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Report of the Secretary of Defense Caspar W. Weinberger to the Congress on the FY 1986 Budget, FY 1987 Authorization Request and FY 1986.90 Defense Programs February 4, 1985 This Report Reflects the FY 1985 Defense Budget as of January 30, 1985 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 TO THE CONGRESS OF THE UNITED STATES We are now completing four years of steady progress toward fulfilling President Reagan's 1980 mandate to strengthen America's defenses. With the bipartisan support of the Congress and the American people, we have begun redressing the neglect of the 1970s and restoring our nation's strength, confidence, and position of leadership in the world. The FY 1986 Annual Report to the Congress highlights our progress and details the challenges that remain. The defense programs and budget recommended herein are based on our analysis of the threats facing the United States, our allies, and our interests worldwide. The military capabilities we seek are intended to counter these threats, to provide a safer deterrent, and to ensure peace. Defense spending is unique, being the only part of the total U.S. budget determined solely by factors external to our nation. The continued Soviet military buildup, as well as the growing menace of international terrorism, regional instabilities, and geopolitical uncertainties around the world, dictate that our nation maintain its commitment to rebuild its deterrent capability. We know that a strong America requires a healthy economy and financial integrity. To that extent, consistent with our global responsibilities, we have scaled back budget requests significantly to help reduce the federal deficit. The fact that we have been able to make these cutbacks and still deliver our basic defense program is, in part, due to lower inflation rates achieved under the Presi- dent's economic program, as well as significant savings achieved through aggressive management reforms. For FY 1986, DoD is requesting $313.7 billion in budget authority and $277.5 billion in outlays, both of which are within the concur- rent budget resolution established by the Congress in September 1984. The DoD budget request represents a real increase in budget authority over the current year of about 5.9 percent, an increase both prudent and essential to maintaining America's readiness. The defense program presented here is balanced and responsible. It will allow further short-term improvements in readiness and sus- tainability, while continuing our long-range modernization program. It is the result of a rigorous review that seeks to achieve our national security objectives at the least cost to the taxpayer. Our program reflects major management improvements that are providing us more defense for each budget dollar. The FY 1986 defense program seeks not only to maintain the pace of America's strengthening, but also to secure meaningful arms reduc- tions. America's resolve to remain strong demonstrates to the Soviets that they have nothing to gain from their relentless buildup. If, however, we succumb to budgetary pressures and unilaterally slacken our efforts, not only will our allies lose confidence in our leadership, but our adversaries will lose their incentive to negoti- ate reductions. This year a crucial test of United States resolve is the Peace- keeper/MX missile. I urge the Congress to renew its support for the recommendations of the President's Commission on Strategic Forces, as it has done in the past, by voting to release funds for the deployment of Peacekeeper. The success of the Peacekeeper program continues to play a key role in convincing the Soviets to continue the arms reduction dialogue. We cannot jeopardize our arms discus- sions with naive talk of unilaterally cancelling our only real near- -term means of redressing the imbalance in strategic forces. To enhance security over the longer term, our defense program includes continued research toward an effective defense against bal- listic missiles. The Strategic Defense Initiative (SDI) seeks to strengthen deterrence and to enhance our ability to negotiate reduc- tions in offensive weapons. It does so by increasing our adversary's uncertainty that aggression can succeed, thereby devaluing offensive weapons and making it easier to envision genuine reductions. By staying the course, America can have the security and reas- surance of strong defenses. We will progress toward a time, only a few years from now, when we can maintain adequate security without substantial increases in defense spending. If we fail in our resolve now, we simply postpone and worsen the budget sacrifice, while prolonging our security inadequacies and undermining crucial negoti- ations on arms reductions. In staying the course for a stronger defense during the next few years, we will fulfill our responsibility to those who follow us. Many of our investments in research and development, including SDI, will not pay dividends for a number of years. If we neglect to invest today in strong defenses for the future, we will be blamed by future leaders and, indeed, by our own children for denying them the peace with freedom that we inherited from our forefathers. If our nation is to remain safe, prosperous, and free to pursue our other important priorities, we cannot slight our security. For a nation's security is its government's first responsibility. This Annual Report describes how we intend to continue fulfilling that responsibility. THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK Table of Contents Page PART I Peace with Freedom A. Introduction: Foreign Policy, National Interests, and the Strengthening of America . 13 U.S. Foreign Policy and Military Strength, 13 Achievements and Challenges, 13 B. Threats to U.S National Interests . 15 The Soviet Threat, 15 Other Threats, 22 C. US. National Security Objectives and Defense Strategy . 25 National Security Objectives, 25 U.S. Defense Strategy, 25 Supporting Policies, 28 Regional Objectives and Strategies, 29 D. Conventional Capabilities Required by U.S. Strategy . 33 Readiness, 33 Sustainability, 35 Modernization and Force Structure, 36 Special Operations Forces, 4 1 Reserve Forces, 4 1 Mission Allocation and Force Integration, 42 Joint Chiefs of Staff (JCS) Special Fund, 43 E. Nuclear Policies and Programs . 45 Deterrence: The Policy and the Challenge, 45 The Emergence of Nuclear Imbalance, 48 Nuclear Modernization, 5 1 The Strategic Defense Initiative, 54 F. Arms Reductions and Related Diplomatic Priorities . 59 Nuclear Arms Reductions, 59 Related Diplomatic Priorities, 6 1 Compliance, 62 G. Facing the Challenges of the 1990s . 65 PART 11 Defense Resources A. The Defense Budget . 69 ln troduction, 69 Components of the FY 1986 DoD Budget, 71 Price-Leve1 Assumptions, 75 Budget Trends, 75 Defense Spending and Economic Recovery, 77 Conclusion, 78 B. Management Reforms . , , , . , 81 Introduction: The Challenge of Management Reform, 8 f 7 Reforming the Defense Acquisition Process, 82 Identifying and Curbing Waste, Fraud, and Abuse, 90 Other Management Initiatives, 94 The Grace Commission, 95 Conclusion, 96 C. Readiness and Sustainability . 97 lntroduction, 97 Readiness, 98 Sustainability, 103 Conclusion, 105 D. Manpower . 107 lntroduction, 107 The Manpower Program, 107 E. The Industrial Base . 125 lntroduction, 125 Current Programs, 125 Conclusion, 130 PART 111 Defense Programs A. Land Forces . 133 lntroduction, 133 Force Rationale, 133 Program Goals, 133 Force Composition, 134 Force Disposition, 135 FY 1986-90 Program, 135 Force Structure, 135 Readiness, 137 Sustainability, 738 Modernization, 138 Conclusion, 15 1 B. Naval Forces . 153 lntroduction, 153 Maritime Missions, 153 Composition of U.S. Maritime Forces, 153 Countering the Soviet Threat, 154 Program Goals for Naval Forces, 155 FY 1986-90 Programs, 157 Power Projection Forces, 157 Antiair Warfare (AAW) Programs, 163 Antisubmarine Warfare (AS W) Program, 167 Support and Mine Warfare Forces, 173 Conclusion, 175 C. Tactical Air Forces . 177 lntroduction, 177 Program Goals, 177 Force Structure, 177 FY 1986-90 Programs, 179 Combat Readiness and Sustainability, 179 Force Modernization, 18 1 Electronic Warfare (EW)/Command, Control, and Communications Countermeasures (C3CM), 187 An tlj'am, Secure Voice, Data and Identification Friend or Foe (IFF) Systems, 188 Target Acquisition, Surveillance, and Warning, 190 Rapid Deployment Force Program, 191 Conclusion, 19 1 B. Force Projection . 193 lntroduction, 193 Strategy and Missions, 793 Contributions of the Various Force Elements, 794 Segments of a Deployment, 195 Force Projection Goals, 195 Current Force Structure, 196 Assistance from Allies, 196 Improvements Since FY 1981, 197 FY 1986-90 Program, 198 Airlift Programs, 198 Sealift Programs, 200 Prepositioning Programs, 202 Access to Foreign Facilities, 203 Command, Control, and Communications (C3) Support, 204 Conclusion, 204 E. Nuclear Forces . .205 Introduction, 205 Composition of U.S. Nuclear Forces, 205 FY 1986-90 Programs for Strategic Forces, 206 Strategic Offensive Forces, 206 Strategic Defensive Forces, 2 13 Strategic Command, Control, and Communications (C3), 2 16 FY 1986-90 Programs for Nonstrategic Nuclear Forces, 220 Longer Range INF Missiles, 220 Short-Range Nuclear Forces, 22 1 IN? Aircraft, 22 1 Sea-Based Systems, 22 1 C3 Systems, 22 1 Conclusion, 222 F. Coalition Strategy - Regional Security . 223 lntroduction, 223 Western Europe /North Atlantic Treaty Organization (NATO), 223 Southwest Asia and

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