Foreign Relations of the United States, 1955–1957, National Security Policy, Volume XIX

136. Memorandum by the Secretary of Defense (Wilson)¹

Washington, August 6, 1957.

MEMORANDUM FOR

• The Secretary of the Army
• The Secretary of the Navy The Secretary of the Air Force
• Chief of Staff, U.S. Army Chief of Naval Operations
• Chief of Staff, U.S. Air Force
• Commandant, Marine Corps

SUBJECT

• Advance Planning Required in Connection with the FY’59 Budget

REFERENCES

• (a) JCS Memo to SecDef, dated 16 July 1957, CM–502–57²
• (b) NSC Action No. 1755, dated 31 July 1957³
• (c) SecDef Memo to Military Departments dated 1 Aug. 1957, subj: “Expenditure Level for FY 1958”⁴

I have noted the divergent views of the Chiefs of Staff of the Army and Air Force and of the Chief of Naval Operations, together with a memorandum by the Commandant of the Marine Corps, on this subject. These reports, together with the comments by the Chairman of the Joint Chiefs of Staff, have been carefully considered.⁵ They were also reviewed at the Armed Forces Policy Council meeting of Tuesday, July 23rd.⁶

All addressees heard the presentation which was made before the National Security Council on July 25th,⁷ and had an opportunity to comment. I realize from the comments that divergencies of views exist in connection with the necessary military planning for the succeeding three fiscal years. I further recognize that at least some of these differences of opinion stem from the fact that the United States has certain commitments for deployments which individual Services are not in a position to reduce.

The Chairman of the Joint Chiefs of Staff and the Chairman designate have reported that they feel that no further effective detailed military planning can be accomplished by the Joint Chiefs of Staff until the Military Departments have made further separate studies of the problems involved along the lines of the presentation made to the National Security Council. At the same time it is essential that further examination by the responsible civilian and military officials be made in line with reference (b). This is necessary as a basis for FY 59 budget planning and for further discussions with the Secretary of State.

As indicated in the presentation to the National Security Council, I concur generally in the comments of the Chairman of the Joint Chiefs of Staff as expressed in reference (a), except as may be noted in succeeding paragraphs. By attendance at the National Security Council meeting of July 25th, the addressees have had the benefit of the President’s thinking as well as of the other members of the National Security Council in regard to the presentation made and the broad trends necessary in our military planning, including the budget limitations that exist.

We now know that the new obligational authority appropriated by the Congress for FY 58 will be approximately $36 billion. The expenditure ceiling of $38 billion for the Department of Defense for FY 58 has now been re-affirmed and the amounts within this ceiling for each of the three Military Departments have been determined as set forth in reference (c). This establishes a factual basis for FY 58 on which we can project the planning for succeeding years.

To assist in your review, and as a basis for your recommendations, the following figures are established for planning purposes:

Expenditures (in billions of dollars)

	1958 (authorized)	19598	1960	1961
Army	$ 8.950	$ 8.600	$ 8.40010	$ 8.20010
Navy	10.400	10.5000	10.50010	10.50010
Air Force	17.900	18.1000	18.20010	18.30010
OSD9	.750	.8000	.900	1.000
	$38.000	$38.000	$38.000	$38.000

Personnel Strengths

	Approved strengths	End strengths	End strengths
	Jan. 1, 1958	FY5811	FY 195911
Army	950,000	900,000	850,000
Navy	660,000	645,000	630,000
Marine Corps	190,000	180,000	170,000
Air Force	900,000	875,000	850,000
	2,700,000	2,600,00012	2,500,000

To maintain a balanced military program we should continue the modernization of our forces. Consideration of the increased cost of military equipment and the actions necessary under a level expenditure policy indicate that some further reductions in personnel strengths of the military services will be required in FY 60 and FY 61.

Adhering to the approved strategic concept and considering the power of modern weapons, it is apparent that active forces and reserve forces which would be immediately available subsequent to D-day are the only forces which would contribute appreciably to U.S. security in the initial phases of general war. While the forces must be designed primarily for deterring, and, if necessary, fighting a general war, I believe they contain within them the essential forces needed to cope with situations short of general war. Very little procurement for mobilization reserves should be contemplated in the future and a shrinking of the present industrial reserve mobilization structure will be necessary.

With consideration for the rapidly increasing costs of new weapons, it is apparent that under a level expenditure policy a decision must be made now as between keeping our forces modern or holding the number of military personnel and units at a numerically high level. Under the conditions of modern warfare, it is generally agreed military thinking that it is vital to modernize our equipment and maintain our military units in a high state of readiness rather than to hold numbers of personnel and units at a high level.

From the above it is apparent that the number of personnel in active Reserve units, including the National Guard, should be gradually reduced during the time period under consideration. For planning purposes I would like to have you consider a reduction of approximately 10% in FY 59 and further reductions of approximately 5% annually in the following two years.

I would like to have the Service Secretaries, with the assistance of the Service Chiefs, conduct in their own offices detailed studies of our military programs for FY 59, including personnel figures for the beginning as well as the end of FY 59, and for FY 60 and FY 61, to the extent required in connection with the preparation of the FY 59 budget. These studies should be submitted to me by September 3, 1957.¹³ The purpose of these studies is to furnish me with comments on the practicability of achieving the desired personnel strengths within the corresponding budget limitations and to furnish me with comments as to the impact of these budget and personnel limitations on the commitments and missions of the various Services. I do not expect or desire complete formal staffing at this time.

The Service Secretaries should establish a small planning group in their immediate offices to consider these matters, limiting the participation to those absolutely necessary and furnishing me with a list of the personnel who participate in the preparation of these studies.

In addition to the basic study within the expenditure limitations expressed above for FY 60 and FY 61, you are requested to furnish me with your additional comments should these figures be increased or decreased by $300 million in each Military Department as indicated in the footnote below the expenditure table.¹⁴ You should submit your views as to how you would distribute these amounts as between procurement, personnel and other areas in increments of $100 million above and below the base figure.

I expect that these studies will be considered by the Armed Forces Policy Council on September 10, 1957.¹⁵ Following this meeting certain aspects of the problem may then be referred to the Joint Chiefs of Staff for their review and comment.

In order to minimize delays in the budget making process, I expect that Department staffs will proceed with FY 59 budget studies and preparations on the basis of guidance contained in a separate memorandum addressed to the Secretaries of the Military Departments. It should be clear, however, that the guidance furnished above for planning studies is not releasable to Department staffs except the small groups above noted until the studies herein requested have been submitted and the guidance contained herein has been modified or confirmed. Specifically, this means that year end personnel strengths for FY 58, FY 59 and beyond are not releasable at this time. For the present, therefore, and pending further advice from me, staff budget studies must be based upon each Department’s estimate of the personnel trends.

C. E. Wilson¹⁶

1. Source: Eisenhower Library, White House Central Files, Confidential File. Top Secret. A copy was sent to the Chairman of the Joint Chiefs of Staff.
2. Document 131.
3. See footnote 8, Document 133.
4. Not found in the Eisenhower Library or Department of State files.
5. These reports and comments, which may have been attached to reference (a), have not been found in the Eisenhower Library or Department of State files.
6. No record of this meeting has been found in the Eisenhower Library or Department of State files.
7. See Document 133.
8. Planning figures, for initial budget submissions, subject to final policy consideration. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
10. Plus or minus $300 million. See subsequent paragraph this memorandum. [Footnote in the source text.]
9. An increasing trend in the payment to retired military personnel is reflected in these figures. [Footnote in the source text.]
11. Planning figures, for initial budget submissions, subject to final policy consideration. [Footnote in the source text.]
11. Planning figures, for initial budget submissions, subject to final policy consideration. [Footnote in the source text.]
12. See para. c. (4)(b)(ii) of reference (b). [Footnote in the source text.]
13. Memoranda from Brucker to Wilson, and from Acting Secretary of the Navy W. B. Franke to Wilson, both dated September 3, and an unsigned memorandum (presumably by James H. Douglas, Jr., Secretary of the Air Force), dated September 5, are in the Eisenhower Library, White House Central Files, Confidential File.
14. Reference is to footnote 10 above.
15. No record of this meeting has been found in the Eisenhower Library or Department of State files.
16. Printed from a copy that bears this stamped signature.