Cheney Asks Cuts in B-2, Other Craft to Save $34 Billion : Defense: The secretary cites budget pressure and world political changes. The trims also would affect the C-17 transport and new fighter jets and attack planes.

Defense Secretary Dick Cheney announced plans Thursday to pare four of the nation’s most costly and controversial military aircraft programs, nearly halving production of the B-2 Stealth bomber and the C-17 transport jet, in a bid to save at least $34 billion over the next six years.

In unveiling the proposals, Cheney cited sweeping changes across the globe and mounting pressure to cut the federal budget. His recommendations came at the end of a three-month Pentagon review of plans to embark on the expensive new procurement programs.

The defense secretary’s recommendations would affect production of four classes of aircraft: the Air Force’s B-2 bomber and C-17 transport plane as well as separate Air Force and Navy versions of a futuristic fighter jet and a new attack plane.

If adopted by Congress during budget debates over the next several years, Cheney’s scaled-back procurement plans still will give the military services all of their most cherished new weapons but in smaller numbers and at a slower pace.

The proposals would reduce President Bush’s $307-billion defense budget for 1991 by $2.4 billion.

“Soviet military capability will continue to be robust, but we can afford to slow down the pace” of modernization, Cheney told the House Armed Services Committee.

But he cautioned that, even as threats from the Soviet Union recede, the United States must maintain its edge in military aircraft performance and “keep an eye to retaining our ability to rebuild (forces), perhaps rapidly, should our hopes and expectations be disappointed.”

Members of the House and Senate Armed Services Committees praised Cheney’s concessions. But several lawmakers warned that the initiatives may fail to fully reflect growing fiscal pressures, as well as perceptions that threats to U.S. interests have largely disappeared.

“He’s coming to grips with some things that clearly he needs to come to grips with,” said Rep. Les Aspin (D-Wis.), chairman of the Armed Services Committee.

But, even though Cheney’s proposal takes initial steps to bring big-ticket procurement programs into line with smaller threats and the Pentagon’s long-term budget plans, Aspin said: “I think it’s in trouble on both counts.”

In outlining his proposals, Cheney disclosed that he is nearing a decision to cut the number of Navy aircraft carriers from a force of 14 to 12 over the next five years. “I think we’re going to conclude that we’re going to want to go with a smaller carrier force than we have today,” he said.

In what is certain to be his most controversial proposal, the defense chief proposed to proceed with procurement of the B-2 bomber but to cut production of the radar-evading plane from 132 to 75 planes, or about two air wings.

The shift would have an almost immediate impact on the plane’s primary manufacturer, Los Angeles-based Northrop Corp., since the Pentagon would trim planned 1991 production from five planes to two, saving $1.4 billion.

Over the life of the program, the B-2 cuts would lower the estimated $74-billion cost of the bomber program by $14.4 billion, Cheney said.

In restructuring the pace of production, the Pentagon bowed to congressional concerns that the original plans would require unacceptably high yearly expenditures. Earlier plans had called for annual spending on the B-2 to peak at $9.5 billion. Cheney said the new schedule would reduce the annual spending peak to $6 billion in 1993.

At the same time, however, Cheney’s plan would boost the projected cost of the B-2 to $815 million per plane, a figure that includes funds already spent to develop the craft. Lawmakers have complained that earlier cost estimates of $570 million were causing widespread “sticker shock” on Capitol Hill.

Sen. Carl Levin (D-Mich.), calling the new cost per plane astronomical, said that “$500 million was like swallowing an elephant (but) $800 million is like swallowing a B-2.”

Aspin, however, said Cheney’s efforts to lower the annual budget for the B-2 may persuade key congressional “fence-sitters” to support the controversial program.

“The annual cost has always been the most important cost,” Aspin said.

Although some lawmakers said the increased per-plane cost would stiffen opposition, supporters of the B-2 program lauded Cheney’s proposal.

“You’ve probably made it a little easier for us” to sell the B-2 to Congress, Rep. Robert W. Davis (R-Mich.) told Cheney. “I think you have given us a very defensible position.” Senate Armed Services Committee Chairman Sam Nunn (D-Ga.) acknowledged that Cheney had shored up the Pentagon’s position by coming up with “a more sensible” overall cost for the B-2 program, but he cautioned that “the B-2 has a very visible uphill flight.”

In proposing the B-2 cuts, Cheney revealed that he has ordered an unusual review of the nation’s nuclear targeting plans in light of changes in Eastern Europe.

With the demise of the Warsaw Pact, Cheney told lawmakers, Eastern European sites that in the past have been targeted for nuclear destruction may no longer belong in the nation’s “Single Integrated Operational Plan,” its principal nuclear target list.

“There are new requirements and we’re not oblivious to those,” Cheney said.

Cheney cited the Soviet military’s loss of Eastern European allies as justification for his decision to cut purchases of the C-17 transport plane from 210 to 120 aircraft, a move that would save $11.9 billion over the life of the program.

“The likelihood of a theater-wide conflict in Europe with little warning, coupled with the threat of simultaneous conflict with regional powers, has in the past driven us” to build a larger force of C-17s while maintaining a number of other transport craft, Cheney said. “But clearly, circumstances have changed.”

Those changes, as well as the precipitous decline of the Soviet economy, led Cheney to conclude that production of another warplane designed for use in Europe could be delayed.

Under Cheney’s plan, the Air Force would begin building its advanced tactical fighter, or ATF, two years later than expected. At the same time, Cheney scaled back planned production of the Navy version of the ATF from 618 to 546 planes.

The defense secretary suggested that the Navy trim its purchases of A-12 carrier-based attack jets from 858 to 620 aircraft. He also called for postponing production of the Air Force version of the plane, called the advanced tactical aircraft, beyond 1997.

Although the Navy’s $52-billion A-12 program is expected to win Congress’ support, some lawmakers cautioned Cheney against a bid to trim the naval fleet further. If Cheney approves such a move, Pentagon officials said, the decision could mean early retirement for the San Diego-based carrier Ranger as well as the America, based in Norfolk, Va. Cheney has been an outspoken supporter of American maritime superiority, calling it key to Washington’s ability to cope with growing Third World threats and the prospect that the United States will lose foreign bases in the years ahead.

On Thursday, however, Cheney cited those factors as justification for building the 120 C-17 cargo planes, which are designed to operate from crude airfields. The pared-down program would cost $30 billion.

Staff writer Paul Houston contributed to this story.

NEXT STEP

The Stealth bomber will face its toughest test this summer on the floor of the House of Representatives, where more than 100 lawmakers are supporting a bid to kill the program once 16 aircraft have been built. Bush Administration officials are finding a more sympathetic audience in the Senate for the argument that the plane is a crucial element of U.S. arms control positions. A compromise is likely to keep the program alive this year, but the controversy over the B-2 promises to be revisited in future budget negotiations.

CHENEY’S PROPOSED AIRCRAFT CUTS

A list of proposed reductions and postponements by Defense Secretary Dick Cheney to trim down earlier defense spending estimates by $34.8 billion through 1997. B-2 Stealth Bomber: a long-range, strategic bomber for the Air Force. Revised request: 75 Original request: 132 C-17: a strategic and tactical passenger and cargo airlift aircraft. Revised request: 120 Original request: 210 A-12: a stealth, long-range, carrier-based, all weather attack plane. Revised request: 620 Original request: 858 ATA (Advance Tactical Aircraft): Air Force’s version of the A-12. Delayed beyond 1997 ATA (Advance Tactical Fighter): a stealth, land-based air-to-air Air Force combat craft. Delayed from 1994 to 1996 Original request of 750 planes will remain. NATF: Navy’s version of the ATF. Carrier-based. Delayed from 1998 to 2000 Original request of 618 planes. Now plans to order 546.