Speedup In Missile Program
May Cost Up To $42 Billion
By ELTON' C. FAY
AP Military Affairs Writer
WASHINGTON (AP) - Presi
dent-elect John F. Kennedy has
said he wants to speed up the
missile program, expand forces
for fighting conventional war, im
prove -air defense, do more about
protection against rocket-firing
submarines.
' If the Incoming administration
makes these and oilier changes inj
the nation's military program it
will cost money perhaps more
than the budgeted defense pro
gram submitted by the outgoing
Eisenhower administration. But
Kennedy also has expressed belief
tion, not the pre-deter mined con
fines of a budget.
This statement is not unprece
dented. It has come from all ad
ministrations of peacetime years.
Always it has been countered by
the argument that the shape of
the military is of necessity pal
terned to that of the budget.
One of the first things that Ken
nedy may have to do is tackle
the question of service dependents
overseas.
The Eisenhower administration,
seeking to arrest the dollar drain,
decided that the number of fami-
lies of servicemen living abroad
should be halved. Angry objec-
Output Cut Is Apparent Failure
tions came swiftly'. It was con
tended morale was threatened.
that military personnel might
leave service by the thousands.
The outgoing administration re
treated a little, softened some of
the measure The new administra
tion will be under pressure to void
the whole dependents-return or
der.
The dependents' question is only
a facet of the bigger problem of
reducing the dollar-gold outflow,
If the situation does not improve,
it conceivably could influence the
size of forces which can be con
tinued in the NATO organization
and elsewhere overseas.
EUGENE (AP)-The price of
index grade fir plywood dropped
to Sou today and the industry's
voluntary production cutback plan
was called an apparent failure.
Crow's Lumber Price Index.
Portland, said the price tumble
started Friday was down to $80
from the previous $68 today.
This is the lowest since the end
of World War II. although it fell
to the same level last August.
Industry sources said that com
petition will be the word now, and
some producers were I talking
about selling at less than $60 il
necessary to make sales.
Efforts to keep prices up by
restricting production ended last
week, the Wall Street Journal re
ported today. Prices fell in two
quick steps to $60 from $68 a
thousand square feet for the sand
ed quarter inch thick index grade.
United States Plywood Co.. ac
cording to the Journal, started
the slide by going from $68 to
$64. Simpson Timber Co., Seattle.
soon began taking some orders
at $60 and the trend was established.
Outout of the Weverhaeliser Co..
according to George Weyerhaeu
ser, vice president, has been
"substantially curtailed." but he
added, "the price change has;
thrown it w ide open now. We are
going to sell orders at a compcti
'ive price and operate plants ac
jording to the order flow we can
generate."
Major producers blamed smaller
TMLft AND NEWS. Klama'h Falls, Oregon
Wednesday, January 18, 19M
PAGE
producers for failure to hold the
price line. Many large units of
the industry have been operating
on a reduced-shift or a four-day-week
basis (or some months in
an attempt to hold the $68 price, j
But, sources said today, not
enough of the Industry adhered to
the voluntary cutback. Anti-trust
laws prevent anything but a vol
untas program.
What will happen next is a ques
tion. Many millmcn say that the
industry cannot turn a profit at
$60 and that the next step might
be to close up entirely.
The price of plywood got into
politics, too.
The executive committee of the
Lane County Democratic Central
Committee wired Sens. Wayne
Morse and Maurine Neubcrger,
asking for "early action by ap
propriate departments of the Ken
nedy administration."
George Balsjgcr, county chair
man, said a survey showed that
the "economic situation of the
lumber industry is rapidly ap
proaching a crisis."
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that billions can be saved by ad
ministrative improvements and
curtailing service competition.
Beyond these programs which
can be controlled by Kennedy and
his defense secretary-designate,
Robert S. McNamara, are other
potential factors which can not be
decided by national policy making
lone.
Shifts in the international situa
tion can influence profoundly Ken
nedy's national defense policies.
He comes into office as new ten
sions mount in Southeast Asia, as
relations with Cuba worsen, as
the future trend of NATO defen
sive strength is considered, as
pressures increase for resumption
- of nuclear weapons tests.
Any one of many world prob
lem can dictate the size, kind
nd deployment of U.S. forces,
. An argument reiterated during
the presidential campaign was
that the United States had lost
prestige militarily as well as
politically. Democratic critics
aimed particularly at the missile
category. In answering a series of
questions by the publication "Mis
siles and Rockets," Kennedy said
during the campaign that he
would send to Congress several
specific requests, among them
proposals to "accelerate our Po
laris, Minuteman and other stra
tegic missile programs.
In the same statement, Kennedy
laid competition between the
armed forces must be minimized,
that "our competitors lie on the
other side of the Iron Curtain.
It happens that the sharpest
competition among the services at
the moment concerns the very
weapons mentioned by Kennedy
the Navy's Polaris missile-atomic
submarine system, on the one
hand, and the Minuteman and
other strategic missile programs
of the Air Force.
For years, the Air Force had
been keeping its eye on and
directing sharp words at the
Navy's aircraft carrier force, that
other air force." It was still con
centrating on the competition of
naval airplanes and carriers when
suddenly it became aware of the
Polaris weapon system, by now a
reality with the first rocket boats
en station.
Overseas continental target
areas which can be hit with mis
siles fired from submerged sub
marines also can be attacked with
the long range strategic missiles
of the Air Force. So now Air
Force spokesmen are hammering
hard on the idea of precision at
tack on military targets instead of
attacks on enemy population cen
ters designed to inflict broad, gen
eral damage. Precision attack
and a "counter-force" of missiles
primarily aimed to destroy enemy
military power has become the
new Air Force position,
Available to Kennedy will be
the policy followed by the present
administration: a mixture of stra
tegic weapons launched from, dis
tant or intermediate ranges, from
protected sites and from sub
merged submarines, by plane
carried nuclear bombs as well as
missiles.
But there undoubtedly has been
duplication in the development
programs of the services. Missiles
closely. similar in range and load-
carrying capability have been de
veloped independently not only by
the Navy and Air Force but by
tne Army.
There are problems other than
these strategic concepts facing
Kennedy and McNamara. The
budget, for one. Kennedy has said
"defense spending must be based
on the security needs of the na
Memorial Asks
Medical Care
SALEM AP - A state Senate
Joint memorial calling for federal
medical care for the aged under
Social Security was introduced
Monday by slate Sen. Vernon
Cook. D-Gresham.
Cook said he was joined as prin
cipal sponsor by Rep. Ed Bene
dict. D-Portland.'
The memorial says it is pres
ently impossible for millions of
cersons in the United Stales to
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cause of the high cost of medical
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' It calls medicare under Social
Security "the most feasible, dem
ocratic and dignified method for
assuring medical and hospital
care to our elder citizens."
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