 is a time when fathers vary sons. Peace in freedom is the most valuable possession of any society. And peace, every day of it, must be bought and paid for. As the principal power in a military alliance of the free world, the goal of the United States is to use its strength to maintain the peace against the threat of conquest. In a dangerous and changing world, a massive military establishment is necessary to our common defense. This is the responsibility of the president. And under him, by law, the Secretary of Defense is charged with securing and maintaining that military establishment. The secretary is Mr. Robert S. McNamara. Toilet's rifle. I have here one of the new family of Prime Minister Chinese weapons. This is a light machine gun of their 7.62 class. Ammunition for this can only be supplied from Chinese sources. This gun bears the Chinese arsenal mark. And it's obviously been manufactured in that country, supplied by China to North Vietnam, infiltrated by North Vietnam into the South. A Chinese gun, roots of infiltration. The secretary keeps America informed through regular news conferences. For an informed nation is a prepared nation. And the United States today is prepared against every form of aggression, from guerrilla warfare to ballistic missiles. An American desert. This is an early test before our country, along with over 100 other nations, agreed to cease atmospheric testing of nuclear weapons. For today, our nuclear power is such that, in the words of our President, the combined destructive power of every battle ever fought by man is like a firecracker against the sun. And the power we have today is more than that of any adversary or combination of adversaries. The fact that we have it is the greatest deterrent to nuclear war, helping to protect us against nuclear attack, our radar installations, networks of sensitive nerve ends, part of the ballistic missile early warning system called B-MUDES. A nerve center of our defense alert system is this underground headquarters of the strategic air command. No surprise ballistic missile attack could catch us unprepared. Or in underground silos, enough of our retaliatory power would survive to assure the destruction of any aggressor nation. With the terrible power that stands ever ready, this is the awesome power, always under control, as it is here in Holy Lock, Scotland, where a Polaris missile is being lowered into a nuclear submarine. The United States is able to launch ballistic missiles in a matter of seconds from beneath the sea. The weapons can be delivered by air against any enemy to any part of the earth. The weapons this air or monoc can deliver today are capable of even greater destructive force than in this early Pacific Ocean test. This is part of the military strength of the United States, the greatest of any nation in the history of the world. This is the power of retaliation that has made and keeps full-scale nuclear war the least probable of any kind of conflict. There are other kinds of war. Other challenges we must meet, and we must have the capability, the balanced defensive forces to meet any other, to blend this vast array of weapons so that we may have a fully balanced defense structure, the fly swatter as well as the sledgehammer. To understand how we achieve this, we must go back to 1961, when the new president issued two positive instructions to his new secretary of defense. One, reappraise our entire defense strategy and determine the best defense structure in the world without regard to arbitrary budget ceilings. Two, having determined that defense structure, procure and maintain it at the lowest sound cost. And so it began to emerge, a defense structure that could program budget in cycles projected five years into the future. The direction set, new concepts put into action, records compiled into reports, analyzed, rewritten, converted from paperwork into action. Began to talk of tasks to be performed and missions to be accomplished, rather than in terms of four separate military services. The defense effort began to develop into a unified whole. All services cooperating closely, place and time acquiring new meaning. The worldwide installations becoming a panorama for study and observation and along the way, visions becoming revisions, revisions becoming reality. One example, the F-111, the greatest innovation and aircraft design of recent years, a fighter and bomber to serve both the Air Force and the Navy, a new kind of plane with adjustable wings for greater efficiency at both high and low speeds. Other accomplishments were the SR-71, a long range supersonic reconnaissance craft with the most advanced observation equipment in the world. As A3, America's longest range submarine launched ballistic missile, soon to be followed by Poseidon, a missile now under development, eight times more effective against the best protected military targets. And the Nike X, the world's most advanced anti-ballistic missile system, now in development. A test vehicle is launched and seconds later, a Nike Zeus pursues it. In actual photography, the flash indicates a successful intercept of the test vehicle by Nike Zeus. Meanwhile, the Secretary of Defense and the Joint Chiefs of Staff continue to improve America's defense posture, some significant accomplishments. Nuclear warheads in our strategic forces increased 150%. A 200% increase in both the number and total megatonnage of nuclear weapons in the strategic alert forces. A 100% increase in general ship construction and conversion to modernize the fleet. A 1,000% increase in the special forces trained to deal with counterinsurgency threats. A 100% increase in airlift capability. A 67% increase in tactical nuclear weapons deployed in Western Europe. A 51% increase in the number of tactical fighter squadrons. A 45% increase in the number of combat ready army divisions. And all the while, in addition to these increases and others, a constant sharpening of the efficiency of our military manpower. All these improvements, all these new weapons programs, all this vision now give us total readiness for any kind of warfare. There has also been an extensive cost reduction program. Secretary McNamara explains. Last evening, I received the near final estimate for the Department of Defense expenditures in fiscal year 1965, the year which ended June 30th. These expenditures total approximately $47.5 billion. That's three and three-quarter billion less than we estimated when the budget was submitted to Congress over a year ago. A major factor contributing to this three and three-quarter billion dollar savings has been the Defense Department's cost reduction program. The efficiency increases derived from three basic parts of the program, from buying only what we need, from buying that at the lowest sound cost, and from reducing operating cost. One of the most important actions taken to refine requirements is illustrated by this Minuteman missile part. This is the guidance system of the Minuteman missile. It must be replaced periodically. It has been our custom to maintain for such high cost items a 62 days inventory supply. In this instance, we placed that requirement on order. We subsequently calculated, however, that by careful control of transportation and the repair cycle, we could eliminate about 45 days of that 62 day supply. We canceled the order for 32 of these components at a price of 900,000 a piece, and we've saved, therefore, in fiscal 65, about $28.5 million through this single action alone. As an illustration of refining these specifications to eliminate unnecessary characteristics we simplified the design to ensure they're directly related to military utility, what we call eliminating gold plating. There are several interesting examples. Here's a cartridge case. Before redesign, it had six parts. We simplified the design, cut them in half, reduced the price by more than half, and on that single item saved about a million dollars in fiscal 1965. So much then for buying only what we need. The next category of action is headed buying at the lowest sound price. I think we've reported to you before the series of actions that we are taking to accomplish this. They fall under four headings. First, we are shifting from non-competitive to competitive procurement. Secondly, we're shifting from cost plus contracts to fixed price or price incentive contracts. Thirdly, we are procuring where possible directly from the manufacturer instead of through a middleman. And fourthly, we're consolidating more than one year's procurement and placing it on contract at a single time. Now, the third section of the program deals with reductions in operating costs. Here we saved about a billion and three quarters in 1965. You're familiar with the most important category of actions in this section, the elimination of surplus and obsolete basis, and I'll bring you up to date on our program. By over 700 actions, we have released to other sectors of our society, either the private sector or civilian youths in the public sector of 1,600,000 acres of land. That's an excess of 2,500 square miles. Some 64 industrial plants with annual savings in excess of a billion dollars. Now, all of this, of course, represents a program to increase the efficiency of our operation. This is not our primary responsibility. Our primary responsibility is to provide the forces which this nation needs as a solid foundation for its foreign policy. We believe it necessary to increase those forces. We've done so. Cost reduction, far from decreasing our military might, has steadily increased it. We shall continue to meet our military commitments as we have in the past. 1961, where we responded effectively to the challenge of Soviet pressure on West Germany. Cuba, 1962, where we halted the introduction of Russian missiles, and recently the small-scale war. Conflict held carefully below the threshold of nuclear war, a new kind of aggression which has become a major weapon of the communist forces. Our new defense structure permits us to meet such aggression on its own terms. The Gulf of Tonkin incident illustrates this capability for instant retaliation against unprovoked attack. Our ships were in international waters where they had every right to be when they were attacked by North Vietnamese torpedo boats. We returned the fire to defend ourselves. The task force stood ready to deliver an effective response. Orders immediately came from Washington to protect our ships by striking at the North Vietnamese bases from which the torpedo boats operated. The Gulf of Tonkin incident was quickly over. Our prompt, efficient action, appropriate response, where, when, and in the manner needed. Entirely different in nature was our response to the devastating effect of an earthquake in the Central American Republic of El Salvador. Our reaction to a request for aid was equally rapid, equally efficient. In less than 12 hours, airlifted equipment and supplies were arriving. 250,000 pounds delivered to emergency shelter sites. Three United States Army field kitchens immediately set up to feed the homeless. Tenth cities erected. U.S. military medical personnel supplied to treat the sick and injured in cooperation with local doctors and public health officials. This is but one more example of the capability of the Defense Department to take swift action in any emergency. Whether it be a challenge from an adversary or a cry for help from a distressed nation. Another call for help now from the Dominican Republic as rebel forces turn Santo Domingo into a battlefield. The Dominican government informs our ambassador that the safety of Americans and citizens of other nations can no longer be guaranteed. Again, prompt, decisive response. We landed sufficient forces into the city and deployed them to protect our citizens and those of other countries requesting protection. All American civilians and other nationals requesting safe passage were transported to the airfield under military escort. In a still dangerous situation, we continued to deploy our protective troops along the city streets. American states designated a five nation team to restore order. We began to withdraw our military forces. This assistance to the Dominican Republic extended far beyond military aid. It meant the distribution of food to the hungry. It also meant medical care to young and old alike. All part of our determined plan to aid the distressed, rescue the trapped and speed assistance to independent nations, seeking help. Plains of war are fanned by ever increasing aggression against South Vietnam. Treachery and cruelty by the Viet Cong, not only villages and towns destroyed, but transportation as well. The South Vietnamese military forces have been fighting the Viet Cong for years, wherever they could find them. Sometimes it was across the dry hot planes under a merciless sun. Sometimes it was in rice paddies during the steamy monsoon season. And sometimes it was from the very trains the Viet Cong tried to destroy. For the season, there was always the jungle, tangled, hostile, forbidding. A jungle where the Viet Cong melted away into the dense undergrowth whenever attacked. The South Vietnamese gave no quarter and asked for none. Viet Cong and infiltrated North Vietnamese are flushed out step by step while the search continues by wary patrols day in, day out. And like all wars, this war demands its cruel price in terms of human suffering. At the request of the South Vietnamese, the United States under three American presidents has been providing military assistance and advisors without interruption. In the air, we developed a way to overcome the rugged Vietnamese terrain by making air highways with helicopters. And then suddenly aircraft and airstrips were damaged as infiltrators from North Vietnam grew more bold, striking directly at US equipment and at our men. Living quarters of American advisors to the South Vietnamese are destroyed. The infiltration commanded and directed from North Vietnam increases. Secretary McNamara holds a news conference to tell of our response. South Vietnamese Air Force and US Navy and US Air Force strikes against North Vietnam have been designed to impede this infiltration of men and materiel. An infiltration which makes the difference between a situation which is manageable and one which is not manageable internally by the government of South Vietnam. The airstrikes have been carefully limited to military targets, primarily to infiltration park. Transit points to barracks, to supply depots, to ammunition depots, the routes of communication, all feeding the infiltration lines from North Vietnam into Laos and then into South Vietnam. More recently there has been added to this target system, railroads, highways and bridges which are the foundation of the infiltration routes. The strikes have been designed to increase the dependence on an already overburdened road transport system by denying the use of the rail lines in the South. Summary our objectives have been to force them off the rails onto the highways and off the highways onto their feet. The fighting in South Vietnam continues. Although military targets in North Vietnam are heavily hit, the numbers of infiltrated North Vietnamese soldiers into the South steadily increases. The Viet Cong terrorizes the countryside continually with savage hit and run tactics. Increase of infiltration begins to create an unfavorable manpower balance. Secretary McNamara addresses the nation on this serious problem. According to the latest intelligence information available to us, the number of hard core, that is the number of full-time Viet Cong communists, regular combat and combat support forces in South Vietnam totals approximately 65,000 men. In addition to that, there are between 80 and 100,000 part-time or irregular guerrillas. The regular and irregular guerrilla forces therefore total about 165,000. The secretary goes on to announce that there is to be a build-up of American ground combat forces in South Vietnam to help overcome the unfavorable manpower balance. This increased military support by the United States starts arriving shortly and is the largest free world contribution to South Vietnam's struggle against communist aggression. In addition to these American troops, other nations, great and small, contribute financial support and manpower, including combat troops from Australia, New Zealand, and Korea, known to be Viet Cong strongholds. Once again, the helicopter becomes indispensable in the struggle against the communist terrorists who, like Quicksilver, break up and spread to inaccessible areas when they are attacked. But very little, if anything, is inaccessible to our troops in helicopters. But helicopters and modern equipment cannot be the full answer. For here in Vietnam, it is still up to the individual fighting man to go by foot to seek out, find, and destroy the enemy. Tactical airstrikes support the infantryman's efforts, helping to eliminate the hard-core Viet Cong. This is American effort. Because the people and the government of the United States have a commitment to the South Vietnamese people and to freedom. For us, a commitment is a matter of national honor we intend to keep it. Our objective in Southeast Asia is a limited one. We are not seeking to destroy the North Vietnamese people. We do not seek military bases in South Vietnam. We are seeking to help the South Vietnamese people retain their right to control their own destiny, to develop politically, economically, and socially as they choose, without interference from foreign-directed aggression. This is our commitment in South Vietnam. And every commitment must be bought and paid for. In a world of 120 nations, the defense of freedom remains this nation's duty, all day, every day of the year. As President Johnson has said, upon our strength and upon our wisdom, rest the future, not only of our American way of life, but of the great society of free men. And the President has also said, let the world know we walk the road of peace because we have the strength we need. With our strength, we seek to shelter the peace of mankind. We are armed to ensure our own security. And we're armed to encourage the settlement of international differences by peaceful processes. The United States does have and will continue to have a commanding superiority of arms. But those arms are not for conquest.