Evening star., 1954-01-09
THE EVENING STAR ALI
Washington, D. C.
SATURDAY, JANUARY o, 1854
ArmyCuts 14OMiIIion
In Truck Orders 10
Aid Economy Drive

The Army has slashed $140
million worth of truck and trail
er production by six companies
In line with Defense Secretary
Wilson's plans to cut military
spending by 81 billion during
the remainder of the fiscal year
which ends June 30..
If the Secretary's goal is
achieved this years Defense De-
partment spending will be under
$40 billion. President Eisenhower
estimated last spring that the
figure would be $432 billion.
MIR. Wilson told a news con.
ference yesterday that the re-
duction should be possible"
Wants Troops in u. S.
He also said the administra-
tion's aim is to concentrate a
strategic reserve" within the
United States so that it could
be moved rather rapidly" to
trouble spots if needed.
He said. however. that mo
consideration" was being given
to any change in the present ale
location Of Army. Navy and Air
Force forces to NATO.
He said the impending with
drawal of two Army divisions
from Korea was part Of the plan
to bolster strategic reserves. But
added that there is no present
plan to pull out an additional
outfit.
Manpower Not Settled.
Asked whether it was the goal
eventually to withdraw troops
from the Pacific area, Mr.. Wilson
said:
II don't think they'll be back
from the Pacific for a long time"
Asked about the possible ne
cessity of cutting the Army be-
low the present 20-division level
during the next fiscal year in
view Of an 18 per cent overall
manpower slash, Mr.. Wilson said
''it isn't settled yet"
The Secretary said the ad-
ministration hopes to parcel out
orders to the Air Force on a
regular basis without the feast
and famine" of former years.
Air Power Emphasized.
He also said the Defense De-
partment plans to place greater
reliance on air power for troop
movements in any future emer-
, gency. He said the Air Force
will have lis wings by July l
instead of 110 as had been
formerly planned. and l21 wings
by June 80. 1855, instead of a
year later, as originally planned.
The cuts in truck production
will run from 33 to so per cent
previously planned.
The following will produce less
than SO per cent of vehicles now
on order:
General Motors Corp. Pontiac,
and REQ Motors Corp. Lansing.
Mich, formerly scheduled to
produce two and one-half ton
trucks until March. 1855.
Willys Motors. Inc, Toledo.
Ohio. formerly scheduled to pro-
duce Jeeps until March. 1855.
Dodge division of Chrysler
Corp. formerly scheduled to pro-
duce three-quarter-ton trucks
until March. 1855.
Those companies will close
down production near "the mid
die of 1854"
Production schedules were cut
by one-third for Checker Cab
Co., Kalamazoo, producing the
one and one-half-ton cargo
trailer, and Freuhauf Trailer Co.,
Cleveland, Ohio, producing the
one and one-half-ton water
trailers. They were formerly
scheduled to remain in produc-
ton until later fail but now will
stop near the mId-year point"
the Army said.
The department said the cuts
were caused by the adjustment
in Army strength and made pos
sible by the improved production
base.
1t added that it now appeared
that orders for f1ve-ton trucks
and tanks will not be affected.