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U.S. headed for largest defense budget hike since Reagan buildup

SPECIAL TO WORLD TRIBUNE.COM
Friday, November 15, 2002

WASHINGTON Ñ House and Senate conferees have reached agreement on the $393 billion defense budget for fiscal 2003 that places new emphasis on missile defense and marks the largest overall increase since the early years of the Reagan administration.

House Armed Services Committee chairman Bob Stump, a Republican from Arizona, said the $7.8 billion authorized for missile defense Ñ $814.3 million of which is allocated for the Defense Department for counterterrorism Ñ marks the fifth straight year of real increases in defense spending.

Stump said the fiscal 2003 defense budget is the largest increase in nearly 20 years.

"Rogue nations such as North Korea, Iran, and Iraq are actively seeking or testing ballistic missiles capable of striking the U.S. homeland, and U.S. allies and U.S. forward deployed troops already face a growing threat from shorter range ballistic missiles," the conference report of the National Defense Authorization Act for Fiscal Year 2003 said.

"The proliferation of ballistic missile technologies, and the dangers of an intentional, accidental, or unauthorized launch of a ballistic missile are serious risks to U.S. national security."

The House and Senate conferees authorized $1.1 billion for Theater High Altitude Air Defense System [THAAD] and Patriot Advanced Capability-3 [PAC-3] engineering and manufacturing development. Under the agreement the U.S. Army would receive $507.3 million for procurement of PAC-3 missiles.

The PAC-3 has been offered to U.S. allies in the Middle East.

The PAC-3 allocation approved by the conferees is $35.6 million more than the president's request. So far, PAC-3 missiles are in low rate initial production, and only limited quantities are available for deployment.

[On Thursday, the Pentagon announced a $9 million contract to Raytheon, the manufacturer of the PAC-3. Under the award, the Bedford, Mass.-based company will provide engineering services for older-line Patriot systems until February 2003.]

The House and Senate conferees agreed to allocate $247.7 million for terminal defense system research and development. This ensures funding for the joint U.S.-Israeli Arrow-2 missile program as well as the Medium Extended Air Defense System project, including Italy and Germany. The allocation is $40 million less than the president's request.

The conferees also authorized $755.6 million for boost defense systems, including hit-to-kill and directed energy boost phase intercept programs. This is $41.3 million less than the president's request.

The largest allocation went to mid-course defense programs. The conferees authorized $3.2 billion Ñ $5 million more than the president's request Ñ for the 2004 Pacific Test Bed, ground-based defense, formerly known as National Missile Defense, and cooperative development with Japan of sea-based high altitude missile defenses.

Another $1.1 billion was approved for battle management command, control and communication, system engineering, and system-wide test and evaluation efforts. The conferees also authorized $136.8 million to develop advanced technological components necessary to maintain pace with constantly evolving missile threats.

"This conference report places a priority on improving our homeland defenses against terrorism and weapons of mass destruction, supporting the needs of our military personnel, and preparing for an extended war against terrorism," Stump said. "The resulting legislation will make America more secure and ensure the continued revitalization of the United States military."

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