B1 bomber cost rises by 14.5 million to 70 million
New Pentagon estimate puts each B1 intercontinental bomber at 70 million dollars, up 14.5 million from prior figures. Inflation drives the increase amid congressional debate over the need for a manned bomber in an era of missiles and unmanned aircraft.
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Thieu criticizes U.S. aid cuts and corruption claims
President Thieu charged the American public and Congress with failing to honor promises as U.S. aid to South Vietnam shrank below earlier levels. He blamed Communist pressure for worsening the war while denying corruption allegations against him and his relatives, and said a three month anti graft drive would start. In nearby Cambodia, government troops reported killing a Communist during clashes near Phnom Penh.
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Inflation to push up Pentagon weapons budget by 18 billion
The Pentagon forecast inflation will raise current weapons program costs by about 18 billion dollars, boosting next year’s defense request. The total for ongoing programs stands around 144 billion, with inflation assumptions rising to 7 percent this year and easing to 3.7 percent in the following years, prompting possible program cuts and adjustments to the 1980s plans.
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