\xe2\x80\xa2\xe2\x80\x99 \no e \n\n\nCM \n\n\ncry \n\n\nCNl \n\n\n00 \n\no \n\ncry \n\n\nCM \n\n\n00 \n\nCO \n\n-CO- \n\n\n00 \n\n0 \n\n O \n\nI o \n\np \n\nCD O \nO *H \nPM 0 \nO \n\nCU C \n\n> O \n\no \n\n\no \n\np \n\n00 \n\nP3 \n\n\xe2\x80\xa2H \n\n43 \n\nCO \xe2\x80\xa2 \ncd ON \nP2 r- \n\n^ rH \nI \n\n00 \n\np \nP \ncd \nPM \n\n\nCO \n\n0) \n\n\xe2\x80\xa2H \n\nP \n\n\xe2\x80\xa2H \n\nP \n\no \n\n\xe2\x80\xa2H \n\nP \n\nPM \n\n\n0 \n\nO \n\nC \n\nO \n\nO \n\nPd \n\n\ncd \n\n\xc2\xa3 \n\nO \n\n\xe2\x80\xa2H \n\nP \n\ncd \n\n55 \n\n\nCM \n\n\ncn \n\n\n\xe2\x80\xa2 \n\nP Pd \n\n\nON \n\nCl \n\nNO \n\ncd \n\nT3 \n\nrH \n\no \n\n\nc p \n\nC \n\n\n\xe2\x80\xa2H \n\n\nP P3 \n\ncd \n\n\nP \n\n\nCU -H \n\n\nCU \n\nCM \n\n\nP o \n\np \n\nCJ \n\na \n\n\nH \xe2\x96\xban \n\ncu \n\n\xe2\x99\xa6H \n\n3 \n\n\n\n0( \n\nip \n\nco \n\n\n\n\'d \n\n \n\ncu \n\nCJ \n\n\n\nCO \n\n43 \n\nCU \n\nTJ \n\n\n0 CO \n\nH \n\ng \n\nCJ \n\n\ncd cu \n\n\n3 \n\ncd \n\n1 \n\n\xe2\x80\xa2H p \n\nr P \n\n\n3 >N \n\nrH 00 \n\nP \n\nCU \n\nrH \n\nC/3 P \n\nrH CJ \n\nCJ \n\n> \n\nrH \n\n\n*H O \n\n \n\n \n\nrH \n\n\n\nP \n\nB \n\no \n\no \n\nG \n\n\n\n\nCM \n\nCM \n\n \n\n\noo \n\nvo \n\n\no \n\n\nw \n\nH \n\nW \n\nO \n\nQ \n\nG> \n\nPQ \n\n\nPi \n\na \n\no \n\ncj \n\n\nOf \n\na \n\no \n\no \n\nG \n\n\nP \n\na \n\no \n\no \n\n\nH \n\nW \n\nO \n\n\n\nM \n\n\n\n\n\nP \n\n\xe2\x80\xa2 \n\n\n\nM \n\nCM \n\n\no \n\nPQ \n\na \n\no \n\n \n\n \n\n\n\n\n\n\n\n< \n\n\n\n\nS\'? \n\n\n\n\n\n\nM \n\nCM \n\n\n \n\n\n\n\n\n \n\n\no \n\no \n\n\nm \n\noo \n\no \n\n\nm \n\nr^. \n\no \n\n\nm \n\nco \n\n\nCM \n\nCO \n\n\n5^2 \n\nm \n\n\nON \n\n$ \n\nvO \n\n\nr\xe2\x80\x94I \n\nm \n\n\n\nP \n\n\n\nP \n\n\n\nO \n\n\n\no \n\n\nco \n\n3 \n\n\nCO \n\n3 \n\n\na) \n\n\'3 \n\n\n( 1 ) \n\nT) \n\n\nP \n\nO \n\n\np \n\nO \n\n\n3 \n\nP \n\n \n\nQ \n\no \n\nGD \n\n\n14 \n\n\nGNP and Defense Expenditures in billions of 1972 dollars and Unemployment Rates in percent \n\n\n\n\n\n\n\n\n\nUniversity of Maryland Projections of Unemployment Rates \nand GNP Under Five Alternative Defense Budgets, Fiscal Year 1972 \n\n\nACDA/E-156 \n\n\ncd \n\n\n\n\n\n\n&^S \n\n\n\xe2\x80\xa2 \n\nnO \n\n\n\n\na \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\nb \n\nr^\xc2\xbb \n\no\\ \n\nCO \n\n\no \n\nNO \n\non \n\n\no \n\nu \n\n\no \n\n\n\n\n\nrH \n\n\nH \n\n\n> \n\n\n\nW \n\n\n\n\n\nO \n\n\n\n\n\nQ \n\n\xe2\x80\xa2 \n\n\\o \n\n\nON \n\nCD \n\na \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\nPQ \n\nB \n\n\nnO \n\nCO \n\n\nQ \n\nnO \n\nON \n\n\n\no \n\n\no \n\n\n\nG \n\n\niH \n\n\n\nCD \n\n\n\n\n\nPQ \n\nH \n\nW \n\nO \n\nO \n\nG> \n\nPQ \n\n\nH \n\nW \n\nO \n\nQ \n\nto \n\nPQ \n\n\nCM \n\n6 \n\no \n\no \n\n\nON \n\n\n> \n\n\no \n\no \n\n\nCO \n\n\n\n\n\n\n\n\xc2\xab\xe2\x96\xa0) \n\n\xe2\x80\xa2 \n\nNO \n\n\n7% \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\nCD \n\n \n\n\n\nH \n\n\n\n\n\n\n\n\n\nW \n\n\n\n\n\n\n\n\n\nO \n\n\n\n\n\n\n\n\n\nQ \n\n\xe2\x80\xa2 \n\nnO \n\n\nrH \n\n\n\n\n\n\nCL \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\n\n\n\nPQ \n\ne \n\nCO \n\nNO \n\nrH \n\n\n\n\n\n\no \n\nON \n\nCM \n\n\n\n\n\n\n\nu \n\n\nrH \n\n\n\xe2\x80\xa2 \n\nCM \n\n\nr^- \n\n\nG \n\n\n\xc2\xabH \n\n\nCl \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\n\n\xe2\x80\xa2co\xc2\xac \n\n\n\n6 \n\nCM \n\nON \n\nco \n\n\n\n\n\n\no \n\n\nON \n\n\n\n\n\n\n\nu \n\n\no \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n> \n\n\n\n\n\n\n\n\n\n\n\n\nQ \n\n\n\n\n6-2 \n\n\xe2\x80\xa2 \n\nCM \n\n\n\n\n\xe2\x80\xa2 \n\nin \n\n\nr^. \n\na \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\nH \n\nCL \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\nB \n\nCM \n\nnO \n\nvO \n\nW \n\nB \n\no \n\nON \n\nco \n\no \n\n<* \n\nNO \n\n\nO \n\no \n\n\nON \n\n\no \n\n\nO \n\n\nQ \n\nCJ \n\n\no \n\n\nG \n\n\nrH \n\n\nCD \n\n\n\nrH \n\n\nCD \n\n\xe2\x80\xa2CO\xc2\xac \n\n\n\nPQ \n\n\n\xe2\x80\xa2co\xc2\xac \n\n\n\n\n\n4J \n\n\n\n\n\n\xe2\x96\xa0H \n\n\n\n\nO \n\n\n\n\n\nCJ \n\n\n\nCO \n\nG \n\n\n\n\nco \n\nG \n\n\n\n \n\n\n\nJ-t \n\no \n\n\n\n\n>-\xe2\x80\xa2 \n\no \n\n\n\nG \n\nu \n\na> \n\n\n\nG \n\nu \n\n(U \n\n\n\xe2\x96\xa0u> \n\nOh \n\n4-1 \n\n\n\n4J \n\n0-4 \n\n4-4 \n\n\n\xe2\x80\xa2H \n\n\n<9 \n\n\n\n\xe2\x80\xa2H \n\n\ncd \n\n\nXJ \n\ni\xe2\x80\x941 \n\n05 \n\n\n\nX? \n\nrH \n\n05 \n\n\nG \n\ncd \n\n\n\n\nG \n\ncd \n\n\n\n> \n\n\n\n\ncd \n\ntO \n\n\nQ) \n\n\xc2\xa35 \n\nO \n\n\n\na) \n\n\xc2\xa35 \n\no \n\n\nCO \n\n\nrH \n\n\n\nCO \n\n\ni\xe2\x80\x944 \n\n\nG \n\nCO \n\nCl \n\n\n\nG \n\nCO \n\n(X \n\n\n \n\n\nG \n\n\nP) \n\no \n\nCD \n\n\n\nQ \n\no \n\nGD \n\n\ncd \n\n\n15 \n\n\nGNP and Defense Expenditures in billions of 1972 dollars and Unemployment Rates in percent \n\n\n\n\nACDA/E-156 \n\n\nuniformly decline. This point deserves emphasis as it demonstrates \nthat there is nothing unique about the capacity of military spending to \ngenerate jobs. Tax cuts and monetary ease to encourage private spend\xc2\xac \ning or government expenditures on civilian programs are also equipped \nto do the job. \n\nBoth models show GNP in excess of $1 trillion and unemployment \nrates which, even under the most challenging assumptions (an uncompen\xc2\xac \nsated cut in military expenditures to $42.2 billion) do not rise above \n6.8 percent. This was the average national unemployment rate in 1958, \nand is close to the 1961 level of 6.7 percent. While both of these \nwere years of recession, they are not considered to have been years of \nnational crisis. These findings suggest that the U.S. economy could \nadjust to cuts in defense expenditures far greater than those expected, \neven in the absence of offsetting expenditure increases with unemploy\xc2\xac \nment rates during the transition period which could generally be \nconsidered tolerable. The likely application of monetary, fiscal and \nother compenstory policies could be expected to reduce these unemploy\xc2\xac \nment rates even further. For purposes of perspective. Table 4 presents \nmonthly unemployment rates for the period since 1948. \n\nExtended discussions of characteristics of the models and \nmethodologies used appear in the Klein and Cumberland chapters. How\xc2\xac \never, it should be noted here that the two models are independent and \ndifferent in design from one another. In addition, the Klein results \nwhich appear in Table 2 were generated in the fall of 1970 and hence \nreflect more recent developments than does the Maryland model which was \nrun in the summer of 1970, using somewhat earlier data. Therefore, the \nreader should be cautioned against the risks of a direct comparison of \nthe two sets of results. \n\nThis might also be an appropriate point to note the difference \nbetween prediction (or projection) and forecasting.20 Prediction may \nbe viewed as a "conditional statement of what will happen, assuming \nthe validity of a relevant set of scientific laws and given observa\xc2\xac \ntions which define the initial or exogeneous conditions under which \nthese laws are expected to operate in a given instance. A ceteris \n\n\nThere is a risk of semantic confusion in these terms. Some \nwould distinguish between "prediction" and "projection" and reserve \nthe latter term to indicate the conditional form. Regardless of \nterminology, the crucial difference resides in the presence or absence \nof the conditional statement. \n\n\n16 \n\n\n\n\n\n\n\n\n\n\n\nUnemployment Rate - All Civilian Workers \n(Seasonally Adjusted) \n\n\nACDA/E-156 \n\n\n0\xc2\xa3 \n\n> \n\n00 \n\n\xe2\x80\xa2 \n\nON \n\nCO \n\nCO \n\no \n\n4 \n\nCO \n\nvO \n\nM3 \n\nrH \n\nCO \n\nCO \n\nuo \n\nuo \n\nn- \n\nUN \n\n3m. \n\nCM \n\nm \n\n00 \n\n \n\nvO \n\nin \n\nuo \n\nuo \n\nm3 \n\nft \n\nCO \n\n\xe2\x80\xa2 \n\n> \n\nO \n\n00 \n\nft \n\nm3 \n\nCM \n\nm \n\n00 \n\nm \n\nCO \n\nCM \n\nCO \n\nrH \n\nCM \n\n00 \n\nCM \n\nrH \n\nn. \n\njm. \n\nCO \n\nrH \n\nvO \n\n\nCO \n\nvO \n\nm3 \n\nCO \n\nCM \n\nco \n\nU0 \n\nM3 \n\n<3 \n\nUO \n\nvO \n\nin \n\nvO \n\nvO \n\nuo \n\nuo \n\nm3 \n\nm3 \n\nCO \n\n\xe2\x80\xa2 \n\nu \n\no \n\njm. \n\n\xe2\x80\xa2 \n\nOn \n\nCM \n\nm \n\nO \n\nrH \n\nn* \n\nCO \n\nON \n\nUO \n\n3m \n\n3m \n\nrH \n\nuo \n\nm3 \n\nuo \n\nrH \n\nCO \n\n3m. \n\no \n\nCO \n\n3m \n\nm3 \n\nCO \n\nCO \n\nco \n\nm \n\n\nCO \n\nm3 \n\nvO \n\nuo \n\nvO \n\nvO \n\nUN \n\nuo \n\nUO \n\nm3 \n\nCO \n\n\xe2\x80\xa2 \n\n4J \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no. \n\na) \n\noo \n\nft \n\nvO \n\nm3 \n\nCO \n\nrH \n\nON \n\nrH \n\nrH \n\nON \n\nM3 \n\nrH \n\nin \n\nuo \n\nn- \n\nvO \n\nm \n\nrH \n\nCO \n\nn- \n\nco \n\nCO \n\nvO \n\n<3- \n\nco \n\nCO \n\nCM \n\nvO \n\n<3- \n\nCO \n\nm3 \n\n3m \n\nuo \n\nuo \n\nVO \n\nm \n\nUO \n\nU0 \n\nm3 \n\nco \n\noc \n\n3 \n\nON \n\nft \n\n00 \n\nn \n\nrH \n\n>3- \n\nim. \n\nO \n\nCM \n\nrH \n\nrH \n\nm3 \n\nCM \n\nvO \n\nvO \n\n\nm3 \n\no \n\nm3 \n\nco \n\n \n\nCO \n\nVO \n\nin \n\nCO \n\nCO \n\nCM \n\nU0 \n\n<3 \n\n<3 \n\nM3 \n\n3m \n\nuo \n\nUO \n\nvO \n\nUN \n\nuo \n\nUO \n\nm3 \n\nCO \n\nnt \n\nm \n\nrH \n\nuo \n\no \n\no \n\nuo \n\nON \n\nCO \n\nCO \n\nrH \n\nM3 \n\nrH \n\nrH \n\nrH \n\nuo \n\nON \n\nrH \n\nvO \n\nON \n\n\nCO \n\nVO \n\nm \n\nCO \n\nco \n\nCM \n\nU0 \n\n<3 \n\n<3 \n\nM3 \n\n3m \n\nuo \n\nuo \n\n\nUN \n\nUO \n\nUO \n\nM3 \n\nCO \n\n\xe2\x80\xa2 \n\non \n\nCO \n\noo \n\nrH \n\nCO \n\n3m \n\nON \n\n3m \n\nO \n\nON \n\nM3 \n\nCM \n\nCM \n\no \n\nvO \n\n3m \n\nCO \n\nCO \n\n00 \n\na \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n<5 \n\nCO \n\nm \n\nm \n\nCO \n\nCM \n\nCM \n\nuo \n\nM3 \n\n<3 \n\nCO \n\n\nuo \n\nU0 \n\n3m. \n\nUO \n\nuo \n\nUO \n\nm3 \n\nCO \n\nMar. \n\no \n\no \n\nCO \n\nM3 \n\nCO \n\nVO \n\no- \n\nvO \n\nCM \n\n3m \n\n\nvO \n\nm3 \n\nON \n\nvO \n\n\n<3 \n\n3m \n\n00 \n\nM3 \n\nuo \n\nvO \n\nCO \n\nCM \n\nCM \n\nin \n\nm3 \n\n<3 \n\nCO \n\nvO \n\nU0 \n\nUN \n\nvO \n\nuo \n\nuo \n\nuo \n\nM3 \n\nco \n\nJQ \n\n00 \n\nr-* \n\n \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n< \n\non \n\nCO \n\nCO \n\n\n\xe2\x80\xa2 \n\n\n\n\n\no \n\nr- \n\nCO \n\nm \n\n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nQ \n\nCO \n\nCO \n\nCO \n\n\n\xe2\x80\xa2 \n\n\n\n\n\n> \n\n00 \n\n\nm \n\n00 \n\nO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n2 \n\nCO \n\nCO \n\nCO \n\nm \n\n\xe2\x80\xa2 \n\n\n\n\n\nG \n\nCSJ \n\nX> \n\n00 \n\nvO \n\nO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\no \n\n\nCO \n\nCO \n\nm \n\n\nex \n\nO \n\nX> \n\n00 \n\n\xe2\x80\xa2n \n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCO \n\n \n\nI-". \n\nm \n\no \n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n*-> \n\nCO \n\nCO \n\nCO \n\nm \n\nG \n\n\n\n\n\nG \n\nON \n\n1^. \n\n<1- \n\nn* \n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nCO \n\nCO \n\nCO \n\n \n\nCO \n\nCO \n\nCO \n\nCO \n\n\n\n00 \n\nON \n\no \n\n\nvO \n\nx> \n\nX> \n\nr^. \n\n\non \n\nON \n\nON \n\nON \n\n\nrH \n\nrH \n\n*H \n\nrH \n\n\nT3 \n\nG \n\nG \n\nco \n\noq \n\n\nG \n\ng \n\nG \n\nW \n\nX) \n\nG \n\nG \n\nG \n\n\xc2\xa7 \n\n& \n\n\nCM \n\n0 \n\nW \n\n\n"G \n\nG \n\nG \n\nm \n\nm \n\n\ncu \n\n\nCJN \n\nvO \n\non \n\n\nG \nG \nG \nG \nX> \n\n\xe2\x80\xa2\xc2\xbb d) \nCO pL| \n\no ^ \n\n\nG 00 \nCO \n\n*H \xe2\x80\xa2 \nG O \nG 52 \nG \n\nCO \xe2\x80\xa2* \n\nm \n\nG pH \n\no \n\nX> \xe2\x80\xa2 \nG \nX) \n\nIG \n\no \n\nG \nG \n0) \n\nG fX \nG \n\nPQ G \nO \n\n* rQ \n\nG G \nO rH \nXI \n\nG CD \nrH X \nG \n4-( \n\nO \n\n\nO \n\n> \n\n\nG \n\no \n\nG \n\nO \n\n\nG \n\nO \n\nG \n\nG \n\nO \n\nCM \n\nG \n\n\nG \n\nG \nG \nS \n\nG \n\nG _ \n\nG PG \nCU \n\nG >, G \nG \nO \nG \n\n\ncn c \n\xe2\x80\xa2 o \n& 2 \n\n\nco \n\nG \n\nG \n\nCO \n\nCO \n\n*H \n\nG \n\nG \n\nG \n\nG \n\n\nTJ \n\n\nG \n\nCO \n\n\nW \n\nU \n\nG> \n\nO \n\nCO \n\n\n\n\n\n\n18 \n\n\n\n\n\nACDA/E-156 \n\n\nparibus Mother things being equal] clause is always an implicit part \nof the prediction. n In contrast, forecasts are essentially uncon\xc2\xac \nditional and issue at best only in part from a set of specified laws.^ 2 \nThe models which have been used by Professors Klein and Cumberland are \ncarefully based upon certain assumed interrelationships among many \neconomic variables. They should be interpreted as \xe2\x80\x99\xe2\x80\x99logically possible \npathways to hypothetical futures.\xe2\x80\x9d 23 \n\nIn any event, it would be a gross distortion to view the con\xc2\xac \nditional predictions contained in the Klein and Cumberland chapters as \nattempts at pinpoint accuracy in predicting, say, a particular unem\xc2\xac \nployment rate at a particular point in time. Rather they are attenpts \nto determine the nature and o;:der of magnitude of the adjustment \nproblems which the nation and various of its regions are likely to \nencounter under certain assumed military budgets of varying size and \ncomposition. \n\n\n1.3.2 Impact on the Balance of Payments \n\nProfessor Benoit concludes that the consequences of peace in \nVietnam for the Balance of Payments will be more important than those \nlikely to follow some form of strategic arms limitation. His estimate \nof the peak Vietnam impact on the U.S. Balance of Payments is approxi\xc2\xac \nmately $5.3 billion. He cautions however that the internal linking of \npayment flows in the Balance of Payments makes it unlikely that other \nmajor flows would in fact have remained unaffected if one main flow \nhad been different from what it actually was. However, $5.3 billion is \nlikely to be a maximum impact. The Balance of Payments implications \nof a Vietnam withdrawal are unlikely to be symmetrical with those of \nthe buildup phase. The reason is that deterioration of the Balance \nof Payments which has been attributed to the war is not necessarily \neliminable by ending the war. This is because defense prices move up \nwith a ratchet-like character, going up far more readily than down; \nand even if U.S. forces are completely withdrawn from Indochina, other \nAmerican commitments in the Pacific area will remain. Also U.S. \nforces are likely to stay in Europe for some time. \n\n\n21 0tis Dudley Duncan, \xe2\x80\x99\xe2\x80\x99Social Forecasting: The State of the \nArt.\xe2\x80\x9d The Public Interest , No. 17 (Fall, 1969), pp. 88-118, especially \npp. 107-108. \n\n22 Ibid. , p. 108. \n\n23 Ibid., p. 115. \n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nThe timing of such defense cutbacks as occur in Asia will be as \nimportant as their magnitude for Balance of Payments impact. If the \nprocess is sufficiently slow it could be more than offset by some of \nthe rising trends in price levels. Another consideration is the pos\xc2\xac \nsibility that Vietnam cutbacks may be partly offset by rising foreign \naid requirements. Of course, the harmful effects of such a program on \nthe Balance of Payments could be somewhat mitigated by tying the aid to \npurchases in the United States. Finally, of critical importance in \nevaluating the impact of new defense programs on the Balance of Pay\xc2\xac \nments will be the nature of these new programs and how closely they \nresemble those that were experienced during the Vietnam conflict. For \nexample, while domestic defense procurement cuts into our export \npotential to some extent, it is cheaper in terms of the Balance of \nPayments than maintaining U.S. troops abroad. Even if large military \nexpenditures occur primarily at home but contribute to continued \ninflationary pressures, this will worsen our export balance. \n\nThe single most important conclusion is that Balance of Payments \nconstraints on domestic adjustment policy will be greatly weakened by \nthe end of the war. \n\n\n1.3.3 Impact on Regions, States, and Metropolitan Areas \n\n\nThe regional disaggregation follows the procedures of Professor \nCurtis C. Harris, Jr. of the University of Maryland. The details of \nthe methodology appear in Professor Cumberland\'s paper. \n\nFor reasons of both budget constraints and display space limita\xc2\xac \ntions, only three of the five Kaufmann alternative defense budget \nassumptions for 1972 were applied to the regions. The Budget A ($42.2 \nbillion) and Budget D ($70.5 billion) assumptions were dropped for \npurposes of regional analysis. However, the uncompensated and compen\xc2\xac \nsated versions of each of the three remaining budget assumptions were \nincluded in both state and SMSA tables. \n\n\nStates experiencing a seven percent unemployment rate or more \nunder the uncompensated versions of the defense budget numbered three \nin the Budget B ($59.4 billion) assumption, three in the Budget C \n($67.6 billion) assumption and two in Budget E ($93.6 billion). If \nthe cutoff is dropped from seven to five percent unemployment, the \nnumber of states grows to 18, 13 and three respectively. When compen \nsatory programs are added to the model, the numbers with 5% or more \ndecline to 11 for Budget B and 10 for Budget C. The Budget E is so \n\n\n20 \n\n\n\n\nACDA/E-156 \n\n\nlarge that compensations really mean anti-inflationary policy, hence \nthe number of states expected to show unemployment in excess of five \npercent rises from three to thirteen when compensation is included. \n\nIn all cases, however, the states which appear most often with rela\xc2\xac \ntively high unemployment rates are Alaska, New Mexico, Nevada, Wyoming \nand Hawaii. \n\nAccording to the projections of the Harris model, only seven of \nthe 219 SMSA\xe2\x80\x99s show levels of unemployment in excess of 10 percent of \nthe labor force. The top five with unemployment usually are Lawton, \nOklahoma; Fayetteville, North Carolina; Salinas-Monterey, California; \nDuluth-Superior, Minnesota-Wisconsin; and San Diego, California. In \nthe absence of compensations under the lowest defense budget, Budget \nB ($59.4 billion), Brockton, Massachusetts and Johnstown, Pennsylvania \nalso register over 10 percent unemployment. By way of balance, however, \nit should be pointed out that there are a number of SMSA\xe2\x80\x99s that will \nquite likely experience labor shortages, even in the presence of re\xc2\xac \nduced military budgets. Among these are Flint, Ann Arbor, Saginaw, and \nLansing, Michigan; Jersey City, New Jersey; Erie, Pennsylvania; and \nNew Haven-Waterbury-Meriden, Connecticut. These estimates suggest \nthat the severity of the impact of defense cutbacks will probably vary \nwidely between the various metropolitan areas of the nation depending \non their industrial mix and other factors. Even within individual \nstates the unemployment rates vary widely between metropolitan areas. \nWhile special assistance may be needed for some areas with especially \nserious unemployment problems, it is likely that most of the nation\xe2\x80\x99s \nSMSA\xe2\x80\x99s could adapt to lower levels of defense expenditures with \nrelative ec.se and that many of them would actually experience labor \nshortages. > \n\nProfessor Cumberland\xe2\x80\x99s paper also includes estimates of employ\xc2\xac \nment in twenty major industry groups for each state under each of the \nthree defense budget assumptions. \n\nThe foregoing analysis of regional impact was based upon the \ninterindustry models of Professors Almon and Harris of the University \nof Maryland. - In recent years some work has been done on applying \neconometric models similar to the Wharton model of Professor Klein to \nsubnational regions. Dr. Robert Crow of Mathematics, Inc. has experi\xc2\xac \nmented with this type of analysis in the Northeastern Corridor region \nof the United States and his findings appear as a portion of this \nreport. Dr. Crow\xe2\x80\x99s work was done some time before the completion of \nthe total report and as a consequence, includes assumptions about the \ntiming of the cessation of hostilities in Vietnam and of the expira\xc2\xac \ntion of the surtax which have proven to be incorrect. Resource and \n\n\n21 \n\n\nACDA/E-156 \n\n\ntime limitations prevented him from updating his study but in view of \nthe uniqueness of his approach and its usefulness as an example of a \nstate-of-the-art application, it has been included in this report. \n\n1.3.4 Military Base Closings \n\nOne particular aspect of regional impact which has been a common \nsubject of concern during the last decade is that dealing with military \nbase closings. Professor Daicoff has participated in several ACDA- \nsponsored studies of this topic and prepared a general synthesis for \nthis project. When a defense facility represents a large part of an \narea\xe2\x80\x99s economy, its reduction or closure may cause an appreciable \nimpact. In the great majority of cases, however, the transition is \nsmoother than anticipated and communities often find themselves better \noff with a more diversified and civilian-oriented set of replacement \nemployers. Some communities have benefited from inheriting useful \npieces of social overhead capital such as airfields. \n\nOf particular importance in explaining these findings of limited \nimpact are the consumption spending habits of servicemen as between \npost exchange or base commissary and community. The extent of on-base \nhousing is also a factor. Finally, the fact that the jobs that disap\xc2\xac \npear often had been filled with dependents of servicemen means that \nthe labor force often shrinks with the job openings leaving fewer \npersons unemployed than might otherwise be the case. The DOD Office \nof Economic Adjustment has developed an expertise which is available \nto communities facing the base closing experience. In addition, the \nHomeowners Assistance Program is designed to provide aid in one of \nthe more troublesome aspects of the process\xe2\x80\x94protection of the home- \nowner\xe2\x80\x99s equity in the case of transfer. \n\n1.3.3 Impact on Individuals \n\nProfessors Eaton and Daicoff have examined the transition pro\xc2\xac \nblems of those individuals directly employed by primary defense \nproducers and by the military. \n\nProfessor Eaton analyzed studies of six major contract termina\xc2\xac \ntions or cancellations. These involved the cancellation of the Dyna- \nSoar project with Boeing in December, 1963 at the Seattle facility; \nthe completion of work on the Titan Missile by the Martin Company in \nDenver in 1964; the cessation of F-105 aircraft production at Repub\xc2\xac \nlic\xe2\x80\x99s Long Island plant in 1964-1964; the Falcon missile termination \nat Hughes Aircraft in Tucson in 1963-1964; and in the San Francisco \nBay area in March of 1965. \n\n\n22 \n\n\n\n\n\n\n\nACDA/E-156 \n\n\nOne of the important conclusions is that while such layoffs can \nappear as only small ripples in a large community, they can cause \nsevere personal hardship for the individuals concerned. Wh^le most of \nthe studies agreed that such personal and job-related characteristics \nas age, sex, education and sk:.ll level were important in the reemploy\xc2\xac \nment experience, statistically they were able to explain only a small \npart of the variation between individuals in the reemployment experi\xc2\xac \nence. The findings indicate that a synthesis of personal characteris\xc2\xac \ntics and labor market variables such as size, structure and tightness \npredicts the reemployment experience more successfully. \n\nEngineers had a less severe reemployment experience than did \nsocial science and business degree holders. A larger proportion of \nnon-engineers than engineers made a shift to non-defense work. \n\nEngineers who did transfer to non-defense work had no more severe a \nreemployment experience than did non-engineers in similar transfers. \n\nWhile the majority of defense occupations surveyed had counterparts \nfor which the employment outlook was good, geographic or industrial \nchange was often required. When once again employed, most of the \ndisplaced workers experienced a decline in salary. \n\nDrawing upon cases observed during the last decade Professor Daicoff \nhas reviewed the adjustment process of DOD civilian and military person\xc2\xac \nnel to reductions in military spending. He notes the general need for \nincreased geographic mobility and an expansion in vocational training to \nease transfers. Daicoff estimates that perhaps 150,000 additional \ncivilian employees were added to the payroll of the Defense Department \nduring the Vietnam buildup and anticipates that this number will serve \na 5 a minimum for personnel reductions resulting directly from the end of \nthe war. During the past decade various DOD manpower and assistance \nprograms helped to ease the adjustment process. The assistance programs \nincluded the following elements: \n\n1. The establishment of the Automated Priority Placement System; \n\n2. The payment of moving or relocation costs associated with the \nacceptance of a new DOD position; \n\n3. An income protection guarantee which assured employees that their \nexisting rate of pay would be maintained for a two-year period if \nthey remained DOD employees; \n\n4. The provision of retraining service in cases where warranted; and \n\n5. The provision of severance pay for those workers who resigned \nfrom their Federal jobs. The DOD also provided each affected employee \nfactual information permitting him to match his geographical and \noccupational preferences against employment opportunities within the \nDefense Department. \n\n\n23 \n\n\nACDA/E-156 \n\n\nBetween November, 1964, and July, 1967, 48,484 DOD civilian per\xc2\xac \nsonnel were affected by the closure of DOD installations. Of this \nnumber, 32,418 were placed in other federal government jobs and 16,066 \nwere released from Federal employment. Thus, approximately one-third \nof the employees chose to accept private employment rather than to \ncontinue their Federal careers. This relatively high rate of separation \noccurred despite considerable efforts expended in offering alternative \nFederal opportunities. Some of the factors contributing to this high \nseparation rate were the following: \n\n1. The expanding economy provided many job opportunities in the \nlocal communities thus eliminating the need to move from the area; \n\n2. Certain classes of workers such as women, who may be secondary \nwage earners, older people near retirement, and younger workers \nless committed to career channels, are less likely to make a physi\xc2\xac \ncal move in order to find new employment within the government ser\xc2\xac \nvice. On the other hand, more skilled primary wage earners seem \nmore willing to move appreciable distances in order to maintain \ntheir career status. \n\nGeneralizations from this experience should be made with care. For \none thing, during the 1964-1967 period DOD was increasing its total em\xc2\xac \nployment due to the expansion of activities associated with Vietnam. Thus, \nFederal jobs offered to the affected DOD civilian employees came from: \n\n1. Expanded DOD employment due to the Vietnam war and \n\n2. Normal replacement of approximately 5 percent of Federal \ncivilian employees each year. \n\nThe end of the Vietnam hostilities or an arms limitation agreement \nwill probably have varying results. It is likely that DOD \ntotal employment will be falling at such a time and while Federal \noffset programs may require additional personnel, such increases will \nnot necessarily match the reduction in DOD employment either in \nnumbers or skills. Second, there is a possibility that the reduction \nr3ce c ^ DOD personnel after the Vietnam hostilities are over would be \nmore rapid than the very slow rates which characterized closures of \nmajor installations in the mid 1960\'s. Under these circumstances the \n\nneed to maintain a high level of employment nationally becomes very \ngreat. \n\nV.i.en one turns to the analysis of military personnel and their \nadjustment after the end of the Vietnam war or an arms limitation agree\xc2\xac \nment, the situation becomes considerably more complex than that of DOD \ncivilian personnel. The Vietnam buildup increased the armed services \nfrom 2.7 million in 1965 to 3.5 million in 1968. The end of Vietnam \nfighting may possibly reduce the size of the armed forces by perhaps \n\n24 \n\n\n\n\n! \n\n\nACDA/E-156 \n\n\n800,000 men. Coupled with the normal retirement rate of approximately \n60,000 to 65,000 a year, this will add to the pressures upon the \nabsorptive capacity of the civilian labor market. The timing of the \ndemobilization and the pattern of entry into the labor market by ex- \nservicemen will be very important here. While perhaps 800,000 men \nmay ultimately be entering the civilian labor market, from one-fourth \nto one third of them may be expected to seek further education or \ntraining. If the remaining approximate 600,000 who are discharged \nleave the service over an 18-24 month period, the phase-out will be \ngradua^. enough to permit a smooth transition. Even so, there may still \nbe serious structural difficulties. Important here is the question of \nthe adequacy of training which the military dischargee and retiree \nhas received prior to his moving into the civilian economy. Aside from \nthe question of skill transferability as such, there is the further one \nof where the veterans decide to locate and how their preferences com\xc2\xac \npare to the availability of job openings. \n\nMilitary retirees also constitute a class that needs attention. \n\nThe typical military retiree leaves the service with approximately \none-half of his productive life ahead of him. Thus, the possibility of \na second career is high. Present patterns indicate a tendency for \nmilitary retirees to be rather immobile and geographically concentra\xc2\xac \nted. ^ Unlike the enlisted separatee, the retiree appears to be \nhighly self-reliant in job seeking and is not likely to experience \nserious adjustment difficulties. For the average separatee vocational \nand educational training seem to be the major determinants of the ease of \ntransition to the civilian economy. Experience under the GI Bills \nof World War II and Korea should provide useful experience in designing \nan effective training system. Professor Daicoff discusses some of the \nelements involved in training and the transferability of skills. It \nhas been estimated that 80 percent of military jobs held by enlisted \nmen correspond to only about 10 percent of those held by male civilian \nworkers/^ Under these circumstances pre-separation training of en\xc2\xac \nlisted men could play a major role in easing the transition. Presum\xc2\xac \nably, Project Transition, which began in late 1967, was designed to \naccomplish this purpose. Professor Daicoff ends his paper with an \nextended discussion of experience thus far with Project Transition. \n\nThis program is also examined by Professors Allison and Etzioni. \n\n\n^Albert D. Biderman, \xe2\x80\x99\xe2\x80\x99Sequels to a Military Career: The Retired \nMilitary Professional,\xe2\x80\x9d in Morris Janowitz (ed.) The New Military : \nChanging Patterns of Organization (New York: Russell Sage Foundation, \n1964), pp. 287-336; especially pp. 299-301. \n\n2 \'Harold Wool, The Military Specialist: Skilled Manpower for the \nArmed Forces (Baltimore: The John Hopkins Press, 1968), p. 55. \n\n\n25 \n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n1.3.6 Industrial Diversification Efforts \n\nProfessor Weidenbaum writing before becoming Assistant Secretary \nof the Treasury for Economic Policy, reviewed the post World War II \nand post Korea experiences of firms attempting to diversify into non\xc2\xac \nmilitary areas. Perhaps one of the most difficult problems is the \nfact that many top management officials do not take seriously the \neventuality of disarmament or even major cuts in the military budget. \n\nAt the end of World War II, the older and more established firms \nreconverted to civilian markets with little difficulty. The more \nspecialized defense contractors, particularly those in the aircraft \nindustry which had grown from job-shop operations in the pre-war period \nto gianthood during the war, faced a real loss of markets. There were \nmany attempts at conversion but most of them failed. In the 1946-1948 \nperiod the major aircraft firms, for example, had sales of only one- \ntenth their former levels and in many cases experienced large losses. \n\nMost of these diversification efforts were abandoned and Korea brought \nthe focus back to military production. After the end of the war in \nKorea, major diversification efforts were directed at close adaptations \nof military work. For example, there was the shift of aircraft firms \ninto civilian aircraft markets. There was also some effort to diversify \ninto industrial markets that were closely related to defense such as \nproduction of nuclear reactors, industrial electronics, etc. Never\xc2\xac \ntheless, most of the non-governmental sales of the major aircraft com\xc2\xac \npanies in the mid-fifties consisted of aircraft to the civilian airlines. \n\nIn the late fifties and early sixties attention focused on expanding \nmilitary sales and sales to the space program. The 1963-1964 \ncutbacks in military procurement (especially missiles) produced a new \nneed to consider diversification toward the non-military markets. The \ndirection chosen however was largely toward the civilian public sector. \nExperience with NASA had indicated that the firms * major skill was not \nso much in fabricating light metal (which had dominated thinking after \nWorld War II) but rather a capability in systems management. The effort \ntherefore was to convince non-military government units that they should \nexplore the systems approach to civilian-oriented problems. \n\nOf late, alternative methods of diversification have followed the \nfollowing lines: 1) mergers with other companies in defense and high \ntechnology industrial markets, 2) licensing by-products of military \nproduct lines to established commercial firms, 3) joint ventures with \nforeign firms usually in technical areas, 4) creation of by-product \nexploration groups based on internal inventions, and 5) permitting \nmilitary divisions to develop non-military products during slack times. \nThe particular route chosen often varies with the size of the firm \ninvolved. \n\n\n26 \n\n\n\n\n\nACDA/E-156 \n\n\nIn evaluating obstacles to diversification it should be noted first \nthat within the military and high technology government markets, diversi\xc2\xac \nfication has been markedly successful. One need only think r* the \ntransition from aircraft to missiles to space systems. Nevertheless, \ncommercial experience has been rather unsuccessful. Two major problems \nappear to be a lack of management motivation resulting from a prefer\xc2\xac \nence for the lower risks of military production coupled with a \nskepticism that the military market will shrink seriously, and the lack \nof required capability. The major defense firms often have low \ncapitalization, little commercial marketing capacity, and limited \nexperience in producing high volume output at low unit cost. Also the \nadministrative structures of these firms are frequently geared to the \nunique reporting and control requirements of government purchasing \nwith emphasis upon very high quality standards and a relatively small \nnumber of units of output. Professor Weidenbaum feels that firms with \nthis background in the weapons systems environment lack a cost conscious \norientation. Apparently firms operating in both military and civilian \nmarkets have engaged in very little transfer of personnel between \nproduct lines or product ideas from government to commercial work \nwithin the firm. \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nBy way of contrast, the lack of a vast distribution network or mass \nproduction experience is hardly a drawback for government orders. The \nspecialized defense contractors have strong engineering design and \ndevelopment capability and large aggregations of scientists, engineers, \nand supporting technicians. They can work with exotic materials at \nclose tolerances. These components have been successfully welded \ntogether by executives skilled in systems management. For such firms \nthinking about diversification efforts has tended to be limited to a \nsearch for new high technology markets within the public sector. \n\nParticularly within the aerospace complex what is revealed is devel\xc2\xac \nopment of a highly unique capability to manage the enormous problems \nof military and space systems work. The point which is still moot is \nwhether this particular organizational structure will be equally effi\xc2\xac \ncient in dealing with civilian problems. It may be that some new kind \nof organization, perhaps of mixed public-private form like Comsat will \nhave to be developed to meet these new needs. \n\n1.3.7 Impact on Governments \n\nProfessor Allison, drawing upon the literature of organizational \ntheory and behavior, attempts to develop a framework for understanding \nthe organizational process, particularly the gap between analytic \nalternatives and actual outcomes. \n\n\n27 \n\n\n\n\n1 \n\n\nACDA/E-156 \n\n\nAfter datailing the principles underlying the behavior of organiza\xc2\xac \ntions, Professor Allison presents an analysis of how organizational \nchange can be effected. Most of his examples are drawn from recent real \nworld experiences. \n\nAfter establishing the framework for his analysis, Professor Allison \nconsiders various potential non-military uses of existing military \nfacilities. In particular, he concentrates upon the manpower area in\xc2\xac \nvestigating Projects 100,000 and Transition and provides suggestions for \ntheir improvement. \n\nIn the final section of his paper he considers various strategies \nwhich might be used to minimize organizational impediments in attaining \ndesired objectives and draws upon the particular experience of the \nIsraeli Defense Forces. \n\nProfessor Allison is somewhat more optimistic than Professor \nEtzioni concerning the capability of the military establishment to help \nsolve certain problems in the civilian sector. \n\nProfessor Etzioni views the problems that society may encounter \nas it attempts to effect a significant shift of resources from military \nuses to civilian end purposes. He notes that serious shifts in resource \nallocation require determined leadership and a strong consensus on the \npart of the population. His paper is devoted to an exploration of the \nforces and factors which will enhance or detract from the smoothness of \nthe shift to domestic missions after the war is over. \n\nHe begins by indicating that on occasion the values and indeed the \nmemories held by particular elites and interest groups in society must \nbe changed. While concluding that the U.S. is not run by one elite or \nclass but rather a plurality of interest groups, Professor Etzioni notes \nthe need to gain consensus among these groups in order to successfully \nlaunch and conduct new programs. Such an effort of course must overcome \nthe fact that the interest groups themselves contest for power while some \nsegments of society play only a minor role in the legal process (the poor, \nethnic minorities, farmworkers, etc.). While most interest groups would \nagree on the desirability of an early end to the war there is no similar \nunanimity of feeling on the alternative uses of such peace dividend as \nmay be forthcoming. \n\nProfessor Etzioni concentrates on some of the problems likely to be \nencountered in shifting functions which are now conducted within the \nmilitary establishment. In considering the re-definition of missions, he \nargues against the assignment of military units to civilian domestic \nfunctions. While conceding that they may be useful in the areas where the \n\n\n28 \n\n\n\nACDA/E-156 \n\n\nspecific activity is similar (such as the use of the military air trans\xc2\xac \nport service for domestic emergencies) he feels that the risk of their \ndoing things in an arbitrary and \'\xe2\x80\x99military\'\xe2\x80\x99 way overcomes this advantage. \n\nHe attributes the apparent capability of the military to successfully \ncut red tape in particular areas where civilian efforts have been frus\xc2\xac \ntrated (experiments with new forms of housing construction, hospital de\xc2\xac \nsign, etc.) to the relatively low level of such efforts and points out \nthat if the military tried to widely undertake civilian operations in a \nmanner violative of such civilian norms as building codes, etc., civilian \ninterest groups involved would seriously oppose the program. Generally, \nhe advocates turning resources over to civilian agencies to undertake \ndomestic missions rather than using military units for these missions. \n\nEtzioni views executives as compliance specialists. He feels that \nthe scope of their transferability hinges on the similarity of compliance \nstructures. Executives can cross many administrative barriers while hold\xc2\xac \ning to the same type of compliance structure. He then applies this \nanalytic framework to a comparison of the relative transferability to \ncivilian functions of both combat and noncombat officers. \n\nPeacetime conversion may require that large-scale units be broken \nup. Etzioni feels that this is more likely to be successful than the \noverall shift of units intact. There are several reasons for this. They \ngrow out of the several levels of difference between military and civil\xc2\xac \nian operations. Military operations tend to have a high ideological \ncontent. In addition, orientation to the nature of the needs of the client \nvary between military and civilian areas because the military clients \ntend to be few, large and to have rather clearly identifiable needs and \npreferences while civilian clients tend to be numerous, relatively small \nand with needs and preferences more difficult to forecast. Also, the \nmilitary generally deals with a hostile environment. One exception \nhere used to be the key congressional committees which tended to be quite \nfavorably disposed to military budget requests. \n\nProfessor Etzioni concludes by considering in some detail the possi\xc2\xac \nbility of shifting the systems analysis approach from the military to \ncivilian agencies of government. In terms of the characteristics which \nhe sees as important in the application of systems analysis, Etzioni \nfeels that it is more successfully accomplished where mass aggregate \ntechnological systems with many units are involved as well as non-human \nelements. He feels that these conditions are more frequently encountered \nin military than in civilian environments. Nevertheless, even in domestic \ncircumstances, systems analysis may offer a powerful heuristic device \nsince it develops a sense of the factors involved and their possible \ninterrelationships. It also enables one to call attention to alternative \npossibilities and to focus clearly upon all assumptions. On the other \n\n\n29 \n\n\nACDA/E-156 \n\n\n* \n\n\nhand, it is dangerous in rigid application and Etzioni feels that in \nterms of the quality of the data and theory presently available, civilian \nagencies will find it more difficult to apply than the military. \n\nThe President has requested that Congress consider some new form \nof inter-governmental revenue transfers and Professor Diacoff has analyzed \n\n% ( ~ m \n\nsome of the issues involved in this area. If some form of revenue \nsharing does in fact develop, it will clearly have an impact on govern\xc2\xac \nments and Daicoff feels that this is more likely to occur as a result \nof broad shifts in defense spending rather than as a short term conse\xc2\xac \nquence of peace in Vietnam. The arguments in favor of revenue sharing \ninclude the following: \n\n1. Potential growth in revenues at full employment will present \nus with a choice between increased government expenditures and/or tax \nreductions. Growing tax receipts at the federal level will provide re\xc2\xac \nsources for transfer to lower levels of government; \n\n2. General dissatisfaction exists with the present state of local \ntax sources in terms of the well-known deficiencies of property, sales, \nand excise taxes; \n\n3. Distortions inherent in the present system lead to geographic \nraisallocation of resources; \n\n4. The low income elasticity of local tax revenues inhibits these \ntaxes from growing as rapidly as income grows; \n\n5. Projected continuing deficits in state and local budgets; \n\n6 . The growing reluctance of the citizenry to approve tax increases \nor bond issues to finance local civil government needs; and \n\n7. As a consequence of the other points, the increasing rate of de\xc2\xac \nparture from office of effective mayors and governors. \n\nThere are a number of alternative approaches which may be taken to \nimprove the fiscal position of state and local governments. These in\xc2\xac \nvolve changes in: \n\n1. Debt policy which might facilitate state and local borrowing; \n\n2. Expenditure policy wherein the federal government would itself \nundertake to fund more of the activities of state and local govern\xc2\xac \nmental units; and \n\n3. Revenue policy, which would either permit state and local taxes \nto increase in like amount as federal taxes are reduced or provide \nfederal tax credits for state and local government income taxes. \n\nProfessor Daicoff discusses some of the difficulties which may be \nencountered in fiscal policy due to lags between the adoption of pro\xc2\xac \ngrams and their impact on the economy and how revenue sharing would bear \nupon fiscal policy lags. He concludes that the transfer of resources \nfrom Federal to state and local governmental units is a desirable policy. \n\n\n30 \n\n\nACDA/E-156 \n\n\n1.3.8 Long Run Impact on National Income Shares \n\nProfessor Boulding has examined the behavior of the national income \naccounts between 1929 and 1969. The concept of gross capacity product \nwas utilized as a base rather than gross national product. Gross \ncapacity product may be defined as what the gross national product would \nhave been if all resources had been fully utilized. \n\nPerhaps the single most important and in a sense surprising find\xc2\xac \ning is the sharp decline in the role of personal consumption expendi\xc2\xac \ntures. They dropped from 72.6 percent of gross capacity product in \n1929 to 59.8 percent in 1969. During the same period while defense \nexpenditures increased from 0.6 percent to 8.2 percent of capacity \nproduct, Federal, state and local civilian government expenditures grew \nfrom 7.4 to 13.0 percent. Between the same two years, gross private \ndomestic investment dropped 0.7 percent and net exports by 0.8 percent. \nThus it is basically the American consumer who has paid for the in\xc2\xac \ncreasing share of governmental activities, both military and civilian, \nduring this forty-year period. \n\n\nOver the same interval, Federal civilian government purchases in\xc2\xac \ncreased from 0.6 percent to 2.4 percent of capacity product while state \nand local government units increased their share from 6.8 to 10.6 percent. \n\nWithin the household sector consumption expenditures also have \nfollowed interesting patterns. The share of durable goods has increased \nfrom 8.7 to 9.3 percent of capacity product. This basically reflects \nan increase in the automobile component of durable goods consumption. \nNon-durable goods during the same period declined from 35.4 to 25.3 \npercent and services from 28.5 to 25.2 percent. Within the non-durable \ncategory, food and clothing expenditures, excluding alcoholic beverages, \ndropped sharply from 27.1 to 17.7 percent of capacity product. Gasoline \nand oil on the other hand have increased very slightly from 1.7 to 2.2 \npercent of capacity product, notwithstanding the enormous increase in the \nrole of the automobile in this period. Major components of services, \nhousing, housing operations, transportation, and other services are all \ndown, with housing leading the decline from 10.8 to 8.7 percent of \ncapacity product. \n\nWhen the analysis is shifted to the various sources of personal in\xc2\xac \ncome the growing corporatization of the American economy is obvious with \nan increase in the compensation of employees from 48.1 to 58.6 percent \nof capacity product, while supplements to wages and salaries grew from \n\n\n31 \n\n\n\nACDA/E-156 \n\n\n\n\n\n\njust under one percent to 5.5 percent. The shares of business and pro\xc2\xac \nfessional income plus the income of farm proprietors which together \nconstitute the unincorporated sector of the economy declined from 14.3 \nperceint to 6.9 percent. Rental income of persons, net interest, and \ndividends also declined appreciably in the interval. Payment to old \nage and survivors disability insurance funds grew from zero to 3.4 \npercent. Despite the large numbers of citizens serving in the armed \nforces during this period, veterans benefits did not change much, going \nfrom 0.6 percent in 1929 to 0.9 in 1969. Corporate profits were down \nfrom 9.9 to 9.2 percent and personal savings up from 4 percent to 4.9 \npercent. Once again the consumer ! s heavy burden is indicated by the \ngrowth of personal tax and nontax payments from 2.4 to 12.2 percent. \n\n\n\n\n\nWhen shorter term periods are examined, certain changes appear. \n\nFor example, during the Second World War the expansion in the national \ndefense area came largely at the expense of gross private domestic in\xc2\xac \nvestment and the expenditures of civil government. Also, the decline \nin the relative importance of defense expenditures between 1955 and \n1965 was largely compensated by an increase in civil government functions. \n\n\nIn earlier periods when the erroneous belief was fairly widespread \nthat the American economy required military expenditures to remain \nprosperous, there was a belief that such military expenditures were \nlargely costless since the resources going into them would otherwise, \nit was believed, have been unemployed. Interestingly, now with people \nsomewhat better informed about the ability of the American economy to \nprosper without military spending the real costs of such expenditures \nare becoming much more obvious, forcing a concern with questions of \nchoice and priorities. The period during which a variety of needs could \nbe met by resources being freed from the agricultural sector is over and \nthe largest remaining eligible area to be tapped would appear to be \nnational defense spending. \n\n\n32 \n\n\n\nACDA/E-156 \n\n\n1.4 POLICY ALTERNATIVES AND THEIR IMPLICATIONS \n\nIn his January 1967 Economic Report , President Johnson instructed \nthe various Federal Agencies to step up and integrate their \xe2\x80\x99\xe2\x80\x99planning \nfor peace." At the same time he listed six possible courses of action \nfor study requesting the relevant agency heads: \n\n\xe2\x80\x9d\xe2\x80\x94to consider possibilities and priorities for tax reduction; \n\nM \xe2\x80\x94to prepare, with the Federal Reserve Board, plans for quick \nadjustments of monetary and financial policies; \n\n"\xe2\x80\x94to determine which high priority programs can be quickly \nexpanded; \n\n"\xe2\x80\x94to determine priorities for the longer range expansion of pro\xc2\xac \ngrams to meet the needs of the American people, both through new and \nexisting programs; \n\n"\xe2\x80\x94to study and evaluate the future direction of Federal financial \nsupport to our states and local governments; \n\n\xe2\x80\x9d\xe2\x80\x94to examine ways in which the transition to peace can be smoothed \nfor the workers, companies, and communities now engaged in supplying our \ndefense needs, and the men released from our armed forces. \n\nThis list highlights the interrelations between short-run questions \nof stability during the transition from war to peace and more fundamental \nunderlying issues of social and economic policy. Ultimately, resources \nfreed from defense uses will be distributed between public and private \nuses in accordance with the desires of the voting public. This formu\xc2\xac \nlation of the problem is too simple, however, since there are not simply \nhomogeneous choices available labeled public and private. Within each \nbroad class, there exist many additional competing programs and uses for \nsuch resources as may be made availabe by reduced military spending. The \nspecific form taken by tax reduction measures, for example, will depend \nupon the sector to be stimulated, business investment or household con\xc2\xac \nsumption. Competing theories of economic growth as well as of practical \npolitics underlie such a choice. Within the public sector, agreement is \nfar from unanimous on the priorities to be assigned to health, education, \nhousing, transportation, etc. Here also, broad category designations \nveil the differences. Is a massive upgrading in elementary school \neducation at the lower grade levels more important than bringing under\xc2\xac \nprivileged youth into the colleges and universities? What of vocational \neducation and junior colleges? \n\nThese are, of course, not new problems that arise directly out of \ndemobilization. However, the belief that appreciable quantities of funds \n\n-oZ \n\nEconomic Report of the President Transmitted to the Congress \nJanuary, 1967 (Washington: Government Printing Office, 1967), p. 24. \n\n\n33 \n\n\n\n\n\n\n\nACDA/E-156 \n\n\nwill soon be available resulting from disengagement in Vietnam and some \nstrategic arms limitation agreement understandably stimulates the com\xc2\xac \npetition for such funds among new claimant candidates. The situation is \nreminiscent of the famous statement attributed to Willie Sutton. In \nreponse to the query why a man of his talents robbed banks he responded \nn ...because that f s where the money is." The same point is stressed by \nKenneth Boulding in his paper where he notes the close of the era when \nnew programs could be funded by resources made available by the high and \ncontinuous productivity gains in agriculture. \n\nIn deciding matters of social choice the skills of the economist \nprovide only limited assistance. They can prove useful, however, in \nproviding knowledge about the consequences of alternative choices\xe2\x80\x94their \nlikely costs, benefits and related effects\xe2\x80\x94so that the process of choice \nmay be better informed. Weidenbaum has arrayed a range of options in \nmatrix form which conveniently portrays the more important alternatives \nopen in each of President Johnson\xe2\x80\x99s categories of action and the policy \nissues which they pose. His matrix is reproduced as Table 5. \n\nIf the decision process is to be responsive to the impact of \nchanges in defense spending critical problems of timing and information \nwill have to be dealt with. Policy must be established within the con\xc2\xac \ntext of the existing state of affairs in the economy at large. It is \nnow painfully clear that the likely reaction to a given reduction in \nmilitary spending will vary with the rate of change in other kinds of \nspending then under way. A cut in defense spending would be a welcome \nrelief from an over-employed inflation-ridden economy or an added \nproblem to an economy already moving into recession. At the time of \nthis writing the West Coast centers of the aerospace industry have been \nexperiencing widely publicized distress under the combined burdens of \nreduced military and space orders and an appreciable decline in civilian \naircraft production resulting from a failure of civilian airline traffic \nto reach expected levels .^ In the state of Washington the important \n\n\n27 \n\nA close examination of the composition of employment and recent \nunemployment in the West Coast aerospace industry suggests that the \nproblem is not long term and structural in nature. The Federal Reserve \nBank of San Francisco reports that most of the industry\xe2\x80\x99s recent layoffs \n(70 percent in California and 57 percent in Washington) have been among \nblue collar, production line workers. The Bank also states that the \ngreater relative reduction in white-collar jobs in Washington\xe2\x80\x99s aerospace \nlayoffs reflects the buildup of technical and professional staffs by \nemployers in that state between 1965 and 1967 in the (largely unsuccess\xc2\xac \nful) attempt to acquire new military and space contracts. See Donald \nSnodgrass, "Aerospace in the Doldrums," Federal Reserve Bank of San \nFrancisco Monthly Review , July, 1970, pp. 148-150~ \n\n\n34 \n\n\n\n\n\n\n\nALTERNATIVE POST-VIETNAM ADJUSTMENT ACTIONS \n\n\nACDA/E-156 \n\n\n\n\n\n\n\n\n\n\ncd \n\nX \n\n\n\n\n\n\n\n\n3 \n\n\n\n\n\n\nCO \n\n4-J \n\n\n\n\n\n\n\n-3 \n\no \n\n\n\n\nrH \n\n\n3 \n\n*H \n\n\n\n\n\n\n\n4-1 \n\n\xe2\x80\xa2H \n\n\n\nO \n\ncd \n\n\nCD \n\n$ \n\n\n\xe2\x80\xa2 c\\ \n\n\n\n\n\nS \n\n4-J \n\n\n\nCO \n\ncj \n\n\n<4-1 \n\n\n\nCO \n\n\nCD \n\n6 \n\n\no \n\n3 \n\n\n\nr\xe2\x80\x941 \n\nCO \n\n\n \n\np \n\n\n4-1 \n\n4-1 \n\n3 \n\n\n4H \n\n3 \n\n3 \n\n1 \n\n\n\ncd \n\nCO \n\n\n\n\n3 \n\n\no \n\n\ncd \n\nCO \n\ncd \n\n00 \n\n3 \n\nX) \n\n4-J \n\n1\xe2\x80\x94! \n\n3 \n\n\n\nE \n\n3 \n\nB \n\n\nN \n\nP \n\nB \n\n3 \n\no \n\n3 \n\n4-J \n\n\no \n\n\xc2\xa3 \n\n\n\n*lH \n\n\n\n\xe2\x80\xa2H \n\nO \n\na) \n\nO \n\n\xe2\x80\xa2H \n\ncd \n\ncd \n\n\n\xe2\x80\xa2H \n\no \n\n\ncd \n\n\nCD \n\n\ni \xe2\x80\x94 1 \n\nt\xc2\xbb \n\n"3 \n\nrH \n\n4-1 \n\n\n\nU \n\n44 \n\na \n\nCO \n\n\nCO \n\n4J \n\n\n\xe2\x80\xa2H \n\n1 \n\n\n\ncd \n\nrH \n\n44 \n\n*H \n\n3 \n\n3 \n\na) \n\nto \n\nCO \n\ncd \n\n\n4-J \n\nCO \n\n \n\nrH \n\nCD \n\n\xe2\x80\xa2H \n\n\n3 \n\nCD \n\n4-J \n\nO \n\n\xe2\x80\xa2H \n\no \n\n\no \n\n*H \n\n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n3 \n\nP \n\n\n\ncj \n\ncd \n\n\n4-4 \n\n\xe2\x80\xa2H \n\nCO \n\nPm \n\nrH \n\nCO \n\n4-1 \n\n\n4-1 \n\na \n\n\n4J \n\n3 \n\n00 \n\nCD \n\n\xe2\x80\xa2H \n\nB \n\nX) \n\n\n\xe2\x80\xa2H \n\n3 \n\na \n\ncd \n\nP- \n\no \n\n\n(X \n\n3 \n\nCD \n\na \n\n4-J \n\no \n\no \n\n\n.p \n\nCO \n\n \n\n\xe2\x80\xa2rH \n\no \n\na \n\nX \n\no \n\nCO \n\n00 \n\no \n\nCD \n\no \n\n4-1 \n\n\n4-J \n\n3 \n\nx \n\nP \n\np \n\na \n\n\xe2\x80\xa2H \n\nu \n\nCD \n\n00 \n\n\n-a \n\na \n\nCD \n\n\n00 \n\n> \n\no \n\nPm \n\np< \n\ncd \n\nB \n\nPm \n\n3 \n\ncd \n\nCJ \n\n\xe2\x80\xa2H \n\nCD \n\nE \n\n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\n\n\n\n\n\n\n\n\n\n\nX \n\n\n\n\n\n\n\n\n\n44 \n\n\n\n3 \n\n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n3 \n\n\n\nO \n\n\n\n\n\n\nCO \n\n\n4-1 \n\nCD \n\n\n\n\n\n\n\n\n3 \n\n\n\n\xe2\x80\xa2rH \n\n\n\n\n\n\n4-J \n\n\n\n> \n\n\n\n\n\n\n\xc2\xa3 \n\n\n3 \n\n\n\n44 \n\n\n\n\n\n\n \n\n\n\nPQ \n\n\n3 \n\n\n\n3 \n\n\n\n\n\n\n\nCO \n\nE \n\nCD \n\n\n\n3 \n\n\ni \n\n \n\no \n\nCD \n\n4-1 \n\n\n\n\nCO \n\ni \n\n3 \n\nO \n\n0\\ \n\n\nO \n\n\nPu \n\n\n\n\n3 \n\n\xe2\x80\xa2H \n\n3 \n\n3 \n\nCD \n\n\noo \n\n\nCD \n\n\xe2\x80\xa2H \n\n\nCJ \n\n3 \n\n\nPu \n\n\n3 \n\n\nCO \n\n\nP \n\n4-J \n\n*H \n\n\n\n\n3 \n\n\nCJ \n\n4-1 \n\nX \n\n\nO \n\n\n3 \n\n\nP \n\n\n3 \n\n\n\n3 \n\n\n#\\ \n\np \n\n\n\xe2\x80\xa2rH \n\n\np \n\n3 \n\nCJ \n\n44 \n\n\xe2\x80\xa2rH \n\n\n3 \n\nrH \n\n00 \n\n\nO \n\n\nP \n\n \n\nCD \n\nE \n\n\n3 \n\n3 \n\no \n\n\nCO \n\n3 \n\n3 \n\n\nP \n\np \n\n3 \n\n \n\na \n\n\no \n\n\xe2\x80\xa2rH \n\n4-J \n\ncd \n\n3 \n\n\nrH \n\n\xe2\x80\xa2H \n\nCD \n\nH \n\n* \n\nto \n\n3 \n\n\n\n3 \n\n3 \n\n\xe2\x80\xa2rH \n\n3 \n\n\nrH \n\n\ncd \n\n>4 \n\n4 \n\noo \n\nCO \n\no \n\nX5 \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nO \n\nCJ \n\n4-1 \n\nX \n\n\n\n4-J \n\n00 \n\n\n\n\nrH \n\n\xc2\xabd \n\n\nCO \n\nE \n\nrH \n\n3 \n\n\n3 \n\nCJ \n\no \n\ncd \n\nCD \n\n\n3 \n\n3 \n\na) \n\n4-\xc2\xbb \n\nO \n\n\ncd \n\n>4 \n\n>4 \n\n\n3 \n\nPm \n\n\n\n44 \n\n\n\n3 \n\nP \n\n\n\xe2\x99\xa6H \n\na> \n\n3 \n\n3 \n\n\n\n>4 \n\nCD \n\ncd \n\n#N \n\nJ4 \n\nE \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n3 \n\n3 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n*4 \n\n\n\n\nE \n\n\n3 \n\nX> \n\n\nCD \n\na \n\nrH \n\n3 \n\n00 \n\n3 \n\n3 \n\n\n3 \n\nO \n\n3 \n\nCD \n\nX} \n\n\nCO \n\n4-J \n\ncd \n\nO \n\n3 \n\n\nX \n\no \n\n\xe2\x80\xa2H \n\nO \n\no \n\n3 \n\n44 \n\nX \n\nE \n\n\xe2\x80\xa2rH \n\n44 \n\n4-J \n\np \n\n\n3 \n\nCO \n\n\nO \n\ncd \n\n\nCD \n\n\nE \n\n\xe2\x80\xa2H \n\np \n\n3 \n\n3 \n\n44 \n\n44 \n\n44 \n\n3 \n\ni\xe2\x80\x941 \n\ncd \n\n\nO \n\nCD \n\n44 \n\nCO \n\n\n\npH \n\nCD \n\n\xe2\x80\xa2rH \n\n4-1 \n\na \n\n\n3 \n\nrH \n\n3 \n\n3 \n\n3 \n\n< \n\no \n\n\n\xe2\x80\xa2H \n\n> \n\nO \n\n\xe2\x80\xa2rH \n\n#\\ \n\n\n\nCD \n\nCO \n\ncd \n\n\nc* \n\nE \n\n3 \n\n3 \n\nrH \n\nE \n\n\nX \n\n\n4-> \n\n3 \n\n\n"3 \n\nCO \n\nCO \n\n3 \n\n4-1 \n\n\nP \n\nrH \n\n3 \n\n44 \n\n3 \n\n> \n\nr-H \n\n44 \n\n\ni \n\n\n(J \n\n\xe2\x80\xa2rH \n\n3 \n\n\n4-J \n\n3 \n\n\xe2\x80\xa2H \n\n3 \n\n00 \n\no \n\n3 \n\nO \n\n3 \n\nX \n\n3 \n\nO \n\n3 \n\n\nCD \n\n\n3 \n\n\nO \n\n3 \n\n3 \n\nO \n\n\ncd \n\n3 \n\nrH \n\n3 \n\n\xe2\x80\xa2rH \n\n3 \n\n\n\xe2\x80\xa2H \n\na. 3 \n\n\nX \n\n\n*3 \n\nX) \n\n\n\xe2\x80\xa2H \n\nCD \n\n\xe2\x80\xa2H \n\nCO \n\nPi \n\n\xe2\x80\xa2H \n\na \n\nO \n\n44 \n\n> \n\n\xc2\xabN \n\n\n\n> \n\n\n4-1 \n\n\nCD \n\nCD \n\n4-1 \n\n\nE \n\n4-1 \n\nCD \n\ncd \n\nCO \n\nX \n\n\nCJ \n\n3 \n\n00 rH \n\n\n3 \n\n\n? \n\n\n\nCO \n\n3 \n\nCO \n\nCD \n\na \n\nCO \n\n3 \n\n3 \n\n \n\n3 \n\n3 \n\n\xe2\x80\xa2rH \n\n3 \n\n3 \n\n\n\nP \n\n4-1 \n\n*\xe2\x80\xa2\xe2\x80\x94> \n\nCJ \n\nCO \n\ncd \n\n3" \n\ncd \n\nCJ \n\ncd \n\nO \n\ncd \n\n3 \n\n3 \n\ng \n\n3 \n\nto \n\n3 \n\nuS \n\n\no \n\ncd \n\ncd \n\n3 \n\n3 \n\nJ3 \n\nCD \n\np \n\n3 \n\no \n\n-3 \n\n\nO \n\nO \n\n3 \n\nP \n\n\nO \n\n\n\n4 \n\n\xc2\xa3 \n\nM \n\nM \n\nC-J \n\nP \n\n4-J \n\nM \n\nrH \n\nH \n\nCO \n\nCJ \n\nCJ \n\n33 \n\n44 \n\npH \n\n-3 \n\nPd \n\n\nX~S \n\n\n\n\n\n\n\n\n/\'\xe2\x80\x9cN \n\n\n\n\n\n\n\n\n\n\n/-N \n\n\nrH \n\n\nCM \n\nCO \n\n\nrH \n\n\n\nCM \n\n\nrH \n\n\nCM \n\n\nrH \n\n\nCM \n\n\nCO \n\n\n3 \n\n3 \n\n\n\n\ntO \n\n\n\n\no \n\n\n\n\n\nO \n\n3 \n\n\n\n\xe2\x80\xa2H \n\n\n\n\n\n\xe2\x80\xa2rH \n\n3 \n\n\n\n3 \n\n\n\n\n\nrH \n\nO \n\n44 \n\n\n3 \n\np \n\n\ntO \n\n3 \n\no \n\n\xe2\x80\xa2H \n\n3 \n\n\n3 \n\n3 \n\n\nP \n\nO \n\nX Ph CO \n\n3 \n\n3 \n\n\na \n\n3 \n\n\no \n\n*H \n\n3 44 \n\n3 \n\nE \n\n\nX \n\nE \n\n\n00 \n\n44 \n\n3 rH 3 \n\n3 \n\n3 \n\n\nw \n\n3 \n\n\n3 \n\nO \n\n3 3 \n\nft 4 \n\nP \n\n3 \n\n\nP \n\n3 \n\n44 \n\n3 \n\n5>> *rH E \n\nX \n\n3 \n\nE \n\n3 \n\n3 \n\nE \n\n3 \n\n-3 \n\nP O 44 \n\nw \n\nt> \n\n3 \n\n3 \n\n> \n\n3 \n\nCJ \n\n3 \n\n3 3 co \n\n\nO \n\nP \n\nOh \n\nO \n\nP \n\n\nPd \n\n44 3 3 \n\nX) \n\nO \n\n00 \n\n1 \n\no \n\nOO \n\n\n\n3 3 *o \n\n\xe2\x80\xa2rH \n\n\no \n\n00 \n\n\no \n\n\nX \n\n3 *H X) \n\na \n\n3 \n\np \n\n3 \n\n3 \n\np \n\n\n3 \n\nO pH < \n\n3 \n\n\xe2\x80\xa2H \n\npH \n\n0 \n\n\xe2\x80\xa2H \n\nPh \n\n\nH \n\n\xc2\xa3 \n\nPd \n\n\n\nkJ \n\n\n\n\n35 \n\n\nFederal Aid to 1) Expansion of existing program grants 1) Choice of program areas \n\nState and Local 2) Initiation of new grant programs to support \n\nGovernments 3) Block grants, with few strings 2) Decision as to which level \n\nof government makes the \n\n\n\n\n\nTABLE 5 (continued) \n\n\nACDA/E-156 \n\n\n\n\n\n\n\n\nU \n\n\n\n\n\n\n\n\n<13 \n\n\n\n\ncO \n\n\n\n\n03 \n\n\n\n\n3-4 \n\nCO \n\n\n\n\n\n\n\nG \n\n\n\nJ-i \n\nO \n\n3-1 \n\n\n\n\n\n\n\ncO \n\n\n\n03 \n\nB \n\n<13 \n\n\n\n03 \n\n\n\n\n\n\n\nx \n\n\n.G \n\nO \n\n\nr\xe2\x80\x94 ( \n\n\n\xe2\x80\xa24-4 \n\n\n* \n\n\n\nAJ \n\n0) \n\n4-J \n\n\xe2\x80\xa2H \n\n\nu \n\nCO \n\nO \n\nG \n\n00 \n\n\n\n03 \n\nX \n\no \n\ne \n\n\no \n\nG \n\n\n\xe2\x80\xa2H \n\nG \n\n\n\nX \n\n\n\nO \n\n\n\nC0 \n\nS \n\n\n\xe2\x80\xa2H \n\n\n\nS \n\n03 \n\no \n\nc \n\n\n\n>-i \n\n03 \n\nG \n\nG \n\n\nco \n\n\nrH \n\n4-J \n\nO \n\n\n\xe2\x80\xa24-4 \n\n03 \n\n\xe2\x80\xa2H \n\nO \n\n\xe2\x80\xa2H \n\nCO \n\n03 \n\no \n\n\n\nO \n\n\no \n\n4-i \n\n> \n\n\xe2\x80\xa2H \n\nCO \n\n03 \n\n3 \n\n4-\xc2\xbb \n\nO \n\nG \n\n03 \n\n\n\n03 \n\n\nCO \n\n>4 \n\nU \n\nCO \n\n\nX \n\n<0 \n\n\n\n\n> \n\nG \n\nc \n\n4-J \n\n\xe2\x80\xa2H \n\nCO \n\nCO \n\nCO \n\nX \n\n>s \n\ng \n\n4-J \n\n\n\xe2\x99\xa6H \n\ncO \n\n\n> \n\n\xe2\x80\x94 1 \n\n03 \n\n\n4-J \n\nX \n\no \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa24H \n\n\npt \n\n* \n\nV4 \n\n\n\n4-1 \n\n\n\n\xe2\x80\xa2H \n\nrH \n\no \n\n\xe2\x80\xa2\xc2\xbb \n\nK \n\nG \n\n03 \n\n>> \n\nc \n\nc \n\nCO \n\nn3 \n\n4-J \n\n\xe2\x80\xa2H \n\n\nCO \n\n03 \n\nO \n\nCO \n\nu \n\nO \n\n<13 \n\n3 \n\n03 \n\nc0 \n\n\n03 \n\n4-1 \n\n\n*H \n\n\nH \n\n\n6 \n\nO \n\n4-J \n\nCJ \n\ncO \n\nG- \n\n\xe2\x80\xa2H \n\n4-> \n\n4-J \n\nI\xe2\x80\x941 \n\n\xe2\x96\xa0H \n\nCO \n\n4-J \n\n3-1 \n\no \n\no \n\nV4 \n\n<4-4 \n\nG \n\nCO \n\ncO \n\nO \n\n\xe2\x80\xa2H \n\n05 \n\n<13 \n\nQ>* r\xe2\x80\x941 \n\n\xe2\x80\xa2H \n\n4-J \n\n03 \n\n03 \n\nU \n\n\xe2\x80\xa2H \n\nDU \n\nU \n\n03 \n\nc \n\n\xe2\x80\xa24-1 \n\nCO \n\nCO \n\n\nG \n\nC3 \n\n3 \n\na \n\n\n4 \n\n0) \n\nCO \n\n\n\nH \n\n\n\n\n\nU \n\n\n\n\n\n< \n\n\n03 \n\n\n\n\n\n3-i \n\n\n\nH \n\n\ncO \n\n\n\n2 \n\n\n\xe2\x80\xa24-4 \n\n\n\nw \n\n\nrH \n\n\n\n\n\n03 \n\n4-J \n\n\nH \n\n\ns \n\nG \n\n\nCO \n\n\n03 \n\n03 \n\n\nJ3 \n\n\n00 G \n\nE \n\n\n\n\nC CO \n\n4-i \n\n\nQ \n\n\n\xe2\x80\xa2H E5 \n\nCO \n\n\n< \n\n\n4J 03 \n\n3 \n\n\n\nCO \n\nCO 03 \n\n\xe2\x80\xa2r-) \n\n\n\n03 \n\n\xe2\x80\xa2H \n\n03 \n\n\n\n> \n\nX 03 \n\nCO \n\n\nJ2J \n\n\xe2\x80\xa2H \n\n0) 4-J \n\n\n\n^4 \n\n4-i \n\nCO \n\nu \n\nCQ \n\nW \n\ncO \n\nC 00 \n\n\xe2\x80\xa2H \n\ng \n\nhH \n\nC \n\nO 0) \n\n\xe2\x80\xa24-4 \n\ncO \n\n> \n\nG \n\n}-< \n\n\xe2\x99\xa6H \n\n34 \n\n1 \n\n03 \n\n03 00 \n\nC3 \n\n00 \n\nH \n\n4-i \n\nO 00 \n\n03 \n\no \n\nCO \n\nrH \n\nC <0 \n\na \n\n3-4 \n\nO \n\n< \n\n<0 \n\nCO \n\na. \n\n04 \n\n\n*H 03 \n\n\n\n\n\nX G \n\n\xe2\x80\xa24-1 \n\n4-i \n\nW \n\n\n03 CO \n\no \n\n\xe2\x80\xa2H \n\n> \n\n\n3-4 \n\n\n\xe2\x80\xa24-4 \n\n\nH \n\n< \n\nIZ \n\nPd \n\nw \n\nH \n\nX \n\n< \n\n\nCO 03 C 0) \n\nB a> o c \n\nu cO 3-4 -h -i \n\n3-4 \n\n\n\n3-i \n\n03 \n\nO \n\n03 \n\n\nO \n\n4J \n\n\nG \n\nCO \n\nOO \n\n03 \n\n\ncO \n\n03 \n\n03 \n\n> \n\n03 \n\n\n\xe2\x80\xa2H \n\n4-i \n\n\nCO \n\n#\\ \n\nG \n\nCO \n\nO \n\nG \n\nCO \n\nCO \n\nCJ \n\n4-J \n\n03 \n\nCO \n\nQ. \n\n\n\n<4-1 \n\n03 \n\nB \n\n\nTO \n\n0) \n\n34 \n\nO \n\n\n\xe2\x80\xa2H \n\na \n\n< \n\nCJ \n\n\n< \n\n\n\n\n\n36 \n\n\nSOURCE: Murray L. Weidenbaum, \xe2\x80\x99\xe2\x80\x99Peace in Vietnam: Possible Economic Impacts and the Business \nResponse," a paper commissioned by the Committee on the Economic Impact of Peace \nin Vietnam, Chamber of Commerce of the United States, September, 1967, p. 14, processed. \n\n\n\n\n\n\nACDA/E-156 \n\n\nlumber and plywood industry is also suffering from the steep fall in the \nhousing industry, largely induced by the tight money policy component of \nthe anti-inflationary program. Apparently, the contribution of reduced \n\n\nmilitary orders in Washington accounts for only a minor part of the \nstate s problem with "more than 90% of Boeing\xe2\x80\x99s business in the state... \nnondefense. However, the unfortunate concatenation of circumstances \nin that state illustrates the point. \n\n\nThe need for timely information on changes in defense spending by \nthe central budget and economic policy staffs was dramatized by its \nabsence during the critical months of the Vietnam buildup in late 1965 \nand early 1966. The situation has since been somewhat improved but many \nof our subsequent difficulties in anti-inflationary policy may be traced \nto that period. ^9 \n\nt \n\nThe timing challenge to stabilization policy was also illustrated \nby the rather extended interval required for the recent surtax to make \nits influence felt on the price indexes. Such lags in the impact of \nintended Federal action strongly suggest the need to anticipate desirable \nchanges as far in advance as possible. This observation applies with \nequal force on the side of offsets to falling defense spending. The \nliterature on economic adjustment has seen more attention to the topic \nof lags in recent years. From the viewpoint of economic policy, it is \nnot only important that the Federal offset programs be planned well in \nadvance of their need but that such programs be devised with a full \nunderstanding of their particular lag structure^ and of their unique \n\n28 \n\nAlbert R. Hunt, "Senator Jackson Gets Help from GOP Rivals in \nWashington Race," The Wall Street Journal , September 15, 1970, pp. 1, 27. \n\n29 \n\nSee Murray L. Weidenbaum, "Indicators of Military Demand," 1967 \nProceedings of the Business and Economic Statistics Section , American \nStatistical Association , pp. 208-211. For a useful discussion of the \nproblem of data needs see also Roger E. Bolton, "Statistics on Industrial \nand Regional Defense Impact," 1967 Proceedings of the Business Statistics \nSection, American Statistical Associatior , pp. 200-207. \n\n30 \n\nFor a study of this problem see Earl W. Adams, Jr. and Michael H. \nSpiro, The Timing of the Impact of Government Expenditures . This soon \nto be released study performed for the U.S. Arms Control and Disarmament \nAgency compared inside (legislative-institutional) and outside lags (from \nobligation of funds to economic impact) encountered in such offset pro\xc2\xac \ngrams as highway construction, space and oceanography, and urban mass \ntransit. The important finding that inside lags (both legislative and \nadministrative) are the "major culprit" in causing lengthy delays (p. 21) \nreinforces our conviction that the study of economic impact has for too \nlong paid inadequate attention to the organizational considerations \ndealt with in the Allison and Etzioni papers in this volume. \n\n\n37 \n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nresource requirements. Ideally, from the viewpoint of offset programs \ndesigned to absorb resources freed from defense uses in the shortest \npossible interval, policy makers should know the location, number and \ntype of persons being released from military uses, and the same infor\xc2\xac \nmation about the needs of particular offset programs and the approximate \ntime lags required before the new programs can be started. \n\nAt the present time our information requirements are far from this \nlevel of adequacy. One of the most serious deficiencies remains our \ninability to trace prime contract awards down through the various levels \nof subcontracts. Such a capability to know who and where are the sup\xc2\xac \npliers below the prime contractor level is a prerequisite to pinpointing \nthe effects of changes in particular weapons systems. A similar lack of \ninformation limits our capability to accurately foresee the impact of \nvarious compensatory government spending programs. Professor Galbraith \nhas commented that it is a matter of no great concern which government \nprograms replace strategic weaponry provided they are "roughly equivalent \nin scale and technical complexity." 11 This may be true but we know very \nlittle about the characteristics of such offset programs. Oceanography \nand urban transit are unlikely to have the same economic impact. Partic\xc2\xac \nular government programs may come closer to absorbing the kind of \nresources liberated by reduced military spending than do others. Such \ninformation would be very valuable in transition planning. Other criteria \nmust, of course, be considered. The program which comes closest to \nbeing a good substitute for high technology weapons production in terms \nof skill transfers, etc. may not be the highest priority program on the \npolicymaker\'s list. Nevertheless, this type of information would contri\xc2\xac \nbute much to more rational decisions. \n\n1.4.1 Policy Recommendations \n\nVarious recommendations appear throughout this report which have an \nimportant bearing on public policy. For the convenience of the reader \nthey have been brought together in this section and organized under four \nmajor headings: policies designed to aid the adjustment of individual \ndefense workers and of major defense contractors, to encourage the use \nof military resources for social needs, and to aid the adjustment and \ndevelopment of affected regions of the country. \n\n1.4.1.1 Adjustment of Individual Defense Workers \n\nThe following recommendations are designed to help ease the transi\xc2\xac \ntion of displaced defense workers: \n\n\n31 \n\nJohn Kenneth Galbraith, The New Industrial State (Boston: Houghton \nMifflin Company, 1966), p. 346. "" \n\n\n38 \n\n\n\n\n\n\nACDA/E-156 \n\n\n\\ \n\n1) Greater reliance and support should be given to the M tent inter\xc2\xac \nview process run by the affected company or as an on-site program cf the \nEmployment Service. \n\n2) The Computerized Job Bank and matching programs should be ex\xc2\xac \npanded and include special consideration of the defense industry occupa\xc2\xac \ntional structure. \n\n3) A minimum of 6 weeks* advance notice of contract cancellation \n\nor termination should be given to workers to prepare for a smooth transi\xc2\xac \ntion. \n\n4) A public insurance plan is needed to give homeowners liquidity \nof equity and protection against erosion of value. This plan will \neliminate a major impediment to mobility. \n\n5) The \xe2\x80\x99\xe2\x80\x99experimental lab?r mobility" projects of the U.S. Depart\xc2\xac \nment of Labor should be expanded to include laid-off defense workers. \n\nThese projects include assumption by the government of relocation \ncosts including travel expenses for an interview with a prospective \nemployer. \n\n6) Pilot retraining projects for laid-off defense workers which \nemphasize on-the-job-training as opposed to classroom training should be \nexpanded. \n\n7) The social security laws should be revised to provide early \nretirement at no penalty for laid-off defense workers. \n\n8) The conflicts between regulations governing unemployment in\xc2\xac \nsurance eligibility and provisions for severance pay should be eliminated. \nThese conflicts\' exist in 22 states and serve to reduce income to the \nlaid-off worker. \n\n9) Similar conflicts (in # 25 states) between the unemployment in\xc2\xac \nsurance system and retraining programs should also be eliminated. These \nconflicts serve to discourage retraining. \n\n1.4.1.2 Assistance to Firms Losing Large Volumes of Military Orders \n\nTo aid individual firms in applying their capabilities in non\xc2\xac \nmilitary areas, the Federal government could: \n\n1) Subsidize non-military research and development. This might be \ndone by \n\na. providing a tax rebate for commercial R & D similar \n\nto the tax credit for investment in producers* durable equipment. \n\nb. the establishment of some form of joint industry-government \n\nfinancing of commercial R & D efforts with repayment of the govern\xc2\xac \nment share if profitable operations result. \n\n\n39 \n\n\n\nACDA/E-156 \n\n\nc. providing long-term loans and loan guarantees and the \n\nleasing of idle government owned plant and equipment for non\xc2\xac \ndefense R & D work. \n\nd. providing technical assistance to discover non-military \n\napplications for surplus scientific and engineering skills. \n\n2) Increase its nondefense procurement programs in ways designed \nto utilize defense-oriented skills in meeting public sector requirements \nin nondefense areas. \n\n3) Permit defense contractors to charge some commercial product \nplanning as an allowable cost on defense contracts. \n\n1.4.1.3 Alternative Uses of Military Resources for Social Needs \n\nThe following recommendations should help guide the transfer of \nmilitary resources to social needs: \n\n1) Perhaps the Armed Services can offer a more benign socialization \nexperience for ghetto residents by actively recruiting individuals from \ndisadvantaged backgrounds, treating them "no different from anyone else," \nand persuading them that they can do a job for which they will be \nrewarded. Various training/career inducements utilizing the large scale \nmilitary vocational education system can be used to attract prospective \nenlistees. \n\n2) Project Transition should be expanded and deepened to provide \nsoon-to-be-discharged servicemen with marketable skills. Training under \nProject Transition should be made available to servicemen on overseas \nassignment to correct the present inhibiting requirement that limits \neligibility to military personnel with six months of remaining service \ntime. Many returning veterans are discharged within a short time after \ntheir return to the United States and thereby are not able to benefit \nfrom the program. The bottleneck in the construction industry might be \neased by increasing the number of servicemen receiving training in the \nbuilding trade occupations. \n\n3) The large scale vocational education system operating in the \nmilitary should become the focus of a major research venture to test the \neffectiveness of various teaching techniques with servicemen of diverse \nbackgrounds. The results should be widely disseminated for the benefit \nof civilian education. \n\n4) Information on the location of job opportunities should be pro\xc2\xac \nvided to servicemen soon-to-be-discharged to prevent their congregating \nin a few already overcrowded urban areas. \n\n5) The criteria for Federal contract placement might be broadened \nto allow weight to be given to societal benefits resulting from employ- \n\n\n40 \n\n\n\n\n\\ \n\nACDA/E-156 \n\n\nment growth in the ghettos and other areas of underprivileged manpower. \n\ni \n\n6) A special program to recruit from depressed regions and urban \nghettos to fill the many civilian jobs in DOD not requiring managerial \nor high skills should be considered. \n\n7) When military bases or other facilities are to be closed, \nadequate notice should be provided to all concerned to plan for the ad\xc2\xac \njustment. Studies suggest that one year between notification and \nclosure is an optimal time period. \n\n8) Surplus military scientists and technicians might be transferred \nto a new \xe2\x80\x99\xe2\x80\x99think tank\xe2\x80\x9d concerned with the solution of domestic problems. \nIts work should be closely integrated with a new government agency con\xc2\xac \ncerned with the coordination of civilian problems. The provision and \ndelivery of health care in the United States has come under severe \ncriticism and the military medical system should be utilized as a pool \nfor experimentation and innovation with approaches and techniques. \n\nHousing and public order are also critical areas where the military \nexperience might be examined for feasibility of transfer to the civilian \nsector. The transfer of concepts such as systems analysis to domestic \nmissions should be carefully considered. Such transfers must be under\xc2\xac \ntaken with full awareness that civilian systems are often more decentral\xc2\xac \nized, pluralistic and less technological than their military counter\xc2\xac \nparts , and hence do not lend themselves as easily to this approach to \nproblem solving. \n\n9) In instances where military units can be used directly to \nhandle clearly identifiable civilian needs, simple unit transfer may \nsuffice. Such a case might be the transfer of a military hospital unit \nto a State Department of Public Health. In such cases, a military- \ncivilian matching center could be useful. It is more likely, however, \nthat major modifications of the military unit will be necessary. The \nreassignment of entire professional teams or laboratories may facilitate \na quick transition but contains the danger of retention of ingrained \n"military\xe2\x80\x9d approaches which may be undesirable. Ideally, ex-military \nteams of professionals or individuals should be transferred in small \nnumbers at a time to allow the established receiving civilian units to \nabscrb the newcomers. \n\n1.4.1.4 Regional Adjustment and Development \n\nA high priority use for funds and resources released from military \npurposes is in the area of regional and urban problems. A prerequisite \nto effective long-range action here is the formulation of a national \npolicy for guiding regional and urban development. The types of issues \nwhich such a policy would have to consider are discussed in the \nCumberland paper. In addition, however, there are challenging short- \n\n\n41 \n\n\n\nACDA/E-156 \n\n\nterm problems which hinder the attainment of a smooth transition for \ncommunities and regions particularly vulnerable to cutbacks in military \nspending. Five general policy recommendations have previously been \nadvanced by the National Planning Association and warrant repetition; \n\n1) A clear statement by the Federal government on the necessity \nfor arms reduction planning should be made to combat scepticism concern\xc2\xac \ning its likelihood. \n\n2) The Federal government should underscore its committment to \nthe maintenance of high levels of employment and purchasing power as \nrequired under the Employment Act of 1946. In addition, it should \nclarify the degree of its obligation to assist individual firms and \nspecific regions of the country. \n\n3) Both national and regional policies of the Federal government \nadopted to meet the impact problems of arms reduction should be blended \nwith other policies to promote economic growth and to aid in readjust\xc2\xac \nment to other dislocations. Thus, attention should be focused on the \nalleviation of distress, regardless of its particular cause. \n\n4) A reexamination of manpower and unemployment assistance policies \nshould be conducted with respect to their adequacy in (a) aiding the \nadjustment process and (b) mitigating distress situations prior to \nlonger run adjustment. \n\n5) More careful advance planning by all levels of government and \ninterested private groups is necessary to enable vulnerable communities \nto make a successful and rapid transition. \n\n\n42 \n\n\nACDA/E-156 \n\n\nTHE MANY DIMENSIONS OF THE MILITARY EFFORT \nBernard Udis and Murray L. Weidenbaum \n\nII.1 OVERALL MILITARY SPENDING \n\nAn effort to evaluate the economic importance of national spending \nfor military purposes must grapple with the issue of the appropriate \nbackdrop against which the defense budget should be measured. The \nbroadest and most widely used measure of military spending is the Office \nof Business Economics (OBE) series on Federal Government Purchases of \nGoods and Services for national defense. Essentially it consists of the \ncosts of the military functions of the Department of Defense and military \nassistance to other nations. Table 1 shows the long term behavior of \nthis series since 1939 in absolute form and also as a percent of all \nFederal purchases of goods and services, of purchases of goods and \nservices at all government levels (Federal, State, and Local), and of \nGross National Product. \n\n* \n\nRapid growth of GNP, of the civilian expenditures of the Federal \nGovernment and of state and local governments has brought down the share \nof GNP and of all government purchases of goods and services going to \nmilitary purposes to 8.5 and 37.1 percent, respectively, in 1969. Despite \nrecent declines from the cold war highs of the 1950\'s, the relative \nmagnitude of military purchases remains striking. Over three fourths \nof all Federal purchases of goods and services and almost 45 percent of \nFederal budge\xc2\xa3 outlays (Table 2) have gone for defense purposes in \nrecent years. \n\nThe secular increase in the Federal Government\'s concern with defense \nmatters is brought home dramatically by an examination of changes over \nthe past three decades. As shown in Table 1 the share of Federal outlays \non goods and services for defense during the 1960\'s (79.3%) was remark\xc2\xac \nably close to its level during the 1940\'s (79.8%). It is, however, down \nfrom the 86.3% of the cold war years of 1950-1959. Similarly, Federal \nbudgetary outlays for defense averaged 45.6% during the 1960\'s, down from \nthe 57.9% in the 1950-1959 period and 55.2% during the 1940\'s. Despite \nthe recent trend downward, it remains true that military outlays account \nfor a massive portion of Federal expenditures. \n\nTo state that the military outlays of the United States have been \nand are large by various of these measures is not to state a judgment \nabout their appropriaten ess or adequacy. This vital topic is not one of \n\n^The apparent discrepancy between these two series is attributable \nto the fact that the Federal Budget includes sizeable interest, trans\xc2\xac \nfer, and subsidy payments in addition to purchases of goods and services. \n\n43 \n\n\n/ \n\n\n\n\nACDA/E-156 \n\n\nthe concerns of this study and hence it would t^e inappropriate for the \npresent writers to enter into this debate now. \n\nII.2 GEOGRAPHICAL DISTRIBUTION \n\nThe distribution of military contract awards among the various re\xc2\xac \ngions of the country is quite uneven and changes over time. These points \nare illustrated in Table 3. Since the Korean War (FY 1952) , the value \nof prime defense contracts awarded has dropped from 25 percent to 17-18 \npercent in the Middle Atlantic states; dropped from 27 percent to 12 \npercent in the East North Central region; and climbed sharply in the \nSouth, particularly in the South Central area, rising there from 6 per\xc2\xac \ncent to over 15 percent. The share of the Pacific Coast states, plus \nAlaska and Hawaii, almost 22 percent, is somewhat above the 1952 level \nof 18 percent but some six points below the cold war year of 1962, largely \nreflecting sharp drops in California and Washington. \n\nPart of the shifts may be due to regional specialization in parti\xc2\xac \ncular military goods, the importance of which will vary with different \nstrategic programs and their coneommitant procurement mixes. Thus, \nfrom 68 to 75 percent of all tank-automotive contracts have been awarded \nin the East North Central region in recent years (see Table 4). That \nthis is not a complete explanation is evident from the appreciable re\xc2\xac \ngional shifts within the various classes of military equipment shown in \nTable 4. Of particular interest is the gain in the share of aircraft \nprime contracts awarded in the South Central region\xe2\x80\x94from 7.5 in FY 1962 \nto approximately 25 percent. The same region also showed an impressive \ngain in ammunition prime contracts and a jump to near dominance in ship\xc2\xac \nbuilding in FY 1970 countering the declines in the shares of the New \nEngland and Pacific Coast states. Indeed, the South seems impervious \nto cycles in either the size or composition of defense spending having \nsteadily increased its relative standing as a defense producing region \nfrom the Korean War through the Cold War and Vietnam (see Table 3). \n\nAnother measure of regional variation in the importance of defense \noperations is found in the "defense dependency" ratio , the ratio of \ndefense-generated employment to the total work force. Table 5 presents \nsuch ratios for both civilian and military personnel, by state, for \nDecember of 1965, 1966, and 1967. The civilian ratio tends to be more \nstable. Eight states have had civilian ratios of 5 percent or more at \neach reported point in time. In declining order of their most recent \n\n2 \n\nThe charges that present military expenditures are excessive due to \nwaste in weapons acquisition or because of exaggerated concern over the \nthreat posed to the security of the United States by foreign powers are \nlegion. For a balanced reply which stresses the ravages of inflation and \nfrequent pay increases into our true military strength, see Robert C. \n\nMoot, "Address to the 1970 Graduating Class of the Army Comptrollership \nSchool, Syracuse University, July 31, 1970," processed. \n\n\n44 \n\n\n\n\n\nACDA/E-156 \n\n\nranking, they are: Alaska (10.1), Utah (9.2), Hawaii (8.8), Virginia \n(8.5), Connecticut (7.6), Maryland (6.6), New Hampshire (6.6), and \nCalifornia (6.3). The ratio for the nation was 3.6. The importance \nof defense expenditures for such metropolitan areas as Washington, D.C., \nBoston, Wichita, Cape Kennedy, Los Angeles, Seattle, and Huntsville is \nwell known, and, when induced employment effects are considered, it has \nbeen estimated that in some areas almost 50 percent of local jobs can \nbe traced to defense-related expenditures. \n\nII.3 INDUSTRIAL DISTRIBUTION \n\n\nOnly a relatively small number of industries (largely durable goods \nproducers such as aircraft, electronics, motor vehicles, petroleum re\xc2\xac \nfining, chemicals, rubber, and construction) are heavily involved in \ndefense work, and only a few of their constituent companies account for \nthe larger part of defense contracts. Military contracts doubtless \nbecome more widely diffused through companies, industries, and regions \nwhen the various levels of subcontracting are considered. From FY 1960 \nto 1965 the estimated share of military prime contract awards performed \nin the United States which were subcontracted fell from 45.4 percent to \n\n33.7 percent. The post 1965 years of the Vietnam enlargement saw a re\xc2\xac \ncovery in the subcontracted share to 39.9 percent in FY 1969, followed \nby a dip to 38.3 percent in FY 1970.\xe2\x80\x9c* Of all subcontract awards in FY \n1967, 43.3 percent went to small business firms. This was a recent high \npoint and the small business share of subcontracts.has fallen back to \n\n36.7 percent in FY 1970, the lowest since FY 1959. \n\n\n3 \n\nSee Charles Tiebout, "The Regional Impact of Defense Expenditures: \nIts Measurement and Problems o.f Adjustment," in U.S. Congress, 88th Con\xc2\xac \ngress, 1st Session, Senate Committee on Labor and Public Welfare, Sub\xc2\xac \ncommittee on Employment and Manpower, Nation\'s Manpower Revolution, Part \n7 (Washington: Government Printing Office, 1963), pp. 2516-2523. \n\n^Murray L. Weidenbaum, "Defense Expenditures and the Domestic Econo\xc2\xac \nmy," in Stephen Enke (ed.), Defense Management (Englewood Cliffs, N.J.: \nPrentice-Hall, 1967), p. 322. \n\n^Office of the Secretary of Defense, Directorate for Information \nOperations, Military Prime Contract Awards and Subcontract Payments or \nCommitments, July 1969-June 1970 (Washington: Department of Defense, \n1970), pp. 12-13, and 57, Tables 3 and 18. \n\n6 Ibid., p. 57, Table 18. Generally, a small business concern is one \nthat is independently owned and operated, is not dominant in its field \nof operations, and with its affiliates does not employ more than a \nspecified number of employees (usually not more than 500, 750 or 1000) \ndepending on the type of product called for by the contract. \n\n\n45 \n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nThere is some evidence that in recent years the concentration among \nprime contractors has lessened somewhat. Table 6 indicates a drop in the \nshare of military prime contract awards accounted for by the top one \nhundred companies from three-fourths in FY 1961 to 64-68 percent in recent \nyears. This move toward deconcentration may well be a temporary phenomenor \nreflecting the peculiar needs of the Vietnam conflict. \n\n\nThere is limited turnover among the top 100 defense contractors and \nthirty-eight firms have been on the list every year since fiscal 1959. \nSix firms (Lockheed, North American, General Dynamics, General Electric, \nATuT, and United Aricraft) have been among the top ten defense contrac\xc2\xac \ntors every year between 1959 and 1970. Sperry Rand, Boeing, and General \nMotors join the list of annual repeaters when it is expanded to take in \nthe top twenty firms. Other occasional visitors to the top twenty group \ninclude Avco, Bendix, Grumman Aircraft, General Tire, Hughes, RCA, \nWestinghouse, IBM, Textron, Honeywell, Ford, LTV, Olin Mathieson, Kaiser, \nThiokol, and IT&T. The high concentration among aerospace and electron\xc2\xac \nics specialists is apparent. \n\n\nThe low turnover among the leading military producers reflects the \nbarriers to both entry into and exit from the defense market. Particular \nly in aerospace and electronics,entry is limited to those firms possess\xc2\xac \ning the scientific and engineering skills required to design and manu\xc2\xac \nfacture modem weapons systems. Exit barriers may be inferred from the \nrelatively unsuccessful attempts of these firms to penetrate civilian \nmarkets. It should be noted, however, that the list of the top 100 \nDefense Contractors is a better indicator of Defense Department depen\xc2\xac \ndency on particular firms than of the reverse relationship. While a \ncomplete analysis is difficult due to data limitations it is clear that \nthe military work performed by many firms among the top 100 accounts for \na relatively small share of their total sales. While there is a fair \ndegree of overlap between the top 100 defense contractors and, say, the \nFortune 500, it does not appear that the giants of American corporations \ndepend heavily upon defense business. \n\n\n\n\n\n\n\nThe defense program relies heavily upon unique and special purpose \nresources. Weidenbaum told a Congressional committee in 1963 that at \nleast 80 percent of the military equipment at the beginning of World War \nI consisted of standard peacetime goods which were the product of normal \n\n\nJohn S. Gilmore and Dean C. Coddington, Defense Industry Diversifi\xc2\xac \ncation , U.S. Arms Control and Disarmament Agency Publication 30 (Washing\xc2\xac \nton: Government Printing Office, 1966), pp. 42-53; and Murray L. \nWeidenbaum and A. Bruce Rozet, Potential Industrial Adjustments to Shifts \nin Defense Spending (Menlo Park, California: Stanford Research Institute, \n1963), pp. 25-37. See also the Weidenbaum chapter in this study. \n\n\n46 \n\n\nf \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\npeacetime production lines. He estimated the special-purpose proportion \nas up to almost 50 percent in 1941 and to about 90 percent in 1963. 8 \n\nAs has been emphasized by Cherington and Galbraith, the procurement \nof sophisticated weapons systems takes place in a rarified atmosphere in \nwhich the distinction between buyer and seller becomes blurred due to \nthe interdependence of the organizations, the growing commonality of goals, \nand the daily intermingling of personnel from both groups over extended \nperiods of time. 9 Thus, with the exception of relatively standardized \nitems with close civilian counterparts such as food, clothing, housing, \netc., the majority of our military expenditures are made in an environ\xc2\xac \nment far removed from the presumed "arms-1ength" dealings of the market. 1 \nPurchases of such specialized items as aircraft (including assemblies, \nengines, and other aircraft equipment and supplies), missile and space \nsystems, ships, and electronics and communication equipment were account\xc2\xac \ning for about two-thirds of the net value of military prime contract \nawards in the first half of the past decade. Only with the immediate \npressures of the Vietnam War to field a large force equipped with con\xc2\xac \nventional weapons has the share dipped below 60 percent in fiscal years \n1966-1969. The burgeoning post-1965 growth in contract awards for com\xc2\xac \nbat vehicles, weapons, ammunition, textiles and clothing, military \nbuilding supplies and transportation equipment is shown in Table 7. \n\nII.4 CHARACTERISTICS OF DEFENSE MANPOWER \n\nThe skills and training of persons employed in defense-related in\xc2\xac \ndustries are strikingly different from those of the overall labor force. \n\n\nMurray L. Weidenbaum, M The Transferability of Defense Industry \nResources to Civilian Uses," in U.S. Congress, 88th Congress, 2nd Session, \nSenate Committee on Labor and Public Welfare, Subcommittee on Employment \nand Manpower, Convertibility of Space and Defense Resources to Civilian \nNeeds \xe2\x80\xa2 A Search for New Employment Potentials (Washington: Government \n\nPrinting Office, 1964), pp. 848-855, especially pp. 850-851. \na \n\nPaul W. Cherington, "The Interaction of Government and Contractor \nOrganizations in Weapons Acquisition" in Richard A. Tybout (ed.), \nEconomics of Research and Development (Columbus: Ohio State University \nPress, 1965), pp. 327-343. \n\n^John Kenneth Galbraith, The New Industrial State (Boston: Houghton \nMifflin Company, 1966), pp. 317-323. \n\n11 A detailed treatment of the structure of the defense industry is \nbeyond the scope of this study. The standard reference remains Merton \nJ. Peck and Frederic M. Scherer, The Weapons Acquisition Process: An \nEconomic Analysis (Boston: Harvard University Graduate School of Business \nAdministration, 1962). A more recent treatment is found in William L. \nBaldwin, The Structure of the Defense Market, 1955-1964 (Durham, N.C.: \nDuke University Press, 1967). \n\n\n47 \n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n\n\n\nIn FY 1968 defense generated employment was estimated at 4.7 million or \n6.1% of total employment. As shown in Table 8, the labor force in \ndefense-related employment is generally more skilled than is the overall \nlabor force. Somewhat more than one-fifth of defense workers in fiscal \n1968 were in the skilled craftsman category compared with only 13.2 per\xc2\xac \ncent in the general labor force. Semiskilled workers and professionals \nemployed in defense industries accounted for 26.4 and 14.4 percent of the \ntotal compared with 18.4 and 12.8 percent, respectively, in the overall \nlabor force. The share of clerical employment in defense industries was \nsomewhat higher while that of service and sales workers were appreciably \nlower than in the general labor force. \n\n\n\n\n\nIn particular occupations defense employment represents very large \nproportions of those employed; for example an estimated 59 percent of \nall aeronautical engineers, 54 percent of airplane mechanics, 38 percent \nof non-professor physicists, and 22 percent of electrical engineers. \nDefense work also contributes significantly to the demand for electricians \nand the various metal trades workers. \n\nWhen one turns to military personnel it becomes more difficult to \nmake occupational comparisons which focus upon skill requirements be\xc2\xac \ncause few military jobs have direct civilian counterparts. \n\nLevels of educational attainment are available and may provide a \nrough proxy for skill. The proportion of military personnel and of those \nin the civilian labor force with high school and college degrees is shown \nfor selected years in Table 9. The difference in high school completion \nbetween the two groups is striking. In recent years four-fifths of en\xc2\xac \nlisted military personnel had four years of high school compared with \nonly about a third of the civilian male labor force. While the mean age \nof servicemen is doubtless lower than that of the civilian labor force \nwhich would permit the general trend toward more years of schooling to \nregister its influence more clearly in the military, the relatively high \nselection standard of the armed services is obvious. Skewness toward \nthe younger ages among military personnel and variable deferment \npolicies on college students makes it more difficult to interpret the \ndata on college graduates. Nevertheless, appreciable reductions in \n\n\nThe source of all FY 1968 occupational data in this section is Max \nA. Rutzick, "Skills and Location of Defense-Related Workers," Monthly \nLabor Review, Vol. 93, No. 2 (February, 1970), pp. 11-16. \n\n13 \n\nWool has estimated that 80 percent of military jobs held by en\xc2\xac \nlisted men correspond to only about 10 percent of those held by male \ncivilian workers. See Harold Wool, The Military Specialist: Skilled \nManpower for the Armed Services (Baltimore: The Johns Hopkins Press, \n1968), p. 55. \n\n\ni \n\n\n48 \n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nmilitary spending and in the size of the armed forces will free better \neducated and more highly skilled persons for work in civilian oriented \npursuits. \n\nWhether these persons will have a relatively easy time in trans\xc2\xac \nferring to civilian oriented employment will depend upon the degree of \ntransferability of their skills and their individual flexibility. As \nhas sometimes been noted, however, the wider availability of such people \nwith "desirable\xe2\x80\x9d traits and characteristics as viewed by employers may \nonly serve to worsen the job outlook for disadvantaged workers lacking \nsuch skills and training. The issue relates to jjje dependence upon \ncredentials as job prerequisites in our society. Clearly, the adjust\xc2\xac \nment problems of all groups will be less difficult in an environment \nof high aggregate demand. \n\nII.5 RESEARCH AND DEVELOPMENT AND MILITARY SPENDING \n\nWhile most of the research and development activities in the United \nStates are supported by the Federal government, the proportion of the \ntotal funded by the government has been declining since the mid-1960 ! s. \nThe federally-supported share of totaJ^R & D has fallen from about two- \nthirds in 1964 to 55 percent in 1970. As in prior years, the bulk of \nFederal support in 1970 (82 percent), will come from the Department of \nDefense (DOD), National Aeronautics and Space Administration (NASA), and \nthe Atomic Energy Commission (AEC). While still large, this share is \ndown almost ten percentage points from the 91 percenj^of total Federal \nsupport which these three agencies provided in 1960. This shift re\xc2\xac \nflects the sharp decline in the NASA research budget and the continued \ngrowth in the research activities of the Department of Health, Education \nand Welfare (HEW). (See Table 10) One consequence of this shift is the \nswing from research involving machinery and systems to more socially \noriented study. \n\n\n^ See Ivar Berg, Education and Jobs: The Great Training Robbery \n(New York: Praeger, 1970); and M. J. Bowman, "Educational Shortage and \nExcess,\xe2\x80\x9d The Canadian Journal of Economics and Political Science, Vol. \n\nXXIX, No. 4 (November, 1963), pp. 446-461, especially pp. 459-460. See \nalso Daniel E. Diamond and Hrach Bedrosian, Industry Hiring Requirements \nand the Employment of Disadvantaged Groups (New York: New York University \nSchool of Commerce, 1970). \n\n15, \'Science Resources Studies Highlights,\xe2\x80\x9d August 14, 1970, Washington, \nNational Science Foundation, NSF 70-28, p. 1. \n\n16 Ibid., p. 2. \n\n\n49 \n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nThe Department of Defense has been described as our "real National \nScience Foundation." In FY 1970 it is expected to provide 49.4 per\xc2\xac \ncent ($7.8 billion) of total Federal obligations for R & D. While down \nsignificantly from its four-fifthjglevel in the early 1950 \'s and the \n70-75 percent range of 1956-1960, it still is a major patron of science \nand development. When the FY 1970 obligations are broken down into basic \nresearch, applied research, and development, the DOD supj^rt shares be\xc2\xac \ncome approximately 11, 36, and 62 percent, respectively. \n\n\nTable 11 shows the relative decline in military R & D spending \nsince the intensification of Vietnam hostilities and the shifts in its \nregional distribution. Table 12 reflects a similar slowdown in total \nFederal R & D expenditures. The recent pressures on the DOD to postpone \nproduction until weapons have been more thoroughly tested, the need to \nremedy deficiencies in weapon systems unearthed during the Vietnam \nfighting, the need for more advanced inspection techniques that might \ngrow out of the SALT proceedings, and normal modernization requirements \nall suggest that increased military R & D may be anticipated. Research \nspending in the civilian area has also bean restrained during the war \nand will lil;ely grow too. In any event, those sections of the country \nwith a comparative advantage in research capabilities will directly \nbenefit from enlarged research budgets. The FY 1970 data in Table 11 \nsuggest that longer term shifts may be underway in the location of mili\xc2\xac \ntary R & D with Alaska and Hawaii and the states of the West North Cen\xc2\xac \ntral region gaining and those of the Mountain region lagging. \n\nThere seems little reason to fear that a reduction in the role of \nthe Pentagon will lead to a gap in R & D expenditures which will be \ndifficult to fill. Although advocates of particular research programs \nwill have to face increasingly sophisticated review boards. Federal \nsupport of science is likely to be a fixture on the American scene in \nthe foreseeable future. \n\nIndeed, a cooling off in the rate of growth of military R & D \nmay have a salutary effect on civilian research. Nelson has suggested \nthat the substitution problem may result in an overstatement of the \n\n17 Michael D. Reagan, "Science and Politics-Emerging Tensions," \npaper prepared for delivery at the 66th Annual Meeting of the American \nPolitical Science Association, Los Angeles, California, September 8-12 \n1970, p. 10. \n\n18 \n\nComputed from data in National Science Foundation, Federal Funds \nfor Research t Development, and Other Scientific Activities^, Fiscal Years \n\n1968, 1969, and 1970 , Vol. XVIII (Washington: Government Printing Office \n\nAugust, 1969), pp. 248-249. * \n\n\xe2\x96\xa0^NSF 70-28, op. cit., p. 1. \n\n\n50 \n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n20 \n\nreal impact of military R & D. That is, military support of research \nmay be a substitute for, rather than an addition to non-defense support. \nIf this is, in fact, the case, then a withdrawal of DOD research support \nmay result in more R & D spending by private firms or other government \nagencies. In addition, it is possible that the high level of military \nR & D in recent years has retarded the growth of civilian R & D by \nbidding up salaries and by absorbing the top science and engineering \ngraduates, significantly reducing both the quantity and quality of the \nresearch effort in civilian laboratories. \n\nII. 6 MILITARY PROGRAMS AND SOCIAL AND TECHNOLOGICAL INNOVATION \n\nThe DOD may be likened to the perennial iceberg in terms of its \nmany little-known functions. Particularly when coupled with heavy \nreliance upon the draft as a source of military manpower needs, the \nmilitary establishment has an impressive but largely unmeasured capacity \nas an engine of social change. The first major application of Federal \npower to combat racial discrimination was President Truman\xe2\x80\x99s desegrega\xc2\xac \ntion of the Armed Services twenty years ago. Defense Secretary McNamara \nsupported open housing by declaring as off limits those private off base \nhousing units whose owners refused to rent to Negro servicemen. \n\nEx-Defense Secretary Clark M. Clifford intensified the open-housing \ndrive and, in additon initiated broad socio-economic programs in three \nother areas, as follows: \n\n1. Research is being conducted in new building materials and \nproduction techniques aimed at lowering housing costs. \n\n2. Hospital automation in the military is being intensively \nexplored to develop lower cost medical care. \n\n3. New educational techniques are being developed for training \ndisadvantaged young men. Under Project 100,000, that number of \nmen is taken into the military annually who normally would not \nqualify for military service. They are given special teaching \n\nto help them qualify for and successfully complet^basic training \nand, if possible acquire simple technical skills. There is also \nProject Transition which is designed to provide job skills for \n\n\n20 Richard R. Nelson, "The Impact of Arms Reduction on Research and \nDevelopment," The American Economic Review , Vol. LIII, No. 2 (May, 1963), \npp. 435-446; especially p. 436. \n\n21 Ibid., p. 445. \n\n22 \n\n"Pentagon Widens \'Do-Gooder\' Role," Business Week , No. 2041 (Oc\xc2\xac \ntober 12, 1968), pp. 79-80. \n\n\n51 \n\n\nr \n\n\n\n\n\n\nACDA/E-156 \n\n\nsoon-to-be-discharged servicemen \n\n\n23 \n\n\n\nSocial scientists who have noted the use of the armed forces as a \ntraining and socializing device in the emerging countries have all but \nignored the process in the United States. Clifford focused attention \nupon this role by revealing in a speech that he was calling for a series \nof proposals from his top assistants "on how we may assist in alleviating \nsome of our most pressing domestic problems and how thg^Department of \nDefense should best organize itself for this purpose." He explicitly \nraised the question of whether, in awarding contracts, the Pentagon \nshould consider "not only whether the best weapon can be purchased for \nthe cheapest price, but also whether the measuremen^of social utility \nshould be included in the contract award decision?" The Republican \nAdministration appears to have continued some of these efforts. In \nApril, 1969, Secretary of Defense Laird announced the establishment of \na Domestic Action Council "composed of high level officials from the \nOffice of the Secretary of Defense, Joint Chiefs of Staff, and Military \nServices to insure a widespread, coordinated approach to the Depart\xc2\xac \nment\'s domestic action programs." Among other functions it was to pro\xc2\xac \nvide communication with the Presidents Urban Affairs Council. Secretary \n\n\n\n\nLaird emphasized six general areas in which he felt the DOD could help \nresolve domestic problems: procurement (contract set asides for areas \nof concentrated unemployment), manpower (various training programs for \nservicemen and disadvantaged civilians), knowledge transfer (technological \nspillover), assets (disposal of surplus property), community relations, \nand discrimination (various policies to insure equal rights for service\xc2\xac \nmen) . \n\n\n\n\nAn interagency study group has been established to encourage co\xc2\xac \noperation between military and civilian departments in research on common \n\n23 \n\nFor a rather favorable report on Project Transition see "Making \nCivilians Out of Soldiers," Business Week , No. 2143 (September 26, 1970), \npp. 68-70. \n\n24 \n\nPossible exceptions are the current Twentieth Centiiry Fund study \nof the impact of the military on American society, directed by Adam \nYarmolinsky of Harvard Law School, and the work of the Inter-University \nSeminar on Armed Forces and Society at the University of Chicago under \nthe direction of the sociologist, Morris Janowitz. \n\n25 \n\nSpeech by Clark M. Clifford to the National Security Industrial \nAssociation on September 26, 1968, Washington, D.C. \n\n26 Ibid. \n\n27 \n\n"Address by Melvin R. Laird, Secretary of Defense at Commencement \nExercises, St. Leo College, St. Leo, Florida, April 26, 1969," Department \nof Defense News Release No. 321-69, pp. 4 and 5. \n\n\n52 \n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nproblem areas. Subcommittees were set up to consider housing, solid \nwaste disposal, indicators of civil disorders, law enforcement and \ncriminal justice, labor, and rehabilitation of criminals. In March 1969, \nthe sixteen DOD-supported Federal Contract Research Centers (RAND, RAC, \nIDA, Mitre Corp. , etc.) were encouraged to devote up to about 20 percent \nof their annual work to non-DOD agencies and Secretary Laird invited the \nheads of civilian departments and agencies to consider utilizing their \nservices. \n\nIt is logical to ask why the Defense Department has undertaken these \ntasks. After all, other agencies are charged with area redevelopment, \nhousing, health, and job training. The Defense Department has argued \nthat its various programs have been designed to assist men in uniform \nand that any by-product consequences are incidental. Nevertheless, the \nimpacts of such programs have-been appreciable and, in some cases, more \nsuccessful than programs of the other agencies with specific responsi\xc2\xac \nbilities in these substantive areas. \n\nPerhaps the answer lies in the relative magnitude of the efforts \nwhich have been mounted, but what this tells us is that national defense \nhas been a much more successful rallying cry for increased appropriations \nthan area development and a variety of social welfare programs. Perhaps \nsome comprehensive form of national service \xc2\xa3gn do a more effective job \nof education and training than the military. Several halting efforts \nhave been made during the Kennedy and Johnson Administrations, but they \nhave failed to spark widespread Congressional support. Unless increased \nsupport can be developed for these functions to be made the specific \nresponsibility of civilian agencies, there is the possibility that a \nreduction in the role of the Pentagon will result in their disappearance \nin the interstices. There is some evidence that this process may have \nbegun. For example, during 1969 Senator Mike Mansfield provided an \namendment to the defense procurement bill designed to reduce DOD support \nof basic scientific research and to shift the funds to the appropriate \ncivilian agencies. Recently $8.8 million was cut from the military \nbudget and Senator Mansfield attempted to transfer that amount to the \nbudget of the National Science F^^ndation. The proposal was defeated \nin the House of Representatives. The unanswered question is whether \nthis action will result in a net reduction of that amount in Federal \nsupport for scientific research. \n\n^For a recent analysis of the national service alternative see \nDonald J. Eberly (ed.). National Service: A Report of a Conference \n(New York: Russell Sage Foundation, 1968). See also Morris Janowitz, \n\xe2\x80\x99\xe2\x80\x99American Democracy and Military Service,\xe2\x80\x9d Trans-action , Vol. IV, No. 54 \n(March, 1967), pp. 5-11, 57-59. \n\n^Behavior Today, Vol. 1, No. 10 (July 6, 1970), p. 60. \n\n\n/ \n\n\n53 \n\n\n\n\n\n\nACDA/E-156 \n\n\nThere is no a priori reason why such functions cannot be performed \nunder the aegis of a civilian agency. Indeed, they may be pressed more \nforcefully by agencies which consider them to be primary missions, \nrather than appendages to the basic military mission. The Columbia \nUniversity sociologist, Amitai Etzioni has proposed the establishment \nof a domestic agency to encourage technological development. Such \nefforts, thus far at least, have received little support in Congress. \n\n\nII.7 A COMPARISON OF THE VIETNAM AND KOREAN MOBILIZATIONS \n\nBy almost any measure, the military buildup resulting from the Viet\xc2\xac \nnam hostilities has been smaller than that which occurred during the \nKorean War. Examination of the relevant periods in Table 13 shows much \nlarger numbers of men inducted in the first period. The highest month \nfor military inductions during the Korean War was January, 1951 when \n87,053 men were called. By comparison, during the Vietnam hostilities \nthe record month was October, 1966 when 49,481 men were drafted. Fur\xc2\xac \nther, selective service had to begin from a skeleton organization in \nthe summer of 1950 as no men were inducted into the armed forces from \nJuly, 1949 to August, 1950. In the five months between August, 1950 \nand the end of the year, almost 220,000 men were drafte^ yielding the \nsecond largest monthly average in the 1950-1969 period. \n\nThe same rapid and heavy shift to military operations during the \nKorean War vis-a-vis the present hostilities is shown in Table 14. The \nannual rate of Federal purchases of goods and services for national de\xc2\xac \nfense increased 41 percent between the fourth quarter of calendar 1950 \nand the first quarter of calendar 1951. During the present hostilities \nthe largest rate of increase was 8.2 percent between the second and \nthird quarters of 1966. \n\nTable 15 indicates that military manpower jumped by almost 30 per\xc2\xac \ncent between the second and third quarters of calendar 1950 compared to \nthe maximum of 4.9 percent between the third and fourth quarters of \ncalendar 1965. A similar pattern in the growth of civilian employment \nin the Defense Department is shown in Table 16. \n\nAs a result of the more rapid pace of mobilization, the impact on \nprice levels was larger and more rapid. Price behavior in the two \nperiods may be traced by comparing the implicit price deflators for \n\n\nAmitai Etzioni, "Agency for Technological Development for Domestic \nPrograms," Science, Vol. 164 (April 4, 1969), pp. 43-50. \n\n31 \n\nAnnual Report of the Director of Selective Service, 1967 , pp. 85- \n86; Semi-Annual Report of the Director of Sele ctive Service, for the \n\nPeriod July 1 to December 31, 1967 , p. 37, and Selective Service System, \nSelective Service News , Vol. XX, No. 3 (March, 1970), p. 2. \n\n\n\n54 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nvarious components of Gross National Product by quarters for the 1950- \n1954 and 1965-1970 periods. The comparison is striking. The fighting \nbegan in late June of 1950 and the peak quarterly rate of price advance \n(3.03%) was registered shortly thereafter, between the fourth quarter \nof 1950 and the first quarter\'; of 1951. The next highest rate of price \ngain was only 1.28% and was recorded between the third and fourth \nquarters of 1951. In the successive twelve quarters to the end of 1954 \nthe rate of price change was zero twice, marginally negative twice, and \ndid not exceed 1.24%. The sharp climb in early 1951 was paced by price \nincreases in consumer goods. During the same period, the prices of goods \nand services purchases by the Federal government increased by only 0.13%. \n\nThe Vietnam hostilities began to escalate in August of 1965. As \nshown in the tables previously referred to, the military buildup was \nmore gradual than at the start of the Korean War. The rate of price \nadvance was also more moderate and did not reach 1% until the interval \nbetween the second and third quarters of 1967. However, after that it \ndid not climb by less than 0.9% in any interquarter period and consis\xc2\xac \ntently attained or exceeded 1% per quarter from the spring of 1968 \nthrough the early fall of 1970. The peak interquarter gain was \nnot attained until early 1970 and at that time the gain in consumer \nprices was lagging far behind that for government purchases. In fact \nthis pattern has been typical through much of the period. \n\nThere were of course important differences in policy. A price- \nwage freeze order was issued on January 25, 1951 and even before that \nsome halting efforts at stabilization had begun. The Korean stabili\xc2\xac \nzation program has generally been judged as much less satisfactory than \nthat of World War II. Perhaps more important in moderating the in\xc2\xac \nflationary pace of prices were t^ three major pieces of tax-raising \nlegislation passed in 1950-1951. The delays in requesting and in \nattaining tax increases during the Vietnam conflict stand out in com- . \nparison. Okun has recently presented a detailed account of this period.~ \nIn any event the inflationary pressures were permitted to go unchecked \n\n32 See Gordon F. Bloom and Herbert R. Northrup, Economics of Labor \nRelations (Homewood, Illinois * Richard D. Irwin, 5th Edition, 1965), \npp. 569-577. \n\n33 Arthur M. Okun, The Political Economy of Prosperity (Washington: \nThe Brookings Institution, 1970), p. 65. \n\n3 ^Ibid., pp. 62-99. For a review of monetary policy during the \nsame period see Darryl R. Francis, "Let\'s Not Retreat in the Fight \nAgainst Inflation, 1 * Federal Reserve Bank of St. Louis Review , Vol. 52, \nNo. 5 (May, 1970), pp. 7-11. \n\n\n55 \n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n] \n\n\nlonger in the present situation and the tax surcharge which was finally \nadopted was short-lived and mild. \n\n\n\nThe higher level of military preparedness from which we began in \nthe Vietnam conflict made it unlikely that the wrenching adjustments \nof the Korean mobilization would be repeated, and it is not unlikely \nthat the demobilization after Vietnam will also be smooth. Our ex\xc2\xac \nperience with the management of fiscal and monetary policy has grown \nin the interim, and we should be better able to handle the short-term \nproblems of transition. In part the conventional nature of the present \nbuildup will probably ease the problem since most of the military pro\xc2\xac \ncurement has been in industries where civilian markets exist, and where \nconversion to servicing such markets should present no great problem. \n\nAn obvious exception will be ammunition plants which have been started \nvirtually from scratch in areas relatively remote from urban industrial \ncomplexes. A special DOD study examined 292 l^or market areas where \ndefense dependency was considered significant. Twenty-five of them \nregistered a defense dependency ratio of 15 percent or more, and of \nthese communities, fifteen were in the "under 25,000 labor force size \nclass." The communities with the highest dependency ratios were \ntypically dominated by ammunition production. \n\nA recent study for the Arms Control Agency of an ammunition plant \nin Kansas indicated the work force was relatively uneducatg<^, unskilled, \nand drawn from the lower-paid segments of the labor force. An impor\xc2\xac \ntant finding was that in many cases, employment at the plant yielded \nsubstantially higher earnings which "meant t^g difference between a \ncomfortable standard of living and poverty." To the extent that these \nfindings of defense worker characteristics may be generalized, they \nsuggest that the burden of adjustment to reduced military spending after \n\n\nVernon M. Buehler, "Economic Impact of Defense Programs," in U.S. \nCongress, 90th Congress, 1st Session, Joint Economic Committee, Economic \nEffect of Vietnam Spending, Vol. II (Washington: Government Printing \nOffice, 1967), pp. 870-888. The measure of significant dependence on \ndefense in a labor market was more than 500 defense-generated workers or \na defense dependency rate in excess of five percent. \n\n36 Ibid ., pp. 878-879. \n\n37 \n\nBruce W. Macy, Robert E. Roberts and Patricia Quinlan, Ammunition \nProduction for Vietnam: Impact on Southeast Kansas ,(Washington! Govern- \nment Printing Office, ACDA/E-142, February 12,1970), pp. 7-8. \n\nOQ \n\nIbid., p. 8. \n\n\n56 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\npeace in Vietnam may fall disproportionately upon minority and other \ndisadvantaged workers. However, the fact that many firms currently \nengaged in defense production do have alternative civilian markets sug\xc2\xac \ngests that they may be more responsive to expansionary fiscal and mone- \ntary policies than would the major aerospace firms, for example. \n\nA least as a first approximation, one may speculate that regions \nwhich have benefited most from the Vietnam buildup will be the most \nvulnerable to an economic decline after its cessation. This will be \neven more likely if emphasis shifts from the general purpose forces \nback to the strategic. Table 17 suggests that such a shift away from \ngeneral purpose forces and toward the strategic has already begun. \n\nII.8 SOME POSSIBLE LONG-RUN CONSEQUENCES OF MILITARY SPENDING \n\n\nThe close dealings between the government and its major defense \ncontractors noted above have been seen ^ some observers as an important \nstep toward rational economic planning. Others have viewed the same \nphenomenon as a distinctly unfavorable development. H. L. Nieburg speaks \nof \xe2\x80\x9d... increasingly irrelevant and meaningless slogans that ignore the \nreal issues of monitoring the partnership between government and industry, \nof reforming the gravitation of policy making to the private government \nof industrial organizations whose internal processes are still beyond \nthe pale of the Constitution... M and notes that "...strictures of old \nvalue systems cannot comprehend Nationalization* by govemmen^contract\xe2\x80\x94 \nby indirect subsidies, by fiscal management and pump priming." \n\n\nWalter Adams, noting that the bulk of defense and space contracts \nare awarded on a negotiated rather than a competitive bid basis, and "as \nmuch the result of political as economic bargaining," describes a con\xc2\xac \nversion process whereby the private contractor has been transformed \ninto a "quasi-governmental, mercantilist corporation, maintained in a \nprivileged position by \xe2\x80\x99royal* franchise." His list of abuses of this \nentrenched position, citing highlights from a lg\xc2\xa35 report of the \nComptroller-General, reads like a horror story. \n\nTq \n\nAndrew Shonfield, Modem Capitalism: The Changing Balance of \nPublic and Private Power (New York and London: Oxford University Press, \n1965), pp. 341-346, and Galbraith, op.cit ., pp. 314-324, 361-368. \n\n^\xc2\xb0H. L. Nieburg, "Social Control of Innovation,\'* American Economic \nReview , Vol. LVIII, No. 2 (May, 1968), pp. 666-677, especially 672-673. \n\n^Walter Adams, "The Military-Industrial Complex and the New \nIndustrial State," American Economic Review , Vol. LVIII, No. 2 (May, \n1968), pp. 652-665, especially 656-657. \n\n\n57 \n\n\ni \n\n\ni \n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n\n\nProfessor Adams attempts to distinguish his position from J. K. \nGalbraith*s by explicitly rejecting any \xe2\x80\x99\xe2\x80\x99technological determinism" and \nby considering the incestuous nature of the military procurement process \n"...a political problem of governmental creation, protection, and sub\xc2\xac \nsidization of private privilege.Presumably any reduction in govern\xc2\xac \nment defense expenditures would help slow down, if not reverse, this \ntrend toward a position of privilege for the avaricious. \n\nMurray L. Weidenbaum has expressed a somewhat different concern. \nRather than private influence in public decision-making his concern is \nwith "public assumption of, or active participation in, private decision\xc2\xac \nmaking.\xe2\x80\x9d^ sees the procurement of sophisticated weaponry as a pro\xc2\xac \ncess which is enervating in nature and a threat to the survival capabili-^ \nties of the contractor firms. The key aspects of the process are public \ndetermination of what products the contractor firms will produce; gov\xc2\xac \nernment provision of the bulk of the plant, equipment, and working \ncapital used by the contractor firm; and a pervasive assumption of inter\xc2\xac \nnal decision-making functions within the contractor firm by the Federal \ngovernment.^ Here, reduced military spending might weaken this un\xc2\xac \nhealthy dependence upon the government and give these firms a new lease \non a healthy independent existence. \n\nWriting elsewhere in this volume, M. L. Weidenbaum notes the lack of \nsuccess of diversification efforts of the major defense contractors and \ntheir incapacity to market effectively their product in a competitive \nenvironment or to produce in large volume at low cost. This is relevant \nto their capacity to provide answers to a host of social and environ\xc2\xac \nmental problems currently plaguing modem society. The aerospace in\xc2\xac \ndustry has spoken confidently of its unique ability to unleash the same \nsophisticated techniques of problem-solving on various urban problems \nwhich have successfully produced a Polaris missile or a Mach 5 aircraft. \nSome skeptics are unconvinced. It is likely that a real systems break \noccurs when one shifts from physical to social systems which makes more \n\n\n^Ibid. # p. 664. \n\n43 \n\nMurray L. Weidenbaum, "Arms and the American Economy: A Domestic \nConvergence Hypothesis," American Economic Review , Vol. LVIII, No. 2 \n(May, 1968), pp. 428-437, especially p. 428. \n\n^Ibid., p. 664. \n\n\nSee, for example, the prepared statement of Lockheed Aircraft \nCorporation in U.S. Congress, 88th Congress, 2nd Session, Senate Commit\xc2\xac \ntee on Labor and Public Welfare, Subcommittee on Employment and Manpower, \nNation\xe2\x80\x99s Manpower Revolution, Hearings, Part 9 (Washington: Government \nPrinting Office, 1964), pp. 3049-3054. \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\ndifficult the effective transfer of skills between the two. Efforts at \nsuch transfer are underway and it will be some time before final judg\xc2\xac \nments can be safely make. As W. M. Capron has noted, however, imaginative \nchanges will be necessary on the demand side of those markets as well \nas among the vendors of these services, if successful applications of \nthese techniques to civilian problem areas is likely to occur. \n\n\n\n\n\n\n^William M. Capron, "Discussion" of Weidenbaum paper ( op.cit. ), \nAmerican Economic Review , Vol. LVIII, No. 2 (May, 1968), pp. 438-442, \nespecially p. 440. \n\n\n59 \n\n\n\n\nFEDERAL PURCHASES OF GOODS AND SERVICES FOR NATIONAL DEFENSE IN BILLIONS \nOF CURRENT DOLLARS AND AS A PERCENT OF VARIOUS AGGREGATES, 1939-1969 \n\n\nACDA/E-156 \n\n\n\nCO \n\nw Pm \nCO o \n\n\ng \n\nZD \n\nPu \n\n\nCO \n\nW \n\n\nS \n\n\nt/J \nw co \n\n\nCJ \n\nM \n\n\xc2\xa3 \n\nw \n\nCO \n\n\nw \n\n\nw \n\nco \n\nw \n\nCm co \nW < \nQ \n\n\na \n\nW W \n\n\nH \n\n\nO \n\n\nI \n\n\nCO \n\nQ \n\nO \n\nO \n\nO \n\nCm \n\nO \n\n\n> \n\no \n\no \n\nhJ \n\n3 \n\n\nCO \n\nU Pm \nCO O \n\n\nO \n\n\nUS \n\nw o \n\nCM \n\n\nEd \nco \nS3 \nW \nPm CO \nW *< \nQ \n\n\nCO \nCO C4 \nW CJ \nCO M \n\n< > w \n\nCE P3 CO \n\nq pa \n\nco \n\n\xc2\xa3> Pm \n\nCM pa \n\na* \n\n\npa o \n\nQ O \n\npa \n\nCm Pm \n\nO \n\n\n*5 \n\nO \n\nPm \n\n\n\n\nOOsfOOOO\'NH^COON CO NvOfO^fiO^\'J^OHvD CO \n\n\nNcooco-tvooNHcncn on \nr\xc2\xab*r\xc2\xab\'*.r^r\'**r^.p\xc2\xab\xc2\xab.r\xc2\xab.aooooo r>\xc2\xbb \n\n\ninmoNOor^vomcooNvo vo \n\noooooo\xc2\xab\xc2\xaboooooooon 00 \n\n\n\n\nrHONCMr^vOONUOrH^rH in *0\\vOrH \n\xe2\x80\xa2 \xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2 \n\nvOinsj\'0\xc2\xabo\xc2\xbbHooincO\'d* \n\n\nOMONvOm^ncMHO \nvOvOvAvOn0sOvOv0n0vO \nOn On On On On O\' #n On On On \nHHHHHHHHHH \n\n\nON \n\nVO \n\nON \n\nH \n\nI \n\nO \n\nvO \n\nON \n\n\n0) \n\n00 \n\n \n\ncn w \nw h w \n\n\n\n> w \n\nW CO \n\nw o <1 \n\n\nd \n\nONOOOOmHvO \n\nvO\'Pr^ooaxONONONooco \n\n\n4^ \n\nCM On CO * \n\n\xe2\x80\xa2 r\\ \xe2\x80\xa2 \n\nM \n\nfH Cl, \n\nOt \n\n1 \n\noo m a \n\no d \n\n\xe2\x80\xa2 o \n\nd \n\nON CO o \n\na) cd \n\ni-"- cm \n\nrH \n\n r>- \n\nCO \n\nCv rH \n\nd \n\nO \n\ncd \n\nC- \xe2\x80\xa2 \n\nM \n\nON Cl- \n\n \n\nm 4-\xc2\xbb \n\na) o \n\nd \n\no \n\n rH \n\no \n\no o \n\n*H \n\npi \n\no > \n\nP \n\nO \n\n\xe2\x80\xa2 \xe2\x80\xa2 #s \n\na \n\nd co \n\no \n\nO CO \n\no \n\n4-J Q) \n\nw \n\noo d \n\n\nd *H \n\na \n\n\xe2\x80\xa2H CO \n\n\xe2\x80\xa2H \n\nx d \n\n\nCO PQ \n\n\ncd \n\nu \n\na) \n\n<; \n\n\nCO \n\n\nrH \n\nr^- \n\nm \n\n\nr^. \n\n\n00 \n\nCM \n\n\nCM \n\ncd \n\ncd \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \n\n4-J \n\n& \n\n4-> \n\n\nCO \n\no \n\nON \n\n\nCO \n\nr^- \n\nON \n\nON \n\nCO \n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\nu \n\n\n> \n\n\n\n\n\n\n\n\n\n\n\n\n0 \n\n\nu \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\nON \n\nd \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nu \n\nrH \n\nu \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n4H \n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n* \n\n4-4 \n\nrH \n\n\n\n\n\n\n\n\n\n\n\nON \n\n\nd \n\nSo \n\no \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n \n\nrH \n\n\n\n\n\n\n\n\n\n\n\no \n\n\n6 Xi \n\nu \n\nX \n\n\n\n\n\n\n\n\n\n\n\n \n\no \n\nCO \n\n\n61 \n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nC\\l \n\nw \n\n.J \n\noq \n\n< \n\nH \n\n\n\n2 \n\n\n2: \n\no \n\n\xc2\xab M \n\n\nQ \n\ntil \n\n\nH \n\n< \n\n\nPh 25 \n\n\n0} cd \n\n/\xe2\x80\xa2"~N /\'\xe2\x80\x9cN \n\ncm co \n\n\n3 \n\nH \n\nO \n\nH \n\nP-4 \n\no \n\n6>2 \n\n\nc/3 \n\n<3 \n\n*-J \n\nH \n\nZ) \n\nO \n\n\no \n\nvt \n\n\nCO \n\nr^coCTN m \n\n\nOOCMHMO^NNON O- \n\nm m vo vo - \n\n0- \n\n\n\n\n\n\n\n\n\n\nm \n\n\n\n\n\n\n\n\n\n\n\n\n52 \n\nCO \n\nP5 \n\n\nH \n\n\'w\' \n\n\'\xe2\x80\x94\' \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n< \n\n<3 \n\nO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n25 \n\n25 \n\nCM \n\nCO \n\nM3 \n\nrH \n\n*n \n\n00 \n\nrH \n\nO\' \n\n\nCO \n\n00 \n\nCO \n\nr-. \n\no \n\no \n\nrH \n\nM3 \n\n3- \n\nCO \n\nO \n\nO \n\nM3 \n\no \n\nCO \n\nCM \n\nCO \n\nCO \n\n\n25 \n\n\n25 \n\n\n00 \n\n00 \n\noo \n\n\nm \n\n \xe2\x80\x941 \n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n4-1 \n\nCO \n\nw \n\n\no \n\no-. \n\nco \n\n\n4-> \n\nCO \n\nw \n\n\n0\\COtNMDin \n\n<3 \n\n\nON \n\nm \n\nco \n\nrH \n\nI \n\no \n\nm \n\n\nON \n\n00 \n\nO\'* \n\nM3 \n\nin \n\n-cr \n\nCO \n\nCM \n\nrH \n\no \n\nON \n\nuo \n\nm \n\nm \n\nm \n\nm \n\nm \n\nin \n\nm \n\nm \n\nm \n\nrH \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nos \n\nON \n\n\nrH \n\nrH \n\niH \n\nrH \n\nrH \n\nrH \n\nrH \n\n.H \n\nrH \n\nrH \n\n0) \n\n\noc \n\ncd \n\n \n\n<3 \n\n\n62 \n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n< \n\nH \n\nO \n\nH \n\nX \n\nO \n\n\n\nw \n\n\n/*N \n\nCO \n\n\n03 \n\n25 \n\n\n3 \n\nw \n\n\n3 \n\nX \n\nCO \n\nCJ \n\nw \n\n2 \n\n\xe2\x80\xa2H \n\nQ \n\nO \n\n4J \n\n\nM \n\n3 \n\nX \n\nH \n\nO \n\n< \n\nCJ \n\na \n\n2 \n\n\n\'w\' \n\nO \n\n3 \n\n\nM \n\nPm \n\n04 \n\nE-* \n\n\nW \n\n< \n\n\n25 \n\n\ns \n\n\n\n\xc2\xa3 \n\nCO \n\n\n3 \n\nH \n\n3> \n\nO \n\nX \n\nc \n\nH \n\nO \n\nH \n\n\nOOHCOvOvOvOCMsvooC \n\nONvor^HOMnnn^ \n\nONNfOHCNvDHO\'Ost \n\n\nr"\xc2\xbb \n\n \n\n< \n\n\nas \n\nco \n\nOs \n\n\nx o \n3 \n\n\nO \n\n25 \n\n\nX \n\n3 \n\n3 \n\ne \n\nc \n\nX \n\n0) \n\n> \n\n\n4-J 4-1 \n\n\xc2\xb0 \xc2\xb0 . \n\nX X \xe2\x80\x9c \xe2\x80\xa2* \nCOO \n r\xe2\x80\x94 \no Os \n\n\n\n\n\n\n\n\nO CD \n\nO \n\nCD \n\nCD \n\nrH \n\n\n\n\n\n\n\nO r-i \n\no \n\n4-J \n\nX \n\n\n\n\n\n\n\n\nX \n\n\nCO \n\n\xe2\x80\xa2H \n\nx \n\nm \n\nCO \n\nin \n\nm \n\nCM \n\nf\xe2\x80\x94i \n\n\xe2\x80\xa2\xe2\x80\xa2 cO \n\n\n4-J \n\nQ \n\ncO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n3 H \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nCO \n\n\n(D \n\nOn \n\nO \n\nm \n\nvO \n\nm \n\nCsl \n\no \n\n3 \n\n\n\n>\xe2\x96\xa0\xc2\xab \n\nr*. \n\n1^- \n\n \n\no \n\n4-J \n\n#- \n\n\n\n\n\n\n\n60 \n\n4-i \n\n3 \n\nN \n\nrH \n\n\n\n\n\n\n\n3 O- \n\n60 \n\n\xe2\x80\xa2H \n\n4-i \n\nCO \n\n\n\n\n\n\n\n*H CO \n\n3 \n\nO \n\nr\xe2\x80\x941 \n\nO \n\n\n\n\n\n\n\nX \n\n\xe2\x80\xa2H \n\n*\xe2\x80\x9c5 \n\n3 \n\nCO \n\n\n\n\n\n\n\nCO \xe2\x80\xa2 \n\nX \n\n\nX \n\n\xe2\x99\xa6H \n\n\n\n\n\n\n\nco a, \n\nCO \n\n\nCO \n\nX \n\n\n\n\n\n\n\nDs \n\nCO \n\n6 \n\n\n\n\n\n\n\n\n\n\'\xc2\xab-\xe2\x9c\x93 *T3 \n\n\no \n\n\xe2\x80\xa2 \n\nX \n\n\n\n\n\n\n\n3 \n\n\nX \n\nCM \n\nO \n\n\n\n\n\n\n\nOn CO \n\n\n4-4 \n\n\n4-J \n\n\nsO \n\nas \n\n\nco \n\n3 \n\nX \n\nCO \n\n4-J \n\nCO \n\nT> \n\n0) \n\n4-J \n\n\xe2\x80\xa2H \n\n3 \n\no \n\n3 \n\nX \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n4-i \n\nX. CO \n\nX \n\nCD \n\nCD \n\nCD \n\n\nOs \n\n\n\n\n\n\n\n\n\n\n\n\n\n\na \n\n\nX \n\nX \n\n60 \n\n\nsO \n\n\n\n\n\n\n\n\n\n\n\n\n\n4-J \n\n\xe2\x80\xa2* *H \n\n#k \n\n\nX \n\nX \n\n\nas \n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\nX \n\n\nCD \n\n\n3 \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOs CO \n\nrH \n\nX \n\n4-4 \n\nX \n\n\n\nr>. \n\nOn \n\nCM \n\n00 \n\nsO \n\non \n\n\nsO \n\nCM \n\nCM \n\nrH \n\noo \n\n4-i \n\nX *H \n\nsO \n\no \n\nO \n\n\n\n3 \n\nO \n\nX \n\nCO \n\n \n\n\xe2\x80\xa2V \n\n\nMi \n\nX \n\n\nCD \n\nX \n\n3 \n\n\n3 \n\non \n\nCO \n\nOs \n\no \n\n00 \n\nm \n\nON \n\n\xe2\x80\xa2vJ- \n\nCO \n\ncn \n\no \n\noo \n\n4-i \n\nCO \n\n#k \n\nX \n\ncO \n\n\n\xe2\x80\xa2 \n\n\nCO \n\nCO \n\nCO \n\nsO \n\non \n\nON \n\nf"- \n\nCO \n\nrH \n\n\nm \n\n\nCO \n\nCD \n\nCD \n\nCO \n\nX \n\nX \n\nX \n\nT3 \n\n\n\n\n\n\n\n\n\n\n\n\n\nX \n\nO rH \n\nO \n\n\nCD \n\n3 \n\nQ) \n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n< \n\n\xe2\x80\xa2H CO \n\n\xe2\x99\xa6H \n\nCO \n\nX \n\nCD \n\nCO \n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n4-4 O \n\n4-1 \n\n\xe2\x80\xa2H \n\nO \n\ne \n\nCO \n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\nX \n\n4-4 -H \n\n4-1 \n\nCO \n\nCD \n\n> \n\n3 \n\nX \n\nOn \n\n\n\n\n\n\n\n\n\n\n\n* \n\nCO \n\n3 \n\n\xe2\x80\xa2H \n\nX \n\n> \nx \n3 \n \n\n3 \n\n3 \n\n\xe2\x80\xa2H \n\n3 \n\nX \n\nO \n\nX \n\nQ \n\nX \n\n\nON \n\n\nCO \n\n\nc0 \n\n\n3 \n\n*\xe2\x80\x9c) \n\n\ncO \n\n\nX \n\nCD \n\nrH \n\nCD \n\nX) \n\nCO \n\n\nCD \n\n4-> \n\nCO \n\ne \n\n\nCO \n\nCD \n\n\nO \n\nX \n\nas \n\n\nco \n\n \n\n\n63 \n\n\n\n\n\n\n\n\n\n\n\n\n\nPrime Defense Contract Awards, by Area \n(percentage distribution of dollar volume) \n\n\nACDA/E-156 \n\n\n\nO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nr-. \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nON \n\n\nCM \n\n\nON \n\n\no \n\nm \n\nm \n\n00 \n\n3- \n\no \n\no \n\n\n\nrH \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\nrH \n\n\nON \n\n\nm \n\n\nCM \n\nCM \n\nCM \n\n\n\nCM \n\nO \n\nCO \n\nO \n\n\n\n>-\xc2\xbb \n\n\nrH \n\nrH \n\nCM \n\n\nrH \n\n\nCM \n\nrH \n\nrH \n\nCM \n\n\n\nCM \n\nCM \n\nO \n\n\n\nPu \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nH CM \nCQ nO \n\n\n6^ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x96\xba \n\n? ON \n\n\nOn \n\nr">. \n\nNO \n\n\nNO \n\nr>- \n\nCO \n\n \n\nw \n\n55 \n\n\nd co \n\nCO \n\n\nu \n\n\nfX, \n\n\n\n \n\na \n\nVi \n\nO \n\nCM \n\nU \n\nG \n\na \n\na) \n\n\n\n\n\n\n\xe2\x80\xa2 \n\n\n\n\nMl \n\n\n\n\n\n\n\xe2\x80\xa2\xc2\xab \n\n\n\nGO \n\n\n\n\na \n\nMi \n\n\n\n\n\ncd \n\n\n* \n\nd \n\n\n\n\nG \n\nd \n\n\nCO \n\n\n\nMl \n\n\n\n\xe2\x80\xa2H \n\n\n\n\nVi \n\nG \n\n\nG \n\n\n* \n\no \n\n\nS \n\n0 \n\n\n\nCU \n\nMl \n\n\xc2\xa3 \n\n\nG \n\n\nX 3 \n\n\nG \n\nO \n\nO \n\n\n\n4 : \n\nd \n\nMi \n\n\nd \n\nG \xe2\x80\xa2 \n\nG \n\ncd \n\nd \n\nX \n\nPo \n\ne* \n\n\nMl \n\n0 \n\nu \n\n\n\xe2\x80\xa2H \n\n43 CO \n\ncd \n\nQ \n\nCd \xe2\x80\xa2 \n\nG \n\n3 \n\ng \n\n\n\nCd \n\nG \n\n0 \n\nCO \n\nMl G \n\nrH \n\n\npH G \n\nrH \n\n\nG \n\n\n44 \n\n\nPM \n\nO \n\nd \n\nMl \n\nCO \n\n43 \n\n\n.X \n\n\nO \n\n\nO \n\n \n\n\n6 \n\nP 35 \n\n4-1 \n\n\nO Ml \n\n\nVI \n\nd *H \n\n\nG \n\n> \n\na\\ \n\nCU \n\n\xe2\x80\xa2H \n\n\n\nG \n\nCO \n\na) \n\nO \n\nS GO \n\n* \n\nMl \n\nVi \n\nrH \n\n0 \n\nV) \n\n\nG \n\n43 \n\nG \n\nX> \n\nz \n\nVi \n\n\xe2\x80\xa2H \n\nd> \n\nG \n\n1 \n\n*H \n\nPM \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nVl \n\nH \n\nG G \n\no \n\n\xe2\x80\xa2 \n\n* *H \n\na \n\n\nCO \n\nCM \n\n44 \n\n\nd \n\nG \n\n\nMJ G \n\n*S \n\nd \xe2\x80\xa2* \n\nG > \n\na \n\n* \n\n\nvO \n\nVM \n\n>1 \n\n0 \n\n\nG \n\nMl Ml \n\nCm \n\n\xe2\x80\xa2H cd \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\no \n\nrH \n\nCT> \n\nO \n\nM \n\nMl \n\nCM \n\nd \n\n*H *H \n\n\nco jx \n\nGO Ml \n\nC 0 \n\no \n\nG \n\ni \xe2\x80\x941 \n\n\nG \n\ngo m \n\nG \n\ng d \n\n\nG co \n\nVi CO \n\nCO \n\n*H \n\na \n\n\nG \n\nMl \n\nC \n\nCTv \n\n\nB 33 \n\ncu \n\no cd \n\nO 4 \n\npH \n\n\nDC \n\nG \n\n&\xe2\x80\xa2 td \n\n9 \xc2\xab \n\n\nG *H \n\n\ncu \xc2\xa3 \n\nG \n\n\n\xe2\x80\xa2 \n\nA \n\n\nGh \n\nB 4-1 \n\n6 \n\na #> \n\nG G \n\n* \n\n5 S G \n\nMl \n\npH \n\nCM \n\nCO \n\n\n\nM \n\n0 \n\ncd \n\nO -H \n\n\xe2\x80\xa2H *H \n\nG \n\n33 \n\nCO \n\nG \n\n\nG \n\n\nrH \n\n\n\n33 \n\n\xe2\x80\xa2 *H M \n\nVl GO \n\nd \n\n* \n\n\nO \n\n\nO \n\n0 \n\nG \n\nO \n\n43 G \n\n\na) \n\nss \n\n\nco \n\n44 \n\n44 \n\nG \n\nCO \n\n43 \n\nCJ \n\n G *H \n\n\xc2\xabh \xc2\xbb GO \nCO *H \xe2\x80\xa2 \nd 43 G \n\nd o \n\n\xc2\xa32 \n\n\no u cd \n\n\n4M \n\nM \n\n\nMl \nO \nCO \n\ng \nd \ncd c \n\n\nPH \n\n\ncd \n\n\xe2\x80\xa2H \n\n1 \n\n\n> CO \n\xe2\x80\xa2H \n** d \ncd o \nc -i \n\n\no Po \n\nrH V ^ \nO Cd O \nCd Cd 3 \n\n44 \n\nX c \n\nO 44 Qj \n\n\nCd X3 \nX) d \nG G \n> \n\na) cd \n\nCO \n* cd \ncd t\xe2\x80\x94( \nd \nGO \n\n\nVl CO \nO *H \n44 Pm \n\n\na) \n\nMl \n\ncd \n\n4 -J \n\n\ng \n\n44 \n\ncd \nu \no \n\nM CO \n\no \n\n0) XJ \nVi d \n\xe2\x80\xa2H cd \nO \n\n\n\n\nG \n\n\nO \n\nc 3 \n\na \n\n\n\nd \n\n04 \n\n\n* \n\nd \n\n0k \n\nO \n\n!\xc2\xa3 \n\nCO \n\nG \n\nCSI \n\n\nCM 43 \n\nO \n\n\nG \n\n\n>-\xe2\x80\xa2 \n\n*H \n\n\n\nMl \n\n0 \n\n\n\nO \n\n\xe2\x80\xa2H \n\nG \n\n\xe2\x80\xa2H \n\nO \n\n\nM \n\n1 \n\n\nG \n\nCd \n\nMl \n\n\nX \n\n\n\nG \n\n\n\xe2\x80\xa2 \n\nO \n\nCO \n\nr\xc2\xbb \n\n\n43 \n\n43 \n\nG \n\n00 \n\n\n>4 \n\nG \n\ntH \n\na \xe2\x80\xa2 \n\nCM \n\n\n\n\n\n\n\nd \n\nG \n\nG \n\n\xe2\x80\xa2H \n\n\nG \n\n\xe2\x80\xa2 \n\nG \n\nG \n\nd \n\n\n0k \n\nO \n\nG \n\n\nB \n\n\n#1 \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\nG \n\nM \n\nG \n\nMl \n\nVi \n\n0k \n\nG \n\nG \n\nTJ \n\nG \n\nG \n\nP 3 \n\nG \n\n44 \n\n>-\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nG \n\nG \n\nB \n\nVi \n\n\xc2\xae \n\nG \n\n\n5 Z \n\n\nG \n\nO \n\nMl \n\nG \n\nG \n\nG \n\nM \n\n5 \n\n44 \n\n\nG \n\n\n\nCM \n\nd \n\n\nG \n\nO \n\nd \n\nd \n\n\n\n\nd \n\nrX \n\nG \n\nd \n\nd \n\nX \n\n\n\nG \n\n>> \n\nd \n\nG \n\nrH \n\nCM \n\nMl \n\n0k \n\nd \n\n5 \n\n0 \n\n\xe2\x80\xa2H \n\n\n\nCO \n\nG \n\nG \n\n\xe2\x80\xa2H \n\n*H \n\nG \n\nG \n\n\n* \n\nQ \n\n43 \n\nG \n\n44 \n\nG \n\n\nG \n\nvO \n\n44 \n\n\n*H \n\nG \n\n\n\n\nO \n\nQ \n\nrH \n\n44 \n\nH \n\nO \n\nd \n\n\n\n44 \n\nG \n\nO \n\n0k \n\n\xe2\x80\xa2H \n\n\nG \n\nVi \n\n00 \n\nX \n\n\nG \n\n0 \n\n\n\n\nO \n\nVl \n\n\nX) \n\n0 \n\n4-1 \n\nG \n\n\nVl \n\nG \n\ny\xe2\x80\x94s \n\n> \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2H \n\nO \n\nG \n\n\n\nG \n\nd \n\n0k \n\n43 \n\n#\\ \n\nu \n\n \n\n4-1 \n\n\nMl \n\n\nVi \n\n\xe2\x80\xa2H \n\nG \n\nMl \n\nG \n\nG \n\n\nG \n\nVi \n\nG \n\n\nVi \n\n\nMl \n\nPm \n\n0 \n\nd \n\n\n\n\n\nd \n\n\nG \n\nrH \n\n\nd \n\nVi \n\nU \n\n#1 \n\nG \n\nO \n\nVi \n\n\nG \n\n44 \n\n0 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nr^ \n\n\xe2\x80\xa2H \n\n0k \n\nd \n\nG \n\nG \n\n0 \n\n\nG \n\npH \n\nO \n\n0 \n\nG \n\n\nG \n\nG \n\nrH \n\n0 \n\nVi \n\n\nO \n\nG \n\nG \n\nCTN \n\n\n\n\xe2\x80\xa2H \n\nd \n\nd \n\n*H \n\n\xe2\x80\xa2 \n\n\n(H \n\nM \n\nCO \n\nS \n\n43 \n\nB \n\nG \n\nO \n\n\nG \n\n<3 \n\n\nVi \n\nMl \n\nrH \n\nG \n\nvO \n\n\nt \xe2\x80\x944 \n\nG \n\nMl \n\nMl \n\n3 c \n\n\n\n\nG \n\nMl \n\nG \n\nG \n\nCd \n\n0k \n\nMl \n\n\nMJ \n\n\xe2\x80\xa2H \n\nG \n\n\nO \n\nCTv \n\nG \n\n05 \n\nd \n\nO \n\nd \n\nG \n\n\n\n\nrH \n\nu \n\n43 \n\nd \n\n\n\nG \n\nMl \n\nd \n\nO \n\nMJ \n\n0k \n\nG \n\nrH \n\nCJ \n\n> \n\nG \n\nG \n\n0 \n\n23 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nG \n\n0 \n\nG \n\nd \n\n0k \n\n\nVi \n\nCJ \n\nG \n\n\nCO \n\nO \n\nG \n\n\nG \n\n\nO \n\nd \n\n0 \n\n\nG \n\nrH \n\n\nO \n\n23 \n\niH \n\nG \n\nG \n\nd \n\nO \n\nG \n\nB \n\n0k \n\n\nCO \n\nPM \n\n\nG \n\nVi \n\n\nd \n\nC \n\n\nG \n\nG \n\n\n\n\n< \n\nH \n\nd \n\nC \n\nG \n\nVi \n\nMl \n\nG \n\nXJ \n\n\n\nV \n\nPM \n\nG \n\nd \n\n0 \n\nG \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nU \n\nVi \n\n\n\n\n\n\n0 \n\n0 \n\nCO \n\nMi \n\nVl \n\nG \n\nd \n\nV \n\n\nG \n\n\nrH \n\n\xe2\x80\xa2H \n\n\n> \n\nO \n\nMl \n\nMl \n\n\n\xe2\x80\xa2 * \n\n\n\n\nN \n\n4-1 \n\n\nd \n\nG \n\nd \n\nG \n\nG \n\n0k \n\nr\xc2\xa3 \n\n44 \n\nrH \n\n\n\n\n*H \n\nd \n\nd \n\n\nO \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\nG \n\n0 \n\nPM \n\nG \n\n\n43 \n\n\xc2\xa7 \n\nB \n\n0 \n\nO \n\nG \n\n\n\nM> \n\nG \n\nG \n\n\n\xe2\x80\xa2H \n\n\nrH \n\n\nVl \n\nr \xe2\x80\x941 \n\n43 \n\nCd \n\nG \n\n44 \n\nd \n\nO \n\nd \n\nG \n\n\nG \n\nG \n\n\xe2\x80\xa2 * \n\n\nd \n\nO \n\nu \n\n\nMl \n\n\nG \n\n\n> \n\nG \n\nG \n\n*k \n\n\nG \n\n\nW \n\n\ntH \n\n\n\n\n43 \n\n\n43 \n\n\nMl \n\n4-1 \n\n\xe2\x80\xa2H \n\nf 5 ^ \n\n00 \n\nV \n\nPQ \n\nd \n\n\nG \n\n0 \n\nG \n\nG \n\n\n\nG \n\nMl \n\nMl \n\n\nMl \n\n\nMl \n\n\nd \n\n\xe2\x80\xa2H \n\n4-1 \n\nU \n\nd \n\nG \n\n\nG \n\n\nG \n\n\xe2\x80\xa2H \n\nd \n\nG \n\n> \n\n\nG \n\nG \n\nG \n\n\nd \n\n\nd \n\n\nd \n\nO \n\n4 H \n\nG \n\n\n44 \n\nG \n\n44 \n\n>\xe2\x80\xa2> \n\nd \n\nB \n\ntH \n\nMl \n\nG \n\n\n\xe2\x80\xa2H \n\nG \n\nG \n\n\n0 \n\n\n0 \n\n\n0 \n\nG \n\nO \n\nMl \n\n43 \n\nG \n\nX> \n\nG \n\nG \n\n0 \n\nO \n\nU \n\nG \n\nZ \n\n\nX \n\nW \n\nz \n\n\nCO \n\n\nCO \n\n\na \n\nPM \n\n\n*H \n\nG \n\nu \n\nVl \n\nO \n\nU \n\nCM \n\nd \n\nX \n\nMl \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\nG \n\n0 \n\nG \n\n\nu \n\nG \n\n0 \n\nw \n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2H \n\n5 \n\nG \n\n\xc2\xa3 \n\n44 \n\nd \n\nG \n\na \n\nG \n\n43 \n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\nX \n\nV 4 \n\nCO \n\n< \n\n0 \n\na \n\nCM \n\nPM \n\n\n/-\xe2\x96\xa0\xe2\x96\xa0* *H 0 - \n> On \n\\D M H \nCTv G \npH CO * \nON \n\n\xe2\x80\xa2\xc2\xbb \xc2\xbb\xe2\x80\x94| vO \nN (6 d\\ \nCM U H \n\xe2\x80\xa2H \n\nP U *\xe2\x80\xa2 \n\na) co oo \n\njo h vo \ne M on \n \n\n\no \n\nco \n\n\xe2\x80\xa2H \n\nPm \n\nVi \n\nO \n\n44 \n\ncd \n\nM> \n\ncd \n\nQ \n\n\n\xe2\x80\xa2H O \nB T) M \n\no g g \nd d i \no o B \na *h o \nw co o \nCO \n\n0) rl H \n\nrH B O \n\n\nH C Vl \nGOG \n\nu \'i \n\n\nCO \n\no \n\n\nVi \n\nd \n\no \n\nCO \n\n\n65 \n\n\n\n\n\nMilitary Prime Contract Awards of $10,000 or More for Major Military \n\nHard Goods \xe2\x80\x94 by Geographic Region \n\n\nACDA/E-156 \n\n\no \n\n1 \xe2\x80\x94 \n\n6-2 \n\no \n\nr- \n\nrH \n\nc- \n\nsO \n\nCM \n\nr- \n\nO O \n\n\n6-2 \n\nO \n\nO \n\n00 \n\nSO \n\nso \n\nrH \n\no \n\nrH \n\n00 \n\n\nOS \n\nr\xe2\x80\x94i \n\no \n\nCO \n\n\nos \n\no \n\nn \n\n-\xe2\x80\xa2 \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\npt-i \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOs \n\nS-2 \n\n\n\n\n\n\n\n\n\n5-2 \n\n\n\n\n\n\n\n\n\n\ns\xc2\xa3> \n\nO \n\n\nrH \n\n00 \n\no \n\nCO \n\no \n\ni"- os \n\n\nO \n\n00 \n\n00 \n\nCO \n\nCM \n\nrH \n\nCO \n\n00 \n\nsO \n\n\nOn \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n* \n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2K \n\nrH \n\no \n\nin \n\nrH \n\nCO \n\nOs \n\nCM \n\nuo \n\nO rH \n\n\nO \n\nCM \n\nCO \n\nCM \n\nCM \n\nOS \n\nCM \n\nuo \n\nrH \n\n\n\no \n\nrH \n\nrH \n\nrH \n\n\nrH \n\nCM \n\nrH \n\n\nO \n\nrH \n\nrH \n\n\n\n\n\n\nU0 \n\n\n\xc2\xa3 \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n00 \n\n5-2 \n\n\n\n\n\n\n\n\n\n5-2 \n\n\n\n\n\n\n\n\n\n\ns\xc2\xa3> \n\nO \n\nsO \n\nrH \n\nCM \n\nrH \n\nCM \n\nn* \n\n00 <3" \n\n\nO \n\nr-. \n\nrH \n\no \n\nO \n\n\nOs \n\nCO \n\nrH \n\n\nO\' \n\n\n\n\n\n\n\n\n\nHC \n\n\n\n\n\n\n\n\n\n\n\nt-H \n\no \n\n00 \n\nCO \n\nrH \n\nos \n\nO \n\nso \n\no o \n\n\nO \n\nrH \n\nrH \n\n<* \n\nCO \n\no \n\nCM \n\nuo \n\nrH \n\nO \n\n\no \n\nrH \n\nrH \n\nrH \n\n\nrH \n\nCM \n\nrH \n\n\nO \n\nrH \n\nrH \n\n\n\nrH \n\n\n\nUO \n\n\n>* \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nPm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n6-2 \n\n\n\n\n\n\n\n\n\n6-2 \n\n\n\n\n\n\n\n\n\n\ni\xe2\x80\x941 sO \n\nO \n\nCM \n\nsO \n\nsO \n\no \n\nsO \n\nrH \n\nOS o \n\n\nO \n\nCM \n\nCM \n\nsO \n\nin \n\nr-^ \n\nCM \n\nOS \n\nOS \n\n\ncd os \n\n\n\n\n\n\n\n\n\n* \n\n\n\n\n\n\n\n\n\n\nHC \n\n4-i t-H \n\nO \n\nm \n\nCnI \n\nO \n\nos \n\nO \n\nrH \n\no o \n\n\nO \n\nO \n\nO \n\n<1- \n\nCM \n\nOs \n\nCO \n\nso \n\nCM \n\n\nO \n\nO \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nCM \n\nrH \n\n\nO \n\nrH \n\nrH \n\n\n\n\n\n\nU0 \n\n\nH \xc2\xa3 \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\ne \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nPi sO \n\nS\'? \n\n\n\n\n\n\n\n\n\n5-2 \n\n\n\n\n\n\n\n\n\n\n00 sD \n\no \n\nOs \n\nuo \n\nrH \n\n<1- \n\nOS \n\no \n\nCO os \n\n\nO \n\ni"- \n\nrH \n\nr-. \n\nn \n\n00 \n\nO \n\nuo \n\nr- \n\n\nO O\'* \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n* \n\n\n\n\n\n\n\n\n\n\nHC \n\nM i\xe2\x80\x94 \n\no \n\no \n\no- \n\nCO \n\nrH \n\n00 \n\n\nrH CM \n\n\nO \n\nOs \n\nCM \n\nCO \n\n-a- \n\nrH \n\nCO \n\nVO \n\n00 \n\n\n\nO \n\nCM \n\nrH \n\nrH \n\nrH \n\n\nrH \n\nr\xe2\x80\x94I \n\n\nO \n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n4M PM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n4J m \n\n6-2 \n\n\n\n\n\n\n\n\n\n6-2 \n\n\n\n\n\n\n\n\n\n\nG o> \n\nO \n\nc*. \n\nCN \n\nin \n\nOs \n\nM \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nPm Pm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x96\xa0 \n\n\xe2\x80\xa2< \n\nr\xe2\x80\x94 \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nPm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCM \n\n6-2 \n\n\n\n\n\n\n\n\n\n6-2 \n\n\n\n\n\n\n\n\n\n\nsD \n\no \n\nr-. \n\nCO \n\n00 \n\nrH \n\nO \n\nUO \n\nSO O \n\n\nO \n\no \n\nsO \n\noo \n\noo \n\nOs \n\nCO \n\nOS \n\nr- \n\n\nOs \n\n\n\n\n\n\n\n\n\nHC \n\n\n\n\n\n\n\n\n\n\nHC \n\nrH \n\no \n\n00 \n\nO \n\nCM \n\nCM \n\nsO \n\nr-. \n\nO CM \n\n\no \n\n00 \n\no \n\nCO \n\nrH \n\noo \n\nrH \n\nrH \n\nco \n\n\n\no \n\nrH \n\nCnI \n\nrH \n\nrH \n\n\n\nCM \n\n\no \n\n\nrH \n\n\n\n\n\nrH \n\nuo \n\n\n\nr\xe2\x80\x94 \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nPm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nid id \n\n\ncd id \n\n\n\n\n\n\n\n\n\nV-i \n\n\n\n\n\n\n\n\nC/D \n\n\n\nu \n\nV4 \n\n\n\n\n\n\n\n\n\no \n\nX) \n\nu \n\n\n\n\n\n\n\n\n2 \n\n\no \n\n4J \n\n4-1 \n\n\n\n\nT3 \n\n\n\n\nT3 \n\n*H \n\nG \n\nG \n\no \n\n\n\n\n\n\nQ \n\nw \n\nH3 \n\n\xe2\x80\xa2H \n\nG \n\nG \n\no \n\n\n\nG \n\no \n\n\n\nG \n\n4-4 \n\n0) \n\n"\xe2\x80\xa2 \n\nrH \n\ncd \n\n\n\nG \n\nu \n\nG \n\n& \n\nCX \n\n\np-t \n\n00 rH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\n4-1 \n\n*H \n\no \n\n\n\xe2\x80\xa2H \n\nw \n\nC/D \n\n00 rH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\n4-4 \n\n*H \n\ncd \n\ncd \n\n\n< \n\nG \n\nu \n\n2 \n\n2 \n\nrH \n\nG \n\ncd \n\n\xe2\x80\xa2H \n\ncd \n\ncd \n\nhJ \n\n\nC \n\n4-\xc2\xbb \n\n2 \n\n2 \n\nrH \n\nG \n\nCd \n\nH \n\nu \n\n\nw \n\nw \n\n<2 \n\n\n\n4J \n\nCD \n\n4-* \n\n44 \n\n\n\nIH \n\nW \n\nw \n\n<2 \n\n\n\n4J \n\nd> \n\n4-4 \n\n00 \n\n00 \n\ncd \n\nu \n\n\nl \n\n4-> \n\nu \n\n<2 \n\nU \n\nG \n\n\xe2\x99\xa6H \n\nCO \n\nCd \n\nC/D \n\nCJ \n\n\n1 \n\n4-1 \n\n4J \n\n<2 \n\nU \n\nG \n\nO \n\no \n\n0) \n\nP4 \n\n\n\nCO \n\nCO \n\n\n\n3 \n\nCJ \n\ncd \n\n2 \n\nC/D \n\n<2 \n\n\xc2\xa3 \n\nT3 \n\nCO \n\nCO \n\n\n\n3 \n\nU \n\n0> \n\nM \n\nM \n\nd> \n\n\xe2\x96\xa0H \n\ncd \n\n0) \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nO \n\ncd \n\nrH \n\n\nM \n\nPX \n\n\n*H \n\ncd \n\nd) \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\no \n\nP-. \n\no \n\n<2 \n\n<2 \n\n2 \n\n2 \n\nw \n\n22 \n\ncn \n\nCO \n\n2 \n\nPP \n\n<2 \n\n\n2 \n\nm \n\n2 \n\n2 \n\nw \n\n\nin \n\nC/D \n\n2 \n\n\nI \n\n\n66 \n\n\nPacific \nAlaska & \nHawaii \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTABLE 4 (continued) \n\n\nACDA/E-156 \n\n\no \n\nH \n\nI \n\n\nu \n\nPut \n\n\nO \n\nU \n\n\ncd cd \n\nU 4J \n\n\no \n\n8*1 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\no \n\n00 \n\n\nCM \n\n00 \n\nm \n\nrH \n\nON \n\nCM \n\no \n\nm \n\nON \n\nm \n\nON \n\nU0 \n\nuo \n\nCM \n\nON \n\non \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\nrH \n\no \n\n00 \n\n00 \n\nCM \n\no \n\n\nNO \n\no \n\n00 \n\nO \n\no 1 \n\nrH \n\n\n\nrH \n\nr-\xc2\xbb \n\nCM \n\no \n\nNO \n\n\no \n\n\nCM \n\n\n\nCM \n\nCM \n\n\n\n\no \n\n\n\n\n\n\n\n\n\n\xc2\xa3 \n\n\xc2\xbbH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\non \n\n8 * \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nvO \n\no \n\nm \n\nNO \n\nNO \n\nCM \n\nNO \n\nCO \n\nCM \n\no \n\nrH \n\nOl \n\n00 \n\nrH \n\nNO \n\nNO \n\nCO \n\nrH \n\nCO \n\no \n\nOn \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\no \n\nm \n\nON \n\n. \n\nrH \n\nUO \n\nNO \n\no \n\nI- 1 \n\n\no \n\nrH \n\nCM \n\n\n\nCM \n\n\n\nrH \n\n\no \n\n\n\nNO \n\n\n\n\n\nrH \n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n00 \n\n8 * \n\n\n\n\n\n\n\n\n\n\n8 * \n\n\n\n\n\n\n\n\n\nvO \n\no \n\nCM \n\n. \n\n8 * \n\n\n\n\n\n\n\n\n\n\n8 * \n\n\n\n\n\n\n\n\n\nvO \n\no \n\nrH \n\nCM \n\n\nCO \n\nNO \n\nm \n\n\nU0 \n\n\nO \n\nCO \n\nrH \n\nCM \n\nr-. \n\nCM \n\nrH \n\n* \n\no \n\no \n\nrH \n\n\nuo \n\nCM \n\n\nCO \n\no \n\nCM \n\n\no \n\nCM \n\nCM \n\n\n\nrH \n\n\n\nrH \n\n\no \n\n\n\nr-. \n\n\n\n\n\n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nm \n\ns* \n\n\n\n\n\n\n\n\n\n\n8 * \n\n\n\n\n\n\n\n\n\nNO \n\no \n\nNO \n\nn* \n\n* \n\nON \n\n\n00 \n\n\no \n\nuo \n\nO \n\noo \n\nON \n\nCM \n\nuo \n\nCO \n\n00 \n\nON \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n* \n\n\xe2\x80\xa2 \n\n* \n\n\n\n\n\n\n\n\n\n\nrH \n\no \n\nl/N \n\nto \n\nNO \n\nO \n\n00 \n\n\n\nm \n\n\nd \n\no \n\nON \n\nr>- \n\no \n\nin \n\nCO \n\no \n\nCM \n\n\no \n\nCM \n\nCM \n\n\n\nrH \n\n\n\niH \n\n\nO \n\n\n\nNO \n\n\n\n\n\nrH \n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\ncd cd \nm u \n\n4-5 4-5 \n\n\nT3 \n\n\n\n\nXJ \n\n\xe2\x80\xa2H \n\nd \n\na \n\no \n\n\n\n\n\n\n\nT3 \n\n\xe2\x80\xa2H \n\nd \n\nd \n\nu \n\n\n\n\n\n\na \n\no \n\n\n\nc \n\n4-5 \n\n<0 \n\n0) \n\n\xe2\x80\xa2H \n\nrH \n\n\n\n\n\nw \n\nd \n\n4-1 \n\ncu \n\n0\xc2\xbb \n\n\xe2\x80\xa2H \n\nrH \n\n\n\n\n\ncd \n\n\xe2\x80\xa2H \n\n\n\ncd \n\nC \n\nu \n\nu \n\n4-5 \n\ncd \n\n\n\n\n\n> \n\ncd \n\nd \n\nCJ> \n\nu \n\n4-1 \n\ncd \n\n\n\n\n\n\n\n\nrH \n\ncd \n\n\n\nC \n\nU \n\nd \n\n\n*4J \n\n\xe2\x80\xa2H \n\n5H \n\nrH \n\ncd \n\n\n\nc \n\nU \n\nd \n\n\n^3 \n\n\xe2\x80\xa2H \n\nB \n\nCu \n\n\n\n00 \n\nrH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\n4-5 \n\n\xe2\x80\xa2H \n\no \n\n\n\xe2\x80\xa2H \n\nH \n\n00 \n\nrH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\n4-5 \n\n\xe2\x80\xa2H \n\no \n\n\n\xe2\x80\xa2H \n\ncd \n\ncd \n\n\n\nd \n\n4-5 \n\nz \n\nz \n\nrH \n\nd \n\ncd \n\n\xe2\x80\xa2H \n\ncd \n\ncd \n\no \n\nd \n\n4-5 \n\n2 \n\nz \n\nrH \n\nC \n\ncd \n\n\xe2\x80\xa2H \n\ncd \n\ncd \n\nu \n\nu \n\n\nCO \n\nw \n\n<3 \n\n\n\n4-5 \n\nQ) \n\n4-5 \n\nIH \n\n\n\xc2\xa3 \n\ni a \n\nW \n\n<3 \n\n\n\n4-5 \n\nCU \n\n4-5 \n\nMH \n\n\n\xc2\xa3 \n\n00 \n\n00 \n\ncd \n\nCU \n\n\n1 \n\n4-5 \n\n4-5 \n\n<3 \n\nO \n\nd \n\n*H \n\n(0 \n\ncd \n\n& o \n\n\nl \n\n4-5 \n\n4-5 \n\n<3 \n\nU \n\nd \n\n\xe2\x80\xa2H \n\nCO \n\ncd \n\no \n\no \n\n0) \n\nIH \n\n\nT3 \n\nCO \n\nCO \n\n\n\n0 \n\nO \n\ncd \n\nz \n\nZ H \n\nS \n\nTJ \n\nCO \n\nCO \n\n\n\nd \n\nO \n\ncd \n\nZ \n\nu \n\n(U \n\nu \n\nz \n\n3- \n\nCO \n\nvO \n\n\no \n\no \n\nCM \n\nco \n\nCM \n\noo \n\nvO \n\n00 \n\no \n\n\non \n\nrH \n\nO \n\no \n\n\nCO \n\nCO \n\n<* \n\nCO \n\no \n\nOs \n\no \n\no \n\n\nCM \n\n\xc2\xbbn \n\nrH \n\nvO \n\nON \n\nrH \n\n00 \n\n\xe2\x80\xa2 \n\no \n\n\n\nO \n\nCO \n\nrH \n\nrH \n\nrH \n\n\n\n\nrH \n\n\no \n\n\nrH \n\nCM \n\nCM \n\n\nrH \n\n\n\n\n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nON \n\nsv\xc2\xb0 \n\n\n\n\n\n\n\n\n\n\ns-s \n\n\n\n\n\n\n\nVO \n\nin \n\n\n\nvD \n\no \n\nm \n\nrH \n\nMO \n\n-\xe2\x80\xa2 \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nPM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n00 \n\n\n\n\n\n\n\n\n\n\n\nS\'S \n\n\n\n\n\n\n\n\n\n\n\nvD \n\nO \n\nm \n\nvO \n\no \n\n00 \n\n00 \n\n\n00 \n\nr- \n\no \n\nO \n\nm \n\no \n\nr-- \n\nOS \n\nCM \n\nrH \n\nrH \n\n\n\n\nOn \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\noo \n\n\xe2\x80\xa2K \n\n\npH \n\no \n\n\xc2\xbb \n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nP-4 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\ne \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nu \n\nvjD \n\nsc \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\noo vo \n\no \n\nrH \n\nco \n\nin \n\nCM \n\nCO \n\nr- \n\no \n\nOs \n\no \n\nO \n\non \n\nVO \n\n\n \n\n\n00 \n\nCO \n\n$ \n\n\n\n\n\n\n\n\n\n\n\nvO \n\nO \n\nCO \n\npH \n\nCM \n\nrH \n\nOs \n\nrH \n\nCM \n\nrH \n\no \n\no \n\nm \n\n00 \n\nrH \n\n*<}\xe2\x96\xa0 \n\nCO \n\nrH \n\n\n\no \n\n\nON \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \n\n\nrH \n\no \n\nr>. \n\nC\'- \n\nCM \n\nCO \n\nCM \n\n \n\nG \n\n4-1 \n\n4-4 \n\n\n\xc2\xa3 \n\n4J \n\nu \n\n. \n\n\nCM \n\nco \n\nrH \n\n\no \n\nrH \n\nCM \n\n\n\nrH \n\n\n\nCM \n\n\nE \n\n*H \n\n\n\n\n\n\n\n\n\n\nON \n\n\n\n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\nNO \n\nO \n\nrH \n\nst \n\nrH \n\nm \n\n00 \n\nin \n\nst \n\nNO \n\n\nOn \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xc2\xbb \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nrH \n\no \n\nCM \n\nm \n\nrH \n\nm \n\nSt \n\nNO \n\nCM \n\nrH \n\no \n\n\no \n\nrH \n\nCM \n\nrH \n\n\nrH \n\n\n\nCM \n\n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\n00 \n\n\n\n\n\n\n\n\n\n\n\nNO \n\nO \n\nON \n\nm \n\nco \n\n00 \n\nrH \n\nSt \n\nr- \n\nON \n\nMf \n\nON \n\n\n\n\n\n\n\n\n\n\n\nrH \n\no \n\nco \n\nr". \n\nO Ml* \n\nco \n\nNO \n\nCM \n\no \n\nO \n\n\no \n\nrH \n\nCM \n\nrH \n\n\nrH \n\n\n\nCM \n\n\nE \n\nrH \n\n\n\n\n\n\n\n\n\n\n\nS\'? \n\n\n\n\n\n\n\n\n\n\nNO \n\no \n\n*H \n\nco \n\nr>* \n\nNO \n\nCM \n\nco \n\no \n\nin \n\nco \n\nON \n\n\n\n\n\n\n\n\n\n\n\nrH \n\no \n\nco \n\nr-s \n\nON \n\nm \n\nm \n\nm \n\nCM \n\nrH \n\no \n\n\no \n\nrH \n\ncm \n\n\n\nrH \n\n\n\nCM \n\n\n\nVI \n\n\xc2\xa33 \n\n\nm \n\nNO \n\n\no \n\n\no \n\no \n\n\n\n\nmoNnooHoonn \n\n\nHO\\O\'O ^ \nM \n\n \n\ncd \n\n\nCO \n\nv\xc2\xbb \nu cd \nCO 0) \n\n\nu \n\nO iH \n4-i td \n\no \n\n05 CO \n4-> \xc2\xabH \n\ncd b \n\nu \n\nQ \nu \no \n0 ) \n\nVl \n\n\n0 ) \n\n4J \n\n\n\nd) \n\nON \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H 4J \n\nOn \n\n/S \n\n\no \n\n\nO \n\nrH \n\n\n\no \n\nCM \n\nCM \n\nO \n\nm \n\nrH \n\nCO \n\nCM \n\nrH \n\no \n\n\nQ co \n\nrH \n\nOn \n\n\n4-J \n\n\nVi \n\n\n\n\no \n\nrH \n\nCO \n\nrH \n\n\nrH \n\n\n\nCM \n\n\n\n\n\nNO \n\n\n\n\nQ) \n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n* *d \n\n\nOn \n\n\n\n\n(U \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nd) d \n\nn- \n\niH \n\n\nVi \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nco TO \n\nCM \n\n\n\nO \n\n\n\n\n\n\n5^ \n\n\n\n\n\n\n\n\n\n\n\nd \n\n\n\n\n> \n\n\n\nSf \n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\na \n\nXi \n\n\nto \n\n\n\nhi \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\nCD \n\no \n\n\nd \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nQ \n\n4-J \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nE-\xc2\xb0 \n\n\nO \n\n\nTO \n\n\n\nco \n\n\n\n8H> \n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2n \n\no \n\n\n> \n\n\n\nNO \n\n\n\nO \n\nvO \n\n\xc2\xabn \n\n\n\n00 \n\nst \n\nCO \n\nON \n\nr\xe2\x80\x94j \n\n\nTO co \n\nd) \n\nV \n\n\n\n\n\nON \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n4-J T) \n\nco \n\n\n\nVi \n\n\n\nrH \n\n\n\nO \n\nON \n\n00 \n\nON \n\nst \n\nrH \n\nSt \n\nrH \n\nn- \n\nCM \n\n\nd) Vi \n\nd \n\nOn \n\n\nTO \n\n\n\n\n\n\nO \n\n\nco \n\n\n\nrH \n\n\n\nrH \n\n\n\nM TO \n\n-\xe2\x80\xa2 \n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nCJ \xc2\xa3 \n\n44 \n\nON \n\n\nrH \n\n\n\npt\xc2\xbb \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nd) 4 \n\n\n\n\n\nCM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(U o \n\n44 \n\nh \n\n\nd) \n\n\n\nnO \n\n\n\nO \n\nm \n\nnO \n\nCM \n\n00 \n\n00 \n\nCO \n\nsl- \n\nCM \n\nCM \n\n\njd TO \n\nO \n\n1 \n\n\n-d \n\n\n\nOn \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n4-> U \n\n\nr>. \n\n\n4-J \n\n\n\nrH \n\n\n\no \n\nON \n\n00 \n\nNO \n\nm \n\no \n\nCO \n\nrH \n\n\nO \n\n\n4-J \n\n4-J \n\nNO \n\n\n\n\n\n\n\n\no \n\n\nCO \n\nrH \n\n\nrH \n\n\n\nrH \n\n\n\n44 d \n\nd \n\nON \n\n\nCO \n\n\n\nE \n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\xc2\xb0<3 \n\nd) \n\n0 \n\nrH \n\n\xe2\x80\xa2 \n\nNO \n\nd) \n\nT3 \n\n\n\n\nQ \n\n25 \n\n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\nd) \n\n4-J \n\n>4 \n\n1 \n\nd \n\n\n\n\n\nO \n\n\n\n\ncd \n\nTO \n\n\n\n\n\n\n\nO dJ \n\nVi \n\nh \n\nm \n\nrH \n\n\n\n\n\nM \n\nH \n\n\n\nVl \n\nVi \n\n\n\n\n\n\n\n\xe2\x80\xa2H 0 \n\nTO \n\n\n\na \n\n\n\n\n\nH \n\nJ5 \n\n\no \n\n4-J \n\n4-J \n\n\n\n\n\n\n\n44 *H \n\na \n\nVi \n\n\xe2\x80\xa2 \n\nX \n\nTJ \n\n\n\nCO \n\n<3 \n\n\nTJ \n\n*H \n\nPS \n\nPS \n\nCJ \n\n\n\n\n\n\n44 Vl \n\nd) \n\no \n\nPV \n\nw \n\na \n\no \n\n\ncj \n\nU \n\n\xc2\xa7 \n\ng \n\n4-1 \n\n \n\nd) \n\n4-\xc2\xbb \n\n4H \n\n\n\xc2\xa3 \n\nCJ \n\n\n\n\n\n00 \n\n00 \n\ncd \n\nO \n\no \n\n\n\n1 \n\n4-J \n\n4-J \n\n<3 \n\nCJ \n\nPS \n\n\xe2\x80\xa2rl \n\nCO \n\nTO \n\n\n\n\n\n\nO \n\no \n\nd)S \n\nw \n\nCJ \n\n\n> \n\nTl \n\nCO \n\n(0 \n\n\n\nd \n\nCJ \n\nTO \n\ntd \n\nh> \n\n\n\n\n\nVi \n\nd) \n\nVs \n\ntd \n\n\n\nd) \n\n\xe2\x80\xa2H \n\nTO \n\nd> \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nO \n\nTO \n\nh \n\n\no \n\n\n\n\n\nPH \n\ncj \n\n<3| \n\n\n\n25 \n\n2 \n\nW \n\n5 \n\nCO \n\nC/3 \n\nX \n\nPH \n\n<3 \n\n\nCO \n\n\n\n\n\n\nd \n\no \n\na. \n\nco \n\nCD \n\nVi \n\nU \n\nO \n\no \n\n0 ) \n\n-d \n\n4J \n\nT3 \n\nd \n\ncd \n\n\no \n\nr>. \n\nON \n\n\no \n\nco \n\nVi \n\no) \n\nrO \n\nO \n\nu \n\nCJ \n\no \n\n\no \n\nr^. \n\non \n\n\nE \n\n00 \n\nNO \n\nOn \n\n\nst \n\ni \n\nCO \n\n\na \n\ncv \n\n\nr*E \n\n\nNO \n\nI \n\nm \n\n\nPu \n\nPU \n\n\nco \n\nCJ \n\no \n\n4-1 \n\ncd \n\nCJ \n\no \n\n\nTJ \n\na) \n\n14-1 \n\n\xe2\x80\xa2H \n\nCO \n\nCO \n\ncd \n\nrH \n\nO \n\nd \n\n\n*0 \n\nd) \n\ng \n\nO \n\n4-1 \n\nVi \n\n0 ) \n\na \n\nd) \n\nrO \n\n\nco \n\nco \n\nd) \n\nkJ \n\n\xe2\x80\xa2K \n\n\n69 \n\n\nthan 0.05% \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nDefense Dependency Ratio, by State, Selected Years \n\n\nACDA/E-156 \n\n\n\nM \n\n0) \n\n\xe2\x80\xa2a \xc2\xa3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nvO \n\nvO \n\n00 \n\nCO \n\nCO \n\n\nCO \n\nrH \n\nrH \n\nrH \n\nr"\xc2\xbb \n\no \n\nuo \n\nrH \n\nm \n\nrH \n\no \n\n\np vO \na) on \n\nCM \n\n\n m \n\nCM \n\n00 \n\n00 \n\n. \n\n\nS vo \nCD On \n\nCO \n\no \n\nCO \n\nrH \n\nv\xc2\xa3> \n\nCO \n\nr^. \n\nrH \n\nON \n\nCO \n\n\n00 \n\no \n\nrH \n\nCO \n\nrH \n\nCM \n\n\nO rH \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\nCD \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO 0) \n\xe2\x80\xa2H G \n4-\xc2\xbb a \n\nQ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n?0 O \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nP5 CO \n\nM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nV4 \n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSn 0) \n\n,0 vO \n\nrH \n\nCO \n\no \n\nin \n\nrH \n\n \nQ *H \n\nVh \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCJ \n\n\xc2\xbb \n\nrH \n\nO \n\nCM \n\nCM \n\no \n\nCM \n\nCO \n\n\xc2\xabH \n\noo \n\nON \n\nCO \n\nCM \n\nCO \n\n00 \n\noo \n\n\nCD ON \nCJ rH \nCD \n\nCO \n\nON \n\nCO \n\nr\xe2\x80\x941 \n\nm \n\nco \n\nvo \n\nrH \n\n00 \n\nco \n\nco \n\nr*v \n\no \n\nrH \n\nCO \n\no \n\nCM \n\n\nQ \n\n\n\n\n\n\n/ * \n\n\n\n\n\n\n\n\n\n\n\n\n\nw \n\nH \n\n\n\n\nCO \n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nO \n\n\n\n\n\n\n\n\n\no \n\n\n\n\n\n\n\n4J \n\n\nUH \n\n\n\n\n\ncd \n\n\n3 \n\n\nO \n\n\n\n\n\n\n\no \n\n\n\n\n\n\nCO \n\ng \n\no \n\n\xe2\x80\xa2H \n\nCD \n\n4-J \n\ncd \n\n\ncd \n\ncd \n\nu \n\n\nU \n\nu \n\no \n\nB \n\ncd \n\ng \n\nCO \n\no \n\ncd \n\nCJ \n\ncd \n\n\xe2\x80\xa2H \n\ncd \n\n\no \n\ng \n\nmh \n\nu \n\nCD \n\n;* \n\nU \n\nuo \n\nco \n\nN \n\ncd \n\n\xe2\x80\xa2H \n\no \n\ng \n\ncd \n\nU \n\ncd \n\ncd \n\niH \n\n\nrH \n\nrH \n\ng \n\nrH \n\nCO \n\nH \n\nrH \n\nH \n\nu \n\ncd \n\no \n\no \n\nCD \n\n\xe2\x80\xa2rl \n\n\n<3 \n\n< \n\n< \n\nCJ \n\nu \n\nCJ \n\nQ \n\nQ \n\n\nCO \n\ncO cO *rH cd \n\n\n03 \n\n\xe2\x80\xa2rH \n\n\xe2\x80\xa2H \n\n\no \n\n(3 \n\n\nCO \n\n\xe2\x80\xa2H \n\n00 \n\n\xe2\x80\xa2H \n\nO \n\ng \n\ncd \n\n\ncd \n\nU \n\nu \n\nCd \n\nUS \n\n\xe2\x80\xa2H \n\n\ncd \n\nCO \n\nO \n\no \n\n& \n\ncd \n\nrH \n\n\'d \n\n\nG \n\nrH \n\nQ> \n\ncd \n\nT) \n\nrH \n\nG \n\no \n\ncd \n\nPm \n\nO \n\nEC \n\nM \n\nHH \n\nM \n\nM \n\n\n\n70 \n\n\n\n\n\n\n\n\n\n\n\nTABLE 5 (continued) \n\n\nACDA/E-156 \n\n\nO <0 \n\n\xe2\x80\xa2h a \n\nu c \n\n\n$ 2 \n\nCC CO \n\nu \n\n>% a \n\nO (V \n\nd \n\n<0 Sn \n73 M \nC CO \na) vi \nOu *h \n\na> h \n\n\xc2\xb0s \n\n\n0) \n\n,0 \n\n6 vo \n\n00 \n\n\xe2\x80\xa2 \n\no \n\nvO \n\nCM \n\nrH \n\nm \n\nCO \n\nco \n\nr** \n\nm \n\no \n\nON \n\no \n\nrH \n\nON \n\n\nO \n\nco \n\nm \n\n0) ON \n\n\nco \n\nCM \n\n\nrH \n\no \n\no \n\nCM \n\nrH \n\nCO \n\nCM \n\nco \n\nCM \n\nCM \n\nCO \n\nO \n\nm \n\nm \n\nO \n\nto \n\nQ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nVi \n\n0) \n\n\n\xe2\x96\xa0g \n\nvO \n\nvO \n\nCM \n\nrH \n\nON \n\nO \n\no \n\nm \n\nCO \n\nrH \n\nO \n\nvO \n\nON \n\n00 \n\nON \n\n\nO \n\n<* \n\nCM \n\nco \n\nm \n\n0) \n\no \n\nON \n\nH \n\nvO \n\nCO \n\nCM \n\nm \n\nrH \n\no \n\no \n\nCO \n\nCM \n\nCO \n\nrH \n\nCO \n\n\xc2\xbbH \n\nrH \n\nm \n\no \n\nm \n\nm \n\no \n\n0) \n\nQ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nU \n\na> \n\n\xe2\x80\xa2i \n\n1965 \n\n\nO \n\niH \n\nco \n\nCM \n\nvO \n\nCO \n\nCM \n\n00 \n\nON \n\nCM \n\n\n\nm \n\nvO \n\n \nQ *H \nCJ \n\n\nM \n \n\n1965 \n\nCO \n\no \n\nVO \n\n00 \n\n\no \n\nCO \n\nON \n\nCM \n\n\n00 \n\nvO \n\n\nvo \n\nCO \n\nC\'. \n\nCO \n\nm \n\no \n\n\xc2\xa7 \n\no \n\nrH \n\nrH \n\n\xe2\x80\xa2H \n\nin \n\nco \n\nrH \n\nrH \n\nCM \n\nCO \n\nO \n\no \n\nrH \n\n\nCM \n\n\nrH \n\nrH \n\nrH \n\nCM \n\n\n\n\n\n\n\n\n\nto \n\nw \n\n\n\n\n\nV\xc2\xbb \n\nH \n\n\n\n\n\nVI \n\n< \n\n\n\n\n\na) \n\nH \n\n\nto \n\n\n\nto \n\nCO \n\nJn \n\nd \n\n\n73 \n\nd \n\n\n\ntO \n\n\nd \n\nx \n\n\nO \n\n*H \n\n\nCO \n\no \n\n\nd \n\n(0 \n\na) \n\nrH \n\ncO \n\n\nv> \n\n\xe2\x80\xa2rl \n\nd \n\n>N \n\nto \n\n\nd \n\nd \n\n\xe2\x80\xa2H \n\nu \n\nco \n\n\n \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n\ncO \n\n\n9* \n\nto \n\n\xe2\x80\xa2H \n\n^5 \n\nCO \n\ncO \n\nco \n\no \n\nCO \n\nVi \n\ncO \n\n\n\na \n\nVi \n\nX \n\nVi \n\nO \n\nQ \n\n00 \n\nCO \n\nto \n\nd \n\nd \n\nCO \n\nCO \n\nCO \n\n(0 \n\n(0 \n\nO \n\n\n\n*H \n\n \n\n\n\xc2\xa3 \n\n\xc2\xa3 \n\n\ns \n\nu \n\nM \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\no \n\n(U \n\n4) \n\n \n\n42 \n\nvO \n\n<5- \n\nas \n\nrH \n\nsO \n\nOs \n\nON \n\nvO \n\no \n\nn- \n\noo \n\nas \n\n\nCO \n\nCM \n\nr^- \n\n \nO -H \n\nft \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCJ \n\nft) \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n42 \n\nm \n\n\nCO \n\nm \n\nvO \n\nrH \n\n\nm \n\nrH \n\n\n \n\nCO \n\n(ft \n\n(ft \n\nft) \n\nft \n\nft \n\nCJ \n\nQ \n\nCO \n\nto \n\n\n\n\nCO \n\n52 \n\nft) \n\n42 \n\n42 \n\nft) \n\nd \n\nTJ \n\nft \n\nft \n\nqj \n\nd \n\nO \n\n23 \n\nd \n\n\n \n\n\nCO \n\n\ngo \n\nu \n\n\xe2\x80\xa2H \n\n> \n\n\nd \n\no \n\n4-1 \n\nGO \n\na \n\n\xe2\x99\xa6H \n\n42 \n\nCO \n\nCO \n\n:s \n\n\nCO \n\nd \n\n\xe2\x80\xa2H \n\nGO \n\nft \n\n\n4-1 \n\n(0 \n\nft) \n\nIS \n\n\nd \n\n\xe2\x80\xa2H \n\nCO \n\nC \n\nO \n\nO \n\nCO \n\n\xe2\x80\xa2H \n\n3 \n\n\nGO \n\nd \n\n\xe2\x80\xa2H \n\n0 \n\no \n\n\xc2\xa3 \n\n\nco \n\n\xe2\x96\xbaJ \n\nO \n\nH \n\n\n72 \n\n\nSOURCE: Roger Riefler and Paul B. Downing, "Regional Effect of Defense Effort on Employment," \nMonthly Labor Review , Vol.91, No. 7 (July, 1968), pp. 1-8; and an undated release of the \nOffice of the Assistant Secretary of Defense, Systems Analysis, Economic and Resource \nAnalysis entitled "Defense Generated Employment, December, 1967." \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nPercent of United States Military Prime Contracts Awarded to the Major Defense Contractors \n\n($10,000 or More) \n\n\nACDA/E-156 \n\n\n1 \n\nO \n\nON \n\n00 \n\nCM \n\no \n\n00 \n\n\nm \n\n00 \n\no \n\nCO \n\nNO \n\n00 \n\nr"- \n\n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nON \n\nm \n\nco \n\nco \n\nco \n\nCM \n\n00 \n\no \n\nNO \n\nNO \n\nro \n\nNO \n\nCO \n\nON \n\n1 \n\nrH \n\n\n\n\n\n\nrH \n\nrH \n\nrH \n\nMf \n\nrH \n\n\n\nNO \n\n\nON \n\nvO \n\nm \n\n*3* \n\nMl- \n\nON \n\n\nON \n\nrH \n\n00 \n\n00 \n\nrH \n\nCO \n\no \n\nCM \n\n\nON \n\n\xe2\x80\xa2n \n\n\xe2\x80\x9c\xe2\x80\xa2 \n\nrH \n\n\n\n\n\n\nrH \n\n\nrH \n\nMf \n\nrH \n\n\n\nNO \n\n1 rH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\ni *8 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\nm \n\nrH \n\nON \n\nin \n\nMl- \n\nrH \n\no \n\nCM \n\no \n\nCM \n\nO \n\nCM \n\nin \n\nON \n\n\xe2\x80\xa2H \n\nNO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nPh \n\nON \n\n\nMl- \n\nCO \n\nCO \n\nCO \n\nCM \n\no \n\nNO \n\n00 \n\nCO \n\nm \n\nCM \n\n00 \n\n\nrH \n\n\n\n\n\n\nCM \n\nrH \n\nrH \n\nMf \n\nrH \n\n\n\nNO \n\n\n- \n\no \n\nCM \n\nNO \n\nCM \n\nCM \n\n\nrH \n\n\n\n\n\n\nCM \n\nrH \n\nrH \n\nm \n\nrH \n\n\n\nI s -* \n\n\nrH \n\n\xc2\xabn \n\nCM \n\nCM \n\nrH \n\n00 \n\n00 \n\n00 \n\nCM \n\n00 \n\nO \n\nin \n\nOn \n\nCM \n\n\nnO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xc2\xbb \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nON \n\nNO \n\nm \n\nin \n\n>3- \n\nCO \n\nMf \n\nrH \n\n00 \n\nMf \n\nrH \n\nm \n\nCM \n\nMf \n\n\nrH \n\n\n\n\n\n\nCM \n\nrH \n\nrH \n\nm \n\nrH \n\n\n\nn- \n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nfl) \n\n0) \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n*\xc2\xbbH \n\n0 CO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCJ \n\n\xe2\x80\xa2H T) \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\nM M \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n1 Oh \n\nPh CO \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n0 \n\n* \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\n4H % o \n\nCO \n\nP \n\nU \n\n4-J \n\n4-J \n\ni \n\n1 \n\nrH \n\n1 \n\nNO \n\nrH \n\nNO \n\n1 \n\nP5 \n\nPQ\' CJ \n\nrH \n\nCM \n\nCO \n\nMf \n\nm \n\nrH \n\nNO \n\nrH \n\nrH \n\nCM \n\nm \n\nr- \n\nrH \n\n\np \n\no \n\nfl) \n\nQ) \n\n\no \n\no \n\n*\xc2\xa7 \n\nco \n\n\nfl) \n<1) \n\n\no \n\nCJ \n\n\ne \n\no \n\na \n\no \n\no \n\nw \n\n4J \n\ncj \n\n\xe2\x99\xa6H \n\no \n\n\na \n\no \n\n\xe2\x80\xa2H \n\nCO \n\nCO \n\n \n\nCO \n\n\nCO \n\nCO \n\nfl) \n\nP \n\n00 \n\na \n\no \n\no \n\nHP \n\n4-\xc2\xbb \n\no \n\nON \n\n\np \n\n0 \n\na) \n\nod \n\nco \n\nP \n\n$ \n\nH \n\n4-1 \n\nM \n\n0) \n\naj \n\no \n\nu \n\nPH \n\nT3 \n\nC \n\ncO \n\n\ns \n\n\xc2\xa7 \n\nM \n\no \n\no \n\nu \n\npH \n\n4-J \n\nc \n\na> \n\n0 \n\n\na> \n\n> \n\no \n\no \n\n\n0 \n\nO \n\np \n\no \n\no \n\nw \n\n\n4-> \n\na \n\n(0 \n\n\nu \n\nfl) \n\n\n(0 \n\nCO * \nP ^ \na) on \n\n4-1 nO \n \n\n\n0) \n\no \n\n\nu \n\n0) \n\n\n4H \n4H \nO rH \n\nP \n\n00 PQ \nP \n\n\nU \n\nP \n\n\xe2\x80\xa2H \n\nU \n\nPh \n\n\nU \n\nP \n\n<0 \n\n0 \n\n\npN \n\nu \n\n4-J \n\nCO \n\na \n\nM \n\n\ng \n\n\n2 \n\n\xe2\x80\xa2 0 \n\na *h \n\nCL H \nPh \n\n\nU \n\nO \n\n4-1 \n\nP \n\n\nM \n\nO \n\n4-H \n\n0) \n\n4-J \n\ncO \n\nu \n\no \n\n4-J \n\nO \n\n44 P \nON O \nvO \xe2\x80\xa2> \n\nON Q> \'\'\xe2\x80\x9cN \nrH g M \n\n3 0) \n\n\nu o \n\n0 ) > \n\n*0 M \n0) CO \nO \n\n\na) \nco \nfl \na) \n\n0) 4H \n> 0 ) \nO Q \n\no \n\n\n\xe2\x80\xa2\xe2\x80\xa2 rQ \na a) \no o \n4J c \noo ^ \nC o \np \n\n\n& \n\n\nCM \n\n\nO \n\nu \n\n4-J \n\n9* \n\xc2\xbbH 0 \nrH O \nO CJ \nQ ^ \n\n\n4-J \nrH CO \n0) \n\n\xe2\x80\xa2 00 \nO CH \n525 CO \nrH \n\n\n0) \n\nCO \n\nCl \xe2\x80\xa2 \n\n<0 no \n\n4H CJ \n\n\np \n\n0) \n\n\n0) \n\no \n\no \n\nM \n\nOh \n\n\n* \n\n> \n\nJp \n\nP \n\n\n\xe2\x80\xa2H \n\n0 O \n\n(0 \n\no \n\nCO \n\n< \n\nTt \n\n> \n\n4-J \n\nCO \n\no \n\ncd \n\n\nP \n\nH \n\nV4 ON \n\n(U \n\n\n\nCO \n\ncd \n\n0) \n\nCd rH \n\nu \n\np \n\n\nu \n\n\na \n\na \n\n00 *rl \n\n\no \n\nON \n\n0) \n\nQ) r. \n\nP \n\n\nco \n\n4-J \n\nrH \n\np$ \n\nQ U \n\no \n\n>> \n\nM \n\nO \n\n1 \n\n\nfl) \n\no \n\n0 \n\nP \n\ncd \n\n\nco \n\nr rO \n\n\no \n\n\xe2\x80\xa2H \n\nu \n\nrH \n\n0) \n\nr 0 \n\n\xe2\x80\xa2 \n\np \n\nU \n\n4-J \n\n\n\xe2\x80\xa2H \n\nO fl) \n\nCO \n\no \n\nP \n\nP \n\n\xe2\x80\xa2 \n\nCJ \n\nr^- > \n\n\xe2\x80\xa2 \n\no \n\n0) \n\no \n\no* \n\ncd \n\nON o \n\n\nw \n\n3J \n\nCJ \n\nCL \n\nCL rH JZ5 \n\n\nW \n\nCJ \n\n\nO \n\nco \n\n\n73 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n3 \n\n\n\n\n\n\nH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nm \n\n4i \n\no \n\nN\xc2\xab0>0 \n\n\nao \n\n\xc2\xab\xc2\xbb \n\n^H \n\n\xe2\x80\xa2A \n\n \n\n\n\n\n$ \n\no \n\nH \n\n\xc2\xa9 \n\nr* \n\n>4 \n\nN \n\n0< N \n\nCM \n\ns\xc2\xbb \n\nrH \n\nAt \n\nrH \n\nCA \n\nCA \n\n\n\xe2\x80\xa2O rH \n\n\nAt \n\nXI \n\n\ntA \n\n\n\n\n\nCA \n\nO\' \n\ntn \n\n\n\n\nH \n\n\no \n\nrH \n\n\n\nrH \n\n\nrH \n\n \n\nr \n\nat \n\nr \n\n* \n\n01 \n\nr \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xc2\xbb \n\nOk \n\nr \n\n\xc2\xabk \n\n\xe2\x80\xa2 \n\n0k \n\n\n* \n\nr \n\n4k \n\n41 \n\nA \n\nat \n\n4k \n\n41 \n\nr \n\n\n\n\n\xc2\xa3 \n\n3 \n\nao \n\n\nm o \n\n4A \n\n\xe2\x80\xa2A \n\nCl \n\n\nIA 00 \n\nrH \n\n\ntA \n\no \n\nr- \n\nf^. \n\nao \n\nAt \n\n\nCA \n\nCM \n\nO\' \n\nAt \n\nO\' \n\nm o \n\nS3 \n\nCA \n\n\n\n\nrH \n\n. \n\n\nCM \n\n\n8 \n\nCM \n\ni r\\ \n\n\nsO \n\nm \n\nrH \n\nat ca so \n\nO\' \n\nO\' \n\n\n\n\n\n4 \n\n<\xe2\x80\x9csl \n\nO\' \n\n-t \'O \n\n>4 \n\n\nO\' \n\nO\' \n\nCM \n\n\xc2\xbbA \n\n\n\n\n\n\nsO \n\n\n\nAt \n\n\nrH \n\n\n\n\nO \n\nCM \n\n\n\n\n\n> \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nCt \n\n\xe2\x80\xa2> \n\n\xe2\x80\xa2 \n\n\xc2\xabt \n\n\n\n\n\n\n\n\n\n\n\n\n\n41 \n\n\n\n\n\n\n41 \n\n41 \n\n\n\n\n\n\ncn \n\nCO \n\nrH \n\n\n \n\n\n\n\n\nH \n\n\xc2\xab \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x96\xa04 \n\nw \n\nH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\nO \n\n\xe2\x80\xa24 \n\nsO \n\nCA \n\noo \n\nCA \n\nCA \n\nr- \n\n\xc2\xbb \n\no \n\n00 \n\nrH \n\nH \n\n\nrH \n\nr-a \n\n \n\noH \n\n\nCM \n\nx> \n\n\nc \n\n4A \n\n\nr. O \n\no \n\ntn \n\nSO \n\noo \n\nn- \n\n \n\nao \n\nCM \n\n4A \n\nCA \n\nm \n\nCA \n\nCM \n\nrH \n\nCM \n\nrH \n\nrH \n\no \n\nAt \n\n\no \n\nx> \n\n*H \n\nr-* \n\nin \n\nCA \n\ntA \n\nx> \n\nCM \n\ns \n\n\n\n+4 \n\nrH \n\nO\' \n\nCM \n\n \n\nOh \n\n* \n\n* \n\n\nat \n\n4> \n\nr \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\n\n\n4k \n\n\n\n\n\n\nr \n\n4k \n\no \n\n\n\n\n\n-4 \n\nsr \n\nrH \n\n\n*A \n\nrH \n\nCA \n\n\xc2\xabo \n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\nCM \n\nr-. \n\n44 \n\n\n\n\n\nCM \n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO H \n\n\n\n\n\n> \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n> \n\n5 \xc2\xab \n\n\xc2\xa9 4-\xc2\xbb \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nS \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 o \nO H \n\n\xc2\xab \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\naH \n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nV> 44 \n\n.\xc2\xa9 \n\n\n\nas \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\n1 \n\n\n\n4J \n\nM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n44 \n\n3 \n\n\nsO \n\no \n\no \n\nlA \n\n>4 \n\n00 \n\nCM \n\nO\' \n\nlA \n\nCA \n\nCA \n\noo \n\no \n\ntn \n\nfA \n\nrH \n\n\nrH \n\nCM \n\nCA \n\n\nsr \n\nsr \n\nsr \n\nCA \n\nCM \n\n\nO\' \n\nCA \n\nr-k \n\n\xc2\xb0 & \n\naH \n\n\nO\' \n\nH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\na \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n4 \n\n4 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n4 \n\na \n\n6 \n\n\nrH \n\n\no \n\n<9 \n\nsr \n\nCM \n\nr*< \n\nSO \n\nCM \n\n00 \n\nAt \n\nrH \n\n\nCA \n\nCA \n\n\n.0 \n\nrH \n\n\nCM \n\nx> \n\n\nsr \n\n\n\n\n\nCM \n\nr-k \n\nrH \n\n\xe2\x96\xa03 2 \n\n\xe2\x80\xa2 \n\n\n<44 \n\no \n\nrH \n\n\n\nCM \n\n\nrH \n\n o \n\n\nH \n\n>* \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n< u \n\n\xc2\xabi \n\no \n\n\n\n4 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nat \n\no \n\n\xe2\x80\xa2o \n\n\n\nO \n\nao \n\no \n\n>o \n\nr- \n\nIA \n\n\xc2\xabA \n\nrH \n\n3 \n\nCM \n\nCM \n\nsO \n\nrH \n\ntA \n\no \n\nsO \n\nCA \n\nin \n\nm oo \n\nO\' \n\ns\xc2\xbb \n\nn- \n\nCA \n\nO\' \n\n\noo \n\nO\' \n\n*-* 0- \n\n\xe2\x96\xa0H \n\n\n\nsr \n\no \n\ntn \n\n-J \n\n\xe2\x80\xa2A \n\nlA \n\nO\' \n\nrH \n\nO\' \n\nAt \n\n\n8 \n\n\nAs O \n\nrx \n\n-1 o \n\nCM \n\nCA \n\nrH \n\ntA \n\n\xe2\x80\xa2H \n\nrH \n\nc- \n\noo \n\nCM \n\nU \n\nU \n\n4-4 \n\nu \n\n\nCM \n\nm \n\n\xc2\xbb \n\n00 \n\n\no \n\nrH \n\nrH \n\n\'\xc2\xa3> \n\nsO \n\nSO \n\nCA \n\nCA \n\nrH \n\na \xe2\x80\x9e \n\n\n4 \n\nCM \n\nsO \n\nrH \n\n\nao \n\nfM \n\nrH \n\nCM \n\n \n\n\n* \n\n* \n\n\n<* \n\nat \n\n>\xc2\xbb \n\n\xe2\x80\xa2\xc2\xbb \n\n\n\n\n\n\n\n\n\n\n\n\n\n4t \n\n\n\n\n\n\n\xe2\x80\xa2 \n\n\nu \xc2\xab \n\n2 \n\nB \n\n\n\nm \n\nCA \n\nrH \n\n\nvO \n\nrH \n\n* \n\n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\nrH \n\n00 \n\nw. \n\n\xc2\xab \n\n\n\nCM \n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSt 86 M \n\n3 \n\n\n\n\xc2\xab/> \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n> \n\n\xe2\x96\xa0 O \n\n\n0 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xc2\xabH M \n\nT3 \n\n\xc2\xa3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nW ft. \nft. \n\nS \n\n4J \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nU \n\n^ g \n\n\xe2\x80\xa2 \n\n2 \n\n\n*H \n\n<9 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nat ^ \n\nCM \n\n4J \n\nN \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n* 8 \n\n\n\nSO \n\no \n\nO \n\nr- \n\n00 \n\n\xe2\x80\xa2H \n\n\nrst \n\n\nIA \n\nAt \n\nO\' \n\no \n\nr\xc2\xab4 \n\ns\xc2\xbb \n\nrH \n\n\n\nrH \n\nlA \n\n\ns\xc2\xbb \n\n00 \n\n>\xc2\xbb \n\n\nCA \n\nCM \n\nCA \n\nCM \n\n \n\nrH \n\n\nCM \n\nXt \n\n\nsr \n\n\n\n\n\n\n<\xc2\xa3> \n\nCM \n\nrH 3 \n\nw \n\n\n\n<4-1 \n\no \n\nrH \n\n\n\nCM \n\n\nrH \n\nsO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCA \n\n3d \xc2\xb0 \n\n\n\nV. \n\no \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nx o \n\nH \n\n\n4 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nt- \n\n3 \n\n\nat \n\nM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nkl ft. \n\no \n\n\n\n\n4 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n>. \n\n\n\nrH \n\n\nO \n\nrH \n\n\'O \n\n \n\n\n\nUo \n\nH \n\n \n\nat \n\n\xe2\x80\xa2 \n\nm \n\n\nr \n\nat \n\n01 \n\na\xc2\xbb \n\n\n\n\n\n\n\n\n\n\n\n\n\n4k \n\n\n\n\n\n\n\n4k \n\n\xc2\xab \n\n\n\n\n\n\n \n\n\nc & \n\n9 O \nU U \nO O- \n\n\nH \n\nO \n\n\xe2\x80\xa2 \n\ns \n\n\nOv \n\nr*. \n\noo \n\nnr \n\ncm \n\n\xe2\x80\xa2 \n\nn \n\nv> \n\n\nH \n\nO \n\n\xe2\x80\xa2 \n\n\xc2\xa7 \n\n\nH \n\nO \n\n8 \n\n\nS \n\nH \n\n8 \n\n\nr> \n\n> \n\n\nN \n\nO \n\n\n* \n\ncA \n\nO \n\ncA \n\nA \n\n\xc2\xabA \n\nH \n\n\ncA \n\n> \n\n\nO \n\nH \n\n\nCA \n\n\xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \n^ m ca \n\n\n*C ^ O\' \nCM NO H \nH n H \n\xe2\x80\xa2\xc2\xbb \xe2\x80\xa2\xc2\xbb * \nH \xc2\xab7\xc2\xbb \n\nN O\' \xc2\xbb0 \nO \xc2\xa9 *H \n\n\n^ N H lA H \n\n\nm ia \n\xe2\x80\xa2 \xe2\x80\xa2 \nIT) ^ \n\n\nOn IA \nCD tO \nCJ\\ CA \n\xe2\x80\xa2 \xe2\x80\xa2 \nCA rH \n\na* co \n\n^ lA \n\n\nm \n\n\n\xe2\x80\xa2a \n\n\xe2\x80\xa2n \n\n\nnoOOOONH \n\xe2\x80\xa2 \xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2 \ni-tHHinn \n\n\neo-9<-* \n\n\xc2\xa9 \xc2\xa9 \xc2\xa9 \xc2\xa9 (S 9v \n\n\nO\' \n\ns* \n\n\nO\' \n\xc2\xa9 \nsr I-* \n* * \n\nsO \xc2\xa9 \n\xc2\xa9 0 \n\n%T\\ \n\n> \n\nn \n\n8 \n\n\nCM \n\n\no \n\nm \n\n\xe2\x80\xa2H \n\nCD \n\n* \n\n%\xe2\x80\xa2 \n\n* \n\n* \n\n* \n\nft \n\nto \n\no \n\nr-> \n\nvO \n\nCM \n\nCA \n\nvD \n\nsr \n\nca \n\n\nca \n\nCM \n\n\nCO \n\n>C \n\n00 \n\nrH \n\n\n\n\n\n\xc2\xbb \n\nft \n\n\n\n\n\n\nH \n\n\n\nh>d\'ONinin^)N\xc2\xab\'0 (M/i>o \n\nO\'Hr\'ffi\'CON\'Or\'N^Nifl \n\n\xc2\xabno>OH5iniflHOHO>oo \n\n\n\xc2\xab n O\' n \nNNO \n\nid H H \n\n\nOlHHlANNlftN \n\nftOn#N\xc2\xabmo \n\nOl H H H O\' -O \n\xe2\x80\xa2 \xe2\x80\xa2 \n\xc2\xab\xe2\x80\x9c< \xc2\xa9 \n\n\nCM \n\n\xc2\xa9 \n\n\xc2\xa9 \n\nft \n\nN \n\nCM \n\n00 \n\n* \n\nIA \n\n*H \n\n> \n\n\nCH O (O \n\n\xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \n\n\\C n n m \n\n\nT- \n\n\xc2\xa9 \xc2\xa9 \n\nD \n\n \n\nO\' \n\nro cn \n\nr> \n\nSO 00 \n\n00 \n\nCM \n\n\n\xc2\xa9 \n\nun \n\nm \n\nro \n\nON \n\nCM \n\n\n\nO -* \xc2\xa9 \n\n\n\n\nCM \n\nr-H \n\nCM \n\nsO \n\nr> \n\n\xc2\xa9 CM \n\n\nCM \n\nCM \n\nsO \n\n\n\n\n00 \n\ncn \n\nO\' \n\nr-\xc2\xbb \n\nO\' \n\nCM \n\nCM \n\no s\xc2\xbb \n\nr-^ \n\nO\' \n\nO O\' \n\nvO \n\ns\xc2\xa3> \n\nCO \n\nvO \n\n\nH \n\n\nr** \n\nCM \n\no \n\n\nt-d \n\nCM \xc2\xabH \n\nH \n\n\xe2\x80\xa2H \n\n\nCM \n\n\nso \n\n\n\xe2\x80\xa2 ft \n\n\xe2\x80\xa2> \n\nft \n\nft \n\n\xe2\x80\xa2 \n\n\xc2\xab \n\n\n\n\n* \n\nft \n\n\n\n\nft \n\n\n\n\n\n\n\nft \n\n<\xc2\xbb, \n\nft \n\nr>* \n\nvD \xc2\xa9 \n\n\n\xc2\xa9 \n\nf". \n\nsO \n\nO\' \n\n\xe2\x99\xa6n \n\nCO \n\np-Y \n\nlA \n\n\nCM \n\n\xc2\xa9 \n\n-* \n\n\nCD \n\ntA \n\n\nrH \n\n\xc2\xa9 \n\n\xc2\xa9 \n\nr* \n\n \n\n\nO\' \n\n\nso O\' SO \n\n\nrH \n\nCM \n\nCM \n\nO\' \n\n8 \n\nrd \n\nrH \n\nsO \n\nsO \n\nCM \n\n\nO\' \n\n>n \n\n \n\nH \n\nr> \n\nCM \n\nvO \n\nCD \n\n\'X> \n\n\n\n\nf* \n\nrH \n\nrH \n\n\nrH \n\nrH \n\nCM \n\nrH \n\nrH \n\nrH \n\nsD \n\nCA \n\nrH \n\n\n\'ONH\'ONO \n\n\nCM \n\n\nCO \n\n\nH CO \n\n\nin oo o s < o \n\xc2\xab\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2 \nc o n -o n \n\n\nOffl n O\' H \xc2\xab\xc2\xbb \nNOCOWO"\xc2\xbb \n00 CO O 00 \xc2\xa9 \xc2\xbbo \n\n\nHO O 00 N H \n\xc2\xa9 \xc2\xa9 \xc2\xa9 \xc2\xa9 O O\' \n\'O^OH\'JS \n\n\xe2\x80\xa2O (M >-C -T H O \n\n\nsr \n\nCO \n\n\ncO \n\nco \n\nco \n\n\n\xc2\xab H >C O N H \n\xc2\xab*\xc2\xbb\xc2\xbb\xe2\x80\xa2\xe2\x80\xa2 \nH n H O\' CM \n\n\nCM OO O LO O O\' \nco CO O\' CO CS \xc2\xa9 \nsr r-. ps no io ro \n\n\nO H n ie(MNMOO>\xc2\xbbN \n\n\xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2\xe2\x80\xa2 \n\nii >j h n x co -\xe2\x96\xa0\xc2\xbb oo \n\n\nNO\'JOON\'OOONNO\'^S \nCO CO H VC N O \xc2\xa9 H \xc2\xa9 00 pO O O \n0\'0\'COOcrtN#OOP*^0\'\'\xc2\xbb \n\n\nO\' \n\na \n\n\nN H sO pj O\' pp \nCM 00 \xc2\xa9 co cO CM \nco O\' CO 00 00 \n\xc2\xbb \n\nCM \n\n\nvO O \xe2\x80\xa2-< c~~ C\'\' \n\n\xc2\xa9 \xc2\xa9 *\xc2\xa3 \n\nCM CO o \n\n\nOOCM \n\n\xe2\x80\xa2H \n\n\xe2\x96\xa0ss \n\n> l \n\n4J O \n\n<0 u \n\nI & \n\n<3 J \n\n\n\nU U 9 \xc2\xab ft \na _ r-c >> q \xc2\xaboo \n\n13 i -J I .* e- S S \n\nS o i b u c, \xc2\xab u g \n\n\xe2\x80\xa2ft \xc2\xa9 S vC rl 1 \xe2\x80\xa2 B \n\nQ\xc2\xa3Oi*fctd \n\nX \n\nCO \n\nTD \n\nM \n\nCO \n\niJ \n\nO \n\nCO \n\nCl \n\n4J \n\nc \n\no \n\no \n\nG \n\nB \n\n\xe2\x80\xa2H \n\nJ-t \n\nCl, \n\nH \n\nc< \n\nCO \n\ni-i \n\n\nu on \n0) \n\no \xe2\x80\xa2 \n\n(X \n\nr^ \n\ncn \xc2\xab \n\n4H \n\xe2\x80\xa2 M \nG M \nCO \n\nC G \nCO iH \n<4-1 X \n(0 CO \n\na h \n\n\no ^ \n\no \n\n4-i f\'- \nG O\' \n0 ) i-c \n\nB \n\n4-1 Cl \nM 0) \nCO X \n(X O \n\n<0 4-1 \n\nQ O \n\nO \n\n.. o \nG cn \nO w \n\n4-1 \n\n60 O \n\nC \n\nX O\' \nX X \nco \n\nCO >4 \nS ft- \n^ I \n00 \n\n\xe2\x96\xa0H n vO \n\nm \n\nV- \n\n<0 \n\nC/3 \n\n\nCO \n\n\nI >* \nCN ft- \n\xe2\x96\xa0H X \ny O\' ^ \nm h o \n\n\nx - \n\nM \nM M \nO X \n\nCt-4 \n\n<0 \n\n<0 X \nM XI \nCO CO \n\n\nC \n\n<0 \n\n\no \n\no \n\n\xe2\x80\xa2a \n\n\nON \n\no \n\nO \n\nm \n\n\nO \n\nm \n\nrH \n\nrH \n\nCN \n\ncn \n\n-4 \n\nCM \n\nin \n\nMt \n\nm \n\nCN \n\nON \n\nf\'\' \n\n. \n\n\nO\' \n\no \n\nsr \n\nCN \n\ncn \n\ncn \n\nCM \n\n-4 \n\nCM \n\nm \n\nCN \n\n\nrH \n\nX \n\nCN \n\nrH \n\nX \n\nCN \n\nfH \n\nCN \n\nX X \n\no \n\no \n\n\n-4 \n\n\n\no \n\n\n00 \n\nX) \n\n\nx \n\ncn \n\n>. \n\n00 \n\nrH \n\nCN \n\nON \n\nX \n\ncn \n\nX \n\nO\' \n\nrH \n\nOn \n\nX \n\nX \n\n\n \n\nCu \n\n\nG \n\nON \n\nU \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\nfH \n\nu \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n60 \n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\n\nC \n\n\no \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nc \n\n\n\n\n\n\n\n\n\n\n\n\n\nX \n\n\nG \n\nCO \n\no \n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n-< \n\n4-4 \n\n\nCu \n\n\nCO \n\n\n\nCU \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nN \n\na \n\nG \n\n\n\nV- \n\na. \n\n\n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n3 x \n\n\n\n\n\n\n\n4-4 \n\nco \n\n\n\nCO \n\n<0 \n\na. \n\n\n\n5* \n\n\n\n\n\n\n\n\ncn \n\n\n\n\n\n\n\n\ncr x \n\n\n4.4 \n\n\n\n\n\nto \n\nX \n\n\xe2\x80\xa2 0k \n\n\n0) \n\na \n\n9 \n\n\n\n\n\n\n\n\n\n\nM \n\nCU \n\n\n\n\n\n\n\nW a \n\n\nc \n\n\n\nO \n\n\n4-1 \n\nft- \n\nG \n\n\nX \n\nVI \n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\ncu \n\nX \n\n\n\n\n\n\n\na- \n\n4-4 \n\n \n\n\nG \n\nV \n\na. \n\n\n< \n\n4 \n\n\nG \n\n\n\n\n\n\n\n\no \n\n\n4 \n\n3 \n\n\na \n\n4-4 \n\n\n \n\nrH \n\na \n\n\n\n\xe2\x80\xa2a \n\nm \n\no \n\nG \n\nG \n\nC \n\no \n\nON \n\n\xc2\xabH \n\n\nad \n\n\xe2\x96\xa0H \n\n-0 \n\nV4 \n\no \n\n*H \n\n\no \n\n\n\n\nc \n\nG \n\na. \n\n\n\nG \n\n\xe2\x80\xa2 \n\nX \n\nX \n\n\n\n\n60 \n\nCO \n\n\n\n\n*H \n\nO \n\n> \n\n\n\n\n\n\nCu \n\nfH \n\nX \n\n\n\xe2\x80\xa2H \n\nG \n\nG \n\nN C \n\n\nX \n\no \n\nCO \n\nG \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\nj= \n\n\n\n\n4-4 \n\n\na \n\no \n\nP6 \n\nX \n\n\ncn \n\n\nU \n\nCO \n\n\n\xe2\x80\xa2H \n\nO \n\n \n\n\xe2\x80\xa23 \n\n\n*1 \n\nH \n\n3 \n\n3 \n\n0) H \n\nw \n\nfr \n\n(U \n\nl-l \n\n\xe2\x80\xa2H \n\no \n\nG \n\n\xc2\xab \n\nfH \n\ncu \n\ncn \n\n\n0) \n\n\xe2\x80\xa2ri \n\nX \n\n\n\n\n\nB \n\n<4-4 \n\n ON \n Pk \n\xe2\x80\xa2H \n\n* \n\nC CO \nd) d) \n\n\nCO \n\nPrT \n\nOrH \n\nrH \n\n\nCO \n\n\nON \n\nCO \n\nCO \n\nrH \n\no \n\nOn \n\nON \n\nOV \n\no \n\nCO \n\nON \n\no \n\nCM \n\nM \n\n\nVO \n\nrH \n\nCM \n\n\nCO \n\n00 \n\nCO \n\n00 \n\n00 \n\nCM \n\nON \n\nrH \n\nvO \n\n00 \n\n\nrH \n\nvO \n\nhJ cj \n\nvO \n\n\n. \n\nON \n\n00 \n\n1". \n\np^ \n\nCO \n\no \n\n00 \n\nvO \n\n\no \n\n\no \n\nrH \n\nd \xc2\xa7 \n\n\xc2\xabn \n\nm \n\n00 \n\nO \n\n00 \n\nvO \n\nON \n\nCO \n\nCM \n\nr"\xc2\xbb \n\n00 \n\nOV \n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nPh \n\nW \n\n55 \n\nW \n\nO \n\nM \n\nS \n\n< \n\n\no \n\nM \n\nW \n\nCO \n\n\nO \n\no \n\n\n25 \n\nO \n\n\n\nS\'o \n\no \n\nW \n\nw c \n\nw \n\nO \n\n0) \n\n\n<\xc2\xa3 \n\nrH 00 \n\n\nPu \n\n05 \n\n25 \n\n\nPn o \n\nO \n\n\n. \n\nON \n\nON \n\n00 \n\nON \n\nO \n\nO \n\nrH \n\nCM \n\nCM \n\nCM \n\nm \n\nVO \n\n\nCO \n\nrH \n\nCM \n\nCM \n\nCO \n\n\n\n\n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\niH \n\n\no \n\nO \n\nCM \n\nrH \n\nCM \n\n\nCM \n\nrH \n\nO \n\nCM \n\nm \n\n00 \n\np^ \n\nrH \n\nCM \n\n00 \n\nm \n\n\nVO \n\nOn \n\nCM \n\n\n \n\nVO \n\nvO \n\nm \n\nm \n\nm \n\nin \n\nin \n\nin \n\nm \n\nOn \n\nON \n\nON \n\nON \n\nOn \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nON \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\n\n79 \n\n\n1952 \n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n73 \n\na) \n\n3 \n\ns \n\n\xe2\x80\xa2H \n\nu \n\nG \n\nO \n\na \n\n\nca \n\nK-J \n\nPQ \n\n \n\n\nm \n\nos \n\n\nCM \n\nm \n\nos \n\n\nM \n\nO \n\n\xe2\x80\xa2H \n\nMl \n\nCM \n\nO \n\nc \n\n \n\n73 \n\n< \n\n\n\nf\xe2\x80\x941 \n\ncO \n\n\nCO \n\nG \n\n\nMl \n\nO \n\n\n0) \n\n\xe2\x80\xa2H \n\no \n\n73 \n\n4-1 \n\nm \n\n3 \n\ncO \n\nOs \n\nCm \n\n53 \n\n1\xe2\x80\x941 \n\nCO \n\nJO \n\n\nCO \n\nMl \n\nCO \n\n\nO \n\n73 \n\n4-1 \n\nO \n\nCO \n\nG \n\nO \n\n\n0 \n\n \n\n\nCO \n\n* o \n3 co \no \n\xe2\x80\xa2H Cm \n\n4-1 \n\ncfl \xe2\x80\xa2 \n\n\nCO \n\n3 \n\n\nT3 \n3 \n3 *H \nO \nCm \n\n\n3 \n\n\xe2\x80\xa2H \n\no \n\n4-1 \n\n3 \n\nCJ \n\n3 \n\nc \n\n\xe2\x80\xa2H \n\n\no \n\na \n\nCO \n\n\xe2\x99\xa6H \n\n\n4-1 \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\nCO \n\n4-1 \n\n3 \n\n3 \n\nO \n\n3 \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n4-> \n\nO \n\n3 \n\nCO \n\n2 \n\nMl \n\n3 \n\n3 \n\n\xe2\x80\xa2H \n\n-3 \n\n\n4-1 \n\n3 \n\no \n\n4-1 \n\n\n3 \n\n73 \n\nT3 \n\n3 \n\n\n3 \n\n0 \n\n\nO \n\n* \n\nMi \n\n4J \n\n4-1 \n\n3 \n\n\n3 \n\n73 \n\n0 \n\n3 \n\na \n\n4-\xc2\xbb \n\no \n\n3 \n\ni\xe2\x80\x94i \n\n& \n\n3 \n\n0 \n\n> \n\no \n\n3 \n\no \n\nQ \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nca \n\n\ncj \n\n\nca \n\n\n3) \n\n\nO \n\n\nco \n\n\n\n80 \n\n\ni--969,_Vo 1\xc2\xab_XVII (Washington: Government Printing Office, August, 1968), pp. 216- \n\n\n\n\n\nResearch, Development, Testing and Evaluation Contracts as a Percentage \nof Defense Prime Contracts by Region, Fiscal Years 1962 - 1970 \n\n\nACDA/E-156 \n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\n\n\n \n\n\n\n\n\n\n\n\n\n\n\nON \n\nvO \n\nCO \n\nm \n\nON \n\nVO \n\nON \n\nCM \n\n\xe2\x80\xa2n \n\noo \n\n\nrH \n\nrH \n\nrH \n\nrH \n\n\n\nrH \n\nrH \n\nCM \n\nCM \n\n\n\n\n\n\n\n\n\n\n\n\n\nm \n\nCM \n\n00 \n\nCM \n\nvO \n\nrH \n\n00 \n\n\noo \n\nON \n\n\nv\xc2\xa3> \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\nON \n\no \n\nON \n\nn- \n\nCO \n\nvO \n\nrH \n\nrH \n\n\n\nCM \n\nrH \n\nCM \n\nrH \n\nrH \n\nrH \n\n\nCM \n\nCM \n\nCM \n\nCM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x96\xa0$ \n\n\n\n\n\n\n\n\n\n\nCO \n\nvO \n\n\nCM \n\nON \n\n \n\nrH \n\no \n\nCO \n\nvO \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\nON \n\n\nrH \n\nCM \n\nON \n\nvO \n\no \n\nON \n\nON \n\nCM \n\nrH \n\nrH \n\nCM \n\nCM \n\nCM \n\n\n\nCM \n\n\nCO \n\n \n\nQ) \n\n*H \n\nrH \n\n\n\nCd \n\n\n0) \n\n\na \n\nO \n\nu \n\n4-\xc2\xbb \n\ncd \n\n\n\n\n\nU \n\nHO \n\nCO \n\n\n\ng \n\nu \n\n\n\n$ \n\n\nId \n\ng \n\nrH \n\nX \n\nA \n\ncd \n\nu \n\n\n\n\n<3 \n\nu \n\nCd \n\n4-J \n\nu \n\nu \n\nrH \n\nG \n\n\n\n\n\nC/3 \n\nrH \n\n<3 \n\nu \n\nu \n\n4-J \n\na) \n\nG \n\n\nt-3 \n\nfn \n\n\n00 \n\n\no \n\no \n\n<3 \n\no \n\n\xe2\x80\xa2H \n\no \n\n\n\nTJ \n\ng \n\n4 \n\nu \n\ncd \n\no \n\n(U \n\n4-4 \n\n\xe2\x96\xba\xc2\xab \n\n0) \n\nrH \n\n4-J \n\ncd \n\ncd \n\nO \n\nu \n\nCO \n\no \n\n*H \n\n4-J \n\n\no \n\n\na) \n\n\nV4 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n*H \n\nQ) \n\nO \n\n4-J \n\n\ncd \n\n\xe2\x80\xa2N \n\n4-1 \n\n0) \n\nC/3 \n\nCO \n\n\nc \n\nno \n\na) \n\na \n\n4-1 \n\ncd \n\na) \n\n\nQ \n\nc \n\n\no \n\n44 \n\n\xe2\x80\xa2H \n\no \n\nOt \n\n\na) \n\n\nu \n\n\ncd \n\n> \n\n4-J \n\nA \n\nQ) \n\n\nu \n\nCO \n\na \n\nTJ \n\na) \n\nM \n\nC/3 \n\ncd \n\n\n5 \n\na) <: \n\nA \n\n\n4-J \n\n4-J \n\n\no \n\n4-J \n\nid \n\nO \n\nJ4 \n\n\n4-J \n\n<1) \n\nG \n\no \n\nO \n\n\xe2\x80\x98H \n\nU \n\n4H \n\n\n44 \n\n0) \n\nO \n\n0 \n\n\n\xe2\x80\xa2H \n\ng \n\n\n\xe2\x80\xa2H \n\nP4 \n\ncd \n\n4-J \n\n& \n\ncd \n\ncd \n\nr d \n\n4-J \n\n\n*H \n\n0 rH \n\no \n\n*H \n\nM \n\n\n44 \n\n0 \\ \n\nTJ \n\nCO \n\n \n\nO \n\n\n3 -H \n\nO \n\n\n\n\n\n\n\n\n\n\ncx \n\nst \n\nNO \n\nCM \n\n\n\n\n\n\n\ng \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\n\ncd \n\npH \n\nO \n\nCM \n\nrH \n\n\n\n\n\n\njg \n\n+ \n\n+ \n\nI \n\ni \n\n\n\n\n\n\no \n\n\n\n\n\n\n\n\n\n\na* \n\nCM \n\nm \n\nst \n\nNO \n\n\n\n\n\n\ni r \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n- \n\n\nON \n\nON \n\nON \n\n00 \n\nr>. \n\n\n\n\n\n\ni \xe2\x80\x941 \n\nst \n\nSt \n\nst \n\n-t \n\n\n\n\n\n\n\n> \n\n\n\n\n\n\n\n\n\na) \n\n\n\n\n\n\n\n\n\n\nbC \n\no \n\nm \n\n00 \n\nCM \n\n\n\n\n\n\ng \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\n\ncd \n\npH \n\n\nCM \n\nCO \n\n\n\n\n\n\n,G \n\no \n\n+ \n\n+ \n\n+ \n\n+ \n\n\n\n\n\n\nCM \n\nm \n\n\no \n\nm \n\n\n\n\n\n\nm \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\n\nON \n\nCM \n\nm \n\n\n00 \n\n\n\n\n\n\nrH \n\n\xc2\xbbt \n\n*t \n\nSt \n\nst \n\n\n\n\n\n\n\n\xe2\x80\xa2CO\xc2\xac \n\n\n\n\n\n\n\n\n\na> \n\nON \n\nrH \n\no \n\n\nQ) \n\n\n\n\n\noc \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCX \n\nm \n\nCO \n\n\n00 \n\nG \n\no \n\nNO \n\nSt \n\npH \n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\nst \n\nCM \n\nCM \n\nrH \n\ncd \n\no \n\nrH \n\nCM \n\nCM \n\n6 \n\n+ \n\n+ \n\n+ \n\n+ \n\nx: \n\no \n\n+ \n\ni \n\n+ \n\n1 \n\npH \n\nrH \n\nSt \n\nr- \n\nrH \n\nm \n\n\nCM \n\nCM \n\nrH \n\nm \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nm \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nON \n\nSt \n\nO \n\nr*. \n\nCM \n\nON \n\n00 \n\n00 \n\nON \n\n00 \n\nrH \n\nCM \n\nco \n\nCO \n\nSt \n\nrH \n\nCO \n\nCO \n\nCO \n\nCO \n\n\n> \n\n\n\n\n\n> \n\n\n\n\n. \n\nSt \n\no \n\nm \n\nG \n\n1 \n\no \n\nCM \n\nO \n\n^5 G \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\n1 \n\n\npH \n\nCM \n\ncd \n\nNO \n\nm \n\nm \n\nCO \n\n6 \n\n+ \n\n+ \n\n+ \n\n.G \n\nO \n\n1 \n\ni \n\ni \n\n1 \n\nO \n\n\xc2\xabn \n\nNO \n\nCM \n\n*H \n\n\xe2\x96\xa0< \n\nst \n\nSt \n\no \n\nON \n\nm \n\nm \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nin \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nON \n\nCM \n\nCM \n\nSt \n\nr^. \n\nON \n\nSt \n\nCM \n\nON \n\n00 \n\nrH \n\niH \n\n\xc2\xbbH \n\nrH \n\nrH \n\ni\xe2\x80\x94I \n\nSt \n\nst \n\nCO \n\nCO \n\n\n> \n\n\n\n\n\n> \n\n\n\n\nU \n\n\n\n\n\nu \n\n\n\n\n\na) \n\n\n\n\n\xe2\x96\xa0 t \n\na> \n\n\n\n\n\n4J \n\nM \n\nM \n\nM \n\n> \n\n4J \n\nM \n\nM \n\nHH \n\n> \n\nM \n\n\nM \n\nM \n\nM \n\nU \n\n\nM \n\nM \n\nw \n\ncd \n\n\n\nM \n\n\ncd \n\n\n\nM \n\n\n3 \n\n\n\n\n\n3 \n\n\n\n\n\nO \n\n\n\n\n\na \n\n\n\n\n\n\n85 \n\n\n\n\n\n\n\nTABLE 14 (continued) \n\n\n* \n\n\n) \n\nACDA/E-156 \n\n\n\xc2\xab \n\n\n0( \n\nm \n\nrs \n\nrs \n\noo \n\ns* c \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncd \n\nnO \n\nCM \n\nrH \n\nCM \n\n43 \n\nu \n\n+ \n\n+ \n\n+ \n\n+ \n\n\nrs \n\nON \n\noo \n\nO \n\nrs \n\nNO \n\n\xe2\x80\xa2 \n\n. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nON \n\nON \n\nH \n\nm \n\n\nr\xe2\x80\x94t \n\nnO \n\nrs \n\nrs \n\n\n\n\xe2\x80\xa2CO- \n\n\n\n\n\n\xe2\x80\xa2 * \n\n\n0) \n\n\n\n\n\n \n\n\n\n\n\no> \n\n\n\nM \n\n\n\n\n\n\n\n\n\n0) \n\n\n\n\n\n4) \n\n\n\n\n44 \n\nM \n\nM \n\nM \n\n> \n\n44 \n\nM \n\nM \n\nM \n\nM \n\n\nW \n\nM \n\nM \n\nH \n\n\nM \n\nM \n\ncd \n\n\n\nM \n\n\n \n\n0) 03 \n& CO \nO \n\na >> \n\nC rH \nCO rH \n\xc2\xa3 CO \n\nc \n\nAJ O \nC CO \n\na> co \nS \n\nco \n\n3 \n\na) \n\n4-4 \n\na> \n\nQ \n\n\nco \n\n00 \n\nUO \n\nON \n\nCO \n\nm \n\nrH \n\nUO \n\no \n\nO \n\non \n\nm \n\nUO \n\nm \n\n>3- \n\nrH \n\nco \n\nCO \n\nco \n\nCO \n\nCD \n\nrH \n\nrH \n\nuo \n\nrH \n\n00 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nC \n\nvO \n\nrH \n\nrH \n\nCM \n\nCO \n\n+ \n\ni \n\ni \n\n1 \n\njc \n\n\n\nCJ \n\n\xe2\x80\xa2 \n\n\n\n\nCM \n\nuo \n\nvO \n\nCO \n\nr>- \n\nm \n\n\nCO \n\n00 \n\nO \n\nON \n\nvO \n\nvO \n\nin \n\nuo \n\nr\xe2\x80\x941 \n\nCO \n\nCO \n\nCO \n\nCO \n\nCD \n\nr^. \n\nr^. \n\nON \n\nvO \n\noo \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\na \n\nuo \n\nON \n\nCO \n\nCM \n\ncO \n\nCM \n\n+ \n\n+ \n\n+ \n\nX \n\n+ \n\n\n\n\nCJ \n\n\n\n\n\nrH \n\nCM \n\nON \n\nVO \n\nU0 \n\nm \n\nvO \n\n\nr*- \n\nvO \n\nON \n\nON \n\nCM \n\nco \n\n\n*H \n\nCM \n\nCO \n\nCO \n\nCO \n\nCD \n\n\nON \n\n\n00 \n\nOC \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nc \n\n1 \n\no \n\nON \n\n\ncO \n\n1 \n\n1 \n\nCM \n\nCM \n\nX \n\n\n\n+ \n\n+ \n\nCJ \n\n\n\n\n\no \n\n\'tf \n\no \n\nON \n\nr- \n\nm \n\nr>- \n\nvD \n\n00 \n\nuo \n\nON \n\n \n\n\n\n\n\nm \n\nr-. \n\nuo \n\nst \n\nI s *- \n\nON \n\nCM \n\no \n\nON \n\n00 \n\nvO \n\nst \n\nm \n\nCM \n\n\xc2\xabn \n\nvO \n\nm \n\nvO \n\nSt \n\nON \n\nON \n\nvO \n\nvO \n\np-. \n\n00 \n\nON \n\nSt \n\nSt \n\nSt \n\nCM \n\nrH \n\nCM \n\nCM \n\nCM \n\nCM \n\nrH \n\nco \n\nco \n\nCO \n\nCO \n\n\nCM \n\n\xe2\x80\xa2 \n\nO \n\nI \n\n\no \n\n\n0) \nool \nX g \n<0 \n43 \n\n\nSt \n\nco \n\nr- \n\no \n\nCO \n\n00 \n\n\nr-. \n\nO \n\n00 \n\nVO \n\nON \n\n00 \n\nON \n\nVO \n\nVO \n\nvO \n\nst \n\nON \n\no \n\nON \n\nVO \n\nvO \n\nvO \n\nvO \n\nON \n\nst \n\nm \n\n-O\' \n\nst \n\nrH \n\nCM \n\nCM \n\nCM \n\nCM \n\n\xe2\x80\xa2H \n\nco \n\nco \n\nt \n\nCO \n\nco \n\nU \n\n\n\n\n\nU \n\n\n\n\n\n0) \n\n\n\n\n\n \n\nM \n\nM \n\nM \n\nM \n\n> \n\nG \n\n\nM \n\n\xe2\x96\xbaH \n\nM \n\nG \n\n\nM \n\nH \n\n*H \n\n3 \n\nO\' \n\n\n\nM \n\n\n3 \n\n\n\nHH \n\n\n\no \n\nCM \n\n+ \n\n\nCO \n\nCM \n\n+ \n\n\nvO \n\n\nco \n\n\xe2\x80\xa2 \n\nCM \n\nI \n\n\nio \n\nu \n\nto \n\ng \n\n\xe2\x80\xa2H \n\n8 \n\n\n<1) \n\nU \n\na \n\nco \n\na> \n\nu \n\no \n\ng \n\n0) \n\nTJ \n\n\n88 \n\n\nSOURCE: United States Department of Commerce, Bureau of the Census, Defense Indicators \nSeries ES4, No. 68-3 (August, 1968), p. 34 and No. 70-11(November, 1970), p. 2 \n\n\n\n\n\n\n\n\nDefense Department Manpower, Civilian, End of Period \n(not seasonally adjusted, in thousands) \n\n\nACDA/E-156 \n\n\nd) \n\ntn \n\nCM \n\nCO \n\nrH \n\n\n\n\n\nOG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\nif* C5 \n\n\n\xc2\xbb \n\n00 \n\nf". \n\nCM \n\n\n\n\n\n00 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\nC \n\nrH \n\nCM \n\no \n\nQ \n\n\n\n\n\nto \n\n+ \n\n4* \n\n1 \n\n+ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCJ \n\n\n\n\n\n\n\n\n\nCM \n\no \n\n\n00 \n\nO \n\n\n\n\n\nm \n\no \n\nCO \n\nCM \n\nCO \n\n\n\n\n\nON \n\nCO \n\nco \n\nCO \n\nco \n\n\n\n\n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\n\n\n\n\n0) \n\n \n\nu \n\nM \n\nM \n\nM \n\ncO \n\n\nIH \n\nw \n\nw \n\nCO \n\n\nIH \n\nM \n\nII \n\n\n\nM \n\n\n0 \n\nO\' \n\n\n\nM \n\n\n89 \n\n\n/ \n\n\n1180 0.0 1167 -1.1 \n\n\n\n\n\nTABLE 16 (continued) \n\n\nACDA/E-156 \n\n\n\n\n0) \n\nrH \n\n00 \n\nCM \n\nCM \n\n\n\n\n\n\n\n\nCM \n\nOC \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n0k \n\nCM \n\nd \n\nCO \n\nCM \n\nCM \n\nO \n\n\n\n\n\n\n\nCO \n\n\nc0 \n\n+ \n\n+ \n\n1 \n\n. 1 \n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \n\nJG \n\n\n\n\n\n\n\n\n\n\n\no \n\nDu \n\ne> \n\n\n\n\n\n\n\n\n\n\n\n4-\xc2\xbb \n\n\n\n\n\n\n\n\n\n\n\n\nco \n\n0k \n\n\n\n\n\n\n\n\n\n\n\n\no \n\n/"~N \n\n\n\n\n\n\n\n\n\n\n\n\n*H \n\no \n\n\n\n\n\n\n\n\n\n\n\n\n\nis \n\n\n\n\n\n\n\n\n\n\n\n\na \n\nON \n\nrs \n\n00 \n\nCO \n\n\'4\' \n\nrH \n\n\n\n\n\xe2\x80\xa2 \n\n\n\nM \n\nrH \n\nvO \n\nv\xc2\xa3> \n\no \n\nrs \n\nrs \n\n\n\n\n\n\n\n0) \n\n\non \n\nCM \n\nco \n\nCM \n\nCM \n\n\n\n\n\n\n\n0. \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\n\n\n\n\n\n\nCO \n\nd \n\no- \n\nCO \n\nd \n\nCO \n\nCM \n\nCM \n\n\n\nCO \n\nN-/ \n\n\xc2\xab0 \n\n+ \n\n+ \n\n+ \n\n+ \n\ncO \n\n1 \n\n1 \n\n1 \n\n\n\n3 \n\n\n\n\n\n\n\nx: \n\n\n\n\n\n\nCO \n\nrH \n\nCJ \n\n\n\n\n\ncj \n\n\n\n\n\n\nd \n\nrH \n\n\n\n\n\n\n\n\n\n\n\na> \n\n1 \n\n\n\n\n\n\n\n\n\n\n\n\ncj \n\no \n\n\n\n\n\n\n\n\n\n\n\n\n\nis. \n\n\n\n\n\n\n\n\n\n\n\n\nco \n\n\n\n\n\n\n\n\n\n\na \n\n\n\n\n\xe2\x80\xa2 \n\nvO \n\n00 \n\n00 \n\nSt \n\nO \n\no \n\nst \n\nsr \n\nON \n\n\n\n4-> \n\nO \n\nvO \n\n00 \n\nCO \n\n00 \n\nco \n\n\nCM \n\nON \n\nvO \n\n\n\n\n55 \n\nON \n\no \n\nrH \n\nrH \n\nCM \n\nON \n\nCM \n\nrH \n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\nd \n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\ncO \n\n\n\n\n\n\n\n\n\n\n\n\ncO \n\n\n\n\n\n\n\n\n\n\n\n\n\n0) \n\nm \n\n\n\n\n\n\n\n\n\n\n\n\nu \n\nCO \n\na> \n\nrH \n\nvO \n\nrH \n\ntH \n\n \n\n#N \n\no \n\n\n\n\n\nu \n\n\n\n\n\n\no \n\n/-N \n\n\n\n\n\n\n\n\n\n\n\n\nM \n\n00 \n\n\n\n\n\n\n\n\n\n\n\n\n(0 \n\nVO \n\n\n\n\n\n\n\n\n\n\n\n\ng \n\nON \n\n\n\n\n\n\n\n\n\n\n\n\ng \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\no \n\n\nm \n\n00 \n\nSt \n\nm \n\nrs \n\nON \n\nrs \n\nCM \n\nvO \n\nCM \n\n\nCJ \n\n#v \n\nNO \n\nrH \n\nCO \n\nst \n\nm \n\nvO \n\nrH \n\nst \n\nON \n\nvO \n\n\n\n4J \n\nOn \n\nO \n\no \n\no \n\nO \n\nON \n\nCO \n\nCO \n\nCM \n\nCM \n\n\n4-1 \n\n00 \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\n\no \n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n00 \n\n\n\n\n\n\n\n\n\n\n\n\n4H \n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\nd \n\n< \n\n\n\n\n\n\n\n\n\n\n\n\n0) \n\n6 \n\n4H \n\n\'-z \n\na> \n\n\nON \n\nSt \n\nis \n\na> \n\nSt \n\nO \n\nrH \n\nCM \n\n\n00 \n\n00 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\noc \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nM \n\n1 \n\nd \n\nI \n\no \n\nO \n\no \n\nfr* c \n\no \n\nSt \n\nCO \n\nO \n\n\nCO \n\n00 \n\nCO \n\n1 \n\n1 \n\n1 \n\n1 \n\ncO \n\n1 \n\n+ \n\n1 \n\n1 \n\n\nCu vO \n\nrC \n\n\n\n\n\n-d \n\n\n\n\n\n\n(1) \n\n\nCJ \n\n\n\n\n\nCJ \n\n\n\n\n\n\nQ \n\n\xe2\x80\xa2 \n\n\n\n\n\n\n\n\n\n\n\nSo \n\n\no \n\n\n\n\n\n\n\n\n\n\n\nu \n\nCO \n\n55 \n\n\n\n\n\n\n\n\n\n\n\nCO \n\n<0 \n\n\n\n\n\n\n\n\n\n\n\n\nC \n\n4-\xc2\xbb \n\n\xe2\x80\xa2N \n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\ncO \n\nSt \n\nst \n\nON \n\no \n\nvO \n\nON \n\n00 \n\nvO \n\nis \n\nVO \n\nCO \n\n6 \n\n\xe2\x96\xa0U \n\nCO \n\nvO \n\nCO \n\nCO \n\nCM \n\nrH \n\nVO \n\nvO \n\nrH \n\nis \n\nis \n\n\xe2\x80\xa2H \n\nCO \n\nw \n\nON \n\no \n\no \n\nO \n\no \n\nON \n\nCM \n\nco \n\nCM \n\nCM \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\nrH \n\na) \n\nTJ \n\nCO \n\n\n\n\n\n\n\n\n\n\n\nu \n\n<0 \n\n(1) \n\n\n\n\n\n\n\n\n\n\n\nPu \n\n4-> \n\n\xe2\x80\xa2H \n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\nH \n\n\n\n\n\n\n\n\n\n\n\nCO \n\nd \n\nCD \n\n\n\n\n\n\n\n\n\n\n\n \n\n\n\n\n\n0) \n\n\n\n\n\na) \n\nw \n\n\nU \n\n\n\n\n\nU \n\n\n\n\n\n\nCJ \n\n\nu \n\nW \n\nM \n\nM \n\n> \n\nU \n\n(H \n\nW \n\nH \n\n> \n\n\n\nCO \n\n\nM \n\nM \n\n\xe2\x96\xbaH \n\nCO \n\n\nM \n\nM \n\nH \n\n\xe2\x80\x94 \n\nZD \n\n\n3 \n\n\n\nM \n\n\n3 \n\n\n\nM \n\n\nJX \n\no \n\n\nO\' \n\n\n\n\n\nO\' \n\n\n\n\n\n\nCO \n\n\n\n90 \n\n\n\n\n\n\n\n\n\n\nTotal Defense Expenditures Distributed According to Strategic or General Purpose Nature \n\n(billions of current dollars and percentage of total) \n\n\nACDA/E-156 \n\n\n\n\n\n\n\n\nrH \n\n\nm \n\nOS \n\nco \n\nrx \n\nrx. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nos \n\n00 \n\nHi- \n\nCM \n\nm \n\n\xe2\x80\xa2sj- \n\nrH \n\nrH \n\nm \n\nrx \n\nCM \n\nrx \n\n\n> \n\ni \n\n\n\n\nO \n\nrx \n\nco \n\nO \n\nOs \n\nrH \n\nrx \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nos \n\nrx. \n\nOs \n\nix \n\nCM \n\nrx \n\nrH \n\nrH \n\nm \n\nrx \n\nCM \n\nix \n\n\n> \n\n\n\n\n\nos \n\n00 \n\nso \n\n\nrx \n\nco \n\nVO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nOs \n\n00 \n\no \n\nOs \n\nco \n\nSO \n\nrH \n\nrH \n\nvO \n\nrx \n\nCM \n\nCx \n\n\n> \n\n\n\n\n\n00 \n\n\nrx \n\n\xc2\xbbH \n\nCM \n\n00 \n\nVO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nOS \n\nSO \n\nO \n\nrx \n\nrH \n\n00 \n\nrH \n\nrH \n\nso \n\nrx \n\nCM \n\nrx \n\n\n \n\n\n\n\n\nrx \n\nrx \n\nrx \n\n\nO \n\no \n\nVO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nos \n\n\n00 \n\nco \n\no \n\no \n\nr-t \n\nrH \n\nm \n\nrx \n\nCM \n\n00 \n\n\n> \n\n\n\n\n\nVO \n\nrH \n\nCM \n\nco \n\nSO \n\n<* \n\nSO \n\n\xe2\x80\xa2 \n\n\xe2\x99\xa6 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nOS \n\n \n\n\n\n8Hi \n\n\nin \n\nCM \n\nCM \n\n\n00 \n\nCM \n\nso \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nos \n\nSJ* \n\nm \n\nOS \n\n00 \n\nrH \n\nrH \n\n1\xe2\x80\x941 \n\nco \n\n\nCM \n\nrx \n\n\n\xe2\x80\xa2CO- \n\n\n\n\n\n\nOS \n\nrx \n\nso \n\n00 \n\nCM \n\nvO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nOs \n\nvO \n\n \n\nc\xc2\xbb \n\n\n\nC0 \n\n\n\n1 0) \n\n\n\n1 ..., e^. \n\nAn econometric system is necessarily stochastic. There are omitted \nvariables, approximate relationships, and random disturbances from \n\noutside. \n\n\n95 \n\n\n\n\n\n\nACDA/E-156 \n\n\nIf we have estimates of the parameters of the f^ - functions on \nthe basis of historical sample data, we can use the system \n\n\n\n\nf. = 0 \n1 \n\n\ni \xe2\x96\xa0 1,2, .. .n \n\n\n\n\nfor estimating each y^, given ^ and for period t. We set \n\nthe errors equal to zero for these applications of the model because \n\nthat is their average value. If we have any special, non-statistical \n\nknowledge about the appropriate values for particular random disturbances \n\n(e. ) other than zero in any particular period, we occasionally use such \nit 5 \n\nvalues instead of assuming that all the e^ vanish. Also, it should \n\nbe pointed out that values of y. , may be assumed to be given only \n\ni j \n\nat the beginning of an application, for such lag values are developed \nin successive time periods as future inputs on the basis of the dynamic \nevolution of the model; therefore we merely assume that initial values \nof y are given, together with values of the x over the whole \n\nl, t\xe2\x80\x94j it \n\nperiod of application. \n\n\nSpecific economic policies are defined in terms of given sequences of \nvalues for x^ t over a period of application. Policies may also be \ndescribed in terms of values for some parameters of the f^ - functions, \nnamely, those that are subject to direct control of public authorities. \nThes^e include such things as tax rates, reserve requirements against \nbank deposits, tariffs, exchange rates, social insurance benefit rates, \netc. The major policy decisions represented by the exogenous variables, \nx^ t , are government expenditure levels (by type), open market operations, \n\nthe discount rate, transfer payments, public employment levels, etc. \n\nThe usual procedure for studying economic policies of impact effects \nof major events is to develop two or more dynamic solutions to an \nequation system. One solution is called the control solution, and the \nothers are disturbed solutions. The control solution is a base-line \ncalculation, used as a reference position, usually representing the best \nconsidered judgement about input values for x. t and policy parameters. \n\nThe disturbed solution gives the time path of the economy in its \nvarious dimensions as a result of altering policy or other inputs. \n\nThese alterations may be complicated in that they assume many things to \nchange simultaneously at particular time points. A comparison of a \n\n\nTo cope with the problems of data revision that are constantly \noccurring in the realm of social statistics, we re-estimate our models \nfrom time to time. For interim purposes, between data revision periods, \nwe often assign non-zero values to the e^ . \n\n\n96 \n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\ndisturbed with a control solution is a generalization of the concept \nof a multiplier in which the change in one solution (y^ \xe2\x80\x94 y9^_) is \n\n\nd it: \n\ncompared with the associated change in one input (x. - ), where \n\nj ^ j1 \n\n\nmultiplier = \xe2\x80\x94 \n\n\ny it - \n\n\nit \n\n\nc \n\nX,. ~ X \xe2\x80\x984- \njt Jt \n\n\nThe new approach is a generalization not only in the sense that the \n\xe2\x80\x99\xe2\x80\x99package\xe2\x80\x9d of changes can be made more complicated, but also in the \nsense that the change process can be followed through time. We, therer \nfore, have dynamic multipliers or their generalized equivalents. \n\n\nIn using the Wharton-EFU Model in the present studies of disarmament, \nwe try to translate reductions of military expenditures and personnel \ninto combined, balanced changes in a number of exogenous variables over \nthe forecast horizon of the solution. Government purchase of goods and \nservices for defense, government wage payments, and the military labor \nforce are all explicit model variables. In addition, we consider \nvarious compensatory programs in the civilian sector of the economy \nand these are represented by corresponding changes in nonmilitary expend\xc2\xac \nitures, tax rates (parameters of "legal restrictions"), and instruments \nof monetary policy\xe2\x80\x94unborrowed reserves of the banking system and the \nFederal Reserve discount rate. \n\nMuch attention centers on the solutions for total production and \nunemployment in the economy when various disarmament programs are \nfollowed. Although the Model is highly interrelated and cannot be \nreadily described in all 70-equation detail, the major lines of \ncausation for the determination of production and employment can be \nindicated. The equations of the Model build up total demand for goods \nand services in the economy from relationships of consumption, capital \nformation, public expenditures and net exports. This buildup of \ndemand must be simultaneously supported by a flow of aggregate income. \nThese balancing flows of total demand and income determine aggregate \nproduction, known as Gross National Product (GNP). To meet this level, \nof GNP, an aggregate labor input is required which yields the required \nemployment figure. Against the level of employment required, we con\xc2\xac \nsider the labor force available. Labor force, itself, varies with the \nstate of the economy in the Model. Labor force minus employment gives \nunemployment, as one of the identities or definitional equations of the \nsystem. Labor force and employment must include farm workers, farm oper\xc2\xac \nators, other self employed persons, government civilian employees, and \nmilitary personneL It is evident that demobilization policies that \naccompany disarmament programs leave many servicemen in the labor force. \n\n\nt \n\n\n97 \n\n\n\n\nACDA/E-156 \n\n\nswitching them from a military to a civilian category, without immedi\xc2\xac \nately placing them all in civilian jobs. This is the crux of the un\xc2\xac \nemployment problem in our calculations. There is a further impact on \nproduction and indirect effects on employment. These, too, are. allow- \ned for in the Model solution. \n\nThe Model makes direct calculations of labor force and employment. \nUnemployment is a residual estimate. It is also quite small, something \nunder 10 percent. These two features of the unemployment statistics, \nits residual character and its small size, introduce uncertainty into \nits estimation. Errors in labor force and in employment projections \nmay be reinforcing and cause unemployment projections to be less reliable \nthan many other economic magnitudes. When compared to its small size, \nthe errors may appear to be large. \n\nThe Model generates solutions for other variables besides measures \nof aggregate economic activity. It produces estimates of price levels, \ninterest rates, and wage rates. \n\n\nIII.2 THE ECONOMETRICS OF DISARMAMENT-CONTROL SOLUTION \n\nFirst we must describe our control solution. It is the September, \n\n1970, control solution of the Wharton-EFU Model, extended beyond the \nusual cut-off period of 8 quarters, to go through the calendar year, \n\n1972. It is thus a 10 quarter projection. In this solution we have \nassumed that the war in Vietnam continues indefinitely but at a slacken\xc2\xac \ned pace as far as U.S. military expenditures and armed forces are con\xc2\xac \ncerned. It represents, essentially, a policy of "Vietnamization." \n\nWe have allowed for the 1970 pay increase of government employees, but \notherwise assumed that recent declines in defense expenditures will \n\ncontinue until the armed forces decline from the present level of 3.14 \nmillion men to 2.7 million by the end of 19^2. State and local govern- \xe2\x80\x9d \n\nment expenditures are assumed to rise first by $2.0 billion per quarter, \nincreasing to $3.4 billion per quarter, then falling back to $2.5 \nbillion pqr quarter. Federal civilian expenditures are also assumed \nto rise gradually, in addition to the pay increases. Additional pay \nincreases are built into the assumed path of government expenditures. \nFederal, state, and local. Total expenditures in current and constant \ndollars are shown quarterly over the solution period in Table 1. \n\nWorld trade is projected smoothly and steadily upward, but at a \nslower rate than in recent years. Farm income is assumed to decline \nslightly during the latter half of 1970 and then remain level for the \nrest of the projection period. The major unusual assumptions that must \nbe built into the control solution and the related disarmament simulations \nof the Model are those associated with initial conditions at the time \n\n\n98 \n\n\n\n\n\nControl Solution with Major Assumptions \n\n\nACDA/E-156 \n\n\nco \n\nO \n\non \n\nm \n\nCM \n\nON \n\nO \n\nm \n\n*H \n\n\n. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nrH \n\nst \n\nm \n\nH \n\nrH \n\nCO \n\nm \n\nO \n\nrH \n\nts. \n\n\nCM \n\nCO \n\nCO \n\nst \n\n\nTO \n\nm \n\non \n\nT\xe2\x80\x941 \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\n\nCM \n\nm \n\nrH \n\nvO \n\nO \n\nrH \n\nO \n\nm \n\nst \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nrH \n\nCO \n\nm \n\n00 \n\nrs. \n\nCO \n\nm \n\nON \n\n00 \n\n\nr*s \n\nCM \n\nCM \n\nCM \n\nst \n\n\nCM \n\nst \n\nON \n\nrH \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\n\nrH \n\nO \n\nrs \n\nCM \n\n00 \n\nO \n\no \n\nm \n\n00 \n\n\n. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nrH \n\nst \n\nst \n\nm \n\nCO \n\nCM \n\nm \n\n00 \n\nm \n\nrs- \n\nrs \n\nCM \n\nCM \n\nCM \n\nst \n\n\nCM \n\nst \n\nON \n\nrH \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\n\nst \n\nm \n\nCO \n\nrs \n\nSt \n\nSt \n\nO \n\nm \n\nCM \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nO \n\nsi\xc2\xac \n\nSt \n\nCM \n\nrH \n\nrH \n\nm \n\n00 \n\nCM \n\nr-s \n\nrs. \n\nCM \n\nCM \n\nCM \n\nSt \n\n\nCM \n\nSt \n\nON \n\nrH \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\n\nCO \n\nO ON \n\nrs vo \n\nCM \n\nm \n\nrs \n\nvO \n\n\n# \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\no \n\nm co \n\nO ON \n\nrH \n\nm \n\n\nON \n\nrs \n\nrs cm \n\nCM rH \n\nSt \n\n\nCM \n\nCO \n\nON \n\nrH \n\n> \n\nrH CM \n\n> > \n\nrH \n\n> \n\n\n> \n\nCM \n\n\n00 \n\nm \n\na\\ \n\nrH \n\nCD \n\nQ) 4-1 \n\nU OX \n\nd cd \n\nM \n\n\n\nU \n\nC \n\nd \n\n\n\n*H \n\ncd \n\n6^ \n\nu \n\nH \n\n\n\n \n\n\n\n\no \n\no \n\n \n\n53 \n\no \n\nCO \n\n\n\n\nCO \n\nX \n\nT3 \n\nrH \n\n-2 \n\na) \n\nQ \n\n\n\n\n\n\n\n\xe2\x80\xa2H \n\nd \n\na \n\nN-X \n\n>\xe2\x96\xa0\xc2\xab \n\n0 \n\n\n\n\n\n\n\nQ \n\nD \n\nH \n\n\n\n-u \xe2\x80\xa2 \n\n\xc2\xa3 8 \n\nO \n\n\no \n\n\xe2\x80\xa2 \n\nvO \n\n\nm \n\n\xe2\x80\xa2 \n\nrH \n\n\no \n\n\xe2\x80\xa2 \n\nrH \n\n4.52 \n\nvO \n\n00 \n\n8.10 \n\n4J \n\ncn cd \nCU Hi \n> \n\n\n\n\n\n\n\n\n\ng \xc2\xa3 \n\n\n\n\n\n\nVO \n\n\nst \n\nis cu \na) co \n\nO \n\n\xe2\x80\xa2 \n\n\nrH \n\n\xe2\x80\xa2 \n\n\nCM \n\n\xe2\x80\xa2 \n\n00 \n\n\xe2\x80\xa2 \n\nm \n\n\xe2\x80\xa2 \n\nCM \n\n\xe2\x80\xa2 \n\nvO \n\n\nrH \n\n\no \n\nSt \n\nvO \n\n00 \n\nco a) \na) o5 \n05 \n\nrH \nTd cd \n\nrH \n\n\nrH \n\n\nst \n\n\nCO \n\n\n\n\nO \n\nrH \n\n\nrs \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n0) M \n> a) \nO TJ \n\n\n\n\n\n\n\n\n\nHi a) \n\n\n\n\n\n\nvO \n\n\nCO \n\nHi Ph \n\nO \n\n\xe2\x80\xa2 \n\n\nVO \n\n\xe2\x80\xa2 \n\n\nm \n\n\xe2\x80\xa2 \n\nCM \n\n\xe2\x80\xa2 \n\nCM \n\n\xe2\x80\xa2 \n\nCO \n\n\xe2\x80\xa2 \n\nU \n\nvO \n\n\nSt \n\n\nCM \n\nm \n\nVO \n\n00 \n\n\nrH \n\n\n00 \n\n\nCM \n\n\nCO \n\n\n\n\n\nON \n\n\nrs \n\n\nrH \n\n\n>s d) \n\n\n\n\n\n\n\n\n\nH rH \n*H rH \n\n\n\n\n\n\n\n\n\nH O \n\n\n\n\n\n\n\n\n\nd Hi \nCU 4-1 \n\nCO \n\n\nSt \n\n\n00 \n\nvo \n\no \n\nCM \n\nCM \n\nst \n\nT) d \n\xe2\x80\xa2H O \nO \n\nvO \n\n\nCO \n\n\nvo \n\nm \n\nm \n\n00 \n\n0) \n\njd a) \n\ni 1 n \n\nrH \n\n\n00 \n\n\nCM \n\n\nCO \n\n\n\n\nON \n\n\nrs \n\n\nrH \n\n\n4J JO \n\n> \n\n\n> \n\n\n\xe2\x96\xa0CO* \n\n\n\n\n5n O \n-o H \n\n\n\n\n\n\n\n\n\nT> Tl \n\ncu ^ \n\n\n\n\n\n\n\n\n\nd 0 \n\n\n\n\n\n\n\n\n\n*h d \n\nIH CD \n\n\n\n\n\nCO \n\nll \n\n\n\n\n(U CO \n\n\n\n\n\nH \n\ncd \n\n\n\n\nnd cd \n\n\n\n\xe2\x96\xa0u \n\n4-> \n\nrH \n\nrH \n\nO \n\n\no \n\no \n\n\nare \n\nare \n\n\n\no \n\na \n\nTl \n\n/S> \n\nrH \n\n\n\n\nd \n\nT3 \n\nd \n\nT3 \n\n00 \n\nV \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nCO to \n\na) cu \n\xc2\xa3: \n\n\n\nO \n\nU \n\nO \n\nM \n\nm \n\nON \n\na) \n\n00 \n\nm \n\n\n\n\nPH \n\nPH \n\nrH \n\n4-> \n\nON \n\n\n \n(U Hi \n^ CU \nO CO \n\n{a fll \n\n\n\n\n\n\ncd \n\nrH \n\n\n\n\nrH \n\ncd \n\n\xe2\x80\xa2d \n\n4-1 \n\nO \n\n05 \n\nW \n\n/s \n\n\n\nd \n\nd \n\n\nu \n\no \n\n\'w\' \n\n92 \n\n\no \n\no \n\nCO \n\na \n\nX \n\n\n0 \n\n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\nd \n\na> \n\nCU \n\nT> \n\nO \n\n\n4J \n\n4-> \n\no \n\nP \n\nr 0 \n\nrH \n\nO \n\nd \n\ncd \n\ncd \n\n\xe2\x80\xa2H \n\n>s \n\nd \n\n* \n\nrn vu \ntj \n\n\n4J \n\nCD \n\nCO \n\n\xe2\x80\xa2H \n\na \n\nCU \n\n\nA \n\n0 \n\nd \n\nCO \n\nCO \n\nX \n\n0 \n\nO \n\n-a \n\nJO \xc2\xbb \n\n\xc2\xabH \n\nCM \n\n\nm \n\nCO \n\nr^ \n\nr^. \n\nCM \n\nd* \n\nrH \n\n\n\n\xc2\xa3 \n\n3 \n\n42 \n\n44 \n\nO \n\na) \n\ntH \n\na) \n\n\xc2\xa3 \n\nu \n\nOu \n\n3 \n\no \n\nX \n\n3 \n\n\n\n\n\n\n\n\nO \n\n\n\n\n\nr^. \n\n\nCO \n\nCM \n\nO \n\nrH \n\no \n\n00 \n\nm \n\nm \n\n\nO \n\nrH \n\nrH \n\nr->- \n\nCO \n\nOn \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\n. \n\n\no \n\nr>* \n\nr^- \n\n\nCM \n\nCO \n\nCO \n\n-d- \n\n\nCO \n\nVO rH \n\n\nvo \n\n\n\n\non \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\no \n\n\n\nrH \n\n\n\nT3 \n\nS \n\n3 \n\n\ng \n\n8 \n\n\nCO \n\nU \n\n3 \n\n\no \n\nT) \n\n\xe2\x96\xa0u \n\n3 \n\na) \n\nM \n\nin \n\n3 \n\n\n\n\n\n\n\n\nO \n\n\n\n\n\nCO \n\n\n00 \n\no \n\ntH \n\no \n\n\nm \n\nO \n\nvO \n\nm \n\nvo \n\no \n\nCM \n\nrH \n\nCM \n\nvO \n\nON \n\nIM \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n9 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\n\nvO \n\nvO \n\nr^\xc2\xbb \n\nm \n\nm \n\nrH \n\nvo \n\nON \n\n00 \n\nm \n\nOn \n\nr^. \n\no \n\n\nr^. \n\nCM \n\nCO \n\nCO \n\n<3- \n\n\nCO \n\nm rH \n\nm \n\nm \n\n\nCO \n\n\n\nON \n\n\n\nrH \n\nCM \n\nrH \n\n\n\nCM \n\no \n\n\n\nrH \n\n\na) \n\n\na) \n\nr*H \n\n\xe2\x96\xa08 \n\nH \n\n\nCM \n\n\n\xe2\x80\xa2H \n\n42 \n\n\n\n\n\nO \n\nCO \n\no \n\nrH \n\n\n\nm \n\n00 \n\n\nO \n\n\nON \n\n\ntH \n\ntH CO \n\nO \n\n\n\n\n\n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n3 \n\n\n\nrH \n\n\n>>> \n\n\n \n\n\n\xe2\x80\xa2CO- \n\n\n \n\n\n\xe2\x80\xa2CO- \n\n\n-co- \n\n\n\n\n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2 \n\n44 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\ntH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n44 \n\n*r-) \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\nT3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n/*N \n\n\n\n\ntH \n\n3 \n\n\n\n\n\n\n\n\n\n00 \n\n\n\n\n\n\n\n\n\n3 \n\n\n\n\n44 \n\n\n\n\n\n\n\n\n\n\nm \n\n\n\n\n\n\n\n\n\nM \n\n\n\n\n3 \n\n\n\n\n\n\n\n\n\n\nON \n\n\n\n\n\n\n\n\n\n3 \n\n\n\n\nTJ \n\nrH \n\n\n\n\n\n\n\n\n\ntH \n\n\n\n\n\n\n\n\n\ntH \n\no \n\n\n\n\ntH \n\n\n\n\nm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\ntH \n\no \n\n\n\n44 \n\n3 \n\n\n\n\n3 \n\n\n\n\n\n44 \n\n\n\n\n\n\n\n44 \n\n44 \n\nO \n\ntH \n\n\n\n3 \n\n3 \n\n\n\n\nu \n\n\n\n\n\nO \n\n\n\n42 \n\n\n\na \n\nO \n\nTJ \n\n/\xe2\x80\x94N \n\n\n\n3 \n\nO \n\n\n\n\n3 \n\n\n\n\n\n\n\n3 \n\n3 \n\n\n\nP \n\n3 \n\n\n\n\n\n-d \n\neg \n\n\n\n\n44 \n\n\n\n\n\n03 \n\n/-N \n\n\n3 \n\n3 \n\n\n\n* 3 \n\n\n00 \n\nVH \xe2\x80\xa2\xe2\x80\xa2 \n\n\n\nO \n\n3 \n\n\n\n\n\n3 \n\n\n\n\n3 \n\n3 \n\n\n3 \n\n3 \n\n\n\n0 \n\nO \n\nm \n\n00 \n\n\n\nU \n\n3 \n\n\n\n\n\'O \n\neg \n\n\ntH \n\n\nO \n\nJh \n\n\n> \n\nU \n\n\n\ntH \n\nV4 \n\nON \n\n3 m \n\n\n\xe2\x80\xa2 9 \n\nPH \n\n3 \n\n\n\nU \n\na \n\n3 \n\n\n3 \n\n\nH \n\n3 \n\n\nU \n\nH \n\n\n\nPH \n\nCH \n\ntH \n\n44 a\\ \n\n\n/-N \n\n\n\na) \n\na) \n\na) \n\n3 \n\no \n\n\ntH \n\nrH \n\nVH \n\n3 \n\n\n\n\n\n\n\n3 tH \n\n\n\ntH \n\n3 \n\n\n\n44 \n\n04 \n\n44 \n\nQ \n\n\ntH \n\ntH \n\n\n3 \n\nT) \n\n\n\n73 73 \n\n4h \n\n03 ^ \n\n\n3 \n\n3 \n\ntH \n\n\n\nu \n\nK \n\n3 \n\nU \n\nhJ \n\n\nH \n\nO \n\n3 \n\n3 \n\nrH \n\n8 \n\n\nO \n\n\n\n3 \n\n3 \n\n3 \n\n\n\n3 \n\nw \n\nQ \n\na) \n\n\n\n42 \n\nTd \n\n44 \n\nPd \n\nU \n\n\n3 \n\n3 \n\n\n44 O \n\nNH \n\n3 \n\nO \n\n\n\n0) \n\n3 \n\n\n\nT3 \n\n\'O \n\n\n\n\n3 \n\n\no \n\ntH 3 \n\n\nO \n\nO \n\n3 \n\n3 X \n\n\n\xe2\x80\xa2H \n\nH \n\n3 \n\n\nG \n\nO\' \n\n44 \n\n\na) \n\n3 \n\n\n\n\n\xc2\xab \n\n*3 \n\n\n0 \n\n\n*H \n\nH \n\n3 \n\n3 3 \n\nXJ \n\n44 \n\n44 \n\n3 \n\n\xe2\x80\xa2 \n\nO \n\n\n3 \n\nPH \n\n3 \n\nrH \n\n73 \n\n\n\n3 \n\n\no \n\n\n44 \n\n44 \n\nO \n\n0 TJ \n\nrH \n\n3 \n\n3 \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2d \n\nH \n\n-3 \n\n3 \n\n3 \n\n\n\n3 \n\n\n44 \n\n!* \n\n44 \n\n\xe2\x80\xa2\xe2\x80\xa2 a \n\n3 \n\n3 \n\n3 \n\n*H \n\n5n 3 \n\n3 \n\nO \n\n25 \n\ntH \n\n3 \n\n44 \n\n3 \n\ns \n\nO \n\ntH \n\n3 \n\n44 \n\n44 \n\n\n3 \n\nO \n\nO \n\noo 3 \n\nO \n\n55 \n\n23 \n\ntH \n\nO H \n\n\xe2\x80\xa2H \n\nO \n\n\n3 \n\n44 \n\nt \n\nS3 \n\n3 \n\nH \n\n(1) \n\n44 \n\no \n\nO \n\n\n9 \n\nM \n\nX \n\nm h \n\n*H \n\n\n\ntH \n\ntH \n\nrH \n\n\n3 \n\n3 \n\n3 \n\n\nU \n\n44 \n\n42 \n\n3 \n\nH \n\nH \n\n\no \n\ntH \n\nON \n\n44 \n\n3 \n\n3 \n\n*H \n\n04 3 \n\n3 \n\n3 \n\nO \n\n3 \n\nu \n\n3 \n\n3 \n\n44 \n\n44 \n\n\n\n\no \n\no \n\n3 \n\nrH 0 \n\n3 \n\n3 \n\n3 \n\n42 \n\n0 O \n\n\n3 \n\nO \n\ntH \n\n\xe2\x80\xa2H \n\n3 \n\n3 \n\n> \n\n55 \n\nO \n\nCO \n\n\n\n\n3 \n\n42 \n\n\'O \n\n\' tH \n\ntH \n\nO \n\nO \n\n\n3 *H \n\n3 \n\n44 \n\nU \n\nrH \n\n\n% \n\n3 \n\nS \n\n\n\n\n\n\n\nH \n\n3 \n\n3 \n\n3 \n\nO \n\ntH \n\ntH \n\n\n3 tH \n\nO \n\nO \n\nO \n\n\n3 \n\n>-\xe2\x80\xa2 \n\n\n\n\n\n\n\nQ \n\n5 \n\nM \n\npH \n\nCO \n\nO \n\nO \n\n\n5o (X, \n\nPQ \n\n55 \n\na \n\nTJ \n\n\n\n100 \n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nthe projections are being prepared (September, 1970). The control \nsolution was started from a situation in which a major strike was in \nforce (General Motors Corp.) that has a clearly discernible influence \non economic performance. Some dimensions of a 6-week strike are pro\xc2\xac \ngrammed into these solutions causing a drop in purchases of autos and \nparts and nonmanufacturing inventories in the fourth quarter of 1970, \nfollowed by significant catch-up buying and re-stocking in the first \nhalf of 1971. In addition, the possible consequences of a steel labor \nsettlement in summer, 1971, are programmed to allow for hedge buying \nof inventories during the first two quarters of 1971. This gives an \ninitial "down-up\xe2\x80\x9d movement to the economy that is independent of the \nfocus of this particular paper. The Model solutions return to standard \ngrowth paths by the end of 1971 after the effects of these two labor \ndisturbances are worked off. \n\nThe control solution reflects the policies that were instituted in \n1969 to slow down the economy and bring about a recovery later in 1970, \nwith the above mentioned strike interruption. Right or wrong as a \nprediction of the precise course that the economy will follow until \nthe end of 1972, it provides what seems to be a reasonable control \nsolution for the present study. It is a solution that assumes a con\xc2\xac \ntinuation of the war with reduced level of military expenditures and \nmanpower requirements. It does not assume a static military budget, \nbut one that is capable of supporting a limited war effort and contem\xc2\xac \nplates little general disarmament. Various peace and disarmament \npolicies, as well as an escalation type budget will be compared with \nthis solution.^ The time path of the control solution in terms of lead\xc2\xac \ning variables is given in Table 1. \n\nWhile the control solution consists of values for more than 75 \ndifferent variables, the selected ones summarized here give the flavor \nof the projected course of the economy over the next years. The \nstated objective of slowing down economic expansion through fiscal \nand monetary control, which took effect in mid-1969, produced a decline \nin real GNP for 1969.4 and a recovery or flattening out in 1970.2. \n\nFrom this point onwards, the economic expansion is projected to gain \nmomentum again apart from labor troubles, but with declining real value \nof military expenditures and a lower military force. The unemployment \nrate is driven above 5 percent and then declines again. The rate of \n\n\n^Editor\'s Note: Annual rates of change of particular series have \nbeen treated as continuous rates in this paper. Hence, they will not \nin general be the average of .the quarterly rates. This also accounts \nfor the slight variation between the military budget models of Professor \nW. W. Kaufmann described in.the Overview and Summary and those used in \n\nthis chapter. \n\n\n101 \n\n\n\n\nACDA/E-156 \n\n\n. \n\ninflation, measured by the GN7 deflator, shows some response to the de\xc2\xac \nflationary policies and gradually declines. While prices are not \nconstant by 1971-1972, they are estimated to grow at a much smaller \nrate than at present. The strict monetary policy of 1969 causing high \ninterest rates has been relaxed in this solution and interest rates \ngradually come down. The budget deficit of 1968 was turned into a \nsurplus for 1969 by fiscal policy, but turned negative again in 1970 \nand remains negative in the control solution. Net exports of goods \nand services, which fell below $2.0 billion (current prices) in the \nfirst half of 1969, recovered to values in excess of $4.0 billion by \nmid-1970 and remain firm with improvement throughout the solution \nperiod. \n\n\nIII.3 THE ECONOMETRICS OF DISARMAMENT-POST VIETNAM SOLUTIONS \n\nCase 1. Budget D. In the midst of the fiscal year ending June 30, 1971, \ndefense budgets and implied manpower programs are fairly well fixed for \nthe last two quarters of 1970 and the first two quarters of 1971. We \nassume that the control solution patterns for exogenous inputs are given \nfor that period and that an acceleration of disengagement follows, \nstarting in 1971.3. This could be associated with a cessation of \nhostilities. \n\nWhereas the control solution projects a decline in defense spending \nto $74.0 billion in 1972.4, the Budget D case brings this total down to \n$70.4 billion. The size of the armed forces is not changed from the \nfigure of 2.7 million men assumed for the control solution; so the lower \nspending total implies a different mix between men and material. \n\nFederal civilian spending and spending by state and local governments \nare fixed at the control solution values. The changes then are in \nmilitary spending, alone. The monetary policy set for the control \nsolution seems to be appropriate here. \n\nThe acceleration of cutbacks in defense spending under this case, \nraise unemployment somewhat in 1972, after some improvement in 1971. \n\nAt the end of the solution, unemployment stands near 4.5 percent. Some \ndetails of the calculation are given in Table 2. \n\nAn appropriate fiscal offset to compensate for the cutback in \nmilitary expenditures would seem to be increased Federal civilian spend\xc2\xac \ning, reaching an increment of $4.3 billion over the control solution \nlead by 1972.4. This adds almost $1.0 billion to the Federal deficit, \nbut moderates the rise in unemployment in 1972. The compensated pro\xc2\xac \ngram adds very little to the inflation rate according to the Model \nsolution. The compensated levels of nondefense spending and results \nfor a few leading variables are given in Table 2. \n\n\n102 \n\n\n\n\n\n\nACDA/E-156 \n\n\nro \n\nX \n\nON \n\n\nCM \n\n\nr^ \n\non \n\n\n\n\nO \n\n\no \n\n\n\n\n\n\n\nCO \n\n\no \n\n\nOn \n\nrH \n\nVO \n\nvO \n\nrH \n\no \n\n\n<3- \n\nrH \n\nON \n\n\nin \n\nvO \n\nrH \n\nm \n\n\xc2\xa9 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nON \n\nO \n\n\noo \n\n00 \n\nCO \n\nm \n\nrH \n\no \n\no \n\nO \n\n\noo \n\noo \n\nvO \n\nCO \n\nLO \n\n\nCO \n\n\nn- \n\nCM \n\nCO \n\nCO \n\n-- \n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\nn- \n\n\n\no \n\nX \n\nm \n\nrH \n\nm \n\nrH \n\nvO \n\nO \n\nmi- \n\no \n\nrH \n\nm \n\nrH \n\nrH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nMl" \n\nCM \n\nMi- \n\nr>- \n\noo \n\nCO \n\nm \n\n00 \n\n\nMf \n\nCM \n\n\n\n00 \n\nm \n\nCO \n\nm \n\n\nco \n\n\nr^\xc2\xbb \n\nCM \n\nCM \n\nCM \n\nCO \n\nin \n\n\nCO \n\n\nCM \n\nO \n\nr>. \n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n3 \n\n\nCM \n\nco \n\n3 on \nX X \n0 \nX \n\n\nHO \n\na \n\na) \n\n\nx \n\n\nCO \n\n\nr"\xc2\xbb \n\non \n\n\n\nvO \n\n\n- \n\n\nrH \n\n\n\nCM \n\n \n\no \n\nx \n\nX \n\n3 \n\ncr \n\nw \n\n\n\xe2\x80\xa2 00 - \n\n\n> \n\n\n>>>> \n\n\n-co- \n\n\nco\xc2\xac \n\n\nco \n\nX \n\n3 \n\n\nCO \n\nX \n\n3 \n\n\n-co\xc2\xac \n\n\n\n\n\nrH \n\n\n/-N \n\n\nCO \n\n\n\n\n\n\n\nX \n\n/"N \n\n\n3 \n\n\n\n4J \n\n4-1 \n\nO \n\n\no \n\n\n03 \n\n\n\n\n\n\nX \n\n0 \n\no \n\n\n3 \n\n\n\no \n\na \n\n\'d \n\n\no \n\n\nX \n\n\n\n\n\no \n\no \n\nHO \n\no \n\n\nX \n\n\n\n3 \n\n3 \n\n\n\nrH \n\n\n3 \n\n\n\n\n\n3 \n\n3 \n\n\nX \n\n\n3 \n\n\n\nHO \n\nHO \n\noo \n\nV-/ \n\n\n\n4-J \n\n\n\n\n\nHO \n\nHO \n\n00 \n\n\n\nX \n\n\n\nO \n\nO \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nX \n\n03 \n\n\n\n\no \n\nO \n\nm \n\n.. \n\n\nX \n\n\n\nX \n\nu \n\nCN \n\n3 \n\n00 \n\n\nHO \n\nCO \n\n\nrH \n\n\nX \n\nX \n\nON \n\n^ oo \n\n\nH3 \n\n\nx \n\n0-i \n\np-( \n\nrH \n\n4-1 \n\nin \n\n\n3 \n\n3 \n\n\n3 \n\n\nX \n\nP-. \n\nX \n\nm \n\n\n3 \n\n\n0) \n\n\n\n\ncd \n\nON \n\n\n03 \n\n03 \n\nrH \n\nO \n\n\n\n\n\n3 On \n\n\n3 \n\nX \n\nX \n\nrH \n\nrH \n\n4-4 \n\nP5 \n\nrH \n\n\nCh 44 \n\n3 \n\no \n\n\n<\xe2\x80\x941 \n\nX \n\nX \n\nx x \n\n/-s \n\n\n3 \n\nx \n\ncd \n\ncd \n\no \n\n\nv-/ \n\n\nX \n\n03 \n\nX \n\nX \n\n\n3 \n\n3 \n\no \n\n3 v\xe2\x80\x94\' \n\n\n>< \n\nX \n\ncd \n\n3 \n\n3 \n\n\n4-> \n\n\n\nw \n\nQ \n\n3 \n\n\n\n3 \n\n3 \n\n\n\xc2\xab \n\n\nW \n\n3 \n\n3 \n\no \n\no \n\nCO \n\n3 \n\nX \n\n\n\n\nHO \n\nHO \n\n\nO \n\nO \n\nCO \n\nX \n\n\n\nHO \n\nO\' \n\nX \n\nX \n\n3 \n\n3 \n\n03 \n\nHO \n\n4-J \n\nrH \n\n3 \n\n3 \n\n\nX \n\nX \n\n3 \n\nHO 3 \n\nHO \n\nX \n\n3 \n\n\n4-1 \n\n4-1 \n\no \n\na \n\nHO \n\nrH \n\n3 \n\ncd \n\nP*4 \n\n3 \n\nX \n\nX \n\nX \n\nO \n\n3 HO \n\nX \n\n3 \n\nPh \n\nH3 \n\ncd \n\nCd \n\n*H \n\nin \n\n3 \n\n03 \n\n3 \n\n3 \n\n\n\n3 \n\n3 \n\n3 \n\nX \n\n>N 3 \n\n3 \n\n3 \n\n\nq \n\n23 \n\n25 \n\nrH \n\no \n\nH \n\nX \n\na \n\nO \n\nX \n\n3 \n\n4-J \n\nS3 \n\n25 \n\nX \n\nO H \n\nX \n\na \n\nX \n\nft \n\n\n\nrH \n\nrH \n\n\n>-\xe2\x80\xa2 \n\n3 \n\n\xe2\x99\xa6H \n\n3 \n\n4-\xc2\xbb \n\no \n\n\n\nX \n\nX \n\nS^ \n\n3 \n\n3 \n\n\nCO \n\nCO \n\n*H \n\n9- \n\n<13 \n\n\nX \n\n4-J \n\nX \n\n3 \n\nH \n\nCO \n\nCO \n\nX \n\nCX 3 \n\n\nX \n\nX \n\nx \n\nCO \n\nCO \n\nX \n\na \n\nO \n\nH3 \n\n03 \n\n3 \n\n4-J \n\n4-J \n\n\nCO \n\nCO \n\nX \n\na o \n\nHO \n\n3 \n\nX \n\ncd \n\no \n\no \n\n\n03 \n\nX \n\n3 \n\n> \n\nS3 \n\no \n\nC/5 \n\n\no \n\no \n\n\n3 X \n\n3 \n\n> \n\no \n\n0) \n\nx \n\nX \n\n\n3 \n\nX \n\nO \n\n0 \n\n\n\n\n\nX \n\nX \n\n\n3 X \n\nO \n\nQ \n\n\n>-\xe2\x80\xa2 \n\no \n\nO \n\n\nS3 \n\nCH \n\nX \n\nO \n\n\n\n\n\nO \n\no \n\n\nX O-i \n\nX \n\nc-5 \n\n\n\ned \n\n\n103 \n\n\nAll dollar figures are in billions of current dollars, except where otherwise noted. \n\n\n\n\n\nTable 2 (continued) \n\n\nACDA/E-156 \n\n\n\n\n\nfs. \n\n\nCM \n\n\n\n\n\n\n\nON \n\n\ncn \n\n\nSt \n\nrH \n\nm \n\n\nNO \n\n00 \n\nst \n\nSt \n\nm \n\nCO \n\n00 \n\nCO \n\no \n\n\n00 \n\nr^- \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n# \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\no \n\nMD \n\nSt \n\nrH \n\n\nO \n\n\nCO \n\nrH \n\nr>. \n\nrH \n\nSt \n\nrH \n\nrs \n\n?H \n\n\no \n\nr>. \n\n\nSt \n\n\nis* \n\nCM \n\nSt \n\nst \n\no \n\n00 \n\n\nSt \n\n\nCO \n\nON \n\nrH \n\nr-* \n\n\nrH \n\n\n\n\nrH \n\nCM \n\nrH \n\nr-- \n\n\nrH \n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nON \n\n\n\n\n\n\n\n\n\nm \n\n\n00 \n\n\nCO \n\nCM \n\nON \n\nm \n\nON \n\n00 \n\no \n\nCM \n\nCM \n\nCO \n\nm \n\no \n\nCM \n\nO \n\n00 \n\nr>. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nrs. \n\no \n\nSt \n\no \n\nI"-. \n\nrH \n\nr^ \n\nrH \n\nON \n\nCO \n\nm \n\nst \n\nrH \n\n\no \n\nn- \n\n00 \n\n\n\nst \n\n\n\nCM \n\nsr \n\nCO \n\nON \n\n\n\n\n\nCO \n\nON \n\no \n\nr- \n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\n\n\nrH \n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n00 \n\n\nCM \n\n\n\n\n\n\n\nON \n\nCO \n\nCO \n\n\nCM \n\nSt \n\nCM \n\nON \n\nCM \n\nON \n\nm \n\nON \n\n00 \n\nCM \n\nm \n\nm \n\nVO \n\nON \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nCM \n\nSt \n\nSt \n\nO \n\n|s\xc2\xbb \n\nrH \n\nM3 \n\n00 \n\n1^. \n\nr>\xc2\xbb \n\nIS. \n\nSt \n\no \n\nis. \n\nON \n\nh- \n\n\nNO \n\n\nst \n\n\nr-*. \n\nCM \n\nCO \n\nCO \n\nr^ \n\nvO \n\n\nSt \n\n\nCM \n\nON \n\nO \n\n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\nI-\'- \n\n\nrH \n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n00 \n\n\n\n\n\n\n\n\nON \n\n\n00 \n\n\nrH \n\n\nst \n\n00 \n\nSt \n\nNO \n\nON \n\no \n\nm \n\nst \n\nON \n\n\nCM \n\nCO \n\nrH \n\nNO \n\nON \n\nNO \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n* \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\n*d \n\nm \n\nin \n\nm \n\nON \n\n\nCM \n\nNO \n\nNO \n\nSt \n\n\nON \n\n00 \n\nm \n\nON \n\nfs. \n\n00 \n\nr>. \n\n0) \n\nm \n\nm \n\n\nCO \n\n\n\nCM \n\nCO \n\nCO \n\nT3 \n\nm \n\nm \n\n\nCO \n\n\nCM \n\nOn \n\nhi \n\no \n\ni". \n\n\nrH \n\n\n\n\nrH \n\nCM \n\n0) \n\no \n\nr>. \n\n\nrH \n\n\n\nrH \n\ncd \n\nrH \n\n\n\n\n\n\n\n\n\n \n\n> \n\n\n\n\n>> \n\n \n\n\n> \n\n> \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\nu \n\n\n\n\n\n\n\n\n\n\nd \n\n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\nrH \n\n\n\nCO \n\n\n\n\n\n\n\nrH \n\n/*\\ \n\n\nCO \n\n\n\nu \n\n4J \n\no \n\no \n\n\n0 ) \n\n\n\n\n\nHi \n\nHi \n\nO \n\nO \n\n\n03 \n\n\n\no \n\no \n\n*d \xe2\x9c\x93-n O \n\n\nd \n\n\n\n\n\nu \n\no \n\n*d \n\nO \n\n\nU \n\n\n\n3 \n\nd \n\n\nrH \n\n\nd \n\n\n\n\n\nd \n\nd \n\n\nrH \n\n\nd \n\n\n\n*d \n\n*d \n\n00 w \n\n\n\nHi \n\n\n\n\n\nTJ \n\nTJ \n\n00 \n\n\n\nHi \n\n\n\nO \n\no \n\nin \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\na) \n\n\n\n\nO \n\no \n\nm \n\n6-5 .. \n\n\n\xe2\x80\xa2H \n\n\n\nU \n\nu \n\nOn \n\nS3 \n\n55 \n\nrH \n\nO M \n\n\na \n\nVi \n\nCO \n\n\n\nrH rH \n\n\n>s \n\nd \n\n\xe2\x80\xa2H \n\n03 \n\n4-1 \n\nO \n\n\n\nrH \n\nrH \n\n>-\xe2\x80\xa2 \n\nd \n\n03 \n\n\nCO \n\nCO \n\n\xe2\x80\xa2rH cL \n\n03 \n\n\nc \n\n4-1 \n\nX! \n\n \n\n55 \n\nO \n\nCO \n\n\no \n\no \n\nw \n\n03 *H \n\nd \n\n> \n\no \n\n0) \n\nu \n\nu \n\nd \n\n\no \n\n0 \n\n\n\n\n\nu \n\nu \n\n\nd d \n\no \n\nQ \n\n\n>4 \n\no \n\no \n\n\nPH \n\nPQ \n\nO \n\n\n\n\n\no \n\nO \n\n\nS3 PV, \n\nPQ \n\no \n\n\n\n104 \n\n\n\n\nACDA/E-156 \n\n\nThis modest amount of added civilian spending can be accommodated by \nundertaking small scale urban, transport, or anti-pollution programs. \n\nIf these are carried out in the private sector, with government financ\xc2\xac \ning, we simply have an increase in government expenditures, with no \naccompanying increase in government wage payments. This is the way the \ncompensatory alternative is programmed into the model. \n\nCase 2. Budget C : The major escalation of the war in Vietnam began in \n1965; thus a return to the 1965 fiscal year defense budget, inflated for \n1972 price levels, and pay increases that have occurred since 1965 pro\xc2\xac \nvide a case of moderate scale disarmament. A target military budget of \nthe last prewar size for 1972.4, together with an assumption of a \ncease fire from the end of fiscal year 1971 provide the main charac\xc2\xac \nteristics of this case. \n\nThe defense spending target of $67.9 billion for 1972.4 is just $2.5 \nbillion under the spending figure for the previous Budget D case. With \nthis comparatively small additional cutback in defense spending, we have \nnot altered the pattern used in the previous case for the size of the \narmed forces. It is programmed to fall gradually to 2.7 million men by \n1972.4. \n\nThe main results for Budget C are only slightly different from those \nof Budget D because the only changes in exogenous inputs are those for \nadditional defense spending cuts that grow to a maximum of $2.5 billion. \nTable 3 gives the leading calculations for Case 2. \n\nThe compensated version of this case programs an increment to non\xc2\xac \nmilitary Federal spending that grows over time and reaches a figure of \n$6.0 billion by 1972.4. This raises the estimate of constant dollar \nGIP by more than $7.0 billion and shaves more than a half point from the \nprojected unemployment rate in 1972.4. \n\nCase 3 Budget B: This de-escalation is deeper than that implied by \nthe inflated budget for FY 1965 (Budget C). This program rests on \ndeferral cf SAFEGUARD, and MINUTEMAN III, cessation ot further expendi\xc2\xac \ntures on theater nuclear forces, modernization of forces, and salvage \nof higher-value Vietnam surpluses. In this case we program the demobil \nization of and additional 200,000 men, and cut military expenditures \n$11 billion (current prices) below the Budget D Solution. To compen \nsate for this substantial amount of disarmament, we introduce an easier \nmonetary policy, civilian expenditure offsets that reach $6.5 billion, \nand a five percent income tax cut at the end of F* 19/i. \n\nThe easier monetary policy is represented by faster cuts in the dis\xc2\xac \ncount rate and more open market operations. These stimulative policies \nare manifested in the solution by lower interest rates and higher levels \n\n\n105 \n\n\n\n\n\nTable 3 \n\nBudget C Solution - Defense Expenditures \nEqual to $67.9 billion (1972 dollars) by 1972.4 \n\nand Quarter 1970.3 1970.4 1971.1 1971.2 1971.3 \n\n\nACDA/E-156 \n\n\ncn \n\n\nON \n\n* \n\nCNJ \n\nCM \n\nCM \n\ncn \n\nm \n\n\ncn \n\n\nCN \n\n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\nr*. \n\n\n\xc2\xbbH \n\n\n\n\n\n\n<* \n\np^ \n\n\n\nCM \n\n00 \n\nrH \n\nCM \n\n00 \n\nm \n\nCM \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n. \n\n\nm \n\ncn \n\nrH \n\nO \n\n\nvO \n\n00 \n\n\nCM \n\nCM \n\nCM \n\nrH \n\n\n\ncn \n\n\nCM \n\n\nrH \n\nCM \n\no \n\n\n\nr\xe2\x80\x941 \n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\nvO \n\n\ncn \n\n\ncn \n\n\n. \n\n\nrH \n\n\n\n\n vO \n\ns \n\n\n00 \n\nO \n\nCM \n\n\nON \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n... \n\no \n\n. \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\ncn \n\nvO \n\nm \n\nm \n\n00 \n\nm \n\ncn o on \n\nCJ \n\ncn \n\nvO \n\nm \n\nm \n\n00 \n\ncn \n\n00 \n\nCM \n\n\ncn \n\n\n\nCM CM rH \n\n\noo \n\nCM \n\n\ncn \n\n\nCM \n\nON \n\nP- \n\n\nrH \n\n\n\nrH CM \n\n\nON \n\nP^ \n\n\nrH \n\n\n\n> \n\n> \n\n\n\n\n> \n\n>>> \n\n\n> \n\n> \n\n\n\n\n-co- \n\n\nCO \n\nu \n\ncd \n\n\n44 44 \n\no o \n\n3 P \n\n03 03 \n\no o \nu u \nCH cu \n\n\no \n\nT3 ^ \n\n00 \n\nuo \n\nON 23 \nO \nO \n\n\nPM Cd rH \n\ncd \n\nCD 4-4 \n4-4 O \n\ncd H \n\n44 \n\n\nd) \n\n-d \n\n44 \n\n\n44 44 \n\ncd cd \n\nZ 23 \n\n\nCO \n\nd \n\no \n\n\xe2\x80\xa2H \n\n\n\xe2\x96\xa0U \n\nd \n\n\xc2\xa7 \n\no \n\n\nO CO \n\n\nCO CO \nCO CO \n\no o \n\nM V4 \n\no o \n\n\n*H D-. \n-Q 0 \n\n\'W\' Q) \n\n\nX \n\nCD 03 \n03 rH \nd CD \nM *H \n>4 \n \n\no \n\no \n\n\nCD \n\n03 \n\nd) \n\nPm \n\n\nV4 \n\nd) \n\njd \n\n\n03 \n\nCD \n\n4-4 \n\no \n\nd \n\n\nCD \n\nCO \n\n\n2 \n\n\nCD \n\nx: \n\n44 \n\no \n\n\n44 \n\n04 \n\n \n\nNO \n\nvO \n\nm \n\n00 \n\nON \n\n- \n\n\nrH \n\nr^- \n\nn* \n\nr^ \n\nCO \n\noc \n\nvO \n\no \n\n\nrH \n\nr"* \n\nCO \n\nr^. \n\nON \n\n\n\n-d- \n\n\nvO \n\nCM \n\n\nCO \n\no \n\n00 \n\n\nv^\xe2\x80\x9c \n\n\nCO \n\nON \n\no \n\n\n\nr\xe2\x80\x941 \n\n\n\n\nrH \n\nCN \n\nrH \n\nr>. \n\n\nrH \n\n\n\nrH \n\nt\xe2\x80\x941 \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nO \n\n\nVO \n\n\n\n\n\n\n\nn. \n\n\n00 \n\n\nCO \n\nm \n\nrH \n\n00 \n\nON \n\n00 \n\nm \n\nrH \n\nrH \n\n\nCN \n\nCO \n\nCN \n\nO \n\n00 \n\nCN \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCN \n\nCN \n\n00 \n\n<1- \n\no \n\n\n00 \n\nr^ \n\nrH \n\nvO \n\nCN \n\n\n<3" \n\nrH \n\n\nCN \n\nn- \n\n00 \n\nvO \n\n\n\'d- \n\n\nvO \n\nCN \n\n- \n\n\ntH \n\n\n\n\nrH \n\nCN \n\nO \n\n\n\nrH \n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCN \n\n\n\n\n\n\n\n\nCN \n\n\nCO \n\n\n\nCN \n\n\nvO \n\n00 \n\nrH \n\nCN \n\nOn \n\nm \n\n00 \n\n00 \n\nrH \n\n\nv* \n\nON \n\n\nCO \n\nON \n\no \n\n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nCN \n\n\n00 \n\niH \n\nm \n\no \n\n\nON \n\nvO \n\n00 \n\nm \n\n\nvO \n\nVO \n\n\no \n\n\nrH \n\n\nn* \n\n\nvO \n\nvO \n\n\n\n\nvO \n\nCN \n\nCO \n\nco \n\n\n\nVO \n\n\n\xe2\x80\xa2- \n\nON \n\nc \n\nr\xc2\xbb \n\nG \n\nm \n\nm \n\n\nCO \n\n\nn* \n\nCN \n\nCO \n\nCO \n\n4-1 \n\nm \n\nm \n\n\nCO \n\n\nCN \n\no \n\nON \n\nCD \n\no \n\n\n\nrH \n\n\n\n\nrH \n\nCN \n\nCTJ \n\no \n\nr^- \n\n\nrH \n\n\n\no \n\nrH \n\na \n\nrH \n\n\n\n\n\n\n\n\n\nCO \n\nrH \n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\nC \n\n\n\n\n\n\n\n\n\na \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\nCO \n\n\n6 \n\n\n\n\n\n\n\n\n\n\nO- \n\n\n\n\n\n\n\n\n\no \n\n\n\n\n\n\n\n\n\n\n6 \n\n\n\n\n\n\n\nG \n\n\no \n\n\n\n\n\n\n\n\n\n\nO \n\n\n\n\n\n\n\n*H \n\n\ng \n\n\n\nm \n\n\n\n\n\n\n\nCJ \n\n\n\nCO \n\n\n\'\xe2\x80\xa2d- \n\n\nrO \n\n\nd \n\n\nCO \n\nCO \n\nCN \n\no \n\nin \n\nrH \n\nON \n\nm \n\n\n00 \n\nm \n\nrH \n\nVO \n\no \n\nco \n\nG \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n9 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nH \n\nrH \n\n\nCN \n\n00 \n\nm \n\nON \n\n00 \n\nrH \n\nVO \n\nCO \n\nrH \n\n\nm \n\no \n\nm \n\nON \n\n00 \n\n00 \n\n\nr>. \n\n\n\n\n\nCO \n\n\n\nCN \n\nCO \n\nCO \n\n\n>d- \n\nm \n\n\nCO \n\n\nCN \n\n\nON \n\n\nO \n\nr>- \n\n\nrH \n\n\n\n\nrH \n\nCN \n\n\no \n\ni-"- \n\n\nrH \n\n\n\n\nrH \n\n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\xe2\x80\xa2co- \n\nCO- \n\n\n\n\n\xe2\x96\xa0co- \n\n-CO- \n\n-CO- \n\n-CO- \n\n\n-co- \n\nCO- \n\n\n\n\n\n\n\n\n\n/*\\ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\nU \n\n\n\n\n\n\n\n\n\n\nM \n\n\n\n\n\n\n\n\n\nCTJ \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\nO \n\nCO \n\n\n\n\n\n\n\nrH \n\n\n\n\nCO \n\n\n\n4J \n\n4-1 \n\no \n\n\no \n\nG \n\n\n\n\n\n4-1 \n\n4-1 \n\no \n\n\nO \n\n\nG \n\n\n\nO \n\nO \n\nx> \n\n/-\xe2\x80\x9cN \n\nrH \n\n\n\n\n\n\no \n\nO \n\nXJ \n\n\no \n\n\nU \n\n\n\n3 \n\n3 \n\n\n** \n\n\n3 \n\n\n\n\n\nG \n\nG \n\n\n5-5 \n\nrH \n\n\nG \n\n\n\nXJ \n\nxj \n\n00 \n\n\n\n4-1 \n\n\n\n\n\nXJ \n\nX) \n\n00 \n\nv-/ \n\n\n\n4-1 \n\n\n\nO \n\no \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\xe2\x80\xa2H \n\nd) \n\n\n\n\no \n\nO \n\nin \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\n\n\nU \n\nM \n\nON \n\na; \n\n00 \n\nXJ \n\nco \n\n\nrH \n\n\nu \n\nH \n\nON \n\nG \n\n00 \n\n\nXJ \n\n\nU \n\nCH \n\ncu \n\nrH \n\n4-1 \n\nm \n\nG \n\nG \n\n\nG \n\n\npL, \n\n0-4 \n\nrH \n\n4-1 \n\nin \n\n\nG \n\n\nG \n\n\n\n\nG \n\nON \n\nG \n\n0) \n\nrH \n\na \n\n\n\n\n\nG \n\nON \n\n\nG \n\nrH \n\n4-1 \n\nrH \n\nrH \n\n4-4 \n\noc \n\nrH \xe2\x9c\x93\xe2\x80\x94v \n\nG. 4-1 \n\nG \n\no \n\n\n*3 \n\nrH \n\n44 \n\noi \n\nrH \n\n\na \n\nG \n\nu \n\nCTJ \n\nCTJ \n\no \n\n\n5^5 \n\nX \n\n0) \n\nJ-4 \n\nhJ \n\n\nG \n\no \n\n\nv-^ \n\n5^5 \n\nX \n\n\nCTJ \n\nc \n\nc \n\n\n4-J \n\nv-/ \n\nW \n\nQ \n\nG \n\n\n\nc \n\nG \n\n\n4-1 \n\nX \n\nV-/ \n\nw \n\nG \n\n3 \n\no \n\no \n\nCO \n\nG \n\nX \n\n\n\nXJ \n\nxj \n\n\no \n\nO \n\nCO \n\nc \n\n\n\nXJ \n\nO\' \n\n\xe2\x99\xa6H \n\n*H \n\nG \n\n\na) x) \n\n4-\xc2\xbb \n\nrH \n\nG \n\nG \n\n\n*H \n\n\xe2\x80\xa2H \n\nG \n\nG \n\nG \n\nXJ \n\n4-\xc2\xbb \n\nG \n\n4-1 \n\n4-1 \n\no \n\n\nX) rH \n\nG \n\nG \n\nO-i \n\nG \n\nrH \n\n4-1 \n\n4-4 \n\no \n\ne \n\nXJ \n\nrH \n\nG \n\nJH \n\nXJ \n\nCTJ \n\nCTJ \n\n\xe2\x80\xa2H \n\n\nG G \n\n\nG \n\n\n\nG \n\nG \n\nG \n\n*H \n\n>> \n\nG \n\nG \n\nG \n\n\ng \n\n5Z \n\nJ3 \n\nrH \n\nO \n\nM -H \n\ns \n\nO \n\n\nG \n\n4-1 \n\n53 \n\n\nrH \n\no \n\nw \n\n\xe2\x80\xa2H \n\ng \n\nH \n\nCTJ \n\n\n\n-H \n\nrH \n\n>< \n\nG \n\n\xe2\x80\xa2H \n\nG \n\n4-1 \n\nO \n\n\n\nrH \n\nrH \n\n\n>-\xe2\x80\xa2 \n\nG \n\nG \n\n\nCO \n\nCO \n\n*H \n\nGr \n\nG \n\n\n4-1 \n\n-G \n\nG \n\nH \n\nco \n\nw \n\n*H \n\na. \n\nG \n\n\n\nrC \n\nu \n\nCO \n\nCO \n\nrO \n\nS \n\na xj \n\nG \n\nG \n\n4-\xc2\xbb \n\n4-1 \n\n\nco \n\nCO \n\nrQ \n\n& \n\na \n\nXJ \n\nG \n\n4-4 \n\nCTJ \n\no \n\no \n\n\nG \n\n*H G \n\n> \n\n2 \n\nO \n\nCO \n\n\nO \n\no \n\n\nG \n\n\xe2\x80\xa2H \n\nG \n\n> \n\nO \n\nG \n\n*4 \n\nu \n\n\nG \n\nJ-i O \n\no \n\n\n\n\n\nH \n\nM \n\n\nc \n\nV4 \n\nO \n\nO \n\n\n>* \n\no \n\no \n\n\nG3 \n\nCH CO \n\nO \n\n\n\n\n\no \n\nO \n\n\nD \n\ncu \n\nCO \n\nc3 \n\n\n\n107 \n\n\n\n\nACDA/E-156 \n\n\nof capital formation. The calculations are also done without fiscal \nor monetary compensation. \n\nFrom the viewpoint of an advocate of disarmament, the compensated \nversion of Budget B represents a low defense budget, large-scale demobil\xc2\xac \nization, and a balanced civilian program. As in the previous case, the \ncivilian offset expenditures are assumed to occur in the private sector, \nbut spent by government. The civilian offsets are balanced between the \nfiscal activities of spending and tax remission and also between fiscal \nand monetary measures. The latter stimulate the economy by stimulating \nprivate fixed capital formation. The projected time paths of the same \nfour variables presented for the other solutions together with government \nexpenditure assumptions are given in Table 4. Unemployment is not at a \nlong run equilibrium level (under 4 percent) by the end of 1972, but it \ncomes down to 4.5 percent under the stimulus of compensatory policy and \nis improving as the calculation ends. \n\n\xe2\x80\xa2n \n\nCase 4. Budget E : This is an altogether different type of assumption \nand solution pattern. The war is assumed to be terminated but military \nexpenditures are increased rather than reduced. ABM and new warfare \nsystems are included in the budget. The inputs allow for an expansion \nof outlay for R & D, intelligence, and communications. Although the \nair, sea, and ground war in Vietnam is concluded in this program, the \nsize of the military establishment is gradually restored to its recent \npeak value of 3.5 million men. \n\nThe additional expenditures more than cover the reductions associated \nwith Vietnam peace. As a result, the total military budget is fixed at \n$93.0 billion (current prices) by the end of 1972. This is about $13 \nbillion above the highest defense outlays during the War. It is also \nassumed that civilian programs are not cut back from the levels used in \nthe control solution. In total, this case provides for a large, growing \npublic sector. \n\nIt is unlikely that an extreme policy like this would be uncompen\xc2\xac \nsated, but the appropriate compensatory policies in this case are tighter \nmonetary policies and lower civilian spending by the Federal government. \nThe discount rate is kept high\xe2\x80\x94at 5% percent from the end of 1970\xe2\x80\x94and \nnonborrowed reserves are kept below the values attained in the control \nsolution. Income tax rates are increased by 5 percent after July 1, \n\n1971. \n\nThis solution has higher interest rates, higher prices, and lower \nunemployment. It also generates more real GNP. It is not a situation \nof intense inflation, however, because it comes during a period that has \na substantial }, cooling-of f\xe2\x80\x9d phase at the beginning. It does, however. \n\n\n108 \n\n\n\n\n\nACDA/E-156 \n\n\n\n\n\nm \n\n\nO \n\n\n\n\n\n\n\n. \n\nm \n\nrH \n\no \n\n\nCO \n\no \n\n\no \n\nm \n\nm \n\no \n\nOn \n\noo \n\no \n\no \n\nCM \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nvO \n\n00 \n\nd- \n\nCM \n\n<3- \n\nr>H \n\n00 \n\nCO \n\nm \n\n00 \n\n\nr-. \n\nco \n\nm \n\n\nco \n\n\n\nCsl \n\nCM \n\nCM \n\non \n\nO \n\n\n\nrH \n\n\n\n\nrH \n\nCM \n\n\n>CJ- \n\nO \n\niH \n\nrH \n\nm \n\nrH \n\nrH \n\n-d- \n\nr^. \n\no \n\nm \n\n\nX \n\na \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n0) \n\n> \n\no \n\n\nG \n\n \n\n\nG \n\nX \n\nG \n\n-C \n\nS \n\nX \n\nCM \n\na> \n\no \n\nX \n\na) \n\n\n\na) \n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n& \n\nX \n\nG \n\n\n\n\n\nvO \n\n\nCO \n\n\n\n\n\n\n\n\nVO \n\n\nCO \n\n\n\n\n\no \n\n\nx \n\nG \n\n\nw \n\nrH \n\n-d- \n\n\nVO \n\nm \n\nCM \n\nCM \n\nCO \n\nm \n\nco \n\n\n\n\nvO \n\nm \n\nCM \n\nCM \n\nCO \n\n\nCO \n\n\nCO \n\nm \n\nCM \n\ntH \n\n\n\nX \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nrH \n\n\nG \n\no \n\no \n\nX \n\nd- \n\nCM \n\nm \n\nvO \n\n00 \n\n\n \n\n\n\n\n> \n\n>>> \n\n\nCO- \n\nco- \n\n\n\n\n4-J \n\nCO- CO- CO- \n\n\n\xe2\x80\xa2co- \n\nO \n\n\nCD \n\nm \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\na \n\n\n\n\n\n\nX \n\n\nPQ \n\nx \n\nG \n\n00 \n\nX \n\n3 \n\nPQ \n\n\non \n\nm \n\n> \n\no \n\nX \n\n\nG \n\nG \n\na 4 \n\nw \n\n\nx \n\ng \n\n4-J \n\nX \n\nG \n\nG \n\nO\' \n\nX \n\nG \n\nG \n\nX \n\nG \n\n0) \n\ntH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\n\nCO \n\n\n\n\nX \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nO \n\n\nX \n\n\n\n\nX \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\n\nG \n\n\n\n\n-O \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n04 \n\n\nG \n\n\n\n\n\n\n\n/\xe2\x80\x94s \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n0 \n\n\n\n\nG \n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\nX \n\nG \n\n\n\n\n\nX \n\n\n\nu \n\n\n\n\n\n\n\n\n\n\n\nX \n\n\n\n\nG \n\nX \n\nG \n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\nG \n\nG \n\nCM \n\n\n\n\nG \n\n\n\nrH \n\n\n/T^S. \n\n\n\n\n\n\n\n\n\nX \n\n\n/-\xe2\x80\x94 s \n\n\n\nX \n\n\nCO \n\n\n\nX \n\n\n\nX \n\n\no \n\n\nw \n\n\n\n\n\n\n\nX \n\n\no \n\n\nW \n\nX \n\nX \n\nG \n\n\n\nG \n\nX \n\n4-J \n\no \n\n\no \n\n\nG \n\n\n\n\n\nX \n\nX \n\no \n\n\no \n\n\nG \n\nX \n\nG \n\nX \n\n\n\n\na \n\no \n\nX \n\n\nX \n\n\nX \n\n\n\n\n\na \n\no \n\nX \n\n\nX \n\n\nX \n\nG \n\nX \n\nG \n\n\n\nCO \n\nG \n\nG \n\n\nS\'? \n\n\n\nG \n\n\n\n\n\nG \n\nG \n\n\n\n\n\nG \n\nG \n\nG \n\nH \n\n\n\nG \n\nX \n\nX \n\n00 \n\n\n\n\nX \n\n\n\n\n\nX \n\nX \n\n00 \n\n\n\n\nX \n\n& \n\nO \n\n\n\nCO \n\nX \n\no \n\no \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nX \n\nG \n\n\n\n\no \n\nO \n\nin \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\nX \n\nX \n\n:z \n\nG \n\n\nG \n\nG \n\nX \n\nx \n\nON \n\nG \n\n00 \n\n\nX \n\nCO \n\n\nX \n\n\nX \n\nX \n\nON \n\nG \n\n00 \n\n\nX \n\nw \n\n\n0 \n\n\n> \n\n00 \n\nCM \n\ncu \n\nX \n\nX \n\nm \n\n\nG \n\nG \n\n\nG \n\n\nPM \n\nPM \n\nX \n\nX \n\nm \n\n\nc \n\n\n<-3 \n\nO \n\n\nX \n\nX \n\n\n\n\nG \n\nON \n\n\nG \n\nG \n\nX \n\no \n\n\n\n\n\nG \n\nON \n\n\nG \n\nX \n\n\na \n\nG \n\nG \n\nX \n\nrH \n\nX \n\nX \n\nPd \n\nX \n\n/ - N \n\nPL X \n\nG \n\no \n\n\nX \n\nX \n\nX \n\n\nX \n\n/~-N \n\n\nG \n\nX \n\nC \n\nX \n\nCO \n\n\ncd \n\nG \n\no \n\n\nv-/ \n\n6^ \n\nX \n\nG \n\nX \n\n\xe2\x96\xbaJ \n\n\nG \n\nG \n\no \n\n\n\n\nX \n\nG \n\nX \n\nG \n\nG \n\nX \n\nG \n\nG \n\n\nX \n\n\nV\xe2\x80\x94/ \n\nfx3 \n\na \n\nG \n\n\n\nC \n\nG \n\n\nX \n\n\n\'w\' \n\nw \n\nG \n\nH \n\n\ncd \n\ncd \n\nG \n\nO \n\no \n\nCO \n\nC \n\nX \n\n\n\n\nX \n\nX \n\n\nO \n\nO \n\nto \n\nG \n\n\n\n\nX \n\n\nG \n\n\n\nX \n\nX \n\nX \n\nG \n\nCD \n\nCD \n\nX \n\nX \n\nX \n\nG \n\nG \n\n\nX \n\nX \n\nG \n\nG \n\nG \n\nX \n\nX \n\nG \n\nX \n\nX \n\nX \n\nX \n\nX \n\n4-1 \n\nX \n\no \n\n0 \n\nX \n\nX \n\nG \n\nG \n\nPm \n\nG \n\nX \n\nX \n\nX \n\no \n\n0 \n\nX \n\nX \n\nG \n\nPm \n\nG \n\nG \n\nG \n\nG \n\no \n\ncd \n\nid \n\nX \n\n>\xc2\xbb \n\nG \n\nG \n\nG \n\nG \n\n\n\nG \n\nG \n\nG \n\nX \n\nSn \n\nG \n\nG \n\nG \n\n\nG \n\nX \n\nG \n\n\nX \n\n5s \n\n53 \n\nX \n\nO \n\nX \n\n\xe2\x80\xa2H \n\n0 \n\nO \n\nX \n\nG \n\nX \n\nJZ \n\nJZ \n\nX \n\nO \n\nX \n\nX \n\n0 \n\nX \n\nO \n\no \n\nO \n\no \n\n\n\n\nrH \n\nX \n\n\n>* \n\nG \n\nX \n\nG \n\nX \n\nO \n\n\n\nX \n\nX \n\n\n>* \n\nC \n\nG \n\nCO \n\nPM \n\nO \n\nX \n\nX \n\nCO \n\nCO \n\nX \n\nPu \n\nCD \n\n\nX \n\nX \n\n-G \n\nG \n\nH \n\nCO \n\nCO \n\nX \n\ncu \n\nG \n\n\nX \n\n-G \n\nX \n\nX \n\nCO \n\nX \n\nH \n\nCO \n\nCO \n\n,o \n\n0 \n\nO \n\nX \n\nG \n\nG \n\nX \n\nX \n\n\nco \n\nco \n\n40 \n\n0 \n\nO \n\nX \n\nG \n\nX \n\nG \n\nO \n\nX \n\no \n\n< \n\no \n\no \n\n\nQ) \n\nX \n\nc \n\n> \n\n2 \n\no \n\nCD \n\n\no \n\no \n\nS-4 \n\nG \n\n\xe2\x80\xa2H \n\nG \n\n> \n\nO \n\nPM \n\nO \n\nQ \n\n40 \n\nG \n\nx \n\nx \n\n\nG \n\nX \n\nQ \n\nQ \n\n\n\n\n\nX \n\nX \n\n\nG \n\nX \n\nO \n\nQ \n\n\n\n\n\nc \n\n\no \n\no \n\n\nGJ \n\nP4 \n\nPQ \n\nO \n\n\n\n\n\no \n\nO \n\n\nto \n\nCM \n\nPQ \n\nO \n\n\n\n\n\nto \n\n\n\n109 \n\n\n\n\nACDA/E-156 \n\n\ni \n\n\nnO \n\n\nst \n\nro \n\nrH \n\nst \n\nCM \n\nis \n\nm \n\nrH \n\nCM \n\nIS \n\nm \n\nrH \n\nst \n\nm \n\nNO \n\nNO \n\nON \n\nNO \n\no \n\nrH \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nON \n\nst \n\nm \n\nrH \n\nrs \n\nON \n\nrs \n\nro \n\nON \n\nrH \n\n00 \n\n- \n\n> \n\n\n\n\n> \n\n> \n\n\n\nst (Tv \n\n\nNO \n\n\n00 \n\nON \n\nCO \n\nm \n\noo \n\n\nNO \n\nCM \n\no \n\no \n\nrH \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n00 \n\n03 \n\nrs \n\nIS \n\nn \n\nON \n\nrs \n\n\nON \n\nvO \n\nCM \n\nin \n\nCNj \n\nCM \n\n00 \n\nm \n\nin \n\n\nro \n\n\n\nCM \n\nrH \n\nSt \n\n\nCO \n\nCM \n\n4-J \n\no \n\nrs \n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\nCd \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\nc \n\n\n\n\n\n\n\n\n\n\n\n\n\n00 \n\n\n\n\n\n\n\n\n\n\n\n\n\na \n\n\n\n\n\n\n\n\n\n\n\n\n\nB \n\n\n\n\n\n\n\n\n\n\n\n\n\no \n\n\n\nro \n\n\nON \n\n\n\n\n\n\n\nro \n\no \n\nSt \n\nON \n\nrH \n\nCM \n\nOn \n\n\nro \n\nCO \n\nON \n\no \n\nrH \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n00 \n\n\nrs \n\n\xc2\xabH \n\nm \n\nON \n\nrs \n\n\noo \n\n00 \n\n00 \n\nin \n\nrH \n\nCM \n\n\nst \n\nm \n\n\nCO \n\n\n\nCM \n\nrH \n\nro \n\n\nCO \n\nCM \n\n\n\xc2\xa9 \n\nrs \n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\n\nfH \n\n\n\n\n\nCO \n\n\n\n\n\n\n> \n\n\n> \n\n> \n\n\n\n\n4-J \n\n > \n\n> \n\n\n \n\n\na \n\n\xe2\x80\xa2H \n\n0) CO \n\nO 4-J \n\n\n0) G \n\nK 00. \n\n\n\n\n\n/S \n\n\n\n\n\n\n\n\n\n\n\n/S. \n\n\n\n\n\nCO \n\nS\' \n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n*d \n\n0) \n\n>N \n\n\n\n\n\n\n\n0-4 \n\n\n\n\n\n\n\n\n\n\n\nu \n\n\n\n\nG \n\nu \n\ncd \n\n\n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n\n\ncd \n\n\n\n\ncd \n\nG \n\na \n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n/S \n\n\n\n4-J \n\n\nC0 \n\n\n\n\n\n\nr-I \n\n\nO \n\n\nCO \n\n\n\n\n\n\n\nrH \n\n\no \n\n\nCO \n\n\xe2\x80\xa2H \n\nX \n\n00 \n\n\n\n\n4-J \n\nu \n\nO \n\n\no \n\n\n00 \n\n\n\n\n\n4-> \n\n4-J \n\no \n\n\nO \n\n\n00 \n\nd \n\ncd \n\nX \n\n\n\n\nO \n\no \n\nd \n\n/s \n\nrH \n\n\nH \n\n\n\n\n\no \n\nu \n\nd \n\n/S \n\nrH \n\n\nH \n\nG \n\n4J \n\ncd \n\n\n\n\n3 \n\n\n\n\n\n\n3 \n\n\n\n\n\n3 \n\nG \n\n\n6^ \n\n\n\nG \n\n00 \n\nG \n\nH \n\n\n\n\nd \n\nd \n\n00 \n\nv-x \n\n\n\n4-1 \n\n\n\n\n\nd \n\nd \n\n00 \n\nw \n\n\n\n4-J \n\na \n\nO \n\n\n/TN \n\nCO \n\n\nO \n\nO \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\n0) \n\n\n\n\nO \n\no \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\nX \n\n23 \n\n00 \n\n\n00 \n\n\nU \n\nU \n\nON \n\nd) \n\n00 \n\n\nd \n\nCO \n\n\niH \n\n\nM \n\n\nON \n\n0) \n\n00 \n\n\n*d \n\nw \n\n\na \n\nN-/ \n\n> \n\nu \n\na \n\na \n\nrH \n\n4-1 \n\nin \n\n\nG \n\nG \n\n\ncd \n\n\na \n\na \n\nrH \n\n4-J \n\nin \n\n\nG \n\noS \n\no \n\n\n0-1 \n\nN \n\nG \n\n00 \n\n00 \n\n\nG \n\nM \n\nG \n\n\ng \n\n2 \n\n23 \n\nrH \n\nO \n\nM \n\n*H \n\n0 \n\no \n\nu \n\n00 \n\n4-J \n\n53 \n\nz \n\nrH \n\nO \n\nM \n\n\nB \n\n14 \n\nO \n\nO \n\nO \n\no \n\nCCS \n\n\n\nrH \n\nrH \n\n\n>-< \n\nG \n\n\xe2\x80\xa2H \n\n00 \n\n4-J \n\no \n\n\n\nrH \n\nrH \n\n\n\nG \n\n0) \n\nCO \n\na \n\no \n\nu \n\n\nCO \n\nCO \n\n\xe2\x80\xa2H \n\na \n\n00 \n\n\nH \n\n4-J \n\nx: \n\ncd \n\nH \n\nCO \n\nCO \n\n\xe2\x80\xa2H \n\nP\xc2\xab \n\n00 \n\n\nH \n\n-G \n\n>-l \n\nu \n\nCO \n\nu \n\nM \n\nCO \n\nCO \n\nX) \n\nS \n\nO \n\nd \n\n00 \n\nid \n\n4-J \n\n4-J \n\n\nCO \n\nCO \n\n-Q \n\nB \n\nO \n\nT0 \n\n0) \n\n4J \n\n00 \n\no \n\n\xe2\x80\xa2H \n\no \n\n00 \n\no \n\no \n\ns-/ \n\n00 \n\n*\xc2\xbbH \n\nG \n\n> \n\n!z \n\no \n\nCO \n\n\no \n\no \n\nN-/ \n\n0) \n\n\xe2\x80\xa2H \n\nG \n\n> \n\no \n\na \n\nCJ \n\nQ \n\nn \n\n00 \n\nu \n\n\n\nG \n\nU \n\nO \n\n0 \n\n\n\n\n\nu \n\nu \n\n\nG \n\n\no \n\n0 \n\n\n\n\n\n\xc2\xbb\xe2\x96\xa0 \xe2\x96\xa0 \nrj \n\n\no \n\nO \n\n\nG0 \n\na \n\nPQ \n\no \n\n\n\n\n\no \n\nO \n\n\nEG \n\na \n\na \n\no \n\n\n\n\n\n\n\n110 \n\n\n\n\n\n\n\nACDA/E-156 \n\n\nco \n\n\np^. \n\n\nON \n\n\nvO \n\no \n\no \n\nco \n\n\nrH \n\nrH \n\no \n\nOv \n\nm \n\nCO \n\nO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nMfr \n\nCO \n\n\nCO \n\n00 \n\nvO \n\nin \n\nrH \n\nCO \n\no \n\nMf \n\no \n\nrH \n\nm \n\n\nCO \n\nrH \n\n\n\nCM \n\nCO \n\nrH \n\nCO \n\nCM \n\nMf \n\no \n\nrH \n\n\nMf rH \n\n- \n\nCM \n\nCM \n\nCM \n\n\nrH \n\n\nMf \n\n\nCO \n\n\n\nCM \n\nrH \n\nMf \n\nCM \n\n\n\nov \n\n\no \n\n\n\n\nrH \n\n\n\n\n\nrH \n\nCM \n\n\no \n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n*H ,0 \nT3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n3 -^v \n3 05 \n\na, u \nx 3 \n\n\n\n\n\n\nvO \n\n\nCO \n\n\n\n\n\n\n\n\n\n\nVO \n\n\nCO \n\n\n\n\n\no \n\n\n\nW rH \n\n- \n\nVO \n\nO \n\nMl" \n\n\n00 \n\no \n\nCM \n\nMf \n\n\nOs \n\nm \n\nr-\'. \n\n\nvO \n\n\nO *H \n\n\xe2\x80\xa2 \n\na \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCJ \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n*H rH \n\no \n\n3> \n\nCO \n\n\nvO \n\nm \n\nm \n\n00 \n\n\nm \n\nCO \n\nO \n\nOs \n\n\nCO \n\n\nvO \n\nm \n\nin \n\n00 \n\n\nCO \n\nm \n\nOs \n\nm \n\n\n\nU rH \n\nr>. \n\n\n00 \n\n\nCM \n\n\nCO \n\n\n\n\nCM \n\nCM \n\nrH \n\n\noo \n\n\nCM \n\n\nCO \n\n\n\nCM \n\nrH \n\nCO \n\n\nCM \n\n\n3 iH \n\nos \n\n\nOS \n\n\nO- \n\n\nrH \n\n\n\n\n\nrH \n\nCM \n\n\nOv \n\n\n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\nrH JCi \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\n\n\n\n\n\n\no \n\n\n\n\xe2\x96\xa0cry \n\n\n> \n\n\n\n\n\n \n\n \n\n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\n\n3 \n\n\n\n\n\n3 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nPA \n\n\n3 \n\n\n\n\n\nOO o \n\n\n\n\n\n>r\\ \n\n\n\n\n\n\n\n\n\n\n\n\nZ~\\ \n\n\n\n\n\n3 \n\ng \n\n\n\n\n\n-d 4-> \n\n\n\n\n\n05 \n\n\n\n\n\n\n\n\n\n\n\n\nW \n\n\n\n\n03 \n\n3 \n\nPo \n\n\n\n\n\n3 \n\n\n\n\n\nU \n\n\n\n\n\n\n\n\n\n\n\n\nU \n\n\n\n\n3 \n\nHi \n\n3 \n\n\n\n\n\neq rH \n\n\n\n\n\ncd \n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\n\n\n\n3 \n\n3 \n\nPH \n\n\n\n\n\ncd \n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\n-s \n\n\n\n4J \n\n\n\n\n\n\n3 \n\n\n\n\n\nrH \n\n\no \n\n\n05 \n\n\n\n\n\n\n\n\ntH \n\n\no \n\n\n3 \n\n\xe2\x80\xa2H \n\nX \n\n\n\n\n\na 4 \n\n\n\n4-J \n\n4-\xc2\xbb \n\no \n\n\no \n\n\n0) \n\n\n\n\n\n\n4-J \n\n4-1 \n\no \n\n\no \n\n\n3 \n\n03 \n\n3 \n\nX \n\n\n\n\nw \n\n\n\no \n\na \n\n03 \n\n/*\\ \n\nrH \n\n\nHi \n\n\n\n\n\n\na \n\no \n\n03 \n\n\nrH \n\n\nHi \n\na \n\n4-J \n\n3 \n\n\n\n\n\n\n\n3 \n\n3 \n\n\n\n\n\n3 \n\n\n\n\n\n\n3 \n\n3 \n\n\n\n\n\n3 \n\n3 \n\n3 \n\nH \n\n\n\n\n\n\n\n31 \n\nTJ \n\n00 \n\n\'w\' \n\n\n\n4J \n\n\n\n\n\n\n03 \n\n03 \n\n00 \n\ns-^ \n\n\n\n4-J \n\nPH \n\nO \n\n\nZ\xe2\x80\x94S \n\n3 \n\n\n\n\n\no \n\nO \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n*H \n\n \n\n\n\nu \n\n\nPH \n\nPH \n\nrH \n\n4-J \n\nm \n\n\n3 \n\n3 \n\n\n3 \n\n\n\nPH \n\nPH \n\nrH \n\n4-J \n\nm \n\n\n3 \n\n\nod \n\nO \n\n\nHi \n\n\n\n3 \n\n\n\n\ncd \n\nos \n\n\n3 \n\n3 \n\nrH \n\na \n\n\n\n\n\n\n3 \n\nos \n\n\n3 \n\nrH \n\n\no \n\n3 \n\n3 \n\n\n\n4-J \n\n\nrH \n\nrH \n\n4-1 \n\n$ \n\nrH \n\nz-\\ \n\np. \n\n4-4 \n\n3 \n\no \n\n\n\nrH \n\nrH \n\n4-4 \n\nerf \n\nrH \n\nz\xe2\x80\x94n \n\nP 4 \n\n3 \n\nX \n\n3 \n\n4-J \n\n3 \n\n\n\n1-4 \n\n\ncd \n\ncd \n\nO \n\n\n^-z \n\n\n\n0) \n\nU \n\n\xe2\x96\xbaJ \n\n\n\n3 \n\n3 \n\nO \n\n\n\n\nX \n\nHi \n\n3 \n\nW \n\n3 \n\n3 \n\n\n\ncd \n\n\n3 \n\n3 \n\n\n4-J \n\n\nN-Z \n\nw \n\nQ \n\n3 \n\n\n\n\n3 \n\n3 \n\n\n4-J \n\nX \n\nVwZ \n\nW \n\n3 \n\nH \n\n\n03 \n\n03 \n\n\n\n3 \n\n\no \n\nO \n\n03 \n\n3 \n\nX \n\n\n\n\ntj \n\no3 \n\n\n\nO \n\nO \n\n3 \n\n3 \n\n\n\n03 \n\n\n3 \n\n\n\n\n\nO\' \n\n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n3 \n\n0) \n\n3 \n\n\'O \n\n4-1 \n\nrH \n\n3 \n\n3 \n\n\n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n3 \n\n3 \n\n3 \n\n03 \n\n4-J \n\njv \n\nrH \n\n4-J \n\n4-J \n\n03 \n\n\n\n\n4J \n\n4-1 \n\nO \n\ng \n\nT3 \n\nrH \n\n3 \n\n3 \n\npH \n\n3 \n\nrH \n\n\n4-J \n\n4-1 \n\n0 \n\nP \n\n03 \n\nrH \n\n3 \n\n(J4 \n\n3 \n\n3 \n\n3 \n\n3 \n\n\n\nT3 \n\n\ncd \n\ncd \n\n*H \n\n\n3 \n\n3 \n\na) \n\n3 \n\n\n\n3 \n\n\n3 \n\n3 \n\n\xe2\x80\xa2H \n\n\n3 \n\n3 \n\n3 \n\n\n3 \n\nHi \n\n3 \n\n\n\n\na \n\n\n2 \n\nz \n\nrH \n\nO \n\nM \n\n\xe2\x80\xa2H \n\ng \n\nO \n\nHi \n\n3 \n\n4-> \n\n\nZ \n\n5S \n\nrH \n\nO \n\nM \n\n\xe2\x80\xa2H \n\ng \n\nHi \n\nO \n\nO \n\nO \n\nO \n\n\n\ncd \n\n\n\n\nrH \n\nrH \n\n\n>4 \n\n3 \n\n*H \n\n3 \n\n4-1 \n\nO \n\n\n\n\nrH \n\nrH \n\n\n\n3 \n\n3 \n\n3 \n\na \n\na \n\nHi \n\n\n\n\n05 \n\n05 \n\n\xe2\x80\xa2H \n\nph \n\na; \n\n\nC \n\n4J \n\nJC \n\n3 \n\nH \n\n\nw \n\nw \n\n\xe2\x80\xa2H \n\na \n\n3 \n\n\nHi \n\n-3 \n\nHi \n\n\n3 \n\nHi \n\n\n\nhi \n\n\n0) \n\n05 \n\n,Q \n\ng \n\no \n\n"d \n\n05 \n\n3 \n\n4-J \n\n4-> \n\n\n\n05 \n\n0) \n\n^5 \n\ng \n\nO \n\n03 \n\n3 \n\n4-J \n\n3 \n\no \n\n\xe2\x80\xa2H \n\nO \n\n\n\ncd \n\n\nO \n\nO \n\n\'-Z \n\n05 \n\n\xe2\x80\xa2H \n\n3 \n\n> \n\n5S \n\no \n\nCO \n\n\n\nO \n\no \n\n\n3 \n\n*H \n\n3 \n\n> \n\no \n\nPH \n\nCJ \n\nQ \n\nrO \n\n\n\n3 \n\n\nH \n\nM \n\n\n3 \n\n}-4 \n\nO \n\nQ \n\n\n\n\n\n\nH \n\nHi \n\n\n3 \n\nHi \n\nO \n\n9 \n\n\n\n\n\n3 \n\n\n\n>4 \n\n\nO \n\nO \n\n\nP \n\nph \n\nCQ \n\nO \n\n\n\n\n\n\no \n\nO \n\n\nD \n\nPH \n\nCQ \n\nc3 \n\n\n\n\n\n35 \n\n\n3 \n\n\n111 \n\n\nAll dollar figures are in billions of current dollars, except where otherwise noted. \n\n\n\n\n\n\nACDA/E-156 \n\n\n\nCM \n\non \n\n\nH \n\nm \n\n\nst ON \n\no vo in co \n\xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \xe2\x80\xa2 \nCM CM CM \no st \n00 rH \n\n\nCM \n\n\nCO \n\nvO \n\nst \n\n\n00 \n\nCO \n\nCM \n\nO \n\nON \n\n00 \n\nm \n\no \n\nm \n\no \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nst \n\nm \n\nrH \n\nSt \n\nCM \n\nCM \n\n00 \n\nvO \n\nON \n\n00 \n\nm \n\nrH \n\n\nSt \n\niH \n\nvO \n\nCM \n\nCO \n\nrH \n\nrH \n\nON \n\n\nst \n\nrH \n\n\nCM \n\nCO \n\nrH \n\nSt \n\n\nCO \n\n\nCM \n\n\nCO \n\nm \n\n"3- \n\n\nVO \n\nON \n\nm \n\n00 \n\n00 \n\nCM \n\nm \n\nON \n\no \n\nm \n\nO \n\n\nrH \n\n\nm \n\n00 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nCM \n\nCM \n\nCM \n\nrH \n\n\nON \n\n\niH \n\nON \n\nCM \n\nm \n\nco \n\nrH \n\n00 \n\nvO \n\nvO \n\nr>. \n\nin \n\no \n\nn* \n\nrH \n\nON \n\n\nSt \n\n\n00 \n\nCM \n\n>t \n\nm \n\nrH \n\n00 \n\n\nSt \n\n\nCM \n\nco \n\nst \n\n\nCO \n\nON \n\n*H \n\nn- \n\n\n\xc2\xbbH \n\n\n\n\nrH \n\nCM \n\nrH \n\n\n\n\xe2\x80\xa2H \n\n\n\nrH \n\n\n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nVO \n\n\nvO \n\n\n\n\n\n\n\nCO \n\n\nrH \n\n\n\n\nO \n\n\nCM \n\nCM \n\nCO \n\nCO \n\n\nON \n\nO \n\nCO \n\nCM \n\nvO \n\nON \n\nCO \n\nvO \n\nVO \n\nO \n\nCO \n\nCM \n\n00 \n\nm \n\nvO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\no \n\nrH \n\nCO \n\no \n\n\nvO \n\n\nON \n\nCM \n\no \n\nm \n\nCO \n\nO \n\n00 \n\nvO \n\nCM \n\nvO \n\nm \n\no \n\n\nO \n\n00 \n\n\n\n\n00 \n\nCM \n\nCO \n\nm \n\nON \n\ni"- \n\n\nst \n\n\nCM \n\nCO \n\nSt \n\n\nCO \n\nON \n\nrH \n\n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\n\n\n\nr>. \n\n\no \n\n\n\n\n\n\n\nrH \n\n\nCM \n\n\n\n\no \n\n\niH \n\n\nrH \n\nrH \n\nrH \n\nON \n\no \n\nm \n\nON \n\nr>. \n\nCM \n\nvO \n\nst \n\nm \n\n00 \n\nO \n\no \n\nON \n\nrH \n\nin \n\nst \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nnO \n\nm \n\n00 \n\nSt \n\nON \n\n00 \n\nCM \n\nVO \n\nvO \n\nvO \n\nvO \n\nCM \n\nst \n\nON \n\n00 \n\nvo \n\n\nvO \n\nm \n\no \n\n\na) \n\nr** \n\nv\xc2\xa3> \n\n\nCO \n\n\n00 \n\nCM \n\nCO \n\nst \n\nvO \n\nvO \n\n\nCO \n\n\nCM \n\nCM \n\n\n\nCO \n\nON \n\nu \n\nO \n\nn* \n\n\nrH \n\n\n\n\nrH \n\nCM \n\nnO O \n\n\n\nrH \n\n\n\nrH \n\n\n\n\n\nON \n\n\n<0 \n\nCO \n\nd \n\na) \n\nQJ \n\nw \n\no \n\no \n\nB \n\n\na) \n\nn \n\ncd \n\ns \n\n \n\n\n\n\n> \n\n\n> \n\n> \n\n\n\n\n4~t \n\n> > \n\n\n\n\n\n\na \n\n\nco \n\nM \n\ncd \n\n\nco \n\nVi \n\ncd \n\n\na) \n\no \n\ncS \n\nno \n\nd \n\ncd \n\n\nco \n\nu \n\na \n\n\nV) \n\na) \n\nu cd \n\n3 P-. \n\n4-J \n\n\n\n\n\nrH \n\n\n\nCO \n\n\n\n\n\n\nrH \n\n\nO \n\nCO \n\n*H \n\nX \n\n\n\n\n\nH \n\n4J \n\no \n\nO \n\n\na) \n\n\n\n\nH \n\n4J \n\nO \n\n\nO \n\na) \n\nno \n\nid \n\nX \n\n\n\n\nCJ \n\nu \n\nTJ \n\nX-N O \n\n\nM \n\n\n\n\nO \n\no \n\nno \n\n\nrH \n\nVi \n\nd \n\n4J \n\ncd \n\n\n\n\nd \n\nd \n\n\n^ rH \n\n\nd \n\n\n\n\nd \n\nd \n\n\nfi\'S \n\n\nd \n\nQ) \n\nd \n\nH \n\n\n\n\n\nT> \n\n00 \n\nv-/ \n\n\nH \n\n\n\n\nT) \n\nno \n\noo \n\n\n\n4-1 \n\nCL \n\no \n\n\n\nCO \n\n\nO \n\no \n\nin \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\nu \n\nai \n\na* \n\nrH \n\nh m \n\n\nd d \n\n\ncd \n\n\nP* \n\npu. \n\nrH \n\n4-J \n\nin \n\nd \n\n% \n\n\no \n\n\nu \n\na) \n\n\n\n\n\xc2\xbb d \n\na> \n\na) d \n\n\n\ncd \n\ncd \n\ncd \n\n\xe2\x80\xa2H \n\n>> \n\nd 25 \n\nO \n\ncn \n\n\no \n\no \n\nv-/ \n\n<0 \n\n\xe2\x80\xa2h d \n\n> \n\no \n\nPh \n\nCJ \n\nQ \n\n43 \n\na) \n\nu \n\nu \n\n\nd Vi \n\nO \n\nQ \n\n\n\n\nM \n\nVi \n\n\nd \n\nVi O \n\nO \n\n\n\n\n\nd \n\n>* \n\no \n\no \n\n\n33 P-. \n\nCO \n\nO \n\n\nf \n\n\no \n\nO \n\n\n\nCV pq \n\no \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n112 \n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nhave many of the related economic characteristics of 1968-1969, when \nthe pressures of the War economy were being felt the most. \n\nCase 5. Budget A : This is the solution that many pacifically-oriented \npeople would like to see. It is at a polar extreme from the stance of \nBudget E. Although the minimal case may not be considered realistic, \nit is worthwhile going through some of the relevant calculations and \nanalysis to see what the implications are. \n\nThe principal ingredient for this case is a substantial level of \ndisarmament that would bring defense outlays down to $42.2 billion by \nthe end of 1972. This reduces the current dollar value of defense \nexpenditures to nearly 50 percent of its peak level during the Vietnam \nWar. A disarmament of this magnitude would have to come about as a \nresult of new progress in disarmament talks. It is one of the situations \nthat would free large resources for spending on the domestic environment. \n\nAfter the end of the present fiscal year in 1971.2, the pattern of \ndefense expenditure cutback is more rapid than in the Budget B solution. \nAlthough, military expenditures are assumed to be cut back faster than \nin the Budget B Case, the number of men in the forces are not reduced \nmore rapidly until 1972.2. They are considered to be at bottom when \nthey reach 2.3 million men. \n\nTo give a uniform treatment to each case, we have simulated this big \ndisarmament pattern with and without compensatory economic policies. \n\nThe more reasonable solution, however, is with compensation, which takes \nthe form of public civilian expenditure offsets of $11 billion, a tax \ncut of 10 percent, a discount rate cut to a new level of 5.0 percent \nand an increase in unborrowed reserves above the control pattern. The \neasier monetary policies are the same as those used to compensate the \nBudget B Case, but there is so much more slack in the Federal govern\xc2\xac \nment\'s budget with the larger disarmament that more socially significant \nexpenditures can be allocated to the civilian sector. The compensatory \nsolution has other Federal government expenditures rising by an increment \nthat is almost twice as large as in the Budget B Case; correspondingly \nthe rate of tax reduction is also doubled. \n\nNaturally, if disarmament were large and no public offsets were \ninitiated, unemployment would rise to the worst heights among all the \nsolutions calculated in this study. At the end of 1972, the uncompen\xc2\xac \nsated solution places unemployment at a position of more than 7 percent \nand on a rising trend. This is clearly unacceptable, but the offset \ncase is much more desirable as an alternative. The unemployment rate \nappears to be stabilized in the neighborhood of 5.4 percent, and the \nnew budgetary picture of the consolidated government accounts shows \na deficit of only $1.0 billion at the end of 1972. Additional stimuli \n\n\n113 \n\n\n\nACDA/E-156 \n\n\n\n\n\n\nOn \n\n\no \n\n\n\n\n\n\n\nno \n\n\nON \n\n\n\n\nO \n\n\n\xe2\x80\xa2 \n\n\nCO \n\nrH \n\nI s *. \n\n\nHO \n\nrH \n\nno \n\nr* \n\nst \n\nVO \n\nCM \n\n00 \n\nst \n\nno \n\nO \n\nON \n\nrH \n\nCM \n\nO \n\nCM \n\nXJ \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\n00 \n\n\n\nG \n\n\nrH \n\nvO \n\nr* \n\nSt \n\n00 \n\n00 \n\nO \n\nno \n\nrH \n\n\nv\xc2\xa3> \n\nSt \n\nst \n\n00 \n\n00 \n\nvO \n\nCM \n\nuO \n\no \n\nXi \n\n\nO\'. \n\nCO \n\n*3- \n\n\nCO \n\n\nI s *. \n\nCM \n\nCO \n\nCM \n\nsr \n\nno \n\n\nCO \n\n\nCM \n\nrH \n\nCO \n\n\nCO \n\nO \n\n\nON \n\nO \n\n\n\nrH \n\n\n\n\n>\xe2\x80\x941 \n\nCM \n\no \n\nr* \n\n\nrH \n\n\n\nrH \n\n\n\n\nG \n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n*H \n\n\n\n\n\nrH \n\n\nI s * \n\n\n\n\n\n\n\ni-H \n\n\nr*\xc2\xbb \n\n\n\n\nO \n\n\nps \n\n\nCM \n\n\nO \n\nrH \n\nno \n\nrH \n\nno \n\nrH \n\nvO \n\no \n\nSt \n\no \n\nrH \n\nno \n\nrH \n\nrH \n\nSt \n\nr* \n\nno \n\nst \n\nu \n\nG \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n9 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\nrH \n\nst \n\nCM \n\nSt \n\nr*. \n\n00 \n\nco \n\nno \n\n00 \n\nr*. \n\nSt \n\nCM \n\nsr \n\nr-* \n\noo \n\nno \n\nO \n\nO \n\nno \n\nON \n\n45 \n\n\nI s * \n\nCO \n\nuO \n\n\nco \n\n\nr* \n\nCM \n\nCM \n\nCM \n\nCO \n\nno \n\n\nco \n\n\nCM \n\nCM \n\nst \n\n\nCM \n\nXI \n\n\nON \n\no \n\nr* \n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\nr*. \n\n\nrH \n\n\n\nrH \n\n\n\n\no \n\n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nG \n\nXi \n\nG \n\n\n. \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\nst \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n43 \n\n\xe2\x80\xa2 \n\n\n\n\nvO \n\n\nst \n\n\n\n\n\n\n\n43 \n\n\nSt \n\n\n\n\nO \n\noo \n\n\xc2\xa3 \n\nCM \n\nrH \n\nrH \n\nCM \n\n00 \n\nm \n\nCM \n\no \n\nr* \n\nCM \n\nco \n\nrH \n\nCM \n\n00 \n\nno \n\nCM \n\nI s *. \n\nn \n\nr-* \n\nno \n\n\nco i"* \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n# \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nXI \n\nG On \n\nrH \n\nrH \n\no \n\nst \n\nvO \n\n00 \n\nst \n\nst \n\nno \n\nCO \n\nrH \n\nO \n\nst \n\nVO \n\n00 \n\nSt \n\nvO \n\nO \n\nuO \n\n00 \n\ncx \n\nM rH \n\nr>. \n\nrH \n\nst \n\n\nCO \n\n\nr-* \n\nCM \n\nCM \n\nCM \n\nrH \n\nst \n\n\nCO \n\n\nCM \n\nrH \n\nst \n\n\nCM \n\nG \n\n3 \n\nON \n\no \n\nr* \n\n\nrH \n\n\n\n\nrH \n\nCM \n\no \n\nI s * \n\n\nrH \n\n\n\nrH \n\n\n\n\nO \n\nxi \n\nrH \n\nrH \n\n\n\n\n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nX \n\n*H 43 \nXI \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nG \n\nG \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n#v \n\nG CO \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\na- \n\nXi \n\nG \n\n\n\n\n\nvO \n\n\nCO \n\n\n\n\n\n\n\n\nvO \n\n\nCO \n\n\n\n\n\nO \n\n\nXi \n\nG \n\n\nw \n\nr\xe2\x80\x94! \n\nst \n\n\nVO \n\nuO \n\nCM \n\nCM \n\nCO \n\nin \n\nco \n\nI s *. \n\nSt \n\n\nvO \n\nn \n\nCM \n\nCM \n\nCO \n\n\nCO \n\nst \n\nCO \n\nno \n\nCM \n\nrH \n\n\n\nrH \n\n\xe2\x80\xa2 \n\n\n\xe2\x99\xa6 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nrH \n\n\nG \n\nO \n\nO \n\nXJ \n\nst \n\nCM \n\nno \n\nvO \n\n00 \n\n\nst \n\nCM \n\nrH \n\n\nst \n\nCM \n\nno \n\nvO \n\n00 \n\n\nSt \n\nvO \n\n00 \n\nno \n\n00 \n\nO \n\n\nCO \n\nXJ \n\nr* \n\nG \n\n00 \n\nCM \n\n\nCO \n\n\nr* \n\nCM \n\nCM \n\nCM \n\nXJ \n\n00 \n\nCM \n\n\nCO \n\n\n\nCM \n\nrH \n\nCO \n\n\nCM \n\nXJ \n\n\nG \n\n\nON \n\nx) \n\nON \n\n\n\nrH \n\n\n\n\nrH \n\nCM \n\nG \n\nON \n\nr-* \n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\n\nG \n\nCM \n\nrH \n\nG \n\n\n\n\n\n\n\n\n\n\nXI. \n\n\n\n\n\n\n\n\n\n\n\n\nXI \n\nvO \n\n4H \n\nr*. \n\n\nCO \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\n\n\nG \n\n\nG \n\nON \n\n\nG \n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\n\n\n\n\n\n\nG \n\nG \n\nQ \n\nrH \n\n\nG \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\n\n\nXi \n\n*H \n\n\nVS \n\n\nCX \n\n\n\n\n\n\n\n\n\n\nG \n\n\n\n\n\n\n\n\n\n\n\n\nXi \n\n43 \n\ni \n\n\n\na \n\n\n\n\n\n\n\n\n\n\n& \n\n\n\n\n\n\n\n\n\n\n\n\n3 \n\nG \n\n\nG \n\n\n\xe2\x96\xa0 o \n\n\n\nvO \n\n\nCM \n\n\n\n\n\na \n\n\n\nvO \n\n\nCM \n\n\n\n\n\nno \n\n\nCJ \n\nH \n\nG \n\nO \n\nCO \n\na \n\nSt \n\noo \n\nO \n\nCM \n\nSt \n\no \n\nOn \n\nI s * \n\nvO \n\no \n\nst \n\n00 \n\nO \n\nCM \n\nSt \n\n\nON \n\nm \n\nI s * \n\nI s * \n\nVO \n\n\n\nO \n\n\xe2\x99\xa6H \n\n\xe2\x80\xa2 \n\nG \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n<_> \n\n9 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n1X1 \n\n\n*H \n\niH \n\no \n\n33 \n\nCO \n\nvO \n\nno \n\nno \n\n00 \n\nno \n\nCO \n\no \n\nON \n\n\nCO \n\nvO \n\nno \n\nno \n\n00 \n\n\nco \n\nno \n\nON \n\nUO \n\n\nO \n\n\nXi \n\nrH \n\nr*. \n\n\n00 \n\nCM \n\n\nCO \n\n\n\nCM \n\nCM \n\nrH \n\n\n00 \n\nCM \n\n\nCO \n\n\n\nCM \n\nrH \n\nCO \n\n\nCM \n\n\n\n3 \n\n\nON \n\n\nON \n\nr>* \n\n\nrH \n\n\n\n\nrH \n\nCM \n\n\nOn \n\nI s * \n\n\nrH \n\n\n\n\nrH \n\n\n\n\nCO \n\n\nrH \n\n43 \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\n\n\n\n\nG \n\n\nO \n\n\n\n\ncry \n\ncry \n\n\n\n\ncry cry cry \n\ncry \n\n\ncry \n\ncry \n\n\n\n\nXI \n\ncry \n\n-CO- \n\ncry \n\n\n-co- \n\nO \n\n\nC/3 CM \n* \n\n<\xc2\xa3 CM \nST \nXJ > \n\nG \n\n00 O \nXJ x\xc2\xbb \n3 \n\nCQ rH \n\n\n(0 \n\nXi \n\nG \n\n\nCO \n\nXi \n\ng \n\n\nO) \n\no \n\nG \n\nPi \n\nX) \n\nG \n\n\nCO \n-u \nG \n\nco S \n\n\nG \n\n\n\n\n\xc2\xbbH \n\n/\xe2\x80\x94\\ \n\n\n\n\n\nrH \n\n/*N \n\n\n3 \n\n\n\n\nrH \n\no \n\nCO \n\n\n\n\nrH \n\no \n\nCO \n\nXT \n\n\nXI \n\nxi \n\no \n\no \n\nG \n\n\nX) \n\nXJ \n\no \n\no \n\nG \n\nW \n\n\nO \n\nCJ \n\nXJ \n\n/S rH \n\nU \n\n\no \n\nO \n\nXJ \n\n/-s rH \n\nU \n\n\n\n3 \n\n3 \n\n\n8 s ? \n\n3 \n\n\n3 \n\n3 \n\n\n6 s ? \n\n3 \n\n\n\nXJ \n\nXJ \n\nOO \n\nvs \n\nXI \n\n\nXJ \n\nXJ \n\n00 \n\n\nXI \n\n\n\nO \n\nO \n\nLTV \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n*H \n\nG \n\no \n\no \n\nin \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n*H \n\n\n\nXi \n\nXi \n\nON \n\nG 00 \n\nX) \n\nCO \n\nXi \n\nXi \n\nON \n\nG 00 \n\nXJ \n\n\nXi \n\nPm \n\nPm \n\nrH \n\nxi no \n\nG \n\nG \n\nPm \n\nPm \n\nrH \n\nXi no \n\nG \n\n\nG \n\n\n\n\nG On \n\nG \n\nG rH rH \n\n\n\n\nG ON \n\nG \n\n\nG \n\nM \n\nG \n\nxj \n\n\xe2\x80\xa2rH \n\nTJ \n\nG \n\n(U \n\n\nG \n\n\nxj \n\nG \n\n\ncx o \n\nX 53 \n\n\nX \n\nG \n\nH \n\n(0 \n\nG 8M\xc2\xbb a) \n\na \n\n\nx> \n\nu \n\nG \n\n3 \n\nO\' \n\nXJ \n\nG \n\nG \n\nXi \n\nG \n\nG \n\n>* \n\n\nG G \nG G \nO O \n\n\nG G \n\n2S JZ \n\nCO co \nCO CO \n\no o \n\nM Xi \n\no o \n\n\no \n\n\n8 s ? \n\n\na- \n\n\no \n\no \n\n\nco \n\nG \n\nO \n\n\nxj \nG \n\n\xc2\xa7 \n\n>3 \n\nrH O \n\xc2\xabH rH \n*H {3* \n\nx> a \n\nss 2 O CO \n\n\ncS \n\n\nG G \n\nZ 25 \n\nCO CO \nCO CO \n\no o \n\nM Xi \n\no e> \n\n\n*H J>> \nrH o \nrH rH \niH CX \n\n43 a \n\nss q) \n\nG \n\n33 \n\n\nG \n\nO \n\n\nG \n\n\xe2\x80\xa2H \n\n\nXJ \n*H C \nU O \nPm PQ \n\n\nG - \nG \' \n\n\nG \nXi O \nG CO \n\n\nXi \n\nW 4 HI \n\n> o cx \no \n\n\nu \n\no \n\nCX \n\nH \n\nO \n\n\n> \n\nu \n\nG G \n\nG G \n\nPi \n\n\xe2\x80\xa2*-* XJ \n\nG G \n\n\ntH \n\n\nO \nO \nco \n\n\xe2\x80\xa2H _ \nu Q 43 \nG \n3) \n\n\no \n\nH \n\nO \n\n\n\xe2\x80\xa2H \n\n43 \n\n\nG \n\nXt \n\nG \n\nCO \n\nG \n\nXi \n\n3 \n\n00 \n\n\xe2\x80\xa2H \n\n\nXi \n\nG \n\n\nO \n\nXJ \n\n\nG \n\n\n114 \n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\n0- co \n\n\n\nCM \n\no \n\nrH \n\nvO \n\n\nCM \n\nm \n\nuo \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\nVO \n\n\nr*v \n\no \n\nr^\xc2\xbb \n\nCM \n\nvO \n\nCM \n\nr*-. \n\n\n*- \n\n\nrH \n\n\n\n\nrH \n\nrH \n\nf~i \n\n\n\n\n\n\n\n\n\nCO \n\nO \n\nm \n\no \n\n00 \n\nCM \n\nrH \n\n00 \n\nm \n\n<* \n\nKj- \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCM \n\n- \n\nON \n\nrH \n\no \n\nrH \n\n. \n\n\nCO \n\nrH \n\n\nm \n\nCM \n\nCO \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\nOO \n\n\n\n\n\n \n\n\n\n\n\n\n\n\n\n\n\nCu \n\n\n\n\n\n\n\n\n\nvO \n\n\nSi \n\n\n\n\n\n\n\n\n\n\n\no \n\n\n\n00 \n\n\nCO \n\n\n\n\n03 \n\nMf \n\no \n\nCM \n\nON \n\n00 \n\nrH \n\no \n\nm \n\nO \n\nr-\xc2\xbb \n\nrH \n\ntt \n\nd \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nrQ \n\nrH \n\nd> \n\nCM \n\nrH \n\nin \n\nOn \n\n00 \n\nm \n\nvO \n\nCO \n\n03 \n\nr- \n\n\nCO \n\n\n\nCO \n\n\nvO \n\nCM \n\nCO \n\nH \n\nON \n\n\nO \n\nr^. \n\n\nrH \n\n\n\n\nrH \n\n\nrH \n\n\nrH \n\n\n\n\n\n\n\n\n\n\n\n> \n\nco- \n\n\n\n\n> \n\n\xe2\x80\xa2CO- \n\n-co- \n\n\n\n\n\n/\xe2\x80\x94v \n\n\n\n\n\n\n\n\n\n03 \n\n\n\n\n\n\n\n\n\nM \n\n\n\n\n\n\n\n\n\nCD \n\n\n\n\n\n\n\n\n\niH \n\n\n\n\n\n\n\n\n\nrH \n\n\no \n\n03 \n\n\n\n\n4-1 \n\n4-4 \n\nO \n\n\no \n\no> \n\n\n\n\na \n\nO \n\nT) \n\n\nrH \n\nu \n\n\n\n\nd \n\n3 \n\n\n\n\n\n\n\n\nT) \n\nT3 \n\n00 \n\n\'w\' \n\n\nu \n\n\n\n\nO \n\nO \n\nm \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n*H \n\n\n\n\nCD \n\nON \n\n(1) 03 \n\nrH \n\nO \n\nu \n\nrH \n\nrH \n\n*4-4 \n\nOd \n\nrH \n\nCU <4H \n\nCD \n\no \n\nu \n\nCD \n\n\nO \n\n\n\' i3^2 \n\nX <13 \n\nu \n\nH \n\ntt) \n\nd \n\n\n\n4-4 \n\nv-x \n\nW P \n\n03 \n\n\n3 \n\no \n\nO \n\n03 \n\nd \n\nX \n\n\nnO \n\nno \n\nO\' \n\n\xe2\x80\xa2H \n\n*H \n\nd \n\ncu \n\na) t) \n\n4-4 rH \n\n03 \n\nd \n\n\n4-1 \n\n4H \n\no \n\nS \n\n\'O rH \n\nd h \n\n0 O \n\nU \n\n03 \n\nCti \n\n\n\nrH \n\nrH \n\n>< \n\nd *h \n\n03 \n\n4-4 \n\n\n03 \n\n03 \n\n\na \n\na) \n\nH 4-4 \n\nx: \n\nCD \n\nu \n\n03 \n\n03 \n\n\nS \n\na no \n\n03 CD \n\n4-1 \n\n4-4 \n\ncD \n\nO \n\nO \n\n\'_\' \n\n0) \n\n*H d \n\n> 53 \n\no \n\nCO \n\n\na* u u Guo q \n\n>\xc2\xab O O ID Ph PQ U \n\n\nCM \n\n\n\nvO \n\n\nm \n\n\n\n\nO \n\n\n00 \n\nrH \n\n-. \n\nm \n\nm \n\nrH \n\n00 \n\nvO \n\n\n-* \n\nm \n\nrH \n\nCM \n\n\nm \n\n\nin \n\n\nCO \n\n\n\nCM \n\nrH \n\nco \n\n\nCO \n\nCM \n\n\no \n\n\n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\n\nrH \n\n\n\n\n\n\nco \n\n\n\n\n\n\n\xe2\x96\xa0co- \n\n\nCO- \n\n\nCO- \n\n\n\n\n4-J \n\nco- \n\nCO- \n\nco- \n\n\nCO- \n\n\n\n\n\n\n\n\n\nPH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n*H \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n0 ) \n\n\nCO \n\n\n\n\n\n\n\n\n\n\n, \n\n\no \n\n\n4-4 \n\n\n\n\n\n\n\n\n\n\n\n\n03 \n\n\nd \n\n\n\n\n\n\n\n\n\n\n\n\nP^ \n\n\n0 ) \n\n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n0 \n\n\n\n\n\n\n\n\nCO \n\n\n\n\nno \n\n03 \n\nPo \n\n\n\n\n\n\n\n\nu \n\n\n\n\nd \n\nH \n\nCD \n\n\n\n\n\n\n\n\nCD \n\n\n\n\nCD \n\nd \n\nPH \n\n\n\n\n\n\n\n\nrH \n\n\n\xe2\x9c\x93\xe2\x80\x94N \n\n\n\n4-1 \n\n\n\n\n\n\n\n\n\nrH \n\n\no \n\n\nCO \n\n\xe2\x80\xa2H \n\nX \n\n\n\n\n\n\n4-1 \n\n4 -J \n\no \n\n\no \n\n\n0 ) \n\nno \n\ncD \n\nX \n\n\n\n\n\nO \n\nu \n\nno \n\n/\xe2\x80\x94\\ \n\nrH \n\n\nd \n\nd \n\nU \n\n \n\n\n\nPH \n\nCm \n\nrH \n\n4-1 \n\nm \n\n\nd \n\n\n< 4 ) \n\nO \n\n\nu \n\n\n\n\n\n\ncd \n\nON \n\n\n03 \n\nrH \n\n\nO \n\n03 \n\n03 \n\n\n\nrH \n\nrH \n\nIH \n\nPS \n\nrH \n\n/\xe2\x80\x94N \n\npH \n\nCD \n\nX \n\nd \n\n4-4 \n\nCO \n\n\n\ncD \n\nN \n\nd \n\n03 \n\n03 \n\n\nd \n\nU \n\n3 \n\n\xc2\xa3 \n\n4J \n\n\nT* \n\n53 \n\nrH \n\no \n\ntH \n\n\xe2\x80\xa2H \n\n0 \n\nU \n\nO \n\nO \n\no \n\no \n\no \n\n\n\n\nrH \n\nrH \n\n\n>* \n\nd \n\n03 \n\nCO \n\nCH \n\no \n\nu \n\nH \n\n\nCO \n\nCO \n\n\xe2\x80\xa2H \n\n\n<13 \n\n\nH \n\nrC \n\nH \n\nH \n\nCO \n\nJ-4 \n\n\n\nCO \n\nCO \n\n\n0 \n\na \n\nno \n\n03 \n\n4-1 \n\n03 \n\nO \n\n\xe2\x80\xa2H \n\no \n\n\n\no \n\no \n\nV-r \n\n0) \n\n*H \n\nd \n\n> \n\nO \n\nPH \n\no \n\nQ \n\nJO \n\n\n\nH \n\nu \n\n\nd \n\nM \n\no \n\nQ \n\n\n\n\n\nd \n\n\n\nO \n\no \n\n\n\nPH \n\nPO \n\nO \n\n\n\n\n\np \n\n\n115 \n\n\n\n\n\n\n\n\nTable 7 \n\nBudget A Solution with Strong Compensation a \n\nDefense Expenditures Equal to $42.2 billion (1972 dollars) by 1972.4 \n\n& Quarter 1970.3 1970.4 1971.1 1971.2 1971.3 \n\n\nACDA/E-156 \n\n\n\n\nH \n\n\nH \n\n\n\n\n\n\n\n\nin \n\n\nNO \n\n\n\n\n\nnO \n\nH \n\n00 \n\nnO \n\noo \n\nCO \n\nrH \n\noo \n\nrH \n\nMl- \n\n00 \n\nn* \n\nr- \n\nr- \n\nCO \n\no \n\nCO \n\n\nrH \n\nCM \n\nnO \n\nCO \n\n00 \n\nr\xc2\xbb. \n\n00 \n\nnr \n\nm \n\nrH \n\nCM \n\nCM \n\nrH \n\nco \n\nrH \n\nn- \n\n00 \n\nrH \n\nn- \n\nNO \n\nnO \n\nnO \n\n\nCO \n\n\nCM \n\no \n\nco \n\nCO \n\n\nCM \n\nON \n\n\n\n\nnr \n\nfH \n\nco \n\nCO \n\nO \n\n\n\nrH \n\n\n\nH \n\n\n\nON \n\niH \n\nC". \n\n\nrH \n\n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\n\n\n\nH \n\nrH \n\n\n\n\n\n\n\n\n\n\n\nON \n\n\nco \n\n\n\n\n\n\n\n\n00 \n\nrH \n\nco \n\n\n\n\n\nON \n\nON \n\n00 \n\nm \n\nON \n\nH \n\nON \n\nnr \n\nH \n\nCO \n\nm \n\ntH \n\n00 \n\n\xe2\x80\xa2 \n\nnr \n\nin \n\n00 \n\nOn \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n00 \n\nnr \n\nCO \n\nr-\xc2\xbb \n\nr>- \n\nm \n\no \n\niH \n\no \n\nCM \n\nrH \n\n\nco \n\nnT \n\nr-. \n\nco \n\n00 \n\nr-. \n\nin \n\nCO \n\nm \n\n\nco \n\n\nCM \n\nCM \n\nnr \n\nCO \n\n\nH \n\n00 \n\n\nH \n\n\nnT \n\no \n\nco \n\nCO \n\no \n\nr^. \n\n\nrH \n\n\n\nrH \n\n\n\nON \n\nH \n\n\n\n\n\n\nH \n\n\n\nH \n\n\n\n\n\n\n\n\n\niH \n\nH \n\n\n\n\n\n\n\n\n\n\n\nnr \n\n\nnO \n\n\n\n\n\n\n\n\nCM \n\n\nH \n\n\n\n\n\nnO \n\n00 \n\nn- \n\nnO \n\nO \n\nr-- \n\n00 \n\nH \n\nCO \n\nCM \n\nCM \n\nCM \n\nO \n\nm \n\nin \n\nH \n\nin \n\nCO \n\nrH \n\nCO \n\niH \n\n\nnO \n\n00 \n\nnr \n\nvO \n\nrH \n\nON \n\nCM \n\nON \n\nCM \n\n\no \n\nr>* \n\nON \n\nNO \n\n00 \n\nnr \n\nrH \n\nnr \n\n\nCO \n\n\nCM \n\nrH \n\nnT \n\nCM \n\nn- \n\nON \n\n00 \n\n\nnr \n\n\nCO \n\no \n\nCO \n\nCO \n\no \n\nr^. \n\n\nH \n\n\n\nrH \n\n\n\nON \n\no \n\n\n\nH \n\n\n\nrH \n\n\n\nrH \n\n\n\n\n\n\n\n\n\nH \n\nrH \n\n\n\n\n\n\n\n\n\n\n\n\nCO \n\n\nrH \n\n\n\n\n\n\n\n\nr". \n\n\no \n\n\n\n\n\n\nCM \n\nCM \n\nCM \n\nCM \n\nCO \n\nm \n\nm \n\nm \n\nH \n\nNO \n\no \n\nrH \n\n00 \n\nNO \n\nm \n\no \n\nCM \n\nH \n\nm \n\nCO \n\nm \n\nNO \n\n00 \n\nnr \n\nNO \n\n00 \n\noo \n\nCM \n\nNO \n\nn- \n\nnr \n\nON \n\nr". \n\nm \n\nnr \n\nON \n\nCO \n\n00 \n\nCM \n\n\nCO \n\n\nCM \n\niH \n\nCO \n\nCM \n\nI"- \n\n00 \n\n\n\nCO \n\n\nco \n\no \n\nCO \n\nCO \n\nON \n\nr- \n\n\nH \n\n\n\nrH \n\n\n\nON \n\no \n\ni"*. \n\n\ntH \n\n\n\nrH \n\n\n\n\n\n\nNO \n\n\n\n\n\n\n\n\n\n\n\nrH \n\n\no \n\n\n\n\n\n\nnr \n\n00 \n\no \n\nCM \n\nCO \n\n\nON \n\nin \n\nrn. \n\n\nnr \n\nm \n\nrH \n\n00 \n\nnr \n\ni"- \n\n\nON \n\nco \n\nCM \n\nH \n\nCO \n\nNO \n\nm \n\nm \n\n00 \n\n\nCO \n\nm \n\nON \n\n\nH \n\nm \n\nrH \n\nCO \n\nON \n\nr^. \n\n\nrH \n\nNO \n\nNO \n\nCM \n\n00 \n\nCM \n\n\nco \n\n\n\nCM \n\nrH \n\nCO \n\nCM \n\n\n\nn- \n\n\nCO \n\n\n\nCO \n\no \n\nCO \n\nCO \n\nON \n\nn- \n\n\nrH \n\n\n\n\nrH \n\n\n\nON \n\no \n\n\n\nrH \n\n\n\n\nrH \n\n\n\n\n\n\n\n\nco \n\n\n\n\n\nrH \n\nH \n\n\n\n\n\ncn \n\n\n\n\n\n> \n\n> \n\n\n-CO- \n\n\n4J \n\n>>> \n\n\xe2\x80\xa2co- \n\n\n-co- \n\n\xe2\x80\xa2co- \n\n\n\n\n4-1 \n\n> \n\n\xe2\x80\xa2co- \n\n-co \n\n-CO \n\n\nu \n\ncd \n\nQJ \n\n>* \n\n\n4-1 \n\nU \n\nG \n\nX \n\no \n\nu \n\nPu \n\n\ncd \n\ng \n\no \n\nH \n\nu \n\ncd \n\n53 \n\nCO \n\nCO \n\no \n\nu \n\no \n\n\n4J \n\n(J \n\nG \n\nX \n\no \n\nU \n\nPU \n\n\nCO \n\nM \n\ncd \n\n\no \n\nX \n\n00 \n\nm \n\nON \n\n\no \n\no \n\n\n\n\nrH M-l \n\ncd o \n\nG \n\no co \n*h a \nH o \nCd H \n2 .H \nrH \nCO *H \nCO \xc2\xa3> \n\no ^ \nu \n\no \n\n\nOJ OO \n4-j m \ncd on \ncG \n\n\n4-\xc2\xbb \n\nG \n\na) \n\nS \n\n\nX \n\nOJ \n\nX \n\n\nG \n\nO M \n\n\nCL QJ \n0 O \nQJ *H \nC J-i \n\n\n--\' \n\nx \n\ntH \n\n0) \n\n\xe2\x80\xa2H \n\n\nX \nG \no \n\nPU PQ \n\n\na \n\n\xe2\x80\xa2H \n\nQJ \n\na \n\na) \n\nc*J \n\nX \n\ns \n\nCO \n\nqj \n\nj-i \n\nG \n\n4-1 \n\n\xe2\x80\xa2H \n\nX \n\nG \n\nQJ \n\n& \n\nW \n\n\nG \n\n\xc2\xa7 \n\nG \n\nJ-i \n\nQJ \n\n> \n\n8 \n\n\ncd \n\nj^ \n\nQJ \n\nX \n\nQJ \n\nPu \n\nU \n\nQJ \n\nJG \n\n\nCO \n\n4-1 \n\nG \n\n\xc2\xa7 \n\nto \n\ncd \n\nPU \n\nX \n\n\no \n\n2 \n\n\ncd \n\nH \n\n\nG \n\nO \n\nco \n\nJ-I \n\nQJ \n\n\nco \n\ncd \n\n\nCl. \n\n\xe2\x80\xa2H \n\nQJ CO \n\na 4-> \n\nQJ G \n\nPG QJ \n\nCO 0 \n\nxj a) In \n\nG j-i cd \n\nCd 3 PU \n\n\n\n\n\n\n\ntH \n\n\n\n\n\n4-1 \n\n\n\n\n\n\n\n\niH \n\n\no \n\n\nCO \n\n\xe2\x80\xa2H \n\nX \n\n\nX \n\n\n\n4-) \n\n4-1 \n\no \n\n\no \n\n\nQJ \n\nX \n\ncd \n\nX \n\ncd \n\nCO \n\n\nCJ \n\no \n\nX) \n\nN \n\nH \n\n\nJ-i \n\nCJ \n\n4-\xc2\xbb \n\ncd \n\nH \n\nQJ \n\n\nG \n\nG \n\n\n\n\n\nG \n\nQJ \n\nG \n\nH \n\n\n> \n\n\nX \n\nX \n\n00 \n\nn/ \n\n\n\n4J \n\nCL \n\nO \n\n\nQJ \n\nJ-i \n\n\no \n\no \n\nin \n\n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\n\n\xe2\x80\xa2H \n\nX \n\n53 \n\nQJ \n\n0 \n\nQJ \n\n\nJ-I \n\nJ-I \n\nON \n\nQJ \n\n00 \n\n\nXJ \n\nW \n\n\n0 \n\no \n\nCO \n\n\nPU \n\nPU \n\nrH \n\n4-1 \n\nm \n\n\nG \n\n\n<-3 \n\nO \n\nCJ \n\nQJ \n\n\n\n\n\ncd \n\nON \n\n\nQJ \n\ntH \n\n\no \n\nc \n\nCG \n\nJ-i \n\nrH \n\nI\xe2\x80\x941 \n\nlw \n\nw \n\ntH \n\n\na \n\ncd \n\nX \n\nG \n\nM \n\n\nQJ \n\ncd \n\ncd \n\no \n\n\nNw/ \n\nS\'? \n\nX \n\nJ-I \n\ncd \n\nM \n\n\nX) \n\n4J \n\nc \n\nG \n\n\n4-1 \n\n\nN-r \n\nw \n\nQJ \n\nH \n\n\nQJ \n\nQJ \n\n>-l \n\no \n\no \n\nCO \n\nG \n\nX \n\n\n\nX \n\n\nQJ \n\n4-> \n\nS \n\ncd \n\nH \n\n*H \n\nG \n\nQJ \n\nQJ \n\nXJ \n\n4-1 \n\nQJ \n\nrH \n\n4-1 \n\ncd \n\nO \n\nG \n\n4-\xc2\xbb \n\n4-1 \n\no \n\n0 \n\nX) \n\nH \n\nG \n\nFh \n\ncd \n\nCd \n\nj-i \n\nJ-i \n\nO\' \n\ncd \n\ncd \n\n\n>> \n\nG \n\nQJ \n\nQJ \n\n\nC \n\nJ-I \n\no \n\nu \n\n\n53 \n\n53 \n\nrH \n\no \n\nIH \n\n\xe2\x80\xa2H \n\n0 \n\nJ-i \n\no \n\nO \n\nPU \n\no \n\n\n\n\n*H \n\nt \xe2\x80\x94 1 \n\n\n\nG \n\naj \n\nCO \n\nCL \n\n>-i \n\n\n\nCO \n\nCO \n\n\nCL \n\nQJ \n\n\nJ-i \n\nx: \n\nJ-I \n\nJ-l \n\no \n\nG \n\nJ-i \n\nCO \n\nCO \n\n,3 \n\n0 \n\nO \n\nXJ \n\nQJ \n\n4-1 \n\nQJ \n\no \n\nu \n\n53 \n\ncd \n\no \n\no \n\nV \n\nQJ \n\n\xe2\x80\xa2H \n\nG \n\n> \n\no \n\nCL, \n\no \n\n\n\nQJ \n\nJj \n\nu \n\n\nG \n\nJ-i \n\no \n\nQ \n\n\n\n\n\n\n>-< \n\no \n\no \n\n\n13 \n\nP-4 \n\nPQ \n\nO \n\n\n\n\n\nCO \n\nQJ \n\n> \n\nJ-i \n\nQJ \n\nCO \n\noj \n\ncG \n\n\no \n\n>-i \n\nu \n\no \n\nc \n\n53 \n\n\ncd \n\n\n116 \n\n\nAll dollar figures are in billions of current dollars, except where otherwise noted. \n\n\n\n\n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\ncould well be applied to achieve some faster growth and lower unemploy\xc2\xac \nment without too much pressure on prices or the budget position. \n\nThe main point to be inferred from these extreme calculations is \nthat fairly mild stimuli ought to be able to keep a major recession \nfrom developing and have the economy on a track on which real output \nis steadily growing. When the initial impact occurs, just after a \ntemporary surge of activity programmed into the Control Solution for \nmaking up auto strike losses and hedge buying of steel in early 1971, \nthere is a slowdown and leveling in real GNP for two quarters, but \nrecovery is noticeable. \n\nThe growth rate of real GNP stays well below potential even after \nthe indicated compensation, but the associated rate of inflation is \nsufficiently low and the trade balance is sufficiently strong that \neasier monetary and fiscal policies than those assumed could be con\xc2\xac \ntemplated in order to bring the unemployment rate down another full \npercentage point or more. \n\nWhile the compensation for disarmament under this minimal case is \nreasonable and politically feasible, and produces not too bad an out\xc2\xac \ncome, it is still interesting to ask, what would be required to keep \nthe economy on a full employment growth path while substantial demobil\xc2\xac \nization and military cutbacks are in process? Sufficient but not \nnecessary conditions for a strongly compensated case of Budget A can \nbe worked out in a balanced policy involving some further easing of \nmonetary policy, and additional fiscal stimuli\xe2\x80\x94higher civilian spend\xc2\xac \ning and lower taxes. \n\nKeeping defense spending and the size of the armed forces the same \nas in the other Budget A cases, we have increased unborrowed reserves \nto a figure that reaches $1.0 billion over the previous case (Table 6, \nCompensated), starting with an increment of $0.1 billion in 1970.3 and \ngradually working up to a spread of $1.0 billion. Jn addition, we have \nassumed other (unspecified) actions by the monetary authoritie^ that \nwould lower short term rates by approximately 60 basis points. These \nmonetary actions bring borrowing costs down and raise fixed capital \nformation, both nonresidential and residential. \n\n\nA basis point is a technical financial expression. It is 1/100 \nof an interest rate stated in percent. Thus, if rates fall from 7.8% \nto 7.5%, they fall by 30 basis points (7.8-7.5 = 0.30). \n\n\n117 \n\n\n\n\n\nACDA/E-156 \n\n\nThe fiscal side of the strongly compensated case consists of two \nparts. There is an increase in civilian expenditures amounting to $10 \nbillion over the previous compensated case by 1972.4 and a cat in taxes \n(corporate and personal) of 10 percent. The tax cuts begin with full \nmeasure in 1971.3 and continue until the end of the calculation in \n1972.4. The expenditure increases begin in 1971.3, but do not reach \ntheir maximum size until 1972.4. \n\nThese policies bring about an infusion of $20 billion more into the \nspending stream, above the previous compensation and are accompanied \nby easier credit terms. In addition, the new civilian expenditures \nare put into a program by government in which more employees are hired \nand paid wages from public funds. This type of expenditure has an \nimmediate impact on total employment. In the previous compensation, \nit was assumed that the added civilian expenditures would be made in \nthe private sector for types of community projects that currently have \nhigh, priority. \n\nTie outcome of this sufficient , super compensation program is highly \nfavorable as far as aggregate economic performance is concerned. The \nunemployment rate is held near 4.0 percent for the entire period of \ndisarmament. The inflation rate is a bit higher than in the lightly \ncompensated case, but not alarmingly so. The major issue is that a \nfull compensation program costs money, and the government deficit is \nmuch larger. The public authorities have to be willing to pay the \nprice of a large deficit if full employment growth is to be obtained. \n\nIt is worth pointing out that the full employment peace budget generates \na deficit that is only slightly more than at the worst of the Vietnamese \nWar. The average deficit for 1971 and 1972 comes to $15 billion for the \nstrong compensated disarmament program, while the deficit in 1967 was \nalmost $14 billion. With higher unemployment, we are likely to experi\xc2\xac \nence a deficit approaching $10 billion in calendar year 1970, and this \nmay grow to a larger figure for fiscal year 1970. ; \n\n\nIII.4 SOME CAVEATS AND CONCLUSIONS \n\nThe principal conclusion to be drawn from these econometric simulation \ncalculations is that war, peace, disarmament, demobilization, and \nsimilar phenomena have major effects on the U.S. economy, but not so \ngreat that the system is sent into a spiraling movement one way or \nanother between our polar assumptions of Budget E and Budget A. The \nmovements of output, employment, prices, interest rates, and other \nvariables are plausible for the various sets of assumptions and the \n\n\n118 \n\n\n\n\nACDA/E-156 \n\n\ndifferences among solutions are all in the right direction. The real \noutput implications of the various solutions are probably the firmest \nfrom a quantitative viewpoint. The amplitude of the price index and \naverage bond yield are modest and may underestimate the pressures of \ninflation or the impact of swings in monetary policy. The unemployment \nrate moves in a narrow range, but this is partly accounted for by com\xc2\xac \npensatory policies. The control solution estimate of the unemployment \nrate is about 0.2 percentage points below the actual estimate for 1970.3; \ntherefore, the projections of increases to a level beneath 6 percent, \nunder all but the worst of circumstances (Budget A - n\xe2\x80\xa2 rH \ntD ^ *H \nPQ JO \n\n\nO O O pH \n\no \n\n00 O \n\nO \n\nm \n\n<* \n\nvO \n\nvO \n\noo \n\nON \n\n\nCM \n\n\nrH \n\n\nrH \n\n\nto \n\no \n\nCO \n\nO \n\nrH \n\n00 \n\nm \n\nn- \n\nO\'* \n\n\n\nm \n\nVO \n\nOn \n\nvO \n\npH \n\noo \n\n00 \n\nm \n\n\nrH \n\n \n\n\nCO \n\nW O *H \nC5 fN H \n\n\n\n\nm \n\no> \n\nUO \n\n\n\nCM \n\nCO \n\nrH \n\nuo \n\nO \n\nUO \n\nr". \n\nCO \n\nCM \n\n\xe2\x80\xa2 \n\nn* \n\nQ > i-H \n\n\n\n\nvO \n\n\n\n\nOn \n\n\npH \n\nrH \n\nCO \n\nCO \n\n\nrH \n\nCM \n\nCM \n\nON \n\njo ^ *H \nPQ JO \n\n\n\n\n\nrH \n\n\n\n\n\n\n\n\n\n\nrH \n\nCO \n\n\n\nCJ ^ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nvO G \nH \xe2\x80\xa2 O \n\nO \n\nO \n\no \n\nvO \n\nVO \n\nVO \n\nO \n\nON \n\nuo \n\nON \n\nuo \n\nvO \n\no \n\nvO \n\n00 \n\nCM \n\nvO \n\nON \n\nW *h \n\no VO rH \nQ CO- pH \ntD ^ *H \n\n\n\n\non \n\n00 \n\nU0 \n\n\nCM \n\n\nCO \n\nCM \n\n\nCM \n\nuo \n\nCO \n\nCM \n\nCO \n\n\xe2\x80\xa2 \n\nCM \n\n\n\n\nvO \n\nUO \n\npH \n\n\n\nO \n\npH \n\n* \n\n\n\n\n\nG \n\nU \n\n\n4-3 \n\n\n\n\nppj \n\n\n\nCO \n\n\n>-\xe2\x80\xa2 \n\no \n\n\nX \n\n\n\n\nH \n\n\n\n0 \n\n\n\ncj \n\n\nG \n\n\n\n\nCO \n\n\n\nO \n\n\nX \n\n\n\nH \n\n\n\n\n\n\n\nG \n\n\nG \n\nG \n\n\n\n\n\n\nQ \n\n\nCO \n\nG \n\n\nG \n\nM \n\n\nX \n\n\n\n\n$3 \n\n\ng \n\nG \n\n\n\n\xe2\x80\xa2H CO \n\n\nrH \n\n\n\n\nM \n\n\n00 \n\nrH \n\no \n\nC0 \n\nH G \n\npH \n\no \n\n\n\n\n\n\ng \n\nrH \n\no \n\nCJ \n\npH \n\nG \n\n\n\n\n\n\n>s \n\n\nG \n\na \n\n\xe2\x80\xa2H \n\np> *H \n\nU \n\nG \n\n>s \n\n\n\n\nX \n\ng \n\nO \n\nG \n\n\nCO 4-1 \n\nG \n\nCO \n\nU \n\n\n\n\nG \n\n> \n\nCO \n\nrG \n\n\n00 X \n\nCM \n\n3 \n\nG \n\n\n\n\nG \n\ng \n\n\xe2\x80\xa2H \n\no \n\nG \n\nG G \n\n\nO \n\n4-1 \n\n\n\n\ncj \n\nPQ \n\n\nH \n\nPm \n\nP3 H \n\n<3 \n\n\nco \n\n\n\n\no \n\nrH \n\nCM \n\nCO \n\n<1- \n\nuo \n\nvO \n\nr^. \n\n\n\n\n\nCM \n\nCM \n\nCM \n\nCM \n\nCM \n\nCM \n\nCM \n\nCM \n\n\n\n\nvO \n\nON \n\n\nrH \n\n\nCM \n\nON \n\nCO \n\nvO \n\nCO \n\nO \n\n\nm \n\n\n\nCO \n\n\npH \n\nrH \n\nCO \n\nOn \n\n00 \n\nvO \n\n\nrH \n\n\n\nrH \n\n\nrH \n\n\n \n\nPm \n\nG \n\nOh \n\n\nG \n\nG \n\n\xe2\x80\xa2H \n\nc \n\nG \n\nX \n\nCO \n\nc \n\n\nM \n\n\nCO \n\n4-> \n\nG \n\np \n\nG \n\nG \n\nG \n\nH \n\no \n\nX) \n\nG \n\nX) \n\nJm \n\nG \n\n\nG \n\n\npH \n\nG \n\nG \n\nCJ \n\nrH \n\npH \n\nG \n\nG \n\nO \n\n60 \n\nJS \n\nC0 \n\nCJ \n\n\nG \n\n\no \n\n\nG \n\nG \n\nU \n\nC \n\nCJ \n\nO \n\n\nV-i \n\n\xe2\x80\xa2H \n\nG \n\nrC \n\nG \n\n\n\xe2\x80\xa2H \n\n\n\xe2\x80\xa2H \n\n\n\xe2\x80\xa2H \n\n#s \n\nG \n\nG \n\nG \n\nG \n\nO \n\nH \n\nG \n\nH \n\n4-3 \n\na \n\n4-3 \n\nCO CO \n\nrO \n\n4-3 \n\nX) \n\nCO \n\n\xe2\x80\xa2H \n\nG \n\n4-3 \n\nG \n\nG \n\n\xe2\x80\xa2H \n\nCO \n\n60 g \n\n\nG \n\no \n\nG \n\n4-4 \n\nCM \n\nc \n\na \n\n\xe2\x80\xa2H \n\nw \n\nG \n\nG G \n\n\nO \n\no \n\no \n\n4-3 \n\nG \n\no \n\nG \n\nJ-4 \n\nG \n\nrH \n\nJ-4 4-3 \n\n\xe2\x96\xbaj \n\nCJ \n\n\n33 \n\nO \n\nCM \n\nCJ \n\nCM \n\nPm \n\nPQ \n\nCM \n\nQ M \n\nCO \n\n\nON \n\no \n\nrH \n\nCM \n\n\nCO \n\n\nuo \n\nvO \n\n\nCM \n\n\nCM \n\nCO \n\nCO \n\nCO \n\n\nCO \n\nCO \n\nCO \n\nCO \n\nco \n\n\n145 \n\n\n\n\n\n\n\n\n\n\nACDA/E-156 \n\n\nw ^ \n\nVJD 3 \n\nsD \n\nsO \n\nlA \n\n*4- \n\nO Os \n\nrH \n\nsO \n\nr^. \n\no \n\nr\xc2\xbb \n\nsO \n\n\xe2\x80\xa2 \n\n04 \n\n\xe2\x80\xa2 \n\nr~- \n\n\xe2\x80\xa2 \n\no \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nCO \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nH \xe2\x80\xa2 O \nW n rl \nO Os 3 \nQ > 3 \n\n59. \n\n\xe2\x80\xa2 \n\nr". \n\nCM \n\n3 \n\n\xe2\x80\xa2 \n\n00 \n\nsO \n\n3 \n\n\xe2\x80\xa2 \n\nCO \n\n\xe2\x80\xa2 \xe2\x80\xa2 \n\nrH \n\nrH \n\n\xe2\x80\xa2 \n\n00 \n\nCM \n\nOH \n\nCO \n\nO\'* \n\nrH \n\n\xe2\x80\xa2 \n\nrH \n\n00 \n\nr^. \n\nrH \n\nrH \n\n00 \n\nCO \n\nrH \n\n330 \n\n35 \n\nv> \n\nCo \n\nSO \n\no \n\nCO \n\nCM \n\nCO \n\n117 \n\n^ w *H \nPQ 45 \n\n\nCM \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nQ O \n\nuo a \nH \xe2\x80\xa2 o \n\nO \n\n \n\nJD v *H \nCQ X \n\n rH \n\no \n\n\nO \n\nsO \n\nrH \n\nCO \n\nrH \n\n\n\nA. \n\n<* \n\nOS \n\n00 \n\nOs \n\noo \n\nrH \n\nOs \n\n04 \n\nm \n\n rH \nw ^ \n\n45 \n\n\no \n\nCO \n\nrH \n\nrH \n\nrH \n\n\n\nO \n\n\no \n\no \n\nm \n\nO \n\nCM \n\n00 \n\nCO \n\nO\'. \n\nm \n\nrH \n\nm \n\nos \n\n\nm \n\nrH \n\nm \n\nrH \n\nm \n\n\n\n3 fH \n\n\nm \n\nrH \n\n\n\n00 \n\nrH \n\nCM \n\n-vJ \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCM \n\n\n\n\nCM \n\n\n\nCM \n\nd \n\nO \n\n\n3 \n\no \n\n\nO \n\n\nrH \n\nsO \n\nCO \n\nOs \n\nco \n\nOS \n\nCO \n\n\no \n\nm \n\nm \n\nH \n\n\xe2\x80\xa2 \n\no \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n* \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\n\xe2\x80\xa2 \n\nw \n\no \n\nCM \n\n\xe2\x80\xa2H \n\nO\'. \n\nm \n\n00 \n\nrH \n\n\n\nCO \n\nm \n\nOs \n\nCO \n\nMf \n\nco \n\nco \n\n\no \n\nCO \n\nr-. \n\nOS \n\nCO \n\n\nrH \n\nrH \n\nin \n\n\n\n\n\n\nsO \n\n\nCM \n\n\nCM \n\n\nOs \n\n3 \n\n\nrH \n\n00 \n\n\nCO \n\na \n\n \n\n\n\n\xe2\x80\xa2H \n\nS \n\n\n\n\n3 \n\n\nO \n\n\nd \n\n\nO \n\n3 \n\n\n\n\nd \n\n\nu \n\n\xe2\x80\xa2H \n\n3 \n\n\n\n3 \n\n\n\n\n\n\xe2\x80\xa23 \n\n\nu \n\n\nx: \n\n\n3 \n\nO \n\n\n\n\nu \n\n\nu \n\n45 \n\nd \n\n\n\na* \n\n00 \n\n\n\n\nO \n\n\nPm \n\n\n3 \n\n\n3 \n\n3 \n\n\n\n\n<0 \n\n\ncn \n\nO \n\n> \n\n\n03 \n\nw \n\nd \n\n\n\n\nPi \n\n\n\n\nd \n\n\nC \n\n3 \n\n\n\n\nX \n\n\n\nd \n\n\n\nd \n\n\n3 \n\n\n\n\nDm \n\n00 \n\na \n\n\nd \n\n\nU \n\nO \n\n\n\n\n\n\n\nX \n\n#s \n\n\nd \n\n3 \n\nd \n\n\n\n\n\nd \n\n\xe2\x80\xa2H \n\n\nhJ \n\n\nCu \n\nu \n\n\n\n\nco \n\n\n00 \n\n\n00 \n\n\n\xe2\x80\xa2H \n\nd \n\n\xe2\x80\xa2H \n\n\n\n\n3 \n\n\xe2\x80\xa2rH \n\n3 \n\n\n\n\n\nPm \n\n\n\n\n3 \n\nCO \n\nd \n\nZ \n\nd \n\n\n45 \n\nd \n\n\n\n\n>-\xc2\xab \n\n<1) \n\na \n\n0) \n\n00 \n\nu \n\n\nCO \n\n\n\n\n\nO \n\nPi \n\n\xe2\x80\xa2H \n\nd \n\n\xe2\x80\xa2H \n\n\n3 \n\n\n\n\n\n\n3 \n\n\xe2\x80\xa2H \n\nd \n\nd \n\nd \n\n\nCO \n\n>s \n\nrH \n\n\n\nH \n\n0) \n\nX> 03 \n\nH \n\n3 \n\n\n3 \n\n>> \n\n\n\n\nH \n\nrH \n\nIM \n\nrH \n\n\xe2\x80\xa2H \n\nXJ \n\n\nd \n\nd \n\na) \n\n\n\nU \n\nd \n\n6 4J \n\na \n\nd \n\n03 \n\nEH \n\nM \n\n\n\n\nco \n\nrH \n\na) \n\nPm \n\nd \n\n4J \n\n\nrH \n\nrH \n\nd \n\n\n\nQ) \n\n\xe2\x80\xa2H \n\n3 O \n\ncn \n\n3 \n\n3 \n\n\nd \n\nd \n\n\n\nd> \n\n<: \n\nM \n\n\nd \n\no \n\n\ncj \n\nCJ \n\n3 \n\n\n\nPm \n\nd \n\n3 3 \n\n\nPm \n\nO \n\n3 \n\na \n\no \n\n\n\n\n\ns \n\n3 \n\nd \n\n\n\n\n\ncn \n\n\n\n! \n\n4-f \n\na, xj \n\nr. \n\n\n3 \n\nd \n\n\xe2\x80\xa2H \n\n\xe2\x80\xa2H \n\n\n\n53 \n\n3 \n\nd \n\nH \n\n3 \n\n\n3 \n\n3 \n\n\n\n\nd \n\nd \n\no \n\nco \n\n#s \n\n3 \n\nd \n\n45 \n\n3 \n\n\n\n3 \n\nd \n\n3 \n\nd \n\n\nd \n\ncn \n\nd \n\nd \n\n3 \n\n\ng \n\no \n\no \n\n* Vm \n\n00 03 \n\n(U \n\nO \n\n\no \n\no \n\n\n. \n\n\nd \n\n0) \n\n\nu \n\nd \n\n4-1 \n\nd \n\nd \n\nd \n\n\n3 \n\nX \n\nCJ \n\nOO Pm \n\nd 3 \n\n3 \n\nPi \n\n03 \n\nd \n\n3 \n\n\n\n\n\nrH \n\nM \n\nd \n\n\na \n\n\n\nd \n\nu \n\nd \n\n\n\nd \n\n\xe2\x80\xa2H O \n\nd \n\nPm \n\nd \n\nX \n\nPi \n\n\n\n\n3 \n\nO \n\n<0 \n\nx: \n\n0) \n\n3 \n\nco \n\nd \n\n\n \n\nd \n\no \n\nO \n\nd \n\no \n\no \n\na \n\n3 \n\nxs \n\n\nd h \n\nd o \n\nPi \n\n3 \n\n00 \n\nP4 \n\nd \n\n\n\n\nd \n\n \n\nON \n\nCM \n\nON \n\nCM \n\nON \n\nMJ- \n\no \n\nm \n\nnO \n\nON \n\nm \n\nCM \n\nrH \n\n\nCM \n\n\nCM \n\n\nm \n\n\n\nm \n\nrH \n\n00 \n\n00 \n\no \n\n\nnO \n\nnO \n\nr^. \n\nCO \n\nON \n\nON \n\no \n\n\n00 \n\nCO \n\n \n\nrH co oo