Text of a statement to the Subcommittee on Economy in Government, Joint Economic Committee, June 5, 1969, in which current policies on military spending are reviewed, and a method of increasing cost effectiveness in military budgeting is proposed. Instead of drastically reducing U.S. troops in Europe, an effort should be made to increase NATO cost effectiveness. In contrast to the Warsaw Pact, U.S. Army divisions assigned to NATO are costly and too few. The situation might be rectified were the Army ordered to adopt the Soviet model within a specified time limit or, alternatively, to submit a better plan for NATO ground force redesign. Such action in all U.S. services might result in economies in the best possible way, since planning professionals would be given the strongest incentives to reduce costs without impairing capabilities. Every means to obtain greater cost-effectiveness should be examined before the United States retreats from its commitments or its policies of flexible response. 8 pp.