Document date: 04/17/2018
Document type: PAPER-TEXTUAL DOCUMENT

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JFK ASSASSINATION SYSTEM

IDENTIFICATION FORM

AGENCY : NARA

RECORD NUMBER : 176-10036-10210

RECORD SERIES : National Security Files

AGENCY FILE NUMBER :

ORIGINATOR :

FROM :

TO :

DATE :

PAGES : 12 2

SUBJECTS :

DOCUMENT TYPE :

CLASSIFICATION :

RESTRICTIONS :

CURRENT STATUS :

DATE OF LAST REVIEW : 9/10/2000

OPENING CRITERIA :

TITLE : John F. Kennedy document Control Record

COMMENTS : National Security Files, Box 383: Disarmament, 7/63-10/63. Box 4.

14 49061

DooId: 32626314

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EXEMpIED

MR: 0: 383-3-1141%06

0/20R.

TAB D

Economic Impact

A proposal freezing operational inventories of SDV's to July 1964

levels and limiting production to maintenance, modification and re-

placement, should have little if any adverse effect on the US aircraft

industry. It might well prove salubrious if the released funds were

pumped back into research and development in fields other than missile

production. Production ormedium 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 voila

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 must 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

2D A

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4f

SECRET

cancelled under the proposal discussed here and production limited to

maintenance and modification parts plus some 85 missiles for test re-

placements.

The

above figures do not take into account what might be a

sub-

stantial manufacturing requirement -- replacement of early model

Minuteman and Polaris missiles with the latest models now scheduled

for production.

By July 1964 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 a 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&t.)

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 woüld 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.

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CORET

1N 49061

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