DATE=10/16/98 TYPE=CORRESPONDENT REPORT NUMBER=2-240317 TITLE=U-S BUDGET / MILITARY SPENDING (L ONLY) BYLINE=JIM RANDLE DATELINE=PENTAGON CONTENT= VOICED AT: INTRO: WHITE HOUSE AND CONGRESSIONAL LEADERS HAVE AGREED ON A NEW FEDERAL BUDGET THAT CONTAINS THE BIGGEST INCREASE IN PEACETIME MILITARY SPENDING SINCE 1985. THE NINE-BILLION-DOLLAR INCREASE FOR THE PENTAGON IS EXPECTED TO BE PASSED BY CONGRESS NEXT WEEK. V-O-A'S JIM RANDLE REPORTS. TEXT: THE BUDGET INCREASE PUSHES OVERALL PENTAGON SPENDING FOR FISCAL YEAR 1999 TO ABOUT 280-BILLION DOLLARS. THE REPUBLICAN-LED CONGRESS PUSHED FOR THE INCREASE, SAYING U-S MILITARY READINESS HAS DETERIORATED IN THE PAST 14 YEARS. MILITARY OFFICERS COMPLAIN THEY HAVE TOO FEW SPARE PARTS, TOO LITTLE MONEY FOR TRAINING AND THAT TROOPS LIVE IN DILAPIDATED HOUSING. IN ANNOUNCING THE BUDGET AGREEMENT THURSDAY, HOUSE (OF REPRESENTATIVES) SPEAKER NEWT GINGRICH SAID AMERICANS WITH THE COURAGE TO SERVE IN THE U-S MILITARY DESERVE THE BEST WEAPONS AND FINANCIAL SUPPORT AVAILABLE. /// GINGRICH ACT 008 /// I AM VERY PROUD THAT THIS IS THE FIRST TIME SINCE 1985 THAT, IN PEACETIME, WE HAVE INCREASED DEFENSE SPENDING BECAUSE OUR YOUNG MEN AND WOMEN IN UNIFORM DESERVE THE SUPPORT OF THE UNITED STATES OF AMERICA (APPLAUSE). /// END ACT /// ONE-POINT-ONE-BILLION DOLLARS OF THE NEW MONEY GOES FOR WHAT PENTAGON OFFICIALS CALL "READINESS" -- MORE SPARE PARTS, BETTER TRAINING AND IMPROVED HOUSING. THE BIGGEST CHUNK OF THE NEW MONEY -- ABOUT TWO-BILLION DOLLARS -- GOES TO INTELLIGENCE PROGRAMS. THE INCREASE FOLLOWS CRITICISM OF THE U-S INTELLIGENCE COMMUNITY'S FAILURE TO PREDICT THE RECENT INDIAN NUCLEAR WEAPONS TEST. THE BUDGET AGREEMENT ALSO ADDS ONE-BILLION DOLLARS TO EFFORTS TO DEVELOP A MISSILE DEFENSE SYSTEM THAT WOULD PROTECT THE UNITED STATES FROM ATTACK. THE UNITED STATES HAS SPENT ABOUT 40-BILLION DOLLARS DURING THE PAST 15 YEARS ON THE PROGRAM, BUT HAS NOT YET DEVELOPED A SATISFACTORY SYSTEM TO SHOOT DOWN INCOMING MISSILE WARHEADS. DEFENSE SECRETARY WILLIAM COHEN HAS ARGUED AGAINST THE MISSILE-DEFENSE INCREASE, SAYING THE PROBLEM IS TECHNICAL -- NOT FINANCIAL. BUT REPUBLICANS IN CONGRESS SAY RECENT MISSILE TESTS BY IRAN AND NORTH KOREA MAKE A MISSILE DEFENSE SYSTEM FOR THE UNITED STATES AN URGENT PRIORITY. U-S CONTRIBUTIONS TO PEACEKEEPING OPERATIONS IN BOSNIA WILL TAKE UP ANOTHER ONE-POINT-NINE BILLION DOLLARS. ANOTHER MAJOR PORTION OF THE BUDGET, ONE-POINT-ONE-BILLION DOLLARS, GOES TO REPROGRAM THE PENTAGON'S COMPUTERS SO THE MACHINES WON'T READ THE LAST TWO DIGITS OF THE YEAR 2000 AS 1900. DEFENSE SECRETARY COHEN SAYS THE YEAR 2000 PROBLEM COULD CAUSE MANY COMPUTERS TO BREAK DOWN OR GIVE WRONG DATA -- WHICH COULD BE DISASTROUS IF THE COMPUTER IS RUNNING A MISSILE WARNING SYSTEM OR OTHER CRITICAL EQUIPMENT. THE BALANCE OF THE BUDGET INCREASE WILL BROADEN THE MILITARY'S EFFORT TO STOP THE FLOW OF DRUGS INTO THE UNITED STATES, AND IMPROVE SECURITY AT AMERICAN EMBASSIES ABROAD. (SIGNED) NEB/JR/RRM 16-Oct-98 3:41 PM EDT (1941 UTC) NNNN Source: Voice of America .