army stated that the feasibility of the system is still unproved the missile is too inaccurate for effective use against priority targets and therefore the system will be effective only against urban and industrial targets rather than specific targets such as submarine pens air fields and missile sites This places POLARIS in the category of an over-all deterrent system and raises the question of how much and what proportions of ICBM's IRBM's and atomic - capable aircraft are required The Air Force stated that POLARIS is open to question on l The ability of· the system to maintain an alert on station and thus its ability to fulfill specific target commitments 2 Its accuracy except when located at or very near previously surveyed geographical or oceanographic points 3 Its ability to transmit and receive communications while submerged and thus its ability to respond to centralized control b On ASW the Army stated that funds already budgeted are sufficient for construction of ASW ships and aircraft The Army contends that the Navy can attain an adequate ASW capability if current funds were used for ASW which are now 12 SE DECLASSIFIED s Ot CLASSIFIED used for support of attack carriers and their supporting vessels The Air Force colDDlenting on ASW stated that the Navy must face the decision to channel funds into higher priority project• and reduce forces such as the attack carriers whose principal capability is associated with local war c On ided missiles the Air Force commented that misailea programmed for use in various Fleet units such as attack carrier forcea should not be supported in the supplemental The Air Force stated that the general war capability of this type is ao small that exp nditurea to support mi • ailes for these elements are not warranted wh en w•iihed in the balance aiainst items that will have a great deterrent or fighting capability for general war The Marine Corps submitted only one item and that was $83 million to support an increase in personnel strenith to 200 000 None of the Services supported the Marine Corps request except the Navy and we reduced our support to only $23 million for the Marine Corps under the $2 5 billion category and $0 under the $1 5 billion category The Army requested over a billion dollars for development of both NIKE-ZEUS and TALOS as anti-ICBM missiles The remainder of over a billion and a half dollars they requested or air defense R D Satellites and Modernization of both overseas and continental-based divisions lJ DECLASSIFIED SI We supported the Army only to the extent of $502 million for all of their items under Total Service Submission $362 million under the $2 5 billion category and $285 million under the $1 5 bill ion ategory The funds we allowed were principally for R D and modernization of Army overseas divisions We allowed no funds for satellites and space vehicles for either of the i f '' I I other Services since this program should be part of a national program as distinct from each Service going off and generating billion dollar programs on its own The Army consistently throughout their items requested hundred of millions of dollars to cover not only the development but the production and deployment aspects of the item as well even though some of the items were still just a gleam in somebody's eye The Air Force was guilty of this also 'l'he Air Force requested $259 million for development of an ICBM MINUTEMAN Weapon system to go The Air Force has a long ways before they will even have the ATLAS and its successor the TITAN The MINtrl'EMAN which is to be a solid propellant missile would conceivably be a close successor of the first two but according to the Air Force would have shore-based mobility It appears that by means of the MINUTEMAN project the Air Force hopes to kill our POLARIS program They have made drastic claims about the minimum costs and time scale of completion of MINUTEMAN in comparison with POLARIS -r SE 0 C h ASSIFIED ----·--------- __ IT While asking for funds to accelerate all three of the above ICBM's the Air Force also requested funds to accelerate the B-70 chemincally-powered bomber for the same ti e period as a replacement for the B-52 The Air Force also requested funds for the GAM-77 missile air-to-surface stand-off missile for B-52's further production of B-52's and tankers 11 astronautics Space ATLAS TITAN BOMARC THOR JUPITER C-130's SNARK and Ballistic Missile Early Warning systems BMEW We bought only a small part of what the Air Force tried to sell SECDEF We supported the Air Force to the extent of $597 million under Total Service Submission and under the $2 5 billion category and $364 million under the $1 5 billion category We allowed funds primarily for R D and to keep the production lines open on B-52's and to increase the number of SNARK squadrons and SNARK missiles which the Air Force doesn't want much for some reason we don't understand since it is a good missile The JCS submitted their paper comprising each Chief's comments to SECDEF on 12 March Mr McElroy reviewed the paper and from it drew up a $1651 7 million package which he again on 17 March asked the JCS to comment on The Chief's submitted their individual views on this package on 19 March and on the next day SECDEi gave us a run-down on what he had approved · · 15 • ECRET I JECLASSIFIED JAW E 0 12958 OPNAVINST 5513 16 SERIES We made out pretty well in this two-day exchange gaining $93 6 million j # The following is a chronological summary of the amounts finally approved for each Service Original SECDEF list of 27 Feb list of 17 March SECDEF final list of 20 March AMT % AMT AMT NAVY 1503 6 25 541 33 634 6 34 ARMY 2605 43 228 7 14 328 7 18 AIR FORCE 1680 2 27 782 47 757 40 5 100 6 150 8 ARPA 300 6088 8 SECDEF 100 % 1651 7 100 1870 3 % 100 The following items were approved by the SECDEF Navy Millions of Dollars 400 POLARIS NRRO percentage 71 125 ASW Pacific Missile Range 38 6 634 6 34 Army AICBM including NIKE-ZEUS Army Modernization Acoustic Detection ICBM early warning 225 100-125 3 7 328 7 18 16 I JECLASSIFIED Li W E O 12958 OPNA 'v'INST 5513 16 1 _J'JLJ Ol - ----- SECR Air Force 100 100 91 TITAN MINUTEMAN GAM-77 B-52 KC-135 FPS-17 large radar 456 10 757 Advanced Research Projects Agency 40 150 n 150 GRAND TOTAL u 100 1370 3 Final figure yet to be resolved The funds for the Navy will provide the following POLARIS Provide an additional two submarines to increase the number available by 1961 to a total of five FBM submarine tender production Increase the capacity for missile Provide training equipments and training facilities in FY 1959 for the FBM weapon system crews R D effort Provide one Provide additional Advance the present construction schedulee for VLF' and HARE shore stations in order to provide a continuous communication command link Procure missiles for flight test and ship fills HRRO AS' 1 Provide for constructing and equipping this facility $48 million of these funds is for REtD The remaining ' 77 million ls for procurement of AS'V equlpments including the acceleration and improvement of Project CAESAR improved sonars aonobuoys mines torpedoes and helicopter-drone weapon carrlers for destroyers The money for sonars will er a t1le us tc S RET increase the range of the SQS-4 and accelerate the availability of the 30-mile SQS- 6 and the 100-mile LORAD sonars for our new destroyers submarines and frigates The funds will provide for part Pacific Missile Ran of the total expansion of the current range facilities required to support the high priority programs of the other Services This isn't over yet -- and much may happen before all or any of this is approved by the President or passed by the Congress Expenditures for '59 is one of the hurdles This is an interesting place -- this Washington Wish you were here z - • f f _ J JI t - • _ 2 $ '3 ' I J bl 7 C J It I ---- ECLASSIFIED IA W E O 12958 OPNA 'INST 5513 16 t'SERIES1 - --··--- - - -- - ·