Foreign Relations of the United States, 1961–1963, Volumes VII, VIII, IX, Arms Control; National Security Policy; Foreign Economic Policy, Microfiche Supplement

338. Tables 1 and 2, September 19¹

September 19, 1963

Table 1.
U.S. DEFENSE EXPENDITURES AND RECEIPTS ENTERING THE INTERNATIONAL BALANCE OF PAYMENTS
(In Millions of Dollars—By Fiscal Years)

	1961	1962	1963	1964	1965	1966	1967	1968
	(Actual)	(Actual)	(Est.)	(Est.)	(Est.)	(Est.)	(Est.)	(Est.)
EXPENDITURES:
U.S. Forces and Their Support:
Expenditures by U.S. Military, Civilians and Dependents a	$775.2	$765.0	$772.9	$807.0	$761.0	$695.0	$682.0	$679.0
Foreign Nationals (Direct Hire and Contract Hire)	362.2	394.2	430.0	440.0	396.0	366.0	366.0b	366.0b
Procurement:
Major Equipment	52.9	56.6	73.8	70.0	52.0	45.0	57.0	49.0
Construction	170.1	129.1	92.0	90.0	92.0	70.0	60.0	50.0
Materials and Supplies	562.9	570.4	538.1	513.0	427.0	365.0	364.0	372.0
Contractual Services	487.5	492.1	513.2	488.0	413.0	366.0	363.0	363.0
Sub-Total	2,410.8	2,407.4	2,420.0	2,408.0	2,141.0	1,907.0	1,892.0	1,879.0
	1961	1962	1963	1964	1965	1966	1967	1968
	(Actual)	(Actual)	(Est.)	(Est.)	(Est.)	(Est.)	(Est.)	(Est.)
Military Assistance Program:
Offshore Procurement	131.0	101.1	122.0	105.0	77.0	51.0	30.0	18.0
NATO Infrastructure	104.4	35.3	89.0	75.0	74.0	72.0	70.0	70.0
Other	76.0	91.3	108.0	83.0	84.0	65.0	55.0	50.0
Sub-Total	311.4	227.7	319.0	263.0	235.0	188.0	155.0	138.0
Total Expenditures	2,722.2	2,635.1	2,739.0	2,671.0	2,376.0	2,095.0	2,047.0	2,017.0
RECEIPTS	375.2	898.6	1,275.0	1,000.0	1,000.0	1,000.0	1,000.0	1,000.0
Net Adverse Balance (DOD)	2,347.0	1,736.5	1,464.0	1,671.0	1,376.0	1,095.0	1,047.0	1,017.0
OTHER EXPENDITURES	343.5	278.1	250.1	134.0	88.0	47.0	26.0	7.0
(AEC and Other Agencies included in NATO Definition of Defense Expenditures)
Net Adverse Balance (NATO Definition)	1,024.0	2,014.6	1,714.1	1,805.0	1,464.0	1,142.0	1,073.0	2,690.5

a Includes expenditures for goods and services by non-appropriated fund activities.

b Assumes personnel reductions, following FY 66, will equal annual wage increases.

Table 2

U.S. AIR FORCE TACTICAL AIRCRAFT WITH HOME BASES OVERSEAS
(Number of Aircraft)

		As of End FY ’66
	As of 1 Sept. ’63	As Apprv’d 5/15/63	After 7/16/63 Adjust.	After 9/10/63 Adjust.
EUROPE
France
RB–66 (Incl. Brown Cradle)	39	12	12	12
RF–4C	–	36	36	36
RF–101	48	48	48	–
Subtotal	87	96	96	48
Germany
F–100	75	75	75	–
F–102	78	66	–	–
F–105	150	150	150	–
F–4C	–	–	54	144
RF–101	16	16	16	–
RF–4C	–	–	–	18
Subtotal	319	307	295	162
Netherlands
F–102	20	20	–	–
F–4C	–	–	18	18
Subtotal	20	20	18	18
United Kingdom
F–100	150	50	150	–
F–101	66	–	–	–
F–4C	–	175	75	54
RB–66	36	–	–	–
RF–4C	–	36	36	18(Rot)
Subtotal	252	261	261	72
Spain, Italy, Turkey
F–100	54(Rot)	36(Rot)	18(Rot)	18(Rot)
F–102	40	40	–	–
F–105	18(Rot)	36(Rot)	36(Rot)	36(Rot)
Subtotal	112	112	54	54
TOTAL EUROPE	790	796	724	354
PACIFIC
Japan
F–100	68(18 Rot)	75	36(Rot)	36(Rot)
F–102	60	40	–	–
F–105	75	75	75	75
F–4C	–	75	–	–
RF–101	16	16	16	16
RF–4C	–	18	18	–
Subtotal	219	299	145	127
Okinawa
F–102	26	26	–	–
F–105	75	75	75	75
F–4C	–	–	18(Rot)	18(Rot)
RF–101	16	–	16	16
RF–4C	–	18	–	–
Subtotal	117	119	109	109
Philippines
F–100	25	–	–	18(Rot)
F–102	33	33	–	–
F–4C	–	–	36(18 Rot)	18(Rot)
RF–4C	–	18	18	18(Rot)
Subtotal	58	51	54	54
TOTAL PACIFIC	394	469	308	290
TOTAL EUROPE & PACIFIC	1184	1265	1032	644

1. Table 1 represents Fiscal Year DOD expenditures and receipts entering the international balance of payments. Table 2 reflects U.S. Air Force tactical aircraft with home bases overseas. These tables are attachments to McNamara’s September 19 memorandum to Kennedy on reducing annual military expenditures abroad. Top Secret. 3 pp. Kennedy Library, National Security Files, Subjects Series, Balance of Payments and Gold, 8/63–9/63, Box 292.