Washington Prefers Missiles Over
Manpower in New Defense Budget
By C. YATES McDANIEL j
WASHINGTON, UP> — More '
missiles, less manpower is what
emerges from the Eisenhower
Administration’s 1961 military
budget.
The President gave tentative ap
proval to this concept Monday at
Augusta, Ga., after a four-hour
meeting with top Pentagon brass
and government budget planners.
Spending will remain at about j
the present 41 billion dollars for !
the year starting next July 1.
Secretary of Defense Neil H.
McElroy said the Navy and Air |
Force had volunteered to cut !
their manpower requirements a
little in 1961. To offset this loss!
they can look forward to more
and better missiles and more :
atomic-powered submarines. A
second nuclear-powered aircraft
carrier for the Navy failed to get ;
approval.
Army, Marines, Resist Cuts
The Army and Marine Corps re- j
sisted pressues to cut their forces. |
McElroy, foreshadowing t h e j
new shape of war in the missile j
age, said the nation must face j
some time in the future the ques
tion of calling back some of its
troops overseas. No cut in these
forces is in prospect for the next
18 months.
In concert with McElroy’s j
thinking, the Air Force chief of
staff Monday told the meeting of
NATO parliamentarians here to
expect cutbacks in conventional
forces, including manned aircraft,
in the future.
Other Changes In Prospect
General Thomas D. White told
the NATO group other changes
are in prospect, such as a re
arrangement of military forces
now in Europe and creating of a
fast-striking combat unit based
in the United States but ready
for action anywhere.
White’s views dovetailed with
the forecast made by ‘McElroy to
newsmen in Augusta and on his
return to Washington.
McElroy said the 1961 defense
budget could be cleared within
10 days and get Eisenhower’s final
National Security Council within
approval before he takes off De
cember 3 for a goodwill mission
to 11 nations.
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Military manpower now is
about 2Vz million. Just where and
how many will be pared was not
disclosed.
The Air Force for the current
year agreed to accept, a lower
authorized strength of 845,000,
and actually has operated below
that ceiling.
Air Force Will Lose Strength
Under the new budget the Air
Force will lose several of its 102
wings of aircraft, most likely in
B-47 medium bomber units. It
will continue to build up the big
ger B-52 bombers to a scheduled
peak of 700 planes.
The Air Force now has opera
tional control of the interconti
nental ballistic missiles, the weap
ons of the future.
The Navy, under the new bud
get, will have to retire a few of
its 864 active ships, and prob
ably operate the remaining ones
with smaller crews.
But the Navy’s number of
atomic submarines, each capable
of launching 16 Polaris ballistic
missiles, is- slowly growing. It
currently is building nine Polaris
subs, and will ask money to start
at least three more next year. The
new Navy budget might even be
stretched to provide for five more.
Former Ambassador to
Portugal Collapses in Taxi
WASHINGTON, OP — Colonel
M. Robert Guggenheim, member
of a wealthy copper mining fam
ily and former Ambassador to
Portugal, collapsed and died Mon
day night while entering a taxi.
He was 74.
i prominent participant in
Washington’s social life, he had1
been dining with some friends in
the Georgetown section of the
city. An ambulance took him to
George Washington University
Hospital, where he was pro
nounced dead on arival. Cause of
death was not immediately de
termined.
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Tight Federal Rein
On Union Heads j
Scares Racketeers
WASHINGTON, Iff) — A knock
out blow is being aimed at labor
rackets by all three branches of ;
the federal government — Execu
tive, judicial and legislative.
Secretary of Labor James P.
Mitchell said the new labor law
passed by Congress and admin
istered by his department already (
is beginning to rid unions of cor
rupt elements. He said it also is
giving union members a full voice
in running their organizations.
Court-appointed monitors today
charted a speedy new cleanup
drive of the big scandal-rocked
Teamsters Union.
The Supreme Court Monday re
fused to set aside lower court de
cisions arming the monitors with
sweeping reform enforcement
powers. Teamsters president
James Hoffa said the union,
though disappointed at the rul
ing, will “live up to the court’s
decision.” But he said it still may
challenge individual reform
orders.
Martin F. O’Donoghue, monitor
chairman, said his watchdog
group now will move on a variety
of fronts, including charges that
could result in removal of Hoffa
as president.
“We can move very fast now
because the last legal roadblock
is out of the way,” O’Donoghue
said before a strategy meeting
with his two fellow monitor board
members.
Mitchell, reporting on the first
two months of operation of the
anti-corruption provisions of the
new labor law, said some union
officials with criminal or Commu
nist backgrounds already have
quit union office. He said nearly
100 complaints are under active
investigation and some will be
turned over to the Justice Depart
ment for prosecution.
Faster Pan Am Clipper
Service Starts Run from
California to Tokyo
SAN FRANCISCO, UP) — Pan
American Airways has launched a
new jet Great Circle Route clipper
service from Tokyo to San Fran
cisco and Los Angeles, designed
to save an additional two hours
and 35 minutes.
You can leave Tokyo at 1 p.m.
and get here at 7 a.m., six hours
before you left. The International
Date Line is responsible for that
quirk.
Instead of flying via Honolulu,
the Tuesday-Thursday jet service
will take the shorter route to
Seattle, stopping only for refuel
ing.
Esthhated flight time from
Tokyo to San Francisco will be
11 hours overall.
A Pan Am spokesman said no
passengers will be picked up for
discharge at Seattle because Pan
Am does not yet have permission
to serve Seattle. An application
to serve Seattle as well as Port
land is pending before tfie Civil
Aeronautics Board.
NOME SANITARY
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Bigger and Better Savings Bonds
President Eisenhower wants the country to know that
United States Savings Bonds now pay 3% per cent interest.
He posed for this photo just after signing into law a Con
gressional bill permitting the Treasury to increase interest
rates on Series E and H Savings Bonds from the old 3V« rate.
This enlargement of a $100 bond is symbolic, of course, but
it carries the message that Savings Bonds are "Now bigger
and better." The new rate was made retroactive to June 1.
In addition, the 40 million persons already holding Savings
Bonds benefit by the legislation. The interest rate on out
standing bonds has been increased by at least one-half
per cent from now on if held to maturity. "To my mind,"
the President said, "there is no better way of saving, no
more effective way of strengthening our power for peace,
.than to own United States Savings Bonds. To buy these
bonds is to express faith in America. It helps provide the
economic strength in both our Government and in individual
families on which our freedom depends. I hope that the
making of both old and new Savings Bonds even more at
tractive will serve as a renewed invitation to every citizen
to buy and hold these 'Shares in America'." <
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