from Financial Times
The $1,000m. reduction in next year's defence budget announced by Senator McNamara after his meeting with President Johnson in Toxas, December 30th, points the way towards even larger cuts in the next few years which may have significant effects on the U.S. economy. According to current estimates,defence expenditure in the fiscal year starting next July will be $1,000m. less than the $52,000m. expected to be spent in the current fiscal year. Defence officials have forec= ast that the defonce budget may drop to about $45,000 over the next 5 years and this would imply a 10% cut in defence spending compared with a 22% increase over the past four years.