McElroy Announces Intention to Reorganize Defense Department; Eisenhower Opposes Tax Increase

WASHINGTON, Jan. 15--Secretary of Defense McElroy said today he is going to plan a reorganization of the Defense Department, with help from three top military men and a number of civilians. McElroy emphasized that his advisers won't constitute another study committee--that they will act as individual consultants and that he will make the decision on what steps to recommend to President Eisenhower.

The Defense chief told newsmen "my principal military consultants" will be Gen. Nathan F. Twining, chairman of the Joint Chiefs of Staff, and two retired officers who held that job previously--Adm. Arthur W. Radford and Gen. Omar Bradley. McElroy said they have agreed to help him. Other consultants will represent civilian viewpoints, but McElroy said he isn't ready to name them.

At a different place, President Eisenhower backed away from the firm determination he expressed last week to reorganize the Defense Department swiftly for the space era. Eisenhower told his news conference that his own idea of what should be done, "no matter how strong, cannot be the final answer." He said the answer must be worked out after "many conferences" in which the views of Congress and the three armed services will be sought.

First News Conference in 2 1/2 Months

WASHINGTON, Jan. 15--President Eisenhower told his first news conference in 2 1/2 months that if circumstances make it necessary, he would rather have an unbalanced budget than increase taxes at this time.

The man who has been proud of his record of maintaing a balance in the budget appeared to accept the idea that the one he sent Congress Monday may be tipped into the red. In that event, and if income is down, he said, "then it would seem to me it would be a bad time to raise taxes, because you want that economy to ... have a little needle; a needle, rather than a check rein on it."

A.P. News in Brief

The AFL-CIO yesterday was reported considering a plan to offer special charters in the federation to any Teamsters Union locals wanting to secede from their expelled parent truck union. Federation sources said the AFL-CIO has received a number of such requests from Teamsters locals and probably will decide on the matter at the AFL-CIO Executive Council sessions starting Feb. 3 at Miami Beach.

Konrad Adenauer last night said a new East-West summit conference should be held "only after very careful diplomatic preparations have made it clear that there appears to be a possibility of an understanding." The Western position on Soviet Premier Nikolai Bulganin's latest proposals seemed further solidified along the pattern set by President Eisenhower's response Sunday.

A bill carrying $549,670,000 to improve the nation' defenses against missile attack was swiftly and unanimously passed by the House Wedneseday. The roll call vote, taken after brief debate, was 374-0. Inserted in the measure was an amendment giving Secretary of Defense McElroy authority to set up the advanced research projects agency he and President Eisenhower have proposed.