Foreign Relations of the United States, 1977–1980, Volume IV, National Security Policy

3. Memorandum From Secretary of Defense Brown to President Carter¹

Washington, February 18, 1977

SUBJECT

• FY 1978 Budget Revisions

Attached for your approval are my recommended adjustments to the FY 1978 Department of Defense budget request. I believe they accurately reflect the conversations we have had, but they should be formalized for the record.²

Harold Brown

Enclosure

Paper Prepared in the Department of Defense³

Washington, February 16, 1977

Department of Defense—FY 1978 Budget Revision

Summary of Approved Issues

	Budget Authority ($ in Millions)
STRATEGIC NUCLEAR FORCES
B–1 Bomber—Slow down and re-evaluate program. Reduce planned FY 1978 buy from 8 to 5 aircraft.	−280.0
MX Missile—Defer full-scale development.	−160.0
Follow-on Interceptor—Defer funding of advance procurement items until FY 1979.	−26.3
Minuteman III—Cancel FY 1977 missile procurement except for 60 each guidance sets and stage III motors. FY 1977 savings will be reprogrammed.	(−100.0)
Polaris Overhaul—Defer procurement of long lead items for 2 ship overhauls scheduled in FY 1979.	−27.2
SRAM B—Defer procurement of production missiles 1 year to match new B–1 schedule.	−23.4
Total Strategic Nuclear Forces	−516.9
GROUND, TACAIR AND MOBILITY FORCES
AWACS—Reduce procurement in FY 1978 from 6 to 3 aircraft.	−150.0
Non-Nuclear Lance—Cancel FY 1978 procurement of 360 missiles. FY 1977 funds ($64.6M) will be used for spare nuclear missiles and termination costs.	−77.7
HAWK Missile System—Cancel FY 1978 procurement of 6 sets of ground support equipment.	−35.3
Advanced Attack Helicopter—Slow development.	−100.0
Cruise Missile—Accelerate development of the ground launched missile while slowing the anti-ship version.	N/C
F–15—Reduce FY 1978 procurement to 78 aircraft from 108 aircraft.	−334.0
A–7E—Terminate production. Use FY 77 funds for spares.	−24.4
CH–53E—Delay procurement one year. Provide additional RDT&E funds to fully fund development program.	−62.0
NATO Airfield Readiness—Increase FY 1978 funding of aircraft shelters, passive defense measures, and facilities at collocated operating bases.	+60.0
Advanced Tanker Cargo Aircraft (ATCA)—Defer procurement program 1 year.	−276.6
Civil Reserve Air Fleet (CRAF) Modifications—Fund 8 (vice 4) cost-shared mini-mods in FY 1978.	+15.0
Facilities for Prepositioned Stocks in Europe—Fund additional maintenance facilities for prepositioned equipment and igloos for prepositioned ammunition.	+50.0
Total Ground, TacAir and Mobility Forces	−935.0
NAVAL FORCES
Nuclear Strike Cruiser (CSGN)—Delete long lead funding and cancel construction of FY 1979 CSGN.	−187.0
SSN—Reduce FY 1978 program from 2 to 1 SSN. Production schedule will hold at 2 per year.	−230.0
Patrol Hydrofoil Program—Delete FY 1978 funding for the conversion of an LST to a PHM support ship. Restructure and reduce prior year program.	−43.0
FY 1977 and prior year savings.	(−144.5)
Frigates (FFG)—Defer 2 ships from FY 1978 construction program to later years. Fund long lead-time items to sustain deployment schedule and force objectives.	−282.0
Reactor Components—Reduce FY 1978 procurement recognizing adequate inventory levels funded through FY 1977.	−149.9
Total Naval Forces	−891.9
MANPOWER
Naval Reserve—Reduces paid drill strength by 40,000, shifting reservists assigned to lower priority billets to the Individual Ready Reserve (2 week training).	−50.0
Retirement Reform—Delete funding for implementation of retirement reforms now delayed pending re-examination.	−25.0
University of the Health Sciences—Closes University.	−14.1
Total Manpower	−89.1
OTHER INVESTMENT
Construction—Restore certain urgent and operationally important projects unlikely to be affected by the current base structure review.	+200.0
Equipment Readiness—Increase effort on ship and aircraft overhaul and equipment repair to increase the number of ships and quantity of equipment in ready-for-combat condition.	+280.0
Communications and Electronics Equipment—Defer procurement of communications and electronics equipment of lower priority or with high development and production risk.	−91.6
Army Equipment—Defer procurement of lower priority items of equipment or with high developmental or production risk.	−528.8
Air Force Equipment—Defer procurement and test programs of lower priority or with developmental or production risk.	−92.2
Navy Equipment—Reduction of procurement funds as a result of schedule slips, program cancellations and pricing adjustments.	−30.0
Total Other Investment	−262.6
OPERATIONAL EFFICIENCIES
Intelligence	−25.0
Flight Operations—Reductions based on improved operational efficiency without impairing readiness.	−54.5
Total Operational Efficiencies	−79.5
Total FY 1978	−2,775.0

1. Source: Carter Library, National Security Affairs, Brzezinski Material, Subject File, Box 9, Budget: FY 1978 Defense Budget Revisions: 2/77. For Official Use Only.
2. Carter signed his approval at the bottom of the memorandum.
3. For Official Use Only.