JFK ASSASSINATION SYSTEM. IDENTIFICATION FORM AGENCY : NARA RECORD NUMBER : 176-10036-10210 RECORD SERIES : National Security Files ~ . AGENCY FILENUMBER: ORIGINATOR : FROM : TO: TITLE : John F. Kennedy document Control Record DATE : PAGES 2 SUBJECTS : DOCUMENT TYPE : CLASSIFICATION : RESTRICTIONS : CURRENT STATUS : . DATE OF LAST REVIEW : 9/10/2000 OPENING CRITERIA : COMMENTS : National Security Files, Box 383: Disarmament, 7/63-10/63. Box 4. HW 49061 DBocld:326276314 Page 1
HW 49061 tb TAB D Economie Impact A proposel freezing operational inventories of SDV's to Jwly 1964 levels and limiting production to maintenance, modification and re- placement , should have little if any adverse effect on the US aircraft industry. Tt might well prove salubrious if the released funds were pumped back into research and development in fields other than missile production. Production ofmedium and long range bombers has been discon- tinued for some time and current maintenance and modification programs (such as the B52 tail modification) would probably be emphasized to offset with quality the restricted quantity of the force. With respect to missiles we can expect the greatest effect to be felt from curtailment of production of Minuteman and Polaris missiles. 350 Minuteman missiles are scheduled to be produced to equip new units between July 1964 to July 1966. Cancellation of this production would reduce output to about 130 complete missiles to replace those scheduled to be expended in reliability testing and training. In addition, of course, spare parts mast be manufactured for maintenance and modification needs. The effect upon rocket motor production would be relatively slight because according to current estimates rocket motors will require replacement every 4 or 5 years. For the July 1964 force of 600 operational missiles this would mean continuation of substantial production. | Polaris production now scheduled to take place between July 1964 and July 1966 provides for a total of 507 missiles of which 262 are considered equipment for new units. These latter missiles would be DoclId: 326276314 Page 2
HW 49061 “cancelled under the proposal discussed here and production Limited to maintenance and modification parts plus same 85 missiles for test re- placements. | The above figures do not take into account what might be a sub- stantial manufacturing requirenent -- replacement of early model Minuteman and Polaris missiles with the latest models now scheduled for production. By July 196) Titan and Atlas units will have received sufficient missiles to equip their units. Production of about 12 Titan and 12 Atlas missiles would be required each year to replace complete missiles destroyed in testing. Again there would be a continuing requirement for rocket motors and other replacement parts. The Economic Adjustment Advisor in OSD is conducting a study to develop in terms of men and money @ more precise picture. (The question was formulated so as to cover either 50% reduction in forces or a freeze so that the request is only one more theoretical alternative of many being considered by I&L.) Summary: With the exception of Minuteman (Boeing-Seattle) and Polaris (Lockheed-Palo Alto) the economic impact on existing contract would be slight. These programs would not be killed but cut back to a level adequate to main- tain the relatively large forces in existence at that time. In fact the freeze if maintained for 10 years might result in a long term net increase for these corporations, since these weapons woitla not be phased out of operation. The major impact would be on Defense contractors expectations for many believe that large new strategic weapons will be granted in the near future. Docld: 3276276314 Page 3