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JOSEPH J. MINARIK, Executive Director for Policy and Chief Economist MARTHA H. PHILLIPS, Republican Staff Director

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FISCAL YEAR 1993 DEFENSE BUDGET

WEDNESDAY, FEBRUARY 5, 1992

HOUSE OF REPRESENTATIVES,
COMMITTEE ON THE BUDGET,
Washington, DC.

The Committee met, pursuant to notice, at 9:30 a.m. in room 210, Cannon House Office Building, Hon. Leon E. Panetta, Chairman, presiding.

The CHAIRMAN. The House Committee on the Budget is now in session for a hearing on the 1993 defense budget. Our witnesses today are Secretary of Defense, Dick Cheney and Chairman of the Joint Chiefs of Staff, General Colin Powell.

I am going to just ask that my statement be made part of the record, so that we can proceed with the presentation.

I think it suffices to say that obviously there is a tremendous amount of focus on the issue of defense and defense savings. From my own personal experience, it has to be done carefully. I think all of us recognize that as we try to look at the changing world situation and try to respond to that changing world situation, that it has to be based on policy.

And very frankly, my biggest concern right now is that defense is kind of a grab bag for a lot of different approaches. And that is dangerous. It is not to say that defense savings aren't there. It is just to say that whatever defense savings we arrive at have to be based on policy. The savings should be based on where we want the force structure to wind up, and they have to be based on the threats we foresee for the future. Once the threats are defined, then we can establish what the path of reduction should be, whether it should be deeper, whether it should be in conjunction with the administration's approach. That is something that depends on policy decisions, and that is the only way, frankly, I can justify or the Congress or the Administration can justify what we do in that

area.

To do that we obviously need your cooperation, we need your guidance, we need the benefit of your views as we proceed through this process.

It is not easy. We live in tough times. There are some real challenges we face within our own society, as both of you know. And yet at the same time, there remain some challenges abroad as well. Finding that balance is what this is all about. So we really look forward to your testimony and your cooperation in that effort.

We would appreciate the ability to try to keep it as concise as possible so we can proceed to the questions.

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