"The world's most affluent society can surely afford to spend whatever must be spent for its freedom and security. We shall continue to maintain the military forces necessary for our security without regard to arbitrary or predetermined budget ceilings. But we shall continue to insist that those forces be procured at the lowest possible cost and operated with the greatest possible economy and efficiency. To acquire and maintain our unprecedented military power, we have been obliged to invest more than one-half of every dollar paid in taxes to the Federal Government. The Defense budget has grown from $43 billion in Fiscal Year 1960 to more than $51 billion in Fiscal Year 1964. I now estimate the Defense expenditures for Fiscal Year 1965 to be about $49.3 billion, or approximately $2 billion less than in Fiscal Year 1964. I further estimate that Defense expenditures for Fiscal Year 1966 will be reduced still another $300 million. There are two main reasons for this leveling-off in Defense expenditures: First, we have achieved many of the needed changes and increases in our military force structure; Second, we are now realizing the benefits of the rigorous Cost Reduction Program introduced into the Defense establishment during the past four years. As I have stated--and as our enemies well know--this country now possesses a range of credible, usable military power enabling us to deal with every form of military challenge from guerrilla terrorism to thermonuclear war. Barring a significant shift in the international situation, we are not likely to require further increments on so large a scale during the next several years. Expenditures for Defense will thus constitute a declining portion of our expanding annual Gross National Product, which is now growing at the rate of 5 percent each year. If, over the next several years, we continue to spend approximately the same amount of dollars annually for our national defense that we are spending today, an ever-larger share of our expanding national wealth will be free to meet other vital needs, both public and private. Let me be clear, however, to friend and foe alike. So long as I am President, we shall spend whatever is necessary for the security of our people."