A. In addition, there will be an increase of
 almost 11 percent in the budget for science--which
 probably covers the bulk of research
 and development for both space and defense.
 B. As this chart show, total Soviet spending
 for the military establishment, the nuclear
 program, and space runs considerably higher
 each year than the explicitly announced
 budget figures. We estimate total 1968 spending
 will amount to at least 21 to 23 billion
 rubles, or, in dollar equivalents, in the
 vicinity of $60 billion.
 (GRAPHS, SOVIET INVESTMENT IN SELECTED PROGRAMS, 1965-68)
 IV. We believe that no single program is likely to get
 the lion's share of the announced increase.
 A. The largest investment this year went for deployment
 of ICBMs aimed at the United States:
 1.9 billion rubles, or the equivalent of 3.5
 billion dollars.
 1. We expect this to drop off in 1968 as
 present deployment programs approach completion--but
 an expanded program, or a start
 on qualitative improvements, could take up
 to a billion rubles of the increase--or $2
 billion.
 -4-
 
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