ALTERNATIVE PROJECTIONS OF CHINESE COMMUNIST FORCES THROUGH 1975

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80B01676R001600130004-9
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
110
Document Creation Date: 
December 15, 2016
Document Release Date: 
October 7, 2003
Sequence Number: 
4
Case Number: 
Publication Date: 
August 24, 1966
Content Type: 
MF
File: 
AttachmentSize
PDF icon CIA-RDP80B01676R001600130004-9.pdf5.27 MB
Body: 
Approved For Release 2003/10/22 : CIA-RDP80B01676R00160 CENTRAL INTELLIGENCE AGENCY/DEFENSE INTELLIGE CE AGENCY 24 August 1966 MEMORANDUM FOR THE DIRECTOR A copy of the newly published JAG Study, "Alternative Projections of Chinese Communist Forces Through 1975, " is forwarded for your information. 25X1 Copy No. 1 of the study together with your transmittal memorandum, was sent to the Secretary of Defense via Mr. on this date. 25X1 At the same time we told Mr. II that the Joint Analysis Group would 25X1 be pleased to brief the Secretary on the study if he so desired. The general distribution of the study to intelligence and operational users will take place on 26 August when all copies have been received from the printer. DIA review(s) completed. Approved For Release 2003/1(1 SIT 25X1 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 JAG: 16-66 DATED: 15 AUGUST 1966 CENTRAL INTELLIGENCE AGENCY/DEFENSE INTELLIGENCE AGENCY JOINT ANALYSIS GROUP GROUP 1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R00160 vk40 jj9SFIWWI GRADING Approved For Releas CIA-REPBO" 676RO0160013 gi~yq CENTRAL INTELLIGENCE AGENCY 4~.., 15 August 1966 The Honorable Robert S. McNamara Secretary of Defense Washington, D. C. Dear Mr. Secretary: Attached is the first report relating to the potential threat of Communist China prepared by the CIA /DIA Joint Analysis Group. Four alternative Forces are projected, extending through 1975. These projections have been subjected to explicit economic and technological constraints in the course of their preparation. This study is primarily intended to meet the need of military planners for projections of the types of military threats which the Chinese might pose over the next ten years or so. Substantial un- certainties exist as to the ultimate priorities and objectives that the Chinese have set regarding the many modern weapons programs they are now pursuing. For this reason, we have attempted to project Forces that would illustrate the principal approaches open to the Chinese. This study is not to be construed as an intelligence estimate of probable developments during the period. This report has been reviewed by other members of the USIB and by the Board of National Estimates. While giving no formal approval, they do agree that the study provides a reasonable set of projections of Chinese Communist military forces. General Carroll and I are pleased to forward this report by the Joint Analysis Group for use with other intelligence publications in long-term planning studies conducted in your office and by the military services. 25X1 25X1 Richard Helms Director Approved For Release 76R001600130004-9 25X1 Approved For Release 2 CENTRAL INTELLIGENCE AGENCY/DEFENCE INTELLIGENCE AGENCY ALTERNATIVE PROJECTIONS OF CHINESE C ST FORCES THROUGH 1375 Approved For Release 2003/9'E' jdB01676R001600130004-9 25X1 25X1 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release POO P4 01676R001600130004-9 ALTERNATIVE PROJECTIONS Or CHINESE COMMUNIST MILITARY FORCES THROUGH 1.975 The Report in Brief This study projects possible alternative courses in the evolu- tion of the Chinese Communist military-establishment through 1975, with the aim of providing the planner with specific illustrations of the poten- tial character and magnitude of the military threat which China could pose during that period. Four alternative Forces are developed, each reflecting an approach which the Chinese leaders might adopt in determining their military re- quirements and force goals. All the Forces are primarily concerned with enhancing China's ability to deter hostile powers from attacking China or interferring with Chinese-supported operations, rather than with pre- cipitating full-scale war. :: Force A is a low-side force, designed to depict the most modest goals the Chinese leaders might reasonably be expected to set for themselves in light of the vigorous effort they have made to date to acquire modern weapons. Force B is a high-side force differing sharply from Force A in its basic outlook and depicts the maxImm strategic attack capa- bility the Chinese might be expected to achieve without neglecting other military requirements. .. Force C projects a vigorous modernization program com- parable in economic magnitude to Force B but with main emphasis on improving China's defenses rather than on developing strategic offensive forces; a high side force. .. Force D, a high-side force, postulates a major effort to modernize China's general purpose forces, carried out in conjunc- tion with continued work on development of strategic offensive and defensive forces. Approved For Release 2003//(PRF$rbB01676R001600130004-9 25X1 25X1 Approved For Relgas 1lb'! IOF12U-X -RDP80B01676R001600130004-9 The study udy accepts the intel9.igerace judgment that the basic goals of the ` Chinese I&aderehlp._will .remain gih6ral uh6haAged_ .and. projects it through - the. newt decabde"even? "tfiaugh tae- departure df'Mao may bring modifications in emphasis at acticer approaehe ' In addition, the study proceeds on the basis of'certain.asiaiiI tions,.two of them being that Sino-Soviet relations during this decade would remain strained, and that the Chinese would not obtain significant amounts of assistance from either the Soviet Bloc or the West. There are a wide variety of possible developments over the next ten years or so which might significantly-affect Chinese military planning, developments which would Occur both iineioe China and in China?s relay- tions with the rest of the -world. r--Appendix A discusses several major contingent developments, both favorable and unfavorable to the Chinese, and the possible effect of these contingencies on the projected Forces. The present Chinese leadership'Wis-clearly been willing and able to deprive the civilian economy of sa'bstential: 'resources in order to main- tain the ambitious array of military-programs it is now trying to carry forward. However, -there-are ikportaurt_'limits as to how far the regime can go in this direction on a sustained basis. A central problem in formu- lating the projected Forces has been that of-aeveloping and applying realistic economic and cost oonatr?aint Appendix B sets forth the methodology of the economic and cost analysis used in this study and itemizes the projected costs of the individual Forces. Approved For Releas~y2Q Qq--RDP80BOl676RO01600130004-9 Approved For Release 2 Till, B01676R001600130004-9 25X1 ALTERNATIVE PROJECTIONS General 1 Alternative Force Planning Concepts 3 Assumptions 6 CHINESE COINIST MILITARY FORCES THROUGH 1975 Force A 11 Force Concept and Its Implications 11 Strategic Offensive Forces 14 Strategic Defensive Forces 16 General Purpose Forces 17 Force B 25 Force Concept and its Implications 25 Strategic Offensive Forces 27 Strategic Defensive & General Purpose Forces 31 Page 1 Force C 37 Force Concept and Its Implications 37 Strategic Offensive Forces 38 Strategic Defensive Forces 38 General Purpose Forces 40 Force D Force Concept and its Implications Strategic Offensive & Strategic Defensive Forces 48 48 48 49 64 General Purpose Force III. GLOSSARY OF PROJECTED "BCX? WEAPON SYSTEMS Approved For Release 200315 gllpB01676R001600130004-9 25X1 D 25X1 Approved For Relep W3idaMZ'L4-RDP80BO1676R001600130004-9 ESe A2PENDIX A. MAJOR CONTINGENCIES AND THEIR POSSIBLE EFFECT ON THE PROJECTED FORCES A-1 General A-1 Possible Adverse Developments A-1 Serious Worsening of Relations with the USSR A-1 Sizable Diversion of Resources to Support of the Vietnam War A-2 Increased Military Assistance Requirements A-3 Economic Setbacks A-4 Possible Favorable Developments A-4 Accelerated Economic Progress A-4 Increased Access to Free World Credits and Technology A?5 Marked Improvement in Relations with the USSR A?7 APPENDIX B. ECONOMIC AND COST ANALYSIS USED IN DEVELOPMENT OF THE ALTERNATIVE FORCES B-1 I? METHODOLOGY B-1 Introduction B-1 Determination of Present Levels of Expenditure B-4 Determination of Maximum Growth Rates B-7 Projecting Future Costs B-12 II. PROJECTED COSTS B-18 Force A Force B Force C Force D B-18 B-2O B-22 B-24 25X1 Approved For Release? 4-RDP80BO1676R001600130004-9 25X1 Approved For Release 2081E1.211RUP80B01676R001600130004-9 LIST OF TABI EMe Table 1 Force A 20 Table 2 Force B 32 Table 3 Force C 43 Table 4 Force D 54 Table 5 Comparison of ForcesA 1 70 and 1975 60 Offensive 60 Defensive 61 General Purpose 62 Table 6 Chinese Communist Hardware-Associated Outlays, 1965 B- 5 Table 7 Chinese Communist Hardware-Associated Outlaya B- 6 Table 8 Projected Hardware-Associated Outlays, 1965-75 B?14 Table 9 Projected Hardware-Associated Oath s for Force A 1 B?19 Table 10 P$ o acted Hardwaar?e-Associated Outl s for Force Bs 1 ?75 Table 11 Projected Hardware-Associated Outlays for Force C,9 1969- .15 B-23 Table 12 Projected Hardware-Associated 0utla for Force k 1 B-25 Fo1lowiM Fags Figure 1 Economic Pr?ojectionse'1966?75 B? 8 Figure 2 Chinese C iet Military Hardware-Associated Outla,3rs 9 1956-75 mv~ Approved For Release 200 2 - MSOB01676R001600130004-9 B-14 25X1 25X1 Approved For Release ALTERNATIVE PROJECTIONS OF CHINESE COWUNIST MILITARY FORCES THROUGH l9J5 1. SCOPE AND APPROACH General This study represents an exploratory effort at projecting how the Chinese Communist military establishment might evolve through 1975,, with the aim of providing the planner with specific illustrations of the poten- tial character and magnitude of the military threat which Communist China might be able to pose for the US and other possible antagonists during that period. The study essentially consists of four alternative force projections,, each reflecting a different approach which t Chinese leaders,, for one reason or another, might adopt in determining military requirements and force goals. One projection is designed to portray the most goals the Chinese might reasonably be expected to set for themselves In the light of their vigorous force develo indicate how far they might reaeo bly be expected t particular,-"-set of capabilities (strategic attack in in developing se,, air and naval defense in another,, theater forces In a third) without neglecting other essential military requiremmentso Each of the forces includes all of the major elements which make up a military establis ant,, projected in accordance with the over-all planning concept used for that force Approved For Release 20035P1VC-E$OB01676R001600130004-9 25X1" Approved For Relea-sX1121-'44-RDP80B01676R001600130004-9 In developing these projections., we have taken as a point of depar- ture the best available intelligence and intelligence judgments, regarding the progress of the Chinese Co met military effort to d*te: and its prospects for the future o Economic and technological constraints.have played a major role in determining both the composition and magnitude of the various programs herein projected. In applying these constraints to the-duo nt of the high-side forces,, we have attempted to resolve un- certainties concerning capabilities in favor of the inese o Proma tech- ological point of view, we have done so by introduci t the earliest dates deemed possible, systems being emphasized in a particular force al- ternative and by including a substantial number, of new systems on a con- current or overlapping basis. In the economic sphere we have done so by postulating rates of growth., hence availability of resources for military programs., that we believe to be optimistic. Moreover, we have assumed that with these rates., it would be possible for the Chinese to ha enough technological and industrial resources both to carry out present programs and . to develop the additi would require. (See the Assu mptio p0 B=1)G pall resources that future programs ginning P. 7., below., and Appendix B., The projections contained in this paper are not intelligence eats- m 4 Rather,, these projections are designed to illustrate the r of options which appear to be open to the Chinese leaders and not to indi- cate a most likely course of action and possible variations. No one of Approved For Releas' U 1 E? -RDP80B01676R001600130004-9 B01676R001600130004-9 the four courses herein projected is likely to be adopted in its entirety and no one of them can be singled however, they do indicate re expected of the Chinese over the next ten years or so For the most part, the forces postulated are not projected past 19T5- Howevers the study does include likely post-1975 IOC:'s of major weapon systems projected as under develo nt in the late l96's and early 19TO's It also takes account of likely force goals beyond 19T5 as they might affect procurement and dept cant to imply that this date would have out as the most probable Taken together,. onable and practical limits on what might be nt up to that point. The use of 1975 as a any special significance for the Chinese Alternative Force FIL In preparing this stu telligence jud me followed the generally accepted in- gnat that the basic goals of the Chinese leadership will remain generally unchanged, even th ough t and other old-timers may bring changes In e ,ph as suggested in the alternative projections we have developed. We assume that the Chinese military establis probable departure of Mao is and tactical approach, ,cent will continue to play a key role in maintenance of internal security and that Chinese ilitary policy will, also continue. to be d ,rected toward supporting the major external goals of: (a) defending the Chine e homeland (b) ntrol over Taiwan and other lost territories (c) neutralizing and eventually expelling US and other "imperialist" forces from the Far Basta (d) restoring China's Approved For Release 2003ffijg~ $01301676R001600130004-9 25X1 25X1 Approved For Rel historic preeminence in Asia and its standing as a world power; (e) winning acceptance of Chinese leadership and doctrine in the Communist movement; and (f) leading the struggle for national liberation throughout the under- developed world. 'Within this general setting,, the study allows for four different approaches which the Chiniese Communist leadership might adopt in establish- ing its long-term military force requirements. All of these envisage a pro- longed period of continuing tension, probably extending far past 19759 in which Communist China might become militarily embroiled not only with the US and the Chinese Rationalists but with other nations including the USSR All approaches are primarily concerned with enhancing China's ability to operate effectively and securely at the lower end of the military spectrum, that is, with deterring hostile powers fro attacking China or interfering with (:hinese-supported operations., rather than with precipitating or inviting full-scale war. Hence., they differ mainly in their approach to the problem of deterrence. Alternative Force A is a low-side force designed to depict the most modest goals the Chinese leaders might reasonably be expected to set for themselves in the light of the vigorous effort they have made to date to provide themselves with modern weapons. It assumes a decision to hold spending for development and production of military hardware at approxi- mately present absolute levels, reflecting a belief that there is no over- riding; need for a more rapid buildup and reinforced perhaps by concern over the need to build up the civilian economy. This approach probably would 25X1 _11.e Approved For Releas 9A-RDP80BO 1676 R001600130004-9 RET Approved For Release B01676ROO1600130004-9 contifue to stress such concepts as the superiority of properly trained and motivated men over mere technology on the battlefield and would value modern (and especially nuclear) weapons primarily for their psychological value in reinforcing China?s claims to great power status rather than for their specific military potential. the Chinese might re depicts the maximum strategic attack capability nably be expected to achieve without neglecting other military requirements and is a high-side force which differs sharply from Force A in its basic outlook. It assumes the emergence of a more pro- fessional and systematic approach to military problems, and reflects a cent by Chinas leaders that they cannot be assured that their modern weapons will be effective in restraining the US and overawing China?s neighbors unless these weapons provide a substantial and reasonably credible retaliatory capability. Alternative Force C projects a vigorous modernization program com- parable in economic magnitude to Force B but with main emphasis on imm provi China?s defenses rather than on developing strategic offensive forces. Fo rce C thus depicts the maximum air and naval defense effort the Chinese might reasonably be expected to carry out in the light of competing military requirements. Like Force B, Force C is primarily directed at deterring US attack on China and at impressing China's neigh- bore with its ability to defend itself. Alternative Force D postulates a major effort to modernize China?s general purpose forces, carried out in conjunction with continued work on n5> Approved For Release 2003I9CR-rTbB01676RO01600130004-9 25X1 25X1 Approved For Rel - DP80B01676R001600130004-9 development of strategic offensive and defensive systems. Although a high-side force, it would represent a less drastic shift from the Force A outlook than postulated in Forces B and C, reflecting a continuation of the present emphasis on the ground forces as the mainstay of the military establishment. Thin is a direction the Chinese military planners might take should they become convinced that the acquisition of nuclear weapons would provide China with greater opportunity to threaten or actually under- take aggressive military operations in peripheral areas. Conversely, such a buildup might be stimulated by continuing or enhanced concerns over the possibility that China might be compelled to intervene, say, in Vietnam. Assvations In developing these alternative forces, it has been necessary to take account of a wide range of uncertainty about the specific conditions and situations which might confront Communist China over the next decade. In general, we have envisaged the alternative force projections as long- term programs designed to take account of a variety of possible develop- ments rather than as lists of requirements tailored to meet particular sets of contingencies. The projections do not, for example, make specific provision for such possible developments as Indian development of nuclear weapons or a sharp decline in the GRCas internal position. However, we have found it necessary to make some specific assumptions about the Chinese economy and about certain other circumstances likely to confront the Chinese leadership and have also noted in Appendix A how certain develop- mente, such as a severe worsening of Sino Soviet relations, might affect Chinese force developments. These specific assumptions are listed below. Approved For Releas CIRR ? -RDP80B01676R001600130004-9 25X1 ~~ l Approved For Release 0B01676RO01600130004-9 Assumption 1. The Chinese will have a considerable degree of success in coping with their economic and technological problems over the next ten years or so. This is an optimistic.assumption but one which appears to provide the most practical approach for two reasons. The first is that these projections are primarily aimed at indicating how much of a military threat, rather than how little, the.Chinese might be able to develop and sustain during the next ten years. The second is that, while we certainly cannot exclude the possibility of one or more bad crop years or another mana- gerial aberration like the "Great Leap Poward," the likelihood and extent of such setbacks and their quantitative impact on military programs are essentially unpredictable. The spoaific economic implications of this assumption are discussed in Appendix B. Assumption 2. Although development and production of military haar?dwa will continue to be heavily favored in the allocation of scarce technological and industrial resources, the Chinese leaders will not be able to provide the military mo on a sustained basis -- with any significantly larger share of these resources than it is now getting. This assumption serves to provide some objective basis for assessing economic constraints. It represents an economic judgment (discussed, along with other points made here, in Appendix B) that any significant increase in the already substantial proportion of. scarce industrial and technological resources now devoted to military purposes would severely cramp the growth of the economy, which in turn would severely cramp future growth of military program. We have considered spending for military hard- ware in relation to outlays in a specific sector of the economy, i.e., Approved For Release 200365,&T80B01676RO01600130004-9 25X1 25X1 Approved For Rele - DP80B01676R001600130004-9 heavy industry sector, and not in relation to total GNP. This is not only because of the great uncertainty about the actual size of Chinese GNP but because GNP, in a vast, predominantly peasant economy like China's does not adequately reflect the burden on that sector of the economy which is most responsive to the impact of military programs. For related reasons, we have not sought to calculate the....cost of food, clothing, and pay for the armed forces, which are assumed to remain at approximately the present level in all forces. There is no implication in this assumption or in the study that the Chicoms are following an orderly detailed fiscal and developmental plan. We do not know. The limitation on resources exists, however, whether the Chinese are rational or irrational in their planning. It is conceivable that they could go to a crash program of intensive production of weapon systemu$. At the end of some period however they would pay a severe penalty for having overworked facilities, and for having ignored the needs for capital reinvestment. Assumption . The Chinese will not obtain significant amounts of military equipment or technical advice from either the USSR and its European partners or from other countries. This is a necessary assumption if we are to assess China's own capa- city to develop its military capabilities. It allows for some continuing shipments of spare parts, etc. We cannot exclude the possibility that the Soviets may provide China with some interceptors or other defensive Approved For Releas Y G Al-RDP80B01676R001600130004-9 qO 25X1 -war proviso is not intended to rule out the possi- f such a development but merely to reflect the fact that the out- Approved For Release 2003/,VGRJ?WB01676RO01600130004-9 25X1 Approved For Release equipments they did in 1962 and possibly later? but have excluded it from the projections However, the possibility of significant aid -- with particular reference to the circumstances under which it might become available, the types of aid which might be extended., and China's ability to absorb it is discussed in Appendix A. Assu Lion 4 o Although SianooSoviet relations will remain atrainnd9. t y will not deteriorate sufficiently to generate major new requirements for defense against the USSR nn! r#rh5-4+W r}pA In other words., no specific provision is made in the alte.tiv8e forces for possible requirements for increased capabilities via-s-vis the USSR. This provides the only reasonably firm basis for projecting force requirements matters now stand. Possible effects of a worseni Sino-Soviet relations on Chinese f of increased Soviet aid are s rce planning, well as the p ever, considered in Appendix A. seibility Asation 2. Regardless of how the Par Eastern situation m otherwise develops a substantial and possibly increased US milita presence In the Far East will continue and related US-Chinese str will persist, but not to the point of direct hosti,ities In other words, it will continue necessary for Chinese military planners to take account of the possibility of US opposition to military operations they might consider and of US or -supported attacks of one kind or another on China proper. The n bility Approved For Releas W8 ICAM -RDP80B01676R001600130004-9 break of war would mean, at a minimum, the end of any orderly military force development program for China. Appendix A notes the possible impact on China's ability to carry out military development programs of heavy but indirect Chinese involvement in a long-drawn-out conflict in Vietnam. Approved For Releas572C1 -RDP80B01676R001600130004-9 I Approved For Release 2 II. THE ALTERNATIVE PROJECTIONS ALTERNATIVE FORCE A Forge Concept and. its Implications Alternative Force A is a baseline force, representing the most modest military goals the Chinese leaders could reasonably be expected to set for themselves in the light of the heavy commitments they have already made to development of nuclear and other modern weapons and their normal requirements over the next ten years for elimination of outstanding deficiencies and replacement of obsolescent equipment within the existing force structure. In developing this force we have assumed that spending for development and procurement of military hardware would continue at approximately present absolute levels and that China would continue to maintain approximately the present number of men under arms. A very considerable though declining proportion of China's critical industrial and technological resources would still be going to the mili- tary on this basis. However, the leveling off of expenditures for procure- ment of military hardware at a time when various weapon systems programs were approaching the costly production stage would make it difficult to pursue all.production programs simultaneously and would sooner or later impose sharp limitations on what the regime could procure. A decision to level off such military procurement expenditures would thus involve some slowup.in the over-all pace of the military program as it has de- Approved For Release 2003/ E loB01676R001600130004-9 25X1 25X1 25X1 Approved For Rele merit.of an ICIM. However, it does call for completion of veloped so far. The Chinese certainly could not settle for any lower level of effort without, in effect, confessing that they had overreached themselves, and though they might be forced by circumstance to do so would presumably not do so voluntarily. Indeed, even a leveling off of military procurement expenditures would involve some unpleasant decisions. In general, Force A calls for continuation of work on all three major. types of strategic delivery systems now apparently under develop- ment (i.e., the MRI+i, the submarine-launched missile, and the medium bomber) but with actual production and deployment relatively limited. China?s airdefenses would be improved somewhat with the introduction of native-produced interceptors and improved detection and communication equipment but would still have but few SAMes. Similarly, China?s coastal and naval defenses would remain weak despite an active naval building program aimed at phased replacement of older ships. The ground forces would continue to be the backbone of the Chinese military posture and because of the magnitude of their requirements for new or standardized weapons, even at a relatively modest level of sophistication, would remain a major claimant to Chinese military resources. .For the most part, Force A does not call for construction of major new production or test facilities before 1975, the principal exception being the new rangehead (and instrumentation ships) required for develop- 25X2 25X1 Approved For Releas D~a7'I -RDP80B01676RO01600130004-9 ..r 25X2 Approved For Release 200 Adoption of force goals at or close to the Force A level would be quite consistent with the regime's continuing heavy emphasis on the superiority of properly motivated men over mere technology on the battlefield and its efforts to discourage professional as against essen- tially political loyalties and modes of thought within the officer corps o Force goals of this sort might also be favored out of concern over the need to build up China's civilian economy,, perhaps coupled with a belief that China's military establishment itself would be better off in the long run if extensive production of expensive military hardware were foregone at this stage,, thereby making funds available for building up China's industrial infrastructure (or for military 1T&E beyond that actually projected in Force A). Even under this approach the Chinese would presumably be well aware of the value of nuclear weapons as a potential retaliatory threat against the US and other possible enemies and would envisage the eventual achieve- ment of an arsenal of modern weapons of considerably more than token num- bers. But it is assumed that they would feel under no great pressure to speed up the military buildup and,, though mindful of the possibility of all-out war with the US,, would remain reasonably confident that the US already had strong inhibitions against undertaking an all-out attack on them. In this view,, the modern weapons program would initially have the Approved For Release 2003/ 01676R001600130004-9 25X1 25X1 Approved For Rel primary aim of demonstrating China's progressive achievement of all the attributes of great power status and its ability to gain them despite the cutting off of Soviet aid. Str,c Offensive Forces We assume that the Chinese would seek to develop: an SS-4-type MR BM with a range of 1000 rm which could be used to threaten US bases and population centers in Okinawa, Taiwan, Japan, South Korea, and South Vietnam. The MREM would also provide valuable experience which could be used in development of an ICHVI. However, requirements for deployed missiles would remain relatively modest. Assuming that the Chinese can achieve an IOC by 1970, we project production averaging 15 missiles per year through 1974, using existing Rt &E facilities, for a total production of 105 missiles and a deployed total of 35 missiles in 1975. We assume that they would be deployed in soft sites. We envisage, for this Force, only the one G-class submarine now in existence. A compatible missile for it is projected as becoming available in 1969, using the same missile test and production facilities used for the MMRW. No production line mould be set up; the very small requirement would be met from the RITE program. This submarine would give the Chinese navy a token strategic attack capability and, primarily, the means for learning more about missile submarines. However, no more of this class would be built, with attention instead focussed on develop= ment of a more advanced hull design (see General Purpose Forces, p. 19). m14- Approved For Releasflfi 1-RDP80B01676R001600130004-9 CRET Approved For Release 2 01676 R001600130004-9 and on RD'1'&E for a nuclear-propelled submarine which, despite its even greater expense, would have unique advantages. Under this projection, a nuclear-powered submarine would not be completed earlier than 1980. We assume that the Chinese would wish to produce at least a limited number of BADGER-type medium jet bombers, in part as a hedge against slippage in the missile programs, in part as a means of diversifying China?s attack capabilities, and in part for the purpose of gaining experience in large military aircraft design and construction. It is considered most unlikely that the Chinese would seek to produce the generally unsatisfactory transport version of the BADGER, with better and: far cheaper cargo planes available both from the USSR Hand in Western Europe On the assumption that production could begin in 1967, with the first plane rolled out in 1969, we project a total of 46 HERS pro- duced and 36 deployed by 1974. This number, equivalent to one Soviet regiment, represents considerably less than optimum utilization of the plant m? 100 would be a more reasonable "minimum buy" in Western cost accounting terms but such a cutback in procurement goals would be virtually unavoidable if the Chinese were to adopt the Force A concept of holding military development and procurement expenditures at approxi- mately present levels. We postulate that after completion of the BADGER run the plant involved would be converted to production of a native- design transport of the AN-12 (CUB)-type. First roll-out is projected for 19T6. -15- Approved For Release 2003/ B01676R001600130004-9 25X1 25X1 Approved For Relpas&SAAaaaL?^lnRDP80B01676R001600130004-9 'W'hile the Chinese leaders might decide to forego development of an ICB14, especially in the face of US (and Soviet) ABM deployment, we assume here that the prestige and deterrent potential of an ICBM would make it attractive even in the Force A context. However, research and development on an ICBM would be carried out at a moderate pace, with con- struetion.of new rangehead facilities commencing in 1973, a pilot model appearing in 1976, and IOC being achieved in the latter 1970's. An IRBM would not be deployed under the Force A concept although China would acquire the capability to assemble such a missile from components re- quired for the ICBM and might actually test an IRBM configuration. Strategic Defensive Forces The chief improvement in strategic defense forces would be the introduction of increasing numbers of interceptors. Production of MIG-19's has apparently already begun at Shenyang and in this projec- tion is estimated to continue through 1970, for a total production run of about 900 aircraft. We have assumed that the aircraft turned out at the Chung-Tu plant will be the MIG-21 and that production will begin in 1967. The decision to go ahead concurrently with the less effective MIG-l9 as well reflects some technical difficulties with the MIG-21 and the regime's unwillingness to wait for these diffi- culties to be resolved. In Force A production of MIG-21's is -16- Approved For Releas Qr J231tA-RDP80BOl676R001600130004-9 projected as continuing through 1975, for a total production of about 600. Air-to-air missiles are projected for both the MIG-19 and the MIG-21. It is assumed that the obsolescent MIG-15 and MIG-17 would be retained as long as possible, then placed in reserve for emergency use in either the interceptor or ground support role. Under this force concept we envisage continuation of China's esti- mated modest capability to maintain necessary stocks of SA-2-type missiles, to take account of the retirement of no longer serviceable missiles as well as actual firings. We also project continuation of the SAM RDT&E program. Under the Force A concept, however, we assume that cost considera- tions, together with range and other limitations of the SA-2 missile system, would militate against significant production and deployment of weapons of this type. Olerothe course of the ten-year period, we would expect a consider- able improvement in the air defense infrastructure of airfields, radars, and communications. We also project a modest increase in the number of AAA batteries. General Purpose Forces This alternative projects a continuation of the army at approximately present strength, with present T0&E's remaining for the most part unchanged and only minor changes taking place in the order of battle -- notably to provide a modest buildup of AAA, combat engineer, signal and motor trans- port units at the army and higher levels. 25X1 Approved For Release 2003/19 ILP101676R001600130004-9 25X1 Approved For Rel The principal ground force planning goal under this concept would be the standardization of weapons and equipment, so as to eliminate the many obsolescent and heterogenous items in the inventory and to provide all regular units with their full T0&E requirements in standardized items of currently accepted Soviet or Chinese design. A related goal would be the building up of adequate ammunition reserves. We also project much greater numbers of ground force radios, especially below regimental level, the provision of MII.4 helicopters to each of the 34 armies for command and contra 1, and a modest start toward setting up some units equipped with pontoons and other special equipment for crossing water obstacles. The hardware requirements of a standardization and reequipping pro- gram would vary. The army is probably well on its way to achieving such standardization with respect to artillery. For our calculations we assume that the army's entire present stock of wheeled vehicles will require re- placement by the end of 1975, for an annual requirement of some 10,000 new vehicles or about half of China's present truck outputs With respect to tanks, we assume that the Chinese would wish to stan- dardize on the T-54, with all of the T?34's in the inventory replaced by 1974 at a retirement rate of about 300 a year. This would involve annual production of 400-500. We also project development (primarily for reconnaissance) of a light amphibious tank comparable to the Soviet PT-76 with an IOC of 1973, introduction of a follow-on medium tank which would begin entering the inventory in 1975, and development of a heavy assault gun to replace the obsolescent JSm21s and assault guns now in the inventory. m18? Approved For Releas . _ -RDP80B01676RO01600130004-9 Approved For Release 200 -P80B01676R001600130004-9 25X1 On this basis the army would have more than made up the deficiencies' which plagued it during the any 19601s. By Western standards, however, it would still be relatively. weak in motor transport and in specialized equipment such as dozers, mine-layers, amphibious vehicles, etc. It is assumed, moreover, under the present force concept, that some 75 of China ? s line divisions would continue to live largely on the land and would have only about half their time available for training. This would leave only 42 line divisions able to spend virtually full time on train- Ingo On the naval side, we project an increased level of shipbuilding activity after 1970, primarily for the purpose of replacing obsolescent ships now in service but also with the hope of effecting some improve- tent in coastal patrol and other defensive capabilities and of paving the way for future improvements in the submarine force. Much of the construction would go for replacement of various types of small craft, at a rate of about 5 percent a year o The projection also calls for ten more submarines of the R -class, the improved version of the Wmciass, in addition to the two now complete, in part to replace seven smaller and increasingly obsolescent submarines now in the inventory. Construction of the SS CXml, a new torpedo-attack submarine with diesel propulsion and more efficient hull design, would begin in the early 1970's. A hull, of this design, embodying the lessons learned in production and operation of the SS-CX-I, would be used in the nuclear- propelled submarine projected for 19 019- Approved For Release 2003/1:IG1 t$01676R001600130004-9 25X1 Approved For Release 2003/10/22 : CIA-RDP80B01676R001600130004-9 TABLE 1. FORCE A ST ATTC OFFEI'I3IVE FORCES 1965 1966 1967 1968 1969 1970 1971 BALLISTIC MISSILES 21 MPli4 (SS-4-Type) 1 6 Ballistic Missile Subs. SSB-G a/ 1 1 1 1 1 1 1 BOERS J BULL/TU-4 13 12 10 8 6 4 BADGER/TU-16 2 2 2 2 2 3 10 TOTAL - ---9 12 10 10 J SS-N-4-Type missile available in 1969 from RDT&E program. IL-28, IL-10 and TU-2 bombers are listed under General Purpose Forces. J Missiles and aircraft will have nuclear warheads and bombs respectively. -20- SECRET 25X1 1972 12D 1974 IM 12 20 1 1 18 -- 26 18 26 28 35 25X1 4pprov4d For42eleas$ 2003i 0/22: IA-R['80BQJ676R4p1600 0004$ 1 Appioved Fbr Rel&se 2013/10/2k : CIA-DP80 30167 0016l101300A4-9 SECRET (Table 1 Cont.) 25X1 FORCE A STRATEGIC DEFENSIVE FORCES 1965 1966 196T 1968 1969 197 0 M 1972 IM 1974 1975 SURFACE-TO-AIR-MISSILES SA-2-Type Sites 8 8 8 8 8 8 8 8 8 8 INTERCEPTORS J FAGOT/MIG-15 408 400 350 275 200 5 0 FRESCO/MIG-17 1107 1100 1050 1000 950 8 50 700 550 350 200 50 FRESCO D/MIG-1 -D 325 325 325 290 230 2 15 200 150 100 50 25 FARMER/MIG-l9c/ 175 350 500 650 800 8 75 900 900 900 900 900 FISHBED/MIG-21 35 35 35 _.35 35 _ 50 100 140 200 300 400 TOTAL. 2050 2210 2260 2240 ala 20 40 1900 1 0 1450 1M CONVENTIONAL AAA GUNS Light 1900 1950 2000 2050 2100 21 50 2200 2250 2300 2350 2400 M dium 15To 1600 1600 1600 1600 16 00 1600 1600 1600 1600 1600 e 60 0 18W 80 Sao ?- 4000 zmcmz= J Includes Naval Interceptors The category Light AAA Guns includes the 37 and 57 mm; the Medium the 85 and 100 MM- 2/ The mid-1966 figure shown fcr MIG-19's is believed to be a reasonable reflection of the size of the OB. However, it should be noted that there is still uncertainty in the community on this subject. Approved For Release 2003/10/22 : C A-Rn129607RR001 an0130004-9 25X1 Approved For Release 2003/10/22 : C A-RDIAKIEMU6 001600130004-9 FORCE A (Table 1 Cont.) GENERAL. PURPOSE FORCES 1965 1966 196 11968 1 7O 1971 1972 1973 1974 1975 GROUND FORCES Line Divisions Infantry Conventional) Armored Horse Cavalry Airborne Naval Infantry 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 106 5 3 3 BS/MIS Divisions 20 20 20 20 20 20 20 20 20 20 20 Combat Support Divisions 23 23 24 24 24 24 24 24 24 24 24 Service Support Divisions ll 11 11 11 11 11 11 11 11 ll 11 Combat & Service Support Independent Regiments 121 123 123 123 124 125 126 127 128 129 130 AMW T-54-Type Improved. T-54-Type PT-76-Type HELICOPTERS Mi-4 TRANSPORTS Light Medium Total LIGHT BOMBERS BAT/TU-2 BEAST/IL-10 BEAD /IL-28 1300 1650 2050 2500 2950 31400 3850 4300 4650 4800 4800 -- -- -- -- -- -- -- -- -- -- 25 -- -- -- -- -- -- -- -- 20 80 180 18 60 90 120 150 180 210 240 270 300 330 347 359 440 505 565 630 695 745 845 920 995 6 10 1 25 30 _30 0 A_ 0 2 50 25 -- 30 10 -- 159 130 100 80 55 30 15 -22- SECRET 25X1 25X1 pproy d For4 elea 2003 0/22 :CIA-R[ 80B( 676R0k1600 jP0004* I Approved Fbr Release 201b3/10/2k : CIAIRDP8011301674R001680130084-9 I 25X1 FORCE A (Table 1 Cont.) GENERAL PURPOSE FORCES 12a 1966 1967 1968 1969 1970 1971 M2 M 1W4 lW5 NAVAL FORCES Submarines SS-MV and S-1 7 7 7 7 7 7 7 6 5 5 4 SS-w 24 24 24 24 24 24 24 24 24 24 24 SS-R 2 4 6 8 9 10 11 12 12 12 12 SS-CX-1 1 1 2 37 33 35 39 40 41 42 42 4242 42 Naval Aircraft X MADGE/BE-6 6 5 3 2 BEAGLE/IL-28 118 100 80 70 45 20 Surface Shins Destroyers DD Gordy Class) 4 4 4 4 4 4 4 4 4 4 4 ASW Escorts DE Riga Class) 4 4 4 4 4 4 4 4 4 4 4 LE (Kiangnan Class) 1 1 2 2 3 3 3 3 3 3 DE-CX-l 1 1 2 2 Torpedo/Patrol Craft PC Subchaser PTG (Ms1.Launching)J PT/PTF/PF/PW 25 26 27 28 29 30 30 30 30 30 30 2 2 2 2 2 2 2 4 6 8 10 250 280 300 300 300 300 300 300 300 300 300 -23- 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 2003/10/22: CIA-RD P1f676R001600130004-9 (Table 1 Cont.) FORCE A GENERAL PURPOSE FORCES 1965 1966 196T 1968 1969 19TP 19T1 19T2 IM 19T4 IM NAVAL FORCES 25X1 Minesweepers T-43-Type Other 14 59 15 59 16 59 17 59 18 19 20 22 26 30 35 59 59 58 56 52 48 44 Amphibious LSM-Type 59 59 59 59 59 60 60 60 60 60 60 Misc.Nav.Ships & Craft 435 440 445 450 455 460 465 470 475 480 485 COASTAL DEFENSE CRUISE MISSILES SS -CD-1-Type Sites 3 3 3 3 3 3 3 3 4 4 a/ Missile available in 1971. 25X1 fpproed For_eeleagp 2003M0/22 IPIA-RIJP80B4j676R1 600j30004* .r Approved For Release 203I11 016768001600130004-9 25X1 ALTERNATIVE FORCE B Force Concept and its Implications Alternative Force B projects the maximum strategic attack capa- bility the Chinese might reasonably be expected to achieve in the next ten years or so without neglecting other essential military require- ments. Main emphasis would be placed on prompt development and subse- quent maintenance of as formidable and credible as possible a capability to strike with nuclear weapons, first against US bases and other poten- tial targets in the Far East but as soon as possible thereafter at inter- continental ranges against the US and (if need be) the USSR. Given the heavy allocation of resources which would be required for this purpose, defensive and general purpose forces would be restricted to the Force A level. This approach is not intended to imply any greater willingness to risk war with the US or any greater belief that war with the US is:;more likely than is the case with Force A. It rather reflects a harsher view of the requirements of deterrence: a belief that China cannot be assured that its modern weapons will be effective in restraining the US and in overawing China's neighbors unless they provide a substantial, well-organized, and reasonably credible retaliatory capability. An essentially professional and systematic approach of this sort to the problem of determining military requirements might develop as -25- Approved For Release 2003/1Q'201676R001600130004-9 25X1 Approved For Releases 1H-RDP80BO1676R001600130004-9 a natural result of the increased exposure of Chinese military leaders to the problems of dealing with modern weapons. Its adoption would be a strong indication that the efforts of the old leadership to stifle the growth of independent thinking and professional attitudes among the mili- tary had failed. This approach might also be encouraged by a belief that other nations were not taking China's modern weapons program seriously enough, by a desire to keep well ahead of possible (or impending) Indian nuclear weapons programs, or by a simple desire to have more assured diplomatic leverage against China's weaker neighbors. In projecting this force we have assumed that expenditures for de- velopment and production of military hardware, instead of leveling off (as in the case of Force A), continue to grow at about the same rate as that postulated for the machinery sector of heavy industry as a whole. This implies that the Chinese could not afford, at least on a sustained basis, to allow such military expenditures to grow much more rapidly than those for the comparable portions of the civilian economy.* Although this rate of growth would permit a doubling of military procurement ex- penditures by the mid-1970's,** there would still be significant limita- tions on what the Chinese could procure. At the same time, the economic and technological resou?ces which could be used for non-military purposes would: be severely limited. A serious attempt to develpp and maintain a * See Appendix B for a discussion of the economic considerations on which this assumption is based. ** As measured in dollars; somewhat more in yuan terms. See Appendix B. -26- Approved For Releas MQ (?2r, r-m-RDP80BOl 25X2 Approved For Release 2 n2 ~ir77~`'f'~4'k~14~nA a reasonably credible deterrent force as postulated here would involve China in an unending problem of trying to catch up with US technology and deal with possible US countermeasures. Though we have not detailed all of the improvements and follow-on systems the Chinese might seek to develop in the latter 1970's and thereafter, the cost would amost certainly be high. Most of the programs here projected could probably be handled by existing plants and facilities. However, a new rangehead for the IRBM and ICl'M would be required. In addition, there would probably have to be some expansion of nuclear facilities, notably of the Strategic Offensive ForcesF; This projection calls fora considerably more rapid and extensive buildup of strategic offensive forces than does Force A. It is assumed that targeting would be more systematic and rigorous under this approach. It is also assumed that the Chinese planners would regard a rapid buildup in the number and types of deliverable weapons as initially offering the best assurance that at least some of them could survive enemy defense or counterforce operations. Thus, we project continued work on all three major delivery systems now apparently under development. In the case of the SSm4mtype MRBM,which is assumed to be now under development, we project a buildup to 80 deployed in 1973 (out of a total -27- Approved For Release 2003/1NE- LPqb01676RO01600130004-9 D 25X1 25X2 25X1 Approved For Rele - 80 B01676R001600130004-9 _qffi calm production of l$0), with 30 in the inventory by 1970 as against only I for Force A. It is assumed that these would be deployed against targets in Okinawa,, Japan, South Korea, Taiwan, South Vietnam, the Philippines., and Thailand. It is assumed that'even under the Force B approach the Chinese would be reluctant to take on the design problem, heavy costs, and long construction time (with its risks of detection) inherent in hardening of sites. We., therefore, have projected the use of road- transportable MRB4's, multiple (including dummy) sites, and camouflage to dleal with the threat of preemptive attack. This MRBM deployment would be supplemented by the introduction of an IBBM in 1973, with total deployment reaching 50 in 1976. This would give China a capability to hit Guam, targets in India and, if need be, a number of major centers in the USSR. (Moscow itself would be within range of a 2000 nm IRBM sited at Urumchi in the northwestern part of China). We assume that a significant number of IRBMBs would be located deep within China, where they could be used either to supplement the MRBMAs in coverage of major Far East targets or to cover potential tar- gets in India and the USSR. Since the IRBM?s would be too large to be moved readily to alternate sites, the Chinese would have to rely primarily on hardening to protect them from missile attack. However, they might also hope that locating many of them far inland, might make it more difficult for an attacker to hit. them accurately. 25X4,0 -28- Approved For Releas ~( K -RDP80BO1676R001600130004-9 Q Approved For Release 2 - 1676R001600130004-9 25X1 With respect to the ballistic missile submarine, we project a total of 4 G-class submarines equipped with a 350 nm missile by 1970. This would be a large enough force to permit the establishment of regular and contin- uous sea patrols as far out as Hawaii and would give the Chinese a SLBM capability against more than one target area concurrently. We also postu- late two follow-ons to the G-class submarine: (a) a 4-tube improved diesel- propelled submarine, utilizing the Albacore-type hull, with greater cruising range than the G-class, but using the same missile; and (b) a 6-tube nuclear propelled submarine with a submerged-launch missile of 600 nm range. Under this projection, the first follow-on would be completed in 1970 and become operational in 1971, with a total of 4 deployed by 1914. The first nuclear submarine is projected for IOC in 1978. For Force B we also projected a much larger BADGER program than in Force A -- with 36 in the order of battle by 1970 and 130 in 1972 and thereafter. This would provide a more substantial and flexible air threat to an area including all US bases west of Wake and including major Indian cities. It is assumed that an ultimate goal of the Force B military buildup would be the achievement of a capability to strike the continental US with ICBM's, submarine-launched missiles, or both, and that the IRBM would provide components which could be used in an ICBM. As far as we can determine, the Chinese could not significantly speed development of an ICBM by omitting the IRBM stage. -29- Approved For Release 2003/1Q'101676R001600130004-9 25X1 1 -1 Approved For Relea - 80B01676R001600130004-9 Our projection calls for a 5000-nm ICBM to have an IOC in 1971+, with ten missiles deployed in hard sites in mid-19759 and with the deployed total reaching a level of 72 in 197&. Launched from Manchuria, a 5000. nm missile could reach targets as far out as a line extending from Los Angeles through Denver, Omaha, and Milwaukee to Montreal. This timetable would call for flight testing of the ICBM to begin in 1972, with construction of a new rangehead for ICBM testing beginning in 1970 and construction of hard sites for the first deployed missiles begin- ning in 1972. It is assumed that extended range tests for an ICBM would require use of a Pacific Ocean or Indian Ocean impact area, using ship- based or island-based instrumentation. In addition to development of these major systems, the Force B approach would also call for continued RDT&E to improve the. effectiveness and survivability of Chinese modern weapons in the light of what would presumably be a vigorous US program to counter them. The Chinese would have to consider the use of penetration aids for their. missiles. To reach additional US -targets they would teed an ICBM of more than 5000 nm. In addition, they might be impelled to devote greater attention to active defense of their missile sites once the strategic offensive forces had been built up. These additional requirements would add to the difficul- ties with which the Chinese would be confronted in trying to develop and maintain a reasonably credible deterrent force. Sooner or later the -30- Approved For Releas QQy33MRDP80B01676R001600130004-9 25X1 Chinese might have to concentrate on more secure systems such as the nuclear missile submarine. In the end, they might settle for a deterrent posture in which the US could probably deal with most Chinese offensive weapons but could not be completely confident of eliminating them all be- fore they reached their targets. Strategic Defensive and General Purpose, Forces Sane as Force A. Approved For Release 2003/ % B01676R001600130004-9 25X1 Approved For Release 2003/10/22 : PIA-R.DFAME 9791200, 1600130004-9 TABLE 2. FORCE B BALLISTIC MISSILES MRBM(SS-4-Type) IRBM-CX-1 ICBM-CX-1 . & Ballistic Missile Subs.. J SSB-G J SSB-CX-l SS-N-4-Type Missiles TOTAL Ba[ M. S CJ BULL/TU-4 BADGER/TU-16 OTRAT LJ.U Orr iSIVE FORCES 12a 1966 1967 1968 ?-969 1WO 1971 1W2 lW3 1974 ?M 22 .40 -- -- 8$ 1 0 _12 _30 17'0 1.QJ -- -- -- -- 1 2 3 1 1 1 1 2 4 5 6 7 -- -- -- -- 6 12 16 20 24 28 28 3 12 30 50 70 -- 6 12 16 20 24 28 28 13 12 10 5 -- - -- -- -- 2 2 2 2 12 36 80 130 130 130 -IM 15 14 12 12 X36 80 . 130 J Construction of an SSBN is projected to begin in 1975. See p. 29. SS-N-4-Type missile available in 1969. IL-28, IL-10 and TU-2 bombers are listed under General Purpose Forces. Missiles and bombers will have nuclear warheads and bombs respectively. -32- 25X1 25X1 pprod For#2elea 2003 0/22 CIA-R80,B( 6768 1600,430004 1 1 1 1 2 4 4 4 4 1 Approved F&r Relebse2043/10/2 ...: CIA-1tDP80i0.1676RO016W1 3.00cM-9 (Table 2 cont.) 25X1 FORCE B STRATEGIC DEFENSIVE FORCES 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 SURFACE-TO-AIR-MISSILES SA-2-Type Sites 8 8 8 8 8 8 8 8 8 8 8 INTERCEPTORS/ FAGOT/MIG-15 408 400 350 275 200 50 -- FRESCO/MIG-17 1107 1100 1050 1000 950 850 700 550 350 200 50 FRESCO D/MIG-1 325 325 325 290 230 215 200 150 100 50 25 FARMER/MIG-19. 175 350 500 65o 800 875 900 900 900 900 900 FISHBED/MIG-21 35 35 35 35 35 50 100 140 200 300 40o 2050 2210 2260 2240 2215 1940 1900 1740 1550 1450 1375 CONVENTIONAL AAA GUNS`/ Light 1900 1950 2000 2050 2100 -2150 2200 2250 2300 2350 2400 Medium 1570 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 TOTAL 3470 ,3.o 36O2 3650 3700 3750 3800 3850 3900 3950 4000 J Includes Naval Interceptors b/ The category Light AAA Guns includes the 37 and 57 mm; the Medium, the 85 and 100 mm. c~ The mid-1966 figure shown for MIG-19's is believed to be a reasonable reflection of the size of the OB. However, it should be noted that there is still uncertainty in the community on this subject. -33- SECRET Approved For Release 2003/10/22 : Cl - 130004-9 25X1 Approved For Release 2003/10/22 SECRET CIA-RDP80B01676 6761~001 600130 GENERAL PURPOSE FORCES (Table 2 - Cont.) 1 o4,c 1044 i o4,7 i of i Q Q 1070 1 Q71 1079 1Q7q 1974 1975 GROUND FORCES Tt.. LJ.L& l+ .-t ..l Yiol~Vna Infantry Conventional) 106 106 10 6 106 106 106 106 106 106 106 106 Armored 5 5 5 5 5 5 5 5 5 5 5 Horse Cavalry 3 3 3 3 3 3 3 3 3 3 3 Airborne Naval Infantry 3 3 3 3 3 3 3 3 3 3 3 BS/MIS Divisions 20 20 20 20 20 20 20 20 20 20 20 Combat Support Divisions 23 23 24 24 24 24 24 24 24 24 24 Service Support Divisions 11 11 11 11 11 11 11 11 3.1 11 11 Combat & Service Support Independent Regiments 121 123 123 123 124 125 126 127 128 129 130 T-54-Type 1300 1650 2050 2500 2950 3400 3850 4300 4650 4800 4800 Improved T-54-Type -- -- -- 25 PT-76-Type -- 20 80 180 HELICOPTERS Mi-4 18 60 90 120 150 180 210 240 270 300 330 TRANSPORTS Light 347 359 440 505 565 630 695 745 845 920 995 Medium 6 to 25- 3 0 - - LO 30 30 30 Total 59 - - 7 2 1 LIGHT BOMBERS BAT/TU-2 50 25 -- BEAST/IL-10 30 10 -- BEAGLE/IL-28 159 130 100 55 30 15 -34- SECRET 25X1 25X1 4ppro4d For eleasi 2003/10/22 ;_f IA-R[ 80B0l676R0.IR1600*00041 r I. 1 Approved FI)r Release 20d3/10/21: CIA-kDP80M01676t20016001300(4-9 SECRET 25X1 (Table 2 Cont.) FORCE B GENERAL PURPOSE FORCES 1965 1972 1 1974 NAVAL FORCES Submarines SS-MV and S-1 7 7 T 7 7 7 7 6 5 5 4 SS-W 24 24 24 24 24 24 24 24 24 24 214 SS-R 2 4 6 8 9 10 u 12 12 12 12 SS-CX-1 -- -- -- -- -- -- -- -- 1 1 2 40 41 42 42 42 42 42 Naval Aircraft MADGE BE- 6 5 3 2 -- -- BEAGLE/IL-28 118 100 80 70 45 20 Surface Ships Destroyers DD (Gordy Class) 4 4 4 4 4 4 4 4 4 4 4 ASW Escorts DE Riga Class) 4 4 4 4 4 4 4 4 4 4 4 DE (Kiangnan Class) -- 1 1 2 2 3 3 3 3 3 3 DE-CK-l 1 1 2 2 To edo Patrol Craft PC Subchaser 25 26 27 28 29 30 30 30 30 30 30 PTG (Ms1.La3nching) J 2 2 2 2 2 2 2 4 6 8 10 PT/P Y/PF/PC +t 250 280 300 300 300, 300 300 300 300 300 300 -35- Approved For Release 2003/10/22 : lA-RDP80B01676RO016P01 30004-9 25X1 Approved For Release 2003/10/22: CIA-RDM76R001600130004-9 25X1 (Table 2 Cont.) FORCE B GENERAL PURPOSE FORCES 1965 1966 1967 1968 1969 1970 1 971 M 1M 1W4 M NAVAL FORCES Minesweepers T- 3-Type 14 15 16 17 18 19 20 22 26 30 35 Other 59 59 59 59 59 59 58 56 52 48 44 Amphibious L M-Type 59 59 59 59 59 60 60 60 60 60 60 Misc. Nav. Ships & Craft 435 440 445 450 455 460 465 470 475 480 485 COASTAL DEFENSE CRUISE MISSILES SS-CD-1-Type Sites 3 3 3 3 3 3 3 3 4 4 5 J Missile available in 1971. -36- 25X1 ppro4d For eleaqp 20030/22 r IA-R[IP80BOJ676R%01600F,%30004 Approved For Release SECRET 01676R001600130004-9 ALTERNATIVE FORCE C Force Concept and its, Implications Alternative Force C projects a vigorous modernization program com- parable in economic magnitude-to Force B but with main emphasis on im- proving China's defenses rather than on developing strategic offensive forces. Force C thus depicts the maximum air and naval defense effort the Chinese might reasonably be expected to carry out in the light of competing military requirements. This projection also calls for a modest but continuing program of ground force improvements along the lines of Alternative Force A. Like Force B. Force C is primarily directed at deterring US attack on.China and at impressing China's neighbors with its ability to defend itself; similarly, it implies a more exacting and professional assess- ment of the requirements. of deterrence than is the case with Force A. Primary emphasis on strategic defense would be very much in character with the historical concern of the Chinese for the security of their own territory. The decision to develop such a force might also be stimulated by a professional judgment that the strengthening of strategic defenses would significantly complicate the task facing the potential US attacker, or by a judgment that while Chinese strategic retaliatory forces could effectively deter US nuclear attack they would not necessarily stave off conventional bombing. It is assumed that the Chinese leaders would also -37- Approved For Release 2003/ JVE GJZPfWBO 25X1 Approved `For ReleaWA/' / `ZA Rnp80B01676R001600130004-9 favor a buildup of air and naval defenses in order to make it progressively more dangerous for the US and GRC to overfly Chinese territory or operate off the Chinese coast in peacetime. For this Force the level of expenditures. for development and procure- ment of military hardware is approximately that of Force B, with similar implications for the economy as a whole. It is assumed that nuclear re- quirements would be lower than for Force B. Strategic. Offensive Forces Given the emphasis on strategic defensive forces in this alternative, the strategic offensive forces are those of Force A. It should be noted, however, that provision is made below, under General Purpose Forces, for the conversion of W-class submarines to cruise-missile launchers. Al- though these submarines would be used primarily against US naval task forces, they could be used to make nuclear strikes with cruise missiles against ports and bases in the Western Pacific. Strategic Defensive Forces For this Force, we postulate a major buildup of all elements of the air defense system, including the control and warning infrastructure. Ex- pansion of the interceptor force would take place at an accelerated pace. Assuming that the manufacture of the MIG-21 could commence at Cheng-tu in -38- Approved For Release V 1 F2DP80B0l676R001600130004-9 Approved For Release 20POMPM 1676R001600130004-9 1966, we project a production run continuing through the period, with a total of 800 in the force by 1975. Production of MIG-19'a is assumed to 25X1 continue at the Shenyang plant until 1970, with the plant then converted to production of a new native-design interceptor with improved high alti- tude and endurance characteristics. It is assumed that this interceptor would begin to enter the order of battle in 1971, with 50 of these aircraft in units by 1975. The inventory of conventional anti-aircraft artillery would also be greatly expanded, with the total number of gun mounts reaching about 5000 by 1975. Finally, the Force would provide for a sig- nificant buildup of the presently very small SAM force. For this purpose we assume that RIT&E,now apparently in process, on a Chinese version of the SA-2 would permit factory production to begin in 1967 and continue through 1971, for a total deployment of 100 6-launcher batteries. These weapons would be deployed as an integrated system, AAA being associated with SAM's to provide low level coverage and interceptors being used to provide coverage in areas outside the SAM envelopes. Ij is assumed that limitations on the number of SAM batteries available would force the Chinese to use them mainly for point defense, with the capital at Peiping, the nuclear installations, and key military control centers getting primary attention. However, the Chinese would continue to deploy some SAM's along reconnaissance routes. In time they might develop shifting barriers along the coast, building up a multiplicity of sites -39- Approved For Release 2003/19E C` LPP01676R001600130004-9 25X1 Approved For Release S1 GZRE RDP80B01676R001600130004-9 to create uncertainty as to which ones would be occupied. Such a barrier might appear for a period of time along the coast opposite Taiwan and at a later period along another border or coastline across which the Chinese might expect intruders into their airspace.. It is assumed that while the Chinese would probably be compelled to standardize on their version of the SA-2 for a first generation. weapon, they would continue.RDT&E on some sort of follow system. This newer.-system, which would appear late in the period, would have better guidance and control, greater maneuverability,, and improved low altitude capability, as well as somewhat longer range and better performance at higher altitudes. Further, we project that some time in the latter 1970's the Chinese might be able to develop a dual purpose SAKI/AM system, perhaps using MRBM missiles and long-range low frequency radars, and relying on longer-range effects of high-altitude nuclear detonations on both missiles and aircraft. Even if a major deployment was beyond their capabilities.-the Chinese might seek to develop a pilot model for its psychological effect. General Purpose Forces Under this alternative, ground forces would be maintained at the Force A level but naval and coastal defenses would be strengthened along with air defense. The existing coastal defense early warning network, with its radars for detecting aircraft and surface ships, would be ex- panded and improved. It is assumed that by 1970 this surveillance ?40- Approved For Release &0V/ 1 sRDP80B01676R001600130004-9 R Approved For Release 2003!$&2`'eR-RDP80B01676R001600130004-9 network would be augmented and extended seaward by the introduction into the order of battle of the RB-CX-l. This would be a long-range reconnais- sance aircraft, a modification of a standard transport model with long endurance, such as the IL-18, and equipped with electronic reconnaissance systems. We assume that the Chinese in this Force would make a greater effort to deny US submarines access to their territorial waters than in the other Forces and would hope eventually to be able to seek out and to destroy US submarines in the seas bordering their coast. For this purpose we project the construction of four new destroyers and eight more destroyer escorts -- of which six are a new class and two of the recent Kiangnan class -- as well as additional submarine chasers and various types of patrol craft. The Chinese would also deploy sound detection systems (i.e., buoys and shallow water arrays) off port and estuary entrances and would be prepared to use mine fields if necessary to achidve control of these vital areas. This would make it more difficult for hostile submarines to operate well inshore, particularly in strategic coastal areas. However, the great expense of developing ASW weapon systems and procuring them in numbers required for adequate coverage would limit the achievement in this period of any broader ASW capability, particularly against nuclear-propelled submarines., TheeCbinese in this projection would also attempt to strengthen those forces capable of attacking US naval forces operating,in the seas -41- Approved For Release 2003/1 -f CIJ3 !YB01676RO01600130004-9 25X1 25X1 CY IM Approved For Release AMYGRE RDP80B01676R001600130004-9 bordering China. To this end, it is assumed that they would strengthen their submarine force through development of the SS-CX-l, an.improved torpedo-Attack submarine, of which 10 would enter the force by 1975, and through the conversion of 4 V class submarines into cruise missile launch- ing platforms. The BEAGLE light bomber would be retained in the naval order of battle until the early 1970's, when the BADGER with the AS-1 anti-ship missile would become available. Some 30 BADGES would enter the naval forces by 1974 to be employed in conjunction with submarines and reconnaissance aircraft to provide a long-range strike capability. It is also assumed that the Chinese would produce additional numbers of various types of torpedo boats, including the missile-equipped OSA/KOMAR type. Such boats, supported by destroyers and land-based fighters when available, would be used for close-in defense. Approved For Releas ; MLT RDP80B01676RO01600130004-9 II I t ( t k Approved Flor Reliiase 20*13/10/2I : CIAIRDP8Cb01674R0016601300b4-9 I TABLE 3. FCC STRATEGIC OFFENSIVE FORCES 1262 1966 196 1968 1969 1970 1971 1972 1973 1974 1975 BALLISTIC MISSILES c/ 25X1 MRBM (sS-1+-Type) -- -- -- -- -- 1 6 12 20 28 35 Ballistic Missile Subs. SSB-Ga- 1 1 1 1 1 1 1 1 1 1 1 BOMBERSW BULL/TU-1+ 13 12 10 8 6 4 -- 10 -- 18 -- 26 -- 36 -- 36 2 2 2 2 2 3 BADGER/TU-16 4 2 10 8 I 10 18 26 3 6 15 1 1 __ TOTAL SS-N-1+-Type missile available in 1969 from RDT&E Program. IL-28, IL-10 and TU 2 bombers are listed under General Purpose Forces. e Missiles and bombers will have nuclear warheads and bombs respectively. -43- D 25X1 Approved For Release 2003/10/22 : CIA-RDP80B01676R001600130004-9 Approved For Release 2003/10/22: CI 00130004-9 25X1 (Table 3 Cont.) ~STD.ATEGItCC D irSIV FORRCES 1 96 1966 1967 1968 1270 1971 19W 1973 1974 19 75 STMPACE-TO-AIR-MISSILES SA-2-Type Sites SA-CX-1 Sites INTSRCB'FPORS-/ 8 8 14 36 58 80 100 100 100 100 100 FAGOP/MIG-15 FRLSCO/MIG-17 FRESCO D/MIG-1 FARM/MIG-19 W FISHBED/MIG-21 FI-CX-1 1 408 107 325 175 35 400 1104 325 350 35 350 1050 320 525 35 275 1000 290 700 50 200 950 260 875 100 125 850 230 1050 175 1 100 50 25 700 550 350 200 150 100 100 1100 1100 250 400 550 250 50 1100 700 3 100 25 1100 800 0 50 M LO 2210 2285 2315 2385 2430 2 0 22 3 50 2125 5 2103 2075 CONVENTIONAL AAA GUNS Light Medium 1900 2000 1270 1600 2100 1650 2200 1700 2300 1750 2400 1800 2500 2600 2700 1850 igoo 19500 2800 2000 2900 2050 TOTAL 3470 3600 E50 3~ 30 46 4200 4 4 50 350 00 4800 4950 Includes Naval Interceptors. The category Light AAA Guns includes the 37 and 57 mm; the Medium, the 85 and 100 mm. c The mid-1966 figure shown for MIG-19's is believed to be a reasonable reflection of the size of the OB. However, it should be noted that there is still uncertainty in the Community on this subject. -44- 25X1 ppro? d Fo elealp 2003 j1 0/22 SCIA-R P80B 6768 01600f0004 I I I I App*oved Fbr Reldase 2063/10/29 : CIAARDP80130167 0016101300+4-9 FORCE C (Table 3 Cont.) GENERAL PURPOSE FORCES 1966 1967 1968 1969 1970 1971 1972 1973 1 1975 GROUND FORCES Line Divisions 6 6 106 Infantry (Conventional) 106 106 106 106 106 106 106 106 10 10 Armored 5 5 5 5 5 5 5 5 5 5 5 Horse Cavalry 3 3 3 3 3 3 3 3 3 3 3 Airborne 3 3 3 3 3 3 3 3 3 3 3 Naval Infantry BS/MIS Divisions 20 20 20 20 20 20 20 20 20 20 Combat Support Divisions 23 23 24 24 24 24 24 24 24 24 24 Service Support Divisions 11 11 11 11 11 11 11 11 Combat & Service Support Independent Regiments 121 123 123 123 124 125 126 127 128 129 130 T-54-Type 1300 1650 2050 2500 2950 3400 3850 4300 4650 4800 4800 25 Improved T-54-Type -- -- -- -- -- -- 20 80 180 PT-76-Type HELICOPTERS 18 60 90 120 150 180 210 240 270 300 330 TRANSPORTS Light Medium Total LIGHT BOMBERS BELT/T Y--2 BEAST/IL-l0 BEAGLE/IL-28 347 359 440 505 565 630 695 745 845 920 995 6 10 1 5 300 O _ 30 30 ? _ 30 30 :M :IN _5 -M _ 102 50 25 -- -- -- -- -- -- -- -- - 30 3.0 159 150 140 130 120 110 100 80 60 30 -45- SECRET Approved For Release 2003/10/22 : 25X1 25X1 Approved For Release 2003/10/22 : FORCE C 1965 1~66 L96 1 1968 1969 ! ~~ 1972 NAVAL FORCES Submarines SS-M-V and S-1 7 SS-W 24 SS-R 2 SS-CX-l SSG-W Conversion 33 Naval Aircraft MADGE BE- 6 BEAGLE/IL-28 118 BADGER/TU-16 a/ -- RB-CX-1 -- Destroyers DD (Gordy Class) 4 DD-CX-1 - ASW Escorts DE (Riga Class) DE (Kiangnan Class) DE-CX-1 To edo/Patrol Craft PC (Subchaser) 24 PTG (Msl. Launching b 2 Pr/PTF/PF/PGM 250 Minesweepers T-43-Type 14 Other 7 7 7 7 7 7 6 24 24 24 24 24 23 22 4 6 8 l0 12 12 12 1 2 1 3 9 41 43 43 43 6 5 5 4 4 3 2 120 110 100 90 8o 6o 40 -- -- -- -- 2 2 10 -- -- -- -- 4 8 12 4 4 4 4 4 4 4 -- -- -- 1 1 2 2 2 3 3 4 -- -- 1 26 28 30 33 36 36 36 2 2 3 4 8 12 18 280 300 320 340 360 360 360 15 16 17 21 27 35 43 58 56 (Table 3 Cont.) 1973 2I 1_2l 5 4 3 21 20 20 12 12 12 4 7 10 2 4 44 46 49 1 -- -- 20 -- -- 20 30 30 16 20 24 4 4 4 3 3 4 4 4 4 2 4 6 36 36 36 24 30 36 360 360 360 53 65 70 62 48 44 25X1 25X1 .Ippro*d For 2elea9 200340/22 lA-R'80B0#676R(W1600 0004* 1 Apprbved Fbr Release 20&3/10/2i CIA-kDP80601676120016001300C4-9 SECRET 25X1 (Table 3 Cont.) GENERAL PURPOSE FORCES . 1265 1966 1 967 1968 1969 1970 1971 1972 1973 1974 1975 Amphibious LSM-Type 59 59 62 65 68 70 74 78 82 86 go Misc.Nav.Ships & Craft 435 440 445 455 465 47 5 490 515 540 570 600 COASTAL DEFENSE CRUISE MISSILES SS-CD-1-Type Sites 3 3 3 3 4 8 12 16 20 24+ 28 a/ These aircraft are not included in those listed under Strategic Offensive Forces. b/ Missile Available in 1969 Approved For Release 2003/10/22 : Cl -47- SECRET 25X1 Approved For Relea ALTERNATIVE FORCE D Force Concept and its I lications Alternative Force D postulates a major effort to modernize China's general purpose forces. Principal emphasis would be placed on moderniza- tion of ground and supporting air forces, but there would also be some buildup of naval and amphibious capabilities. Work on development of stra- tegic offensive and defensive systems would continue. Over-all expenditures would be about the same as for Forces B and C. This projection represents a less drastic approach to modernization than that of Forces B and C, reflecting a continuation of the regime's present emphasis on the army as the key element in the military establish- ment? Such a major effort to modernize China's general purpose forces might be undertaken in a belief that acquisition of nuclear weapons might give China greater opportunity to threaten or actually undertake conventional military operations in peripheral areas. Conversely, it might stem from continuing basic concerns over the defense of the Chinese homeland against invasion and over the possibility that situations like that1?in Vietnam might come to require direct Chinese participation. Strategic Offensive and Strategic Defensive Forces No change from Force A. -48- Approved For Release W ~DP80B01676R001600130004-9 Approved For Release 20 1676R001600130004-9 General Purpose Forces The principal aim of the major ground force modernization program called for under this approach would be the development of an improved capability for dealing with hostile ground forces equipped and supported on the US or Soviet level. The main features of this program would be: a. Creation of an elite force of 15 armies, consisting of I.5 improved line divisions (5 of them armored). b. Development of a tactical nuclear rocket, for eventual .deployment down to army level, primarily as a deterrent to enemy initiation of tactical nuclear warfare. c. Establishment of a tactical air force equipped with air- craft specifically designed for the ground-support role. d. Initiation of a modest program for improvement of amphibious capabilities. The reconstitution of 15 armies and their 45 line divisions into a fully modernized elite force would entail major changes both in organiza- tion and equipment and in such matters as training, where the present emphasis on individual and small unit proficiency would presumably be broadened to provide for larger-scale field exercises. It is assumed that these troops would have virtually all their time available for training or other military duties. We project a new-type infantry division for the elite force which would have about 2000 fewer personnel,but would be considerably stronger than its present counterpart in mobility, firepower, and other respects. ?1+9? 25X1 Approved For Release 2003/ : #TIAIM01676R001600130004-9 25X1 Approved For Releapp C np80B01676R001600130004-9 25X1 The three infantry regiments would be motorized, with one battalion of each equipped with amphibious armored personnel carriers and the other two battalions with conventional cargo''truckso Division artillery would consist of two battalions of 122.mm howitzers, 12 guns each,, and one battalion of twelve 160mmm mortars. The tank regiment would be ex- paraded from 32 to 64 medium tanks and would include 12 Chinese-developed heavy assault guns as replacements for the present assault guns. A main- tenance battalion would be-added to the rear services of the division. The reconnaissance company of the division would have six amphibious P-76 type tanks and division .headquarters would have three helicopters for command and observation use a Anti-tank companies of the infantry regiments would be equipped with BAGGER-type missiles. The armored divisions would be similarly strengthened. By 1976 all medium regiments would have improved T-54 tanks and would have BAGGER- type AT missiles and heavy assault guns to replace the present AT guns and the present heavy tanks and assault guns respectively. At the army level, the chief innovations would be the expansion of signal and transport battalions into regiments, the addition of an engineer pontoon regiment and aintenance battalion, and provision of Six helicopters for, couaand and control It is assumed that the Chinese planners would recognize that many of their troops, including but not restricted to those deployed along the Southeast. Asian and Indian borders, would be most likely to fight in terrain where heavy, complex equipment could not be effectively employed. For these units, comprising some 65 divisions, present TO&B's would be Approve$gf Release jj ~, Jld 1. DP80BO1676R001600130004-9 Approved For Release 29eaffom - 01676 R001600130004-9 retained and the planning goal would be essentially that of Force A -- the re-equipping of all units with standardized arms and equipment of currently accepted Soviet or Chinese design. As at present, these units would continue to devote about half their time to raising food crops and livestock or to road construction and the like. We assume that technological and cost constraints would preclude development and quantity deployment of a HAWK/SA-3-type SAM, forcing the Chinese to depend on conventional AAA for air defense of ground troops. However, a simple, man-packed SAM might appear in the latter 197OBso In the tactical nuclear field we assume that the Chinese would be primarily interested in deterring the use of such weapons, rather than in concentrating on the requirements of the nuclear battlefield, and that their needs in this respect would be satisfied by a relatively crude capa- bility to strike back at the zone of command, supply, and supporting weapons installations a few miles from the front. This would imply a weapon of 15-30 nm which could be deployed at the army level. We assume that the Chinese would not see a need for a weapon with the range (150 nm) of the SCUD and would want something .(easier ";.`itt o move. Our projection thus calls for a FROG-type weapon which would initially be held under cen- tral control for assignment to particular theaters and units as necessary, but which would eventually be made organic at the army level. We assume that the Chinese would also seek to develop a nuclear bomb deliverable by tactical fighter-bomber. -51- Approved For Release 2003/S/ 'kYJM 016768001600130004-9 25X1 25X1 Approved For Release 2W"--&ATRDP80B01676RO01600130004-9 Under this projection the tactical air force would be initially equipped primarily with MIGm15's and 17's as they were retired from the air defense forcee, together with some BEAGLES and other types now in the inventory. Some MG-19's would be built for use as fighter-bombers; these would be introduced slowly until the latter part of the production run. A native-design fighteer- bomber would enter the order of battle in 1974, with 80 in units in 1975 and 250 in 1977. We envisage a subsonic, long endurance aircraft which could use low-level evasive tactics if attacked by fast interceptors. China can now lift about 5000 lightly armed troops for a distance of 5Wnmo Improvement efforts would be primarily on internal rather than ex- ternal capability. Troops and supplies would need transport to remote Chinese areas, from one command to another, or for support of operations in contiguous areas;, trans-oceanic military transport, for example, would not be a factor. Modest purchases of transports, which could be used for military purposes, would continue until about 1972. Beginning in 1973 we project the production of a :Pour-engine turboprop with approximately the same characteristics as the Soviet CUB (AIVm12), It is assumed that the Chinese will receive the rem quired outside assistance to have this. capability. By the end of the period about 80 CUB=type aircraft would be produced, or enough to lift simultaneously approximately one-third of an airborne division with a three-day basic load or about 7,500 infantry troops with individual weapons and light machine guns and 60 mm mortars. It is assumed that enough nonmilitary transport aircraft could be made available at that time to lift an additional 5000 troops, carry- ing their individual equipment and weapons only. The total lift capability at the end of the period would be about one and one half airborne divisions. 052? Approved For Release - 1A 2DP80BO1676R001600130004-9 Approved For Release 01676R001600130004-9 The Chinese are aware of the vulnerability of their large land army to tactical chemical warfare attack, and of the vulnerability of their population and agricultural centers to strategic chemical and biological attack. To meet this threat they will find it necessary to improve their CW and BW.defense'by allocating an increasing share of theirwacarse indus- trial and technological resources. In addition, we assume that in Force D, the Chinese Communists will achieve in their tactical forces in the mid-70's a significant offensive CW capability. On the navy side., we project a buildup of naval and coastal defense capabilities generally like that of concomitant of an increased emphasis on capacity to f'i roe C, in that this would be a likely ght on or near China's borders. However, the postulated Force D naval force does differ in pro- viding a somewhat larger amphibious force and a much larger buildup of the follow-on torpedo-attack submarine, SS=CX 1, 16 of which would be in the fleet by 1975. We assume that the emphasis on building up amphibious capa- bilities would initially be light, in part because of cost considerations but mainly because the Chinese naval buildup pr cted for this period would not be enough to permit large-scale or long-range operations in the face of likely opposition. The increased submarine construction reflects the concept that if the Chinese felt confident that they could engage i ground hostilities of some scale without risking nuclear escalation.,they might also feel they could interdict enemy supply lines without undue danger of escalation and at least would wish to be in a position to threaten such action. 053' Approved For Release 2003/5 GREIbB01676R001600130004-9 25X1 25X1 Approved For Release 2003/10/22: CIA-RDP800 76R001600130004-9 25X1 TABLE 4+. FORCE D STRATEGIC OFFENSIVE FORCES 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 BALLISTIC MISSILES W MRBM (sS-4-Type) 1 6 12 20 28 35 Ballistic Missile SSE-G_ 1 1 1 1 1 1 1 1 1 1 1 BOMBERS b/ al BULLJTU-4 13 12 10 8 6 4 -- -- -- -- -- BADGER/TU-16 2 2 2 2 2 10 18 26 36 36 TOTAL 15 14+ 12 10 , 8 7 10 18 26 36 36 of SS-N-4-Type missile available in 1969 from RDI'&E program. IL-28, IL-10 and TU-2 bombers are listed under General Purpose Forces. J Missiles and bombers will have nuclear warheads and bombs respectively -54- I ppro d Forfeleasy 2003 0/22 IA-R 80BQ~676R 1600 0004 I Approved Fk r ReIdase 20b3/10/2b CIAJRDP804301674ROO14 130044-9 SECRET 1 -1 25X1 FORCE D (Table 4 Cont.) STRATEGIC DEFENSIVE FORCES 1965 1966 1967 1968 1969 1970 19 1 1972 1 1974 1975 SURFACE-TO-AIR -MISSILES SA-2-Type Sites 8 8 8 8 8 8 8 8 8 8 8 INTERCEPPORSa/ FACOT/MIG-15 4o8 400 150 100 50 -- -- -- -- -- -- FRESCO/MIG-17 1107 1100 1050 850 750 650 500 350 170 100 -- FRESCO D/MIG-1'7A 325 325 325 290 230 215 200 150 100 50 25 FARMER/MIG -19 c 175 350 500 650 800 875 900 900 900 900 900 FISHBED/MIG-21 35 35 35 35 35 50 100 140 200 300 4oo 2050 2210 2060 1925 1860 17990 1700 190 1-370 1350 1325 CONVENTIONAL AAA GUNS Light 1900 1950 2000 2050 2100 2150 2200 2250 2300 2350 2400 Medium 157o 1600 1600 1600 1600 1600 1600 1600 1600 1600 1600 2470 3550 3600 3650 3700 3750 3800 I~LO 3900 3950 4000 TOTAL a/ Includes Naval Interceptors but not those fighter aircraft assigned to the Tactical Air Forces. b/ The category Light AAA Guns includes the 37 and 57 mm; the Mediums, the 85 and 100 mm. The mid-1965 figure shown for MIG-19's is believed to be a reasonable reflection of the size of the OR. However, it should be noted that there is still uncertainty in the Community on this subject. -55- Approved For Release 2003/10/22 : CI -RDP80B01676R0016 0130004-9 25X1 Approved For Release 2003/10/22 : GENERAL PURPOSE FORCES 1965 1966 GROUND FORCES Line Divisions Infantry (Conventional) 106 106 DIV-CX-1 Armored 5 5 Horse Cavalry 3 3 Airborne 3 3 Naval Infantry -- -- BSLMIS Divisions 20 20 Combat Support Divisions 23 23 Service Support Divisions 11 11 Combat & Service Support 121 123 Independent Regiments J T-54-Type 1300 1650 Improved T-54-Type -- -- PT-76-Type -- -- Assault Gun-C%-1,122 mm -- -- APC (BTR-60P-Type) -- -- 1261 1968 1969 1970 1971 1972 lol 98 93 88 83 78 5 8 12 17 22 27 5 5 5 5 5 5 3 3 3 3 3 3 3 3 3 3 3 3 1 1 2 2 2 2 20 20 20 20 20 20 23 24 24 24 24 24 12 12 12 12 12 12 125 129 134 139 144 149 2050 2500 2950 3450 4000 4750 -- -- -- -- -- -- -- -- -- -- 20 80 -- -- -- -- -- 20 20 125 375 750 1200 1650 -56- (Table 4 Cont.) 25X1 1973 1274 1975 73 32 5 3 3 68 37 5 3 3 65 40 5 3 3 2 2 2 20 20 20 24 24 24 12 12 12 154 160 166 5000 5200 5200 40 300 800 180 280 400 100 300 525 2100 2550 3000 25X1 lppro*d Forielea 2003j10/22 VCIA-RIJP8OBqd676R%01600*3000469 ^ I Approved Flo r Release 20b3/10/212 : CIAJRDP80b0167AR0016601300&4-9 L THEATER TACTICAL MISSILES J FROG (Launchers) HELICOPTERS Mi-4 TRANSPORTS Light Medium TACTICAL AIR FORCES Fighter - Bombers FAGOT MIG-15 FRESCO/MIG-17 FAAKER/MIG-19 FB-CX-1 TOTAL LIGIRT B VIERS BAT/TU-2 BEAST/IL-10 BEAGLE/IL-28 175 150 125 100 50 25 -- -- 150 200 200 200 200 180 150 100 50 75 175 200 200 200 200 200 FORCE D GENERAL PURPOSE FORCES 1965 1966 1967 1968 1969 1970 1971 1972 1973 1975 4 16 36 64 100 18 60 110 160 210 260 310 360 410 4,60 510 347 359 440 505 565 630 695 745 845 920 995 6 10 _12 25 30 40 45 57 81 0 595 7900 902 1001 1124 55 T25 2 200 25 (Table 4 Cont ) M M = 0 MM M 50 40 30 20 10 -- 30 25 20 15 10 5 159 150 140 130 120 110 100 80 60 30 -57- SECM Approved For Release 2003/10/22 : CL-~-;OE101676RO 00130004-9 25X1 25X1 Approved For Release 2003/10/22 : C A- 1600130004-9 25X1 (Table 4 Cont.) FORCE D GENERAL P URPOSE F0RCE 3 1965 1966 19 67 1968 1969 1970 1971 1972 1973 1974 1975 NAVAL FORCES Submarines SS-MV and S-1 SS-W SS-R 24 24 2 4 24 27 6 8 27 10 24 12 27 12 26 12 2 12 214+ 12 2 12 SS-CX-1 1 2 4 8 12 16 33 3 3 3 39 41 49 , 52 Naval Aircraft MADGE/BE-6 6 6 5 5 4 4 3 2 1 BEAGLE/IL-28 118 120 1 10 100 90 80 60 4o 20 BADGER/TU--162_/ -- 2 10 20 30 30 RB-C%-1 4 8 12 16 20 24 Surface Ships Destroyers DD Gordy Class) 4 4 4 4 4 4 4 4 4 4 4 DD-CX-1 ASW Escorts DE Riga Class) 4 4 4 4 4 4 4 4 4 4 4 DR (Kiangnan Class) 1 1 2 2 3 3 4 4 4 4 DR-CX-1 1 1 2 2 3 3 4 Torpedo/patrol Craft PC Subchaser ,~ 24 26 28 30 32 36 36 36 36 36 36 PTG (Msl. Launching)-! 2 2 2 2 2 4 6 8 12 16 2 FP/PTF/PF/PGM 250 280 3 00 320 340 360 360 360 360 360 0 360 Minesweepers T- 3-Type 14 15 16 17 21 27 35 43 53 65 70 Other 59 59 59 59 59 59 58 56 52 48 44 -58- SECRET 25X1 !I~ pprood Forlelea 2003110/22 CIA-R P80Bf 1676P*0160 $300044 I Approved Fbr Relebse 2013/10/2P.: CIA-PDP80130167MOO1660130044-9 25X1 (Table . Cont.) FORCE D GENERAL PURPOSE FORCES 196 1966 1967 1968 196 1970 1 1972 Amphibious LSM-Type 59 60 65 70 80 90 100 105 110 115 120 Mis.Nav.Ships & Crafts 11.40 440 11.45 455 465 475 490 515 540 570 600 COASTAL DEFENSE CRUISE MISSILES 55-CD-1-Type Sites 3 3 3 3 4 5 6 8 10 10 10 of Of the increase of 45 regiments during the period, 30 are projected as resulting from an expansion of current battalions. These aircraft are not included with Interceptors on the preceding page. 21 These aircraft are not included in those listed under Strategic Offensive Forces. Missile available in 1969. 2/ Nuclear warheads will be available for these missiles. -59- 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 2003/CIA-RDP80B01676R001600130004-9 TABLE 5. COMPARISON OF FORCES, 1970 and 1975 STRATEGIC OFFENSIVE FORCES 1966 12L BALLISTIC MISSILES MRBM (SS-4-Type) IRBM-CX-?1 ICBM-CX-1 MISSILE LAUNCHING SUBIARINES SSBG SSB-CX-1. 1a/ 1 a/ BULL/TU-4 12 BADGER/TU-16 2 TOTAL 14 35 80 35 35 40 1 1 saran= 1 1 4 1 1 1 4 36 130 36h/ 36/ 3666 10 366W 6/ J G-Class submarine here is without missiles; projected as available in 1969. Excludes BADGERS in Naval Air Force. -60- SECRET Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 2003/10/22; CIA-RDP80BO1676R001600130004-9 (Table 5 - Cont.) STRATEGIC DEFENSIVE FORCES 0 SAM/ABM DEFENSE SA-2-Type (Sites) 8 SA-CX-1 (Sites) -- AAA (Guns) Light 1950 Medium 1600 INTERCEPTORS* a/ - FAGOT/MIG-15 400 FRESCO/MIG-17 1100 FRESCO D/MIG-1 325 FARNER/MIG-19J 350 FISHSED/MIG-21 35 25X1 4M Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 8 8 80 8 2150 2150 2400 2150 16oo 1600 1800 1600 8550 850 8 0 650 215 215 230 215 875 875 1050 875 50 50 175 50 2040 2040 2410 17 8 8 100 8 -- -- 15 -- 2400 2400 2900 2400 1600 1600 2050 1600 50 50 100 -- 25 25 25 25 900 1100 900 400 400 800 400 25X1 1375 1 75 2075 12 2/ Includes Naval Aircraft, but excludes fighter aircraft assigned to Tactical Air Forces in Force D. The mid-1966 figure shown for MIG-19's is believed to be a reasonable reflection to the size of the OB. However, it should be noted that there is still uncertainty in the Community on this subject. c/ Fighter-Bombers are listed under Tactical Air Forces on page 62. -61- Approved For Release 2003/10/26A-RDP80B01676R001600130004-9 GEIMRAL PURPOSE FORCES 2 GROUND FORCES (Table 5 Cont.) 25X1 Line Divisions Infantry Conventional Type 106 l0 6 106 106 88 106 106 1 6 6 DIV-CX-1 17 -- -- 0 -- 5 40 Armored 5 5 5 5 5 5 5 5 Horse Cavalry 3 Airborne 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 -- -- -- 2 BS//.IS Divisions 20 20 20 20 20 20 20 20 20 Combat Support Divs. 23 24 24 24 24 24 24 4 4 Service Support Divs.u 11 11 11 12 11 11 2 1 2 Combat & Service 1 12 Support Indepen- 123 125 125 125 139 130 130 130 166 dent Regiments Armor T-54-Type 1650 3400 3400 3400 3450 480 48 Improved T-54 -- 0 25 00 25 4800 25 5200 800 RP-76-Type -- 180 18o 8 4 Asslt.Gun-CX-1,122r,.m -- AP 6 1 0 -- 00 525 C (BTR.- 0P-Type) -- -- 3000 TREATER TACTICAL MISSILES Launchers FROG-Type- HELICOPTERS Mi -+ 180 180 180 260 330 330 330 510 TRANSPORTS Light 359 Medium 10 630 0 630 630 630 30 30 35 995 30 995 2 995 30 995 129 TOTAL 660 660 660 665 1025 1025 10!25 3-124 TACTICAL AIR FORCES Figs ter-Bombers FAGOT M1G-15 -- 125 FiESCO/MIG-17 -- 200 100 FAR: R/MIG-19 175 200 FB-CX-1 80 -- - LIGHT BO?,Pa__M9 BAT/TU-2 25 BEAST/IL-10 10 BEAGLE/IL-28 30 -o 110 uo TOTAL 165 30 30 110 115 Approved For ReleaseM /22 : CIA-RDP80B0 25X1 Approved For Release 20 S 1676R001600130004-9 (Table 5 Cont.) 1966 NAVAL FORCES Submarines SS-MV and S-1 7 SS-W 24 SS-R 4 SS-CX-l SS-G (W-Conver- sion) Naval Aircraft 11-U-28 100 BADGER/TU-16 RB-CX-1 Surface Shins Destro} era DD Gordy Class) 4 DD-CX-l ASW Escorts DE Riga Class) 4 DE (Kiangnan Class) 1 DE-CX-1 To edo1Patrol Craft PO Subchasers 26 P'!'G(Ms1.Launching) 2 PT/PTF/PF/PGM 280 Minesweepers T-43-Type 15 Other 59 Aarohibious LSM-Type 59 Misc.Nav.Ships & Craft 440 A B C D 7 7 7 7 24 24 24 24 10 10 12 12 41 41 44 20 20 80 80 4 4 4 4 4 4 1 1 4 4 4 4 3 3 3 3 30 30 36 36 2 2 8 4 300 300 360 360 19 19 27 27 59 59 59 59 6o 6o 70 90 46o 460 475 475 COASTAL DEFENSE CRUISE MISSILE SITES SS-CD-1-Type 3 4 4 3 3 24 24 20 24 12 12 12 12 2 2 10 16 42 42 49 55 30 30 24 24 4 4 4 4 4 4 4 4 4 4 3 3 4 4 2 2 6 4 30 30 36 36 10 10 36 20 300 300 360 360 35 35 70 70 44 44 44 44 6o 6o 9o 120 485 485 boo 60o 3 3 8 5( 5 5 28 10 -63- Approved For Release 200310/22 S JUDP80B01 76R001600130004-9 190 im 25X1 25X1 Approved For Release 20035L9'p~-RDP80B01676R001600130004-9 III. GLOSSY OF PROTECTED "CX" WEAPON SYSTEMS This glossary defines the postulated, Chinese developed, weapon systems introduced in the alternative forces. All such systems have a "CC" designator for easy recognition, e.g., IRBM-CX-1. STRATEGIC OFFENSIVE FORCES Ballistic Missile Systems IRBM-CX-1 A storable; liquid-fueled missile designed for ranges of about 2000 nautical miles. This missile would be launched from a silo. It would probably be a follow-on to the SS-4-Type MRBM. ICBM-CX-l A storable liquid, long-range, follow-on to the IRBM- CX-l, also silo-launched. SSB-CX-1 An improved diesel-propelled submarine, utilizing the Albacore-type hull, with 4 tubes for the same surface-launched missile as the G-class submarine. The improved hull design and propulsion plant would give this submarine a greater operating radius. SSSBN-CX-1 #i-N-CX-1 A nuclear-propelled submarine using a hull similar to that of the SSB-CX-1 with 6 missile tubes for a new 600 mile, submerged-launched, missiles A 600 nautical mile missile designed for submerged launch from the SSBN-CX-1 STRUTEGIC DEFENSIVE FORCES Interceptors FI-CX-1 A Chinese-designed follow-on to the MIG-2l with improved high altitude and endurance characteristics. SA SA-CX-l A Chinese-developed modification of the Soviet SA-2 system, incorporating improved guidance/homing and maneuverability. 0640 Approved For Release 20 M ^CIA-RDP80B01676R001600130004-9 SECRET Approved For Release 20 r 31-101,22 : - 1676R001600130004-9 (Glossary, Cont.) GENERAL PURPOSE FORCES DIV-CX-1 An infantry division fully modernized, incorporating major changes both in organization and equipment. This elite-type division would be considerably stronger than present units, particularly in firepower and mobility. FB-CX-1 A native-design fighter-bomber designed primarily for ground support. It is envisaged that this aircraft would be subsonic, but would have long endurance and high maneuverability. SS-CX-1 A torpedo-attack submarine with a new hull design and propulsion plant, providing improved maneuverability for submerged operation. RB-CX-1 A long-range reconnaissance aircraft resulting from the equipping of a standard commercial transport model with electronic reconnaissance systems. DDD-CX-l A native-designed destroyer, outfitted with ASW weapon systems, and with naval surface and AAA guns. These destroyers could carry the Chinese-produced SS-N-2 missile used on the OSA/KOMAR torpedo boat and in Force C would have a naval version of the SA-2 system as well, although these weapons are not postulated for this destroyer in the period through 1975. 25X1 DE-CX-l An ASW escort ship, smaller and slower than the destroyer, but with long endurance and good sea-keeping capabilities. ASSAULT GUN-CX-1,122 mm A 122 mm gun mounted on an anphibious, full-tracked chassis. -65- Approved For Release 2 25X1 Approved For Release 200 (ZR:[ A-RDP80B01676R001600130004-9 APPENDIX A MAJOR CON2INGENCIES AND THEIR POSSIBLE EFFECT ON THE PROJECTED FORCES General There are obviously a wide variety of possible developments over the next ten years or so which might significantly affect Chinese military planning, such as changes in the relationship with the USSR, changes in the military position or alignment of countries like Japan or India, differing outcomes of the Vietnam conflict, changes in the strategic relationship between the US and the USSR, or variations in China?s economic fortunes or in the availability of credits or assistance from other countries. We have generally avoided specific treatment of such contingencies in the above projections, not only because of a desire to keep the study within manageable proportions but also because of the sheer difficulty of defining possible developments or of assessing their likely effect on Chinese force planning with any precision. However, we have found it desirable to note the possible impact of certain critical contingencies below. Possible Adverse Developments Serious Worsening of Relations with the USSR. This could have auvery significant effect on the development and Approved For Release 200M E lA-RDP80B01676R001600130004-9 Approved For Release 2p03J; -S`~ ds~0Rn1676R001600130004-9 deployment of Chinese military forces, depending obviously on the seriousness of the rift and on the extent to which the USSR built up its military forces confronting China. Even if Soviet troop dispositions vis-a-vis China were relatively limited and intended to provide a demon- strable capacity for harassing or punitive action rather than for a serious invasion, it is possible to visualize Chinese requirements for, say, up to a dozen heavily armored and mobile divisions to cover major border crossings from the USSR and Outer Mongolia, for significant numbers of air defense interceptor and patrol units, and for at least limited numbers of MRBM's (or preferably IRBM's) which could be deployed for targeting of Soviet cities. Conceivably, there might eventually be a heavy troop buildup, especially in the Manchurian-maritime province area, comparable to the Soviet-Japanese troop buildup there during World War II. Such developments would, of course, significantly reduce the forces which could be deployed in other areas and would also be expected to influence the relative emphasis given the various kinds of forces and weapon systems. Sizable Diversion of Resources to Support of the Vietnam War. China's indirect participation in the Vietnam war has already involved the provision of substantial supplies of ammunition, POL, etc., to the DRV, the allocation of construction and other support troops to main- taining the LOC in North Vietnam, and the buildup of air defense facilities Approved For Release 2003/1:(T'P01676R001600130004-9 25X1 25X1 Approved For Release 2005 RE iA-RDP80B01676R001600130004-9 and forces in South China. The intelligence community's present judgment is that this does not involve a significant diversion of resources from China's military establishment. Conceivably, however, support of the DRV and precautionary deployments of Chinese combat forces in nearby areas could increase to a point which would require diversion of equipment and reserve supplies from other units. Indeed, the Chinese effort in support of the DRV, or in preparation for contingencies that might grow out of the Vietnam war, could become so large as to force a slowdown in the modern weapons program or a significant weakening of China's over-all military posture. Increased Military Assistance Requirements The Chinese Communists will presumably continue to supply military advice, training, and materiel to friendly regimes and revolutionary movements in various parts of the world. For the most part, this type of activity does not appear likely to cut very heavily into Chinese military resources; the principal requirement will probably continue to be for small arms and similar equipment, and the number of governments or revolutionary movements in places like Africa and Latin America which are willing and physically able to accept Chinese arms is unlikely to be very great. It appears likely that most such programs could be supported with surplus weapons made available through the re-equipping of Chinese Communist general purpose forces. The only exception involves the kind of equipment A-3 Approved For Release 20(&X01' 'CIA-RDP80B01676R001600130004-9 Approved For Release 20,0-3 hU F~#~dQnRn1676R001600130004-9 25X1 furnished Pakistan. If the Chinese Communists should undertake to furnish Pakistan or other parties with tanks, aircraft and other major items in substantial quantities, it could significantly affect their own military buildup. Economic Setbacks. Finally, the Chinese may well fall short of fulfilling in toto the generally optimistic assumptions we live made about their economic and technological, prospects. Indeed they may run into another series of disastrous growing seasons or grossly mismanage the situation as they did in the late 1950?s and early 1960?so The extent and military pro- gramming implications of such setbacks, however, are virtually unpredict- able. Possible Favorable Developments Accelerated. Economic P greys The possibility that the Chinese economy might perform considerably better than predicted, thus making important additional sums available for military use, appears remote. The judgment that the Chinese could fford to let military procurement costs grow at the vigor postulated for Forces E, C, and D is predicated on a series of highly favorable aasumaptionsa that food production grove faster than population, that foreign trade grows by a ome 5-1O percent a year, that the regime will Amy Approved For Release 2003/1fqEC1 ff P01676R001600130004-9 25X1 Approved For Release 200Ml2j?{f1A-RDP8OB01676RO01600130004-9 make effective use of its resources in expanding industrial output. This requires not only good fortune but a degree of moderation and managerial judgment which the Chinese leadership has shown little disposition to practice: even on its best.behavior. Conceivably, unusually favorable growing conditions might make possible a bumper crop year -- perhaps of sufficient magnitude to permit a substantial cutback in that year's requirement for imported foodgrains, which have been costing about $400 million annually in recent years. However, the chances that food production could be pushed up much faster than population growth in any one year appear poor and the possibility that this might happen more than once during the next ten years even more so. And even if the Chinese experienced such good fortune, they might feel compelled to spend the money on foodstuffs anyway -- either to build their depleted grain reserves or to help restore pre-Great Leap Forward levels of individual food consumption. Increased Access to Free World Credits and Technology. Although much of the rapid growth in Chinese trade with the free world during the last two years was a one-shot phenomonen, representing the reorientation of much of China's trade away from the Bloc, trade with the free world will probably continue to grow -- and along with it, credits. Industrialists in both Japan and Western Europe have been A-5 Approved For Release 200.' jeeIMjSlA-RDP80B01676RO01600130004-9 Approved For Release 2 RET 1676R001600130004-9 25X1 eyeing the Chinese market with increasing interest, with China's acute need for modern machinery providing an area of special appeal. While this study has not specifically projected foreign trade and credits as a factor in China's ability to sustain military programs, it has assumed that such trade would grow by about 5-10 percent. It is conceivable that China might over time obtain substantially greater amounts of manufacturing equipment and accompanying technological assistance on credit, thereby contributing at least indirectly to its industrial and technological capabilities in the military field. However, there would appear to be two major limitations on how much assistance the Chinese might obtain in this fashion. Large-scale industrial and techno- logical assistance would require a far more open attitude on the part of the Chinese themselves, who have thus far been reluctant to admit foreign technicians or to take on long-term obligations. Perhaps more important, China's ability to pay off the credits which might be offered is limited -- at least unless Japan or other potential creditors were willing to provide assistance on very long-term, easy credit terms such as those being provided to India, in whose case political rather than financial considerations were primarily responsible for provision of,,-the assistance. If credits to China were limited to the short and medium term -- i.e., up to 5 years -- credit drawings would very quickly be balanced off by repayment requirements. Conceivably, France or some other non-Communist country might be Approved For Release 200 A-6 - - --5ECRE?9 - -- P6768001600130004-9 25X1 Approved For Release 2009(?BETA-RDP80B01676R001600130004-9 willing to supply China with equipment or parts of at least indirect military application. Marked Improvement in Relations with the USSR Despite the intense bitterness of present Sino-Soviet relations, the possibility of some future rapproachement between a successor regime in Peiping and the USSR cannot be ruled out completely. Such a rapproachement, should it occur, could be of considerable benefit to the Chinese military effort, since it could open the way to resumption of some forms of direct military assistance and technological advice by the Soviets. On the other hand, there would almost certainly continue to be major limitations on how much the Chinese could obtain. If past practice is any guide, the Soviets would be unwilling to provide any more in either economic or military aid than the Chinese could pay for, although they might be willing to extend long-term credits and to permit payment in goods. Moreover, it appears most unlikely that even a marked char43e of heart on the part of the Chinese would permit establishment of a genuinely cordial relationship or that the Soviets -- however convinced they might be of the bona fides of a particular set of new Chinese leaders -- would be willing to rule out all possibility of a return to the type of leadership provided by Mao. Presumably they would be extremely care- ful about assisting the Chinese in ways which would increase their ability to threaten the USSR or increase their ability to drag the USSR into conflict with others. A-7 Approved For Release 20QEkM'CIA-RDP80B01676R001600130004-9 Cy IM Approved For Release 2n,0_1R ,b80Bp1676R001600130004-9 APPENDIX B ECONOMIC AND COST ANALYSIS USED IN DEVELOPMENT OF THE ALTERNATIVE FORCES SECTION I METHODOLOGY Introduction The present Chinese leadership has clearly been willing and able to deprive the civilian economy of substantial resources in order to maintain the ambitious array of military programs it is now trying to carry forward. However., there are important limits as to how far the regime can go in this direction on a sustained basis. A central prob- lem in formulation of the alternative forces projected above has o. accordingly been that of developing and applying realistic economic and cost constraints. In dealing with this problem., we have adopted a relatively simpli- fied approach., in the belief that there is not enough certainty either about performance to date or about the future to warrant very elaborate or highly sophisticated calculations of what the Chinese economy can bear. In this approach we began with three basic concepts: 1. Present levels of spending for military purposes should pro vide the most practical and realistic yardstick for measuring the pos sible future magnitude of the military effort. This concept says that B-1 Approved For Release 2003/1,11 (J 301676R001600130004-9 25X1 25X1 Approved For Release 2 (jR bP80B01676R001600130004-9 the starting point should be what can be observed; the best indicator of the future is the present. In a senses it says that the Chinese can do what they have done and that we can project from such a base. Moreover, theoretical considerations (such as would be involved in determining the burden of military expenditures on the economy) which require more detailed knowledge can be by-passed. 2e The basic calculations, at least this time, should be made in ddo}lars rather than Yuan ?? in other words, with both present and projec- ted future military hardware programs measured in terms of what it would costto carry them out in the US. Although we would hope that projected forces could eventually be costed in both dollars and yuan, we do not as yet have any idea of how much the Chinese charge themselves for the more complicated and modern items of military hardware which are of greatest concern to the US or of how accurately such Chinese `prices" would!:reflect actual costs. The use of dollar costing of course does contain possibili- ties for biases of certain kinds; China is manifestly not the US. How- ever, many of these distortions would tend to cancel out, since the same costing factors would be used for the base period and for projected future forces. As indicated below, others can be adjusted fore 3. Zhe costing exercise should be concerned soled with expendi- turesfor development and procurement of military hardware and should not attempt to cover other military expenses such as the costs of clotehin and feeding China?s large existing forces. This concept was adopted for several reasons. Many military expenses are more or less B?2 Approved For Release /22: CIA-RDP80BO1676R001600130004-9 .40 Approved For Release 20 ,676R001600130004-9 25X1 irrelevant to the problem of how far and how fast the Chinese can go in building a modern military establishment. The critical items are those involved in development and production of military hardware. It is here that the competition for scarce resources between the military establish- ment and the civilian economy and among various military programs is and will continue to be most severe. Covering the entire range of present and possible future military expenditures would, at this stage,, only intro- duce opportunities for error. Finally,, an attempt to price the cost of maintaining present Chinese forces in dollar terms -- i.e., charging for a Chinese rifleman as though he were a US soldier -= would give a misleading impression of over-all costs. Although cost projections concentrating on hardware do not give a complete picture of total military expenditures, they do provide, in our view, the most realistic approach at present to the problem of economic constraints. The application of these concepts has involved three stages of analysis: (a) the determination of expenditure figures for develop- ment and production of military hardware for 1965 and preceding years; (b) the determination of the maximum rate at which such expenditures might be expected to grow under the optimum conditions assumed in develop- ing Forces B, C, and D; and (c) the pricing of the components tentatively assigned to each of the projected forces and the adjustment of the size and makeup of these forces to make them compatible with the cost ceilings assigned to them. The tasks basic to this analysis are discussed in the two sections that follow. Bm3 Approved For Release 2003/1,VE~9~X .9p ,qB01676R001600130004-9 25X1 Approved For ReleaseSFGR IPDP80B01676RO01600130004-9 Determination of Present Levels of Expenditure The first basic task was that of costing present programs for develop- ment and production of military hardware. Cost figures were built up in- crementally on a system-by-system (or in some cases factory-by-factory) basis. Incremental costing was used in order to reproduce as faithfully as ;possible the actual pattern of expenditures. We were able to account for tooling costs in this manner but not the costs of basic plant and equipment. These calculations were made both for the base year 1965 and for the period extending back to the mid-1950's, when a significant proportion of military procurement outlays represented end items or major components for aircraft) imported from the USSR for assembly in China. The purpose of building up these historical cost series was twofold: to facilitate the allocation of costs to the year in which they were probably actually incurred, and to provide a basis for judging how well our military cost projections fitted with other indications of how the Chinese economy and military establishment fared during the ten years between 1956 and the present and how well 1965 performance appeared to represent Chinese capa- bilities. The results are summarized in Table 6,* which shows that expenditures for military hardware-associated purposes totalled $1.8 billion in 1965, and in Table 7,** which projects costs for these purposes back to 1956. On the whole we believe these results are reasonable approximations of Page B-5 Page B-6 B-4 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 SECRET Approved For Release 200AW- CPA 80BO1676R001600130004-9 25X1 TABLE 6. ONINE$E CO ST NB MARE.ASSOCIAATED OUTLAX$A 1965 (Billion 1963 US Dollars) PROCUREMENT Land Armaments 0.14 Ammunition 0.12 General Purpose Vehicles 0.06 Naval Ships 0.08 Aircraft 0.13 Missile Systems Neg. a Other Electronic Equipment 0.50 I Organizational Equipment 0.05 Subtotal, 1.1 SPARE PARTS 2.41 Of which for Other Electronic Equipment 0.17 NUCLEAR PRO CTION AND FACILITIES 0.10 Ij RDT&E (Including Nuclear) 0.20 TOTAL a/ 0.005 or less. All electronic equipment except for that included as integral part of other systems or programs. May not add because of rounding. Excluding RA71&E. B?5 Approved For Release 2003/SEM TB01676RO01600130004-9 Approved For Release 2003/10/22 : - 76R001600130004-9 25J . MWZ COD41UNIST HARFhiARE-ASSOCIATBD o 6-6 J (Billion 1963 US Dollars) 1956 1957 1958 1959 1960 L961 162 1963 126425 PROCURP2 Land Armaments o.14 0.16 0.18 0.27 0.16 o.w ~ o xg o.10 0.14 ChiCom 0.0 7 006 007 0 010 0.07 0.07 0.09 0-w o`. Imports o.08 0.09 0.11 0.20 0.06 -- -- -- -- Ammunition 0.08 0.08 0.10 0.12 0.12 0.05 0.06 0.07 0.09 0.12 Chicom 0 0 0 -6737 070.05 0.07 0.07 0.09 012 Imports 0.04 0.05 0.06 0.06 0.04 -- -- -- -- -- Oen'l. Purp. Vehicles 0_0 0.06 0.06 0.08 0.08 0.02 0.02 0.04 0.06 0.06 ChlCom Neg. 0.02 0 0-10 0 0.02 0.02 0 -6-37 357 Imports 0.02 0.03 0.03 0.03 0.03 -- -- -- -- -- Naval Ships 0.13 0.15 0.18 0.21 0.14 0.10 0.04 0.04 o.og 0.08 ChiCom 0. 0.1 017 0 008 0 0 0.09 Imports 0.01 0.01 0.01 0.02 0.01 0.01 -- -- -- -- Aircraft 0-34 0.23 0.16 0.13 0.21 0.04 0.09 0.10 0.12 0.1 ChiCom 0.02 0.01 0.0 0.09 0019 0.02 0.02 0.01 0.03 0.13 Imports 0.32 0.22 0.10 0.04 0.02 0.02 0.07 0.10 0.08 -- Missile Systems -- -- -- 0.01 0.02 Neg Neg Neg Neg Neg ChiCom Neg. Neg. Neg. Neg. Neg. Neg. Neg. Imports -- -- -- 0.01 0.02 -- -- -- -- -- Other Electronic Eqp _ .0 0.0 0.l 0.20 0-38 ~0~.-38 0.46 L. 0 ChiCom r 0.02 0.05 0.12 0 -0M 0?18 Obi 0-50 Imports 0.01 0.02 0.05 -- -- -- -- -- Organizational Equip. 0.04 0.04 0.04 0.04 0.04 0.02 0.04 0.04 0.b4 00-05 ChiCom 0.01 002 002 002 0.0 002 00+ 007 0 0.05 Imports 0.02 0.02 0.02 0.02 0.02 -- -- -- -- -- Subtotal: Procurement Q Q 0.76 0 94 0 95 0.49 0 69 Q 0 6 1.1 ChiCom 0.25 0. 0 0 O. ST 0. 0~ 02- 0,,7 0 $ 1.1 Imports 0.50 0.42 0.35 0.40 0.26 0.03 0.07 0.10 0.08 -- SPARE PARTS o.16 0.18 0.21 025 030 0.22 0_25 0.36 0.38 L4 Of which forjher Elec. Equipment V Neg. 0.02 0.03 0:04 0.06 0.15 0.15 0.17 NUCLEAR PROD. & FACIL. 0.02 0.05 0.07 0.09 00.10 0.07 0.07 0.0 0.08 0.10 Chicom 0.01 0.02 0707 0 0.05 .0 7.07 7.07 0.0 olo Imports 0.01 0.02 0.04 0.04 0.05 -- -- -- -- -- RDT&E (Including Nuclear) 0.05 X0.0 0.10 0.20 0.20 0.10 0.10 " "1 0.20 ~- s - Chicom 0.0 0.05 O~.00 0.15 '0 e.15 0.10 0.10 0.13 0.15 0.20 Imports 0.01 0.02 0.02 0.05 0.05 -- -- -- -- -- ChiCom 0.35 0.44 0.63 0.88 1.1 0.81 1.0 1.2 1.5 1.8 Imports 0.63 0.57 0.51 0.60 0.47 0.07 0.09 0.10 0.08 - a/ Components may not add to totals shown because of rounding. Neg. used when 0.005 or less. 1 All electronic equipment except for that included as integral part of other systems or programs. Production and imports in 1956-57 were small and did not exceed requirements for other systems and programs. Approved For Release 2003/10/ 2 : CIA-RDP80B 1676RO01600130004-9 25X1 If Approved For Release 2q037107 - 676R001600130004-9 the actual state of affairs. Although we haveehad to make some arbitrary Judgments as to the timing of payments 'to the USSR for military hardware, the cost projec- tions for the historical period appear to fit reasonably well with the general picture we have of an ambitious and many-faceted military develop- ment program. This program swas begun with Soviet help in the middle and late 1950's, slowed after the Soviet withdrawal, but is now going forward vigorously again. The $1.8 billion in hardware expenditures for 1965 compares favorably with the $1.5 billion projected for 1959 and 1960 respectively, which included the costs of material imported from the USSR. This indicates that in a gross sense the Chinese are by now doing better on their own than they were doing at the end of the 1950's with Soviet help. It should be noted, however, that much of the estimated 1965 expenditures represented the output of the relatively advanced elec- tronics industry and the production of ammunition and spare parts for the existing military establishment, with many of the other major elements of military industry still at the preproduction or early production stages. Determination of Maximum Growth Rates* The second basic task was the determination of optimum growth rates for the high-side forces. This required quantification of Assumptions 1 and 2 (see p. T and 8 , respectively): what would constitute a con- Rates of growth for the CRiinese economy are based :tin calculations in yc.azn. B-7 Approved For Release 2003/1 CIZ2 %01676R001600130004-9 25X1 25X1 Approved For Release 2 JJ11OJ2K JNAJRDP80B01676R001600130004-9 siderable degree of economic success and what proportion military hard ware programs would be able to absorb. As a point of departure, we had calculations by the Office of Research and Reports, CIA,* to the effect that a most likely projection for China's economy would be for GNP to grow by as much as 3 percent a year and industrial output by some 5 to 6 percent, assuming average growing conditions for crops and increasing access to Japanese and Western technology over the next decade. In addi- tion, ORR indicated that an optimistic projection would show a rate of growth for GNP of as much as 4-5 percent and for industrial output of as much as 7.8 percent. Unusually favorable conditions would be required, such as agricultural output growing more rapidly than population, greater access to foreign trade and credits, good management, no further increase in the military share of the economy's resourcesq,arnd political stability. In order to insure that Foro'es,B, C, and D were indeed high-side forces reflecting optimum economic circumstances, we took the high side of the economic projections and assumed that industrial output as a whole would increase at an average rate of 8 percent a year. Because the focus of our efforts is on hardware programs, the machinery sector of industry * See Pp 35_36, ER 65.32, :.Economic Prospects for Communist China, Decem- ber 1965, SECRET, for the basic discussion. In reviewing these calculations in April l ORR was more categorical in characterizing a GNP growth rate of as much as 3 percent as the most likely case and the higher rates of GNP and industrial growth here cited as being optimistic. B-8 Approved For Release? LWNPIVDP80B01676R001600130004-9 l 1 t t AppOoved Fair Rele se? 2043/10/21 : CIA- DP80&01676A20016k1300144-9 t ECONOMIC P ROJ ECT ION S,1966-75 0 * Superimposed red bars indicate the lower values obtained from a moAp i2gg p?ra,7Reeftj~S 200P311R fn9.~I h80B01676R001600130004-9 '75 l 1~ 25X1 SECRET I I 62308 Figure 1 Approved For Release V 2M- XhMRDP80 is of most interest. Consequently, we allowed for the possibility that the machinery sector might grow at a different rate than the rest. of industry. We. chose 10 percent as a suitable rate of growth for this sector, with the intent of erring on the high side. Although it.is certainly posisible that machinery output will grow more than total industrial out- put (and :inn: such case the relationship of 10 percent to 8 percent :is a reasonable one), the past history of China suggests otherwise. Both during the .1952-57 period and in the period of recovery.since 1961, machinery output grew at about the same annual average. rate as total industrial output. The 10 percent rate (in Yuan terms),. therefore, was used as the constraining rate for the growth of military hardwere,t Then, because we found it necessary to work in dollar terms, account had. to be taken of the fact that costs of moving to technologically more advanced systems are rel vely greater for lesser developed economies like that of China than for advanced ones like that of the US. This factor would make our calculation of the dollar costs of the postulated Chinese forces -.,. i.e., the costs of duplicating them in the US m- progressively understate the growth of costs of advanced military programs to China. For this reason, we adjusted the average annual rate of growth for mili- tary hardware from 10 percent in Yuan terms to 702 percent in dollar terms. At this rate annual expenditures would double in ten years. esse differential rates of growth would result in military industry accounting for an increasing share of GNP over time, ass 'Figure. 1, below, indicates. Bm9 Approved For Release 1 k DP80BO1676R001600130004-9 9I.E'T Approved For Release 2003/ ~7 1676RO01600130004-9 This rate of 7.2 percent was then applied to the 1965 base in 25X1 -developing cost ceilings for Forces B, C, and D. A faster rate of in- crease for short periods of time is possible. However, if the Chinese are going to optimize for the 10-year period, i.e., have the resources to carry out present programs and develop the resources that would be re- quired for future programs, they would not be able to exceed a rate of this magnitude on a sustained basis even with the optimistic assumptions made about economic and technological performance. As an additional check we then calculated how sensitive these per- centages would be to gross error in calculation of the 1965 base -- first assuming that expenditures for development and production of mili- tary hardware in that year were in fact 25 percent lower than we had calculated, then assuming that they were 25 percent higher. In the for- mer case, if the actual expenditures in the base year were overstated by 25 percent, the calculations for Forces B. C, and D would provide for a growth rate of 8.8 percent rather than the 7.2 percent it was supposed to represent. In the latter case, if actual expenditures in 1965 were under- stated by 25 percent, the calculations for Forces B. C. and D would pro- vide for a growth rate of 6 percent mm i.e., a rate still somewhat above that associated with the most likely rate of growth of the Chinese economy. The 1965 estimates probably do underestimate to some degree actual expen- ditures for development and production of military hardware, mainly be- cause of the difficulties of breaking out all of the expenditures involved Approved For Release 2003/10S M(PO1676R001600130004-9 y 25X1 Approved For Rele R- WD 80B01676R001600130004-9 in setting up military production. We think it most unlikely, however, that any such understatement is more than a modest fraction of 25 percent. We also made some calculations to test the sensitivity of the 7.2 percent growth rate used to project annual rates of increase in spending for military hardware as they would appear in dollar terms. Here again the results indicated that our calculations would have to be very grossly in error to make any major difference in the final results. If the figure used. should have been 8 percent -- implying a still higher basic growth rate, an incorrect adjustment for changing dollar-yuan cost relationships, or a combination thereof - the cumulative outlays for the 10-year period would be only 5 percent higher, and most of this increase.-:would come in the last few years. If the dollar growth rate used should have been 9 percent (which would be an error of 25 percent), cumulative outlays would be 11 percent higher, with most of the increase again coming after 1970. It would require a drastic and highly improbable compounding of gross error in the base year figures as well as in the assumed yuan growth rates and in the dollar-yuan conversion adjustment -- to produce any markedly higher cumulative totals.* * An increase in 10-year costs by some 50 percent over that assumed here,, for example, would require that base year expenditures be under- stated by 25 percent, that the output of military machinery was growing by 12 percent, and that the change in dollar-yuan costs was grossly over- stated. It might be noted that the assumed theoretical rate of growth for Forces B, C, and D was substantially exceeded for the period 1966-70, with the weapon systems attributed to these forces calling for expendi- tures to grow by 7.9 to 8.7 percent a year. Approved For ReleasVQA,3ffAl RDP80B01676RO01600130004-9 676R001600130004-9 Projecting Future Costs The projected alternative forces were coated out by means of the :same methods and costing factors used to establish 1965 development and procurement costs. Equivalent US costs for the Soviet versions of the equipment projected for the Chinese were applied on a system-by-system or item-by-item basis. These costs were then totalled for each of the projected forces, which were then expanded or reduced in size to make them reasonably consistent with the over-all cost constraints applicable to them. In some cases individual procurement programs were stretched out so as to avoid an undue piling up of costs for a given year. It was assumed, however, that some variations in rates of expenditure would take place under the best of circumstances, and that an attempt to make the computed cost projections match postulated cost levels ex- actly would bei unrealistic. In general, the calculated costs of the alternative forces as worked out to date run somewhat above the postulated figures, especially for the period through 1970. Even with the numerous constraints built into it, Force As rate of spending for military hardware, instead of remaining unchanged at the 1965 level, increases by an average of 203 percent a year for the 1966-70 period. During this same period, the military development and procurement depicted in Forces B, C, and D would require outlays to grow at annual average rates of 8.7., 7.9, and 8.0 percent respectively. For the 1971?75 period, the calculated costs of the forces grow more slowly, reducing the 10-year average annual growth Approved For Release 2003/10 ~fA-A 701676RO01600130004-9 25X1 25X1 Approved For Release 10067s1tWAX DP80BO1676R001600130004-9 rate of Force A hardware spending to 2.1 percent and those for Forces B. C, and D to 6.3, 6.3, and 7.2 percent respectively -- below the postu- lated 7.2 percent rate for Forces Band C. However, this fallin;>; off in the growth of military hardware expenditures for the 1971-75 period. probably reflects an underestimation of likely RI7r&E and electronics expenditures which, as indicated below, were projected on a very con- servative basis. Thus by 1975 the actual costs of hardware for the mili- tary establishments called for under Forces B and C would probably be running at $3.6 billion a year or more, rather than at $3.4 billion (shown in Table 8* and Figure 2**, below). Force D already at :$3.6 billion would necessarily go even higher. With respect to specific cost calculations, ground force equipment (land armaments) and ammunition were priced on a flat unit cost basis and allocated to the years in which they were procured. In the case of air- craft and missiles, however, allowance was made for preproduction costs such as tooling up and for the learning function, whereby the costs of turning out a particular item of equipment progressively decline as those producing it gain in experience. These costs were allocated on the basis of production schedules worked up in terms of normal leadtime relation- ships (e.g., the time between initiation of aircraft production and first rollout). Aircraft production was assumed to precede entry into order of battle by a year but the presentation of order of battle on a midyear basis has in effect reduced the lead to six months. As appropriate, missile site construction, launcher production, and missile production B-15 B-13 Approved For Release 2? 1Q DP80B01676R001600130004-9 Approved For Release 20 01676R001600130004-9 TABLE 8. PROJECTED HARDWARE-ASSOCIATED OUTLAYS, 1962-_U - 9 3 US Dollars) (Billion 1973 FORCE 1965 1968 12LO 197 1 1972 M 1974 1975 A 1.8 1.9 2.0 2.0 2.0 . 2.1 2. 1 2.1 2.2 .- 2.1 2.2 B 1.8 2.0 2.2 2.4 2.6 2.8 3. 0 2.9 3.0 3.1 3.4 C 1.8 2.0 2.2 2.4 2.6 2.7 2. 9 3.0 3.1,. 3.2 3.4 D 1.8 2.0 2.2 2.3 2.4 2.7 2. 8 3.1 3.4 3.4 3.6 B-14 Approved For Release 2003/10 S:01676R001600130004-9 25X1 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 CHINESE COMMUNIST MILITARY HARDWARE -ASSOCIATED OUTLAYS BILLION 1963 US DOLLARS 4 a-- 1956-75 * SECRET I 25X1 B=D' B-D A '56 '65 '70 * Projections labeled A, B-D represent calculated values; those labeled A', B'-D' the constraining values. ppr ed Fc IiRelea 2001 0/22 CIA- P80B 16761 016001J3000 ; u# A' '75 62264 Figure 2 Ti Jim ; ~f,I Approved For Release ?003i I W22 ! - B01676R001600130004-9 were phased and.costed separately. Costs of naval ships were prorated equally over the construction cycle, assuming that the period between initiation of construction and dperational deployment would be three years for submarines, two years for larger suz'face ships, and one year for smaller craft. Four special series warrant special mention: a. Other Electronic. Equipment. Total military electronic pro- duction through 1965, the largest part of which was for ground-based air warning and control radar, was calculated separately from industrial and other data. In the case of Force A it was assumed that total electronics production would remain at the 1965 level, but that increasing portions of this output would be absorbed by air, sea and missile systems incorporating electronic gear and by requirements for electronic spare parts, so that the residual entry for Other Electronic Equipment would decline over time. For Forces B, C. and D it was assumed that total electronic pro- duction would have to increase to take care of the increased requirements for qllectronic gear integral to other systems but that the totals for Other Electronic Equipment would remain at the Force-A level. These are conservative assumptions, especially for the last three forces. b. Research, Development, Test and Evaluation. RDT&E had to be projected on the basis of very scanty evidence and is another major item which has probably been understated. Because of the conservative assumptions we have made about future RDT&E requirements, the extent to which it will preempt scarce resources which might otherwise be B-15 Approved For Release 2003/1 /E GR B01676R001600130004-9 25X1 25X1 Approved For Release 2 ,1rJ pTDP80B01676R001600130004-9 directly committed to future production of hardware has probably been at least equally understated. In brief, we have assumed that in the case of Force A these expenditures, now calculated to be about 10 percent of the 'military hardware budget, would grow modestly and only at the end of the period. In the case of Forces B, C, and P we have allowed RDT&E expenditures to grow at about the same pace as overall hardware costs mm i.e!., approximately doubling mm with that for Force B rising somewhat more than the others in recognition of the new and expensive systems pos- tulated for that force. Given the need to acceleratel.RDT&E as the Chinese shift from Soviet-design items and attempt to develop new and more advanced systems of their own, actual RDYT&E costs would probably come considerably higher. Projected levels of RD'f&E for the intermediate years were adjusted where necessary to reflect the RDT&E requirements for support of specific postulated weapon systems. c. Spare Parts. These were calculated as percentages of in- ventory value and are consistent with per man factors and the specific systems estimates developed for Soviet costing. However, except for Other Electronic Equipment, it was assumed both for the base year and for the years immediately following that Chinese parts supply levels were below those for the USSR. For elements given special emphasis in the projected forces (e.g., air defense in Force C) the level of spares was increased to the Soviet level by the end of the period. Otherwise, the lower rates were continued. Bmi6 Approved For Release 2003/10/22 : CIA-RDP80B01676R001600130004-9 ,SE CRET Approved For Release 2 VTBAR01676ROO d. Organizational Equipment. This is a residual category de- signed to encompass engineering equipment, special training equipments and the like. Both for the base year 1965 and for the projections, this was assumed to be five percent of other procurement rather than the higher per man factors used in projections of Soviet forces, to take account of the generally lower level of equipping of Chinese forces. This may under- state the case somewhat but since this figure is used for the base year 1965 as well as for the projections, any resulting distortions tend to cancel each other out. B?17 Approved For Release 2003/;7 338 B01676R001600130004-9 25X1 25X1 Approved For Release DP80B01676R001600130004-9 SECTION I.I. PROJECTED COSTS Force A The projected costs for Force A are presented in Table 9*e Generally, they reflect the posited continuation of programs currently observed or believed to be under way, but at a moderate pace given the constraint that outlays should remain at the 1965 level. It is evident, however, that some increase has been permitted. This averages 2.1 percent a year for the 10-year period. The costs of aircraft (MIG-19.. MIG-21-type, and the TU-l6) provide most of the increase in outlays through the mid-years of the period. By the late years, when requirements for existing or imminent programs have been largely fulfilled, the level is maintained by an increase in outlays for-RDT&E which is associated with the postulated programs for the post- 1975 period and by the growing requirement for spare parts. * Page B-19 Approved For Release (h,1y94p DP80B0l676R001600130004-9 Approved For Release 2003 110/22 : CIA- TABLE 9 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 1676R001600130004-9 25X1 PROJECTED HARDWARE-ASSOCIATED OUTLAYS FOR FORCE A 1966-75 J Billion 19 3 US Dollars) 1966 1967 1968 196 1970 1971 1972 1974 PROCUREMENT Land Armaments) 0.14 0.16 o.16 0.18 0.17 0.18 0.18 0.13 0.10 0.11 Ammunition 0.12 0.12 0.12 0.12 0.12 0.14 0.14 0.14 0.14 0.14 General Purpose hicles Ve- 0.06 0.6 o.o6 0.06 0.06 0.08 0.08 0.08 0.08 0.08 Naval Ships 0.08 0.06 0.05 0.05 0.07 0.08 0.12 0.12 0.12 0.12 Aircraft 0.23 0.24 0.26 0.29 0.30 0.20 0.24 0.26 0.17 0.23 Missile Systems Neg. 0.02 0.04 0.02 0.05 0.08 0.09 0.08 0.08 0.05 Other Elec.Egpt .J 0.44. 0.40 0.36 0.32 0.29 0.26 0.24 0.21 0.19 0.18 Organizational Eqpt. 0.06 0.06 0.06 0.06 0.06 o.o6 0.06 0.06 0.06 0.06 Subtotal ]..l 1.1 1.1 1-1 . 1.1 1.0 1?0 SPARE PARTS o.48 0.53 0.57 0.62 o.66 0.69 - 0.73 0.76 0.81 0.84 Of which for Other Electronic Eqpt. 0.22 0.26 0.29 0.32 0.35 0.37 0.40 0.42 0.43 0.44 NUCLEAR PRODUCTION AND FACILITIES CL 0.10 0.10 QQ$ Q .Q$ Q Qa o. o8 Q.D$ Q..4$. X48 c Qa RDT&E (Including . . Nuclear) 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.250.30 0.35 TOTAL 1 2.0 2.0 2.0 2.1 2.1 2.1 2.2 2.1 2.2 J Components may not add to totals shown because of rounding. Neg. used when 0.005 or less. J Includes AAA for air defense. J All electronic equipment except for that included as integral part of other systems or programs. Total military electronics production has been projected at the 1965 level. Hence, the decline in this series is a reflection of the increase in elec- tronics integral to other systems and the increased requirement for spare parts. J Excluding RDT&E. Approved For Release 2 EOW E DP80B01676R001600130004-9 Force B The projected costs for Force B are presented in Table 10.* They reflect the emphasis placed on atrategidc!offensive systems, other pro-. grams being carried at the same level as for Force A. Most of the increase in procurement costs through the mid-years of the period reflect aircraft programs (particularly a TU-16, BADGER- type) and to a lesser extent missile programs (MRBK, SS-i.-type). Their role is reversed in the later years when missile costs predominate (IRBl, SS-5-type and ICBM, SS-7-type). However, costs of naval ships also sharply increase with the projected construction of the SSB-CX-1 and an SSBN-CX-1. The other hardware-associated programs all show appreciable increase, Costs of spare parts steadily increase as the inventory of strategic offen- sive weapon systems rapidly expands. The nuclear program, because of the enlarged requirement for weapons to go with the projected delivery systems, reflects a doubling of facilities. The costs of RDT&E display a comparable rate of increase for the related reason that the new delivery systems and weapons would have to be developed largely with indigenous technological resources. # Page B-21 Approved For Release 1I1,A4 I DP80BO1676R001600130004-9 SE %-4.1 V Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 SECRET D 25X1 TABLE 10 PROJECTED HARDWARE-ASSOCIATED OU'T'LAYS FOR FORCE B. 1966-75 (Billion 1963 US Dollars) 1966 1967 1968 1969 1 970 1971 1972 1974 = PROCUREMENT Land Armaments J 0.14 0.16 0.16 0.18 0 .17 0.18 0.18 0.13 0.10 0.11 Ammunition 0.12 0.12 0.12 0.12 0 .12 0.14 0.111 0.14 0.14 0.14 General Purpose Ve- hicles 0.06 0.06 0.06 0.06 0 .06 0.08 0.08 0.08 0.08 0.08 Naval Ships 0.09 0.10 0.10 0.11 0 .12 0.14 0.15 0.14 0.12 0.16 Aircraft 0.24 0.28 0.42 0.50 0 .51 0.41 0.14 0.17 0.17 0.23 Missile Systems 0.03 0.03 0.11 0.19 0 .24 0.37 0.41 0.45 0.55 0.71 Other Elec.Egpt.2/ 0.114 0.40 0.36 0.32 0 .29 0.26 0.24 0.21 0.19 0.18 Organizational Eqpt. 0.06 0.06 0.06 0.08 0 .08 0.08 0.08 0.08 0.08 0.08 Subtotal 1.2 1.2 1.4 1.6 1 .6 1.7 1.1E 1.4 1.4 1.7 SPARE PARTS 0.1E 0-55 0.61 0.68 0 73 0 79 0.8 0.21 0. 96 1.0 Of which for Other Electronic Eqpt. 0.22 0.26 0.29 0.32 0 .35 0.37 0.40 0.42 0.43 0.44 NUCLEAR PRODUCTION & FACILITIES 0.12 0.14 2.15 0.16 0 .18 0.20 0.21 0.22 0.22 0.23 RDT&E (Including 4 N ) l 0 2 0.2 0.2 0.2 0 030 0.38 0441 45 0 45 0. ear uc . TOT AL J Components may not add to totals shown because of rounding. Includes AAA for air defense. J Same as for Force A. See Table 9, p. B-19.Total electronics production increases some- what for this Force, however, because of the greater amount of electronics integral to other systems. J Excluding RDT&E. 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 3D08MV/~2~CEXDP80BO1676R001600130004-9 The projected costs for Force C are presented in Table l1.* They reflect the emphasis placed on defense of the Chinese mainland hence on strategic defensive systems and naval elements of the general purpose for-des. Other programs have been projected at the same levels as for Force A. Costs of aircraft (MIG-19 and NIG-2l-type) provide the major incre- ment to growth of procurement outlays through 1970, with substantial help from the costs associated with naval programs (particularly MSF?s and the early construction of the SS.CX-1 torpedo-attack submarine) and missile systems (SA-2-type and the MR I, SS-4-type). After 1970, the costs of naval ships continue to display uninterrupted growth, as do the costs of ammunition at a somewhat lower level, whereas the other major hardware series become more irregular as programs are completed and new ones are phased in. The other hardware-associated costs all show appreciable increase. Costs of spare parts increase as the inventory of equipment undergoes substantial growth. The nuclear program increases in the latter part of the period, as capacity is enlarged in anticipation of-'greater weapons requirements later in the decade. Costs of Rin&E double, most of the increase occurring after 1970 as more self-developed"programs are postulated. *:, .sage B-23 Approved For Release S? /yA,/kgr DP80B01676RO01600130004-9 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 TABLE 11 PROJECTED HARDWARE-ASSOCIATED OUTLAYS FOR FORCE C, 1 667-U-2/ Billion 1963 US Dollars) 1966 1967 1968 1969 1 0 171 1972 = 1974 PROCUREMENT Land Armaments) 0.14 0.16 0.18 0.18 0.17 0.18 0.18 0.16 0.14 0.14 Ammunition 0.12 0.12 0.12 0.13 0.14 0.14 0.15 0.16 0.16 0.16 General Purpose Vehicles 0.06 0.06 0.06 0.06 0.06 0.08 0.08 0.08 0.08 0.08 Naval Ships 0.09 0.11 0.13 0.15 0.20 0.26 0.31 0.36 0.38 0.37 Aircraft 0.27 0.31 0.35 0.45 0.46 0.40 0.44 0.43 0.35 0.50 Missile Systems 0.02 0.05 0.15 0.16 0.20 0.21 0.17 0.19 0.25 0.23 Other Electronic Equipment2/ 0.44 0.40 0.36 0.32 0.29 0.26 0.24 0.21 0.19 0:18 Organizational Equipment 0.06 0.06 0.06 0.07 0.08 0.08 0.08 0.08 0.08 0.08 Subtotal 1.2 1.3 1.4 1.5 1.6 1.6 1.6 1. 1.6 1.8 SPARE PARTS o.49 0 0.64 0.71 0.77 0.84 0.90 0.96 1.0 1.1 Of which for Other Electronic Equip. 0.22 0.26 0.29 0.32 0.35 0.37 0.40 0.42 0.43 o.44 NUCLEAR PRODUCTION 0.10 0.10 0.10 0.10 0.10 0.12 0.14 0.15 0.16 0.18 AND FACILITIES-uJ RDT&E (Including Nuclear) 0.25 0.25 0.25 0.25 0.25 0.30 0.30 0.30 0.35 0.40 TOTAL 2.0 2.2 2.4 2.6 2.7 2.9 3.0 3.1 3.2 3.4 J Components may not add to totals shown because of rounding. J Includes AAA for air defense. c~ Same as for Force A. See Table 9, Page g 19.Total electronics production increases somewhat for this Force, however, because of the greater amount of electronics integral to other systems. Excluding RDT&E 25X1 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release 2OM W2l%.tIA12DP80B01676R001600130004-9 The projected costs for Force D are presented in Table 12.* They reflect the emphasis placed on the ground and naval elements of the gen- eral purpose forces. Strategic offensive and defensive programs are carried at the levels projected for Force A. The early increase in procurement costs again is largely a function of interceptor aircraft, but by the mid-years some of these costs are attributable to tactical air and increasingly so in the late years of the period. A similar pattern holds for missile costs -m the costs are ini- tially dominated by the MR I program but later on are increasingly for such genera]. purpose systems as a SAGGERmtype anti-tank missile and a FROG-type surface-to-surface rocket. However, it is the other series -- land armaments, ammunition, general purpose vehicles, and organizational equipment ?d all of which are predominantly general purpose in nature, that establish the basic pattern of steady increase of procurement costs throughout the period. The other hardware-associated outlays also increase throughout the period.. Costs of spare parts increase as the postulated programs would substantially increase equipment inventories. Nuclear costs are projec- ted at the same levels as for Force C the projected tactical nuclear delivery systems would require amounts of nuclear materials iii excess of the production capabilities of facilities now in being or under way. RDT&E costs are projected to keep pace with the general development and costs of hardware programs. B-24 Approved For Release :9W/P iI DP80B01676RO01600130004-9 Approved For Release 2093/I S 01676R001600130004-9 25X1 TABLE 12 PROJECTED HARDWARE-ASSOCIATED OUTLAYS FOR FORCE D, 1966-75 a (Billion 1963 US Dollars) 1966 97 1968 1969 1979 12 LI 1972 1973 1974 = PROCUREMENT Land Armaments 0.14 0.17 0.18 0.19 0.20 0. 21 0.24 0.24 0.28 0.28 Ammunition 0.12 0.12 0.13 0.14 0.14 0. 15 0.16 0.17 0.18 0.18 General Purpose Ve- hicles 0.06 0.07 0.08 0.08 0.08 0. 10 0.10 0.10 0.10 0.10 Naval Ships 0.09 0.13 0.15 0.19 0.25 0. 32 0.38 0.40 0.42 0.43 Aircraft 0.28 0.32 0.32 0.38 0.46 0. 38 0.51 o.65 0.50 0.58 Missile Systems Neg. 0.02 0.04 0.04 0.07 0. 10 0.12 0.12 0.11 0.07 Other Elec. Eqpt. 0.44 0.40 0.36 0.32 0.29 0. 26 0.24 0.21 0.19 0.18 Organizational Eqpt. 0.06 0.06 0.06 0.06 0.08 o. o8 0.08 0.10 0.10 0.10 Subtotal 1.2 1.3 1.3 1.4 1.6 1. 6 1.8 2.0 1. 1.9- SPARE PARTS 0.49 0.56 2.6a 0.69 0.74 0. 80 0.88 0.95 1.1 1.1 Of which for Other Electronic Eqpt. 0.22 0.26 0.29 0.32 0.35 0. 37 0.40 0.42 0.43 0.44 NUCLEAR PRODUCTOI & FACILITIES / 0.10 0.10 0.10 0.10 0.10 0. 12 0.14 0.15 0.16 0.18 RDT&E (Including 0.25 0.25 0.25 0.25 0.25 0. 25 0 25 0.30 0.35 0.40 Nuclear) 2.0 2.2 2 , 2.4 2 8 .4 _4 6 a/ Components may not add to totals shown because of rounding. Neg. used when 0.005 or less. Includes AAA for air defense. J Same as for Force A. See Table 9o p.B-19.Total electronics production increases some- what for this Force, however, because of the greater amount of electronics integral to other systems Excluding RDT&E. 25X1 Approved For Release 2003/10/22 : CIA-RDP80BO1676R001600130004-9 Approved For Release - B01 676RO01 600130004-9 SECRET Approved For Release P003/10/22 : - B01676R001600130004-9