The Stealth Peace Dividend

Remember the peace dividend that was supposed to result from the end of the cold war? Forget it. Saddam Hussein's grab of Kuwait not only created a new and unpredictable defense-spending burden of its own but also handed the Pentagon a gulf-crisis bonus. The budget that was approved last week cut only $18 billion in defense appropriations, vs. the $24 billion favored by the House as recently as September. Still, the $288 billion funding represents an 8.5% drop from the last fiscal year's spending and may shave 25% from projected defense outlays over the next five years.

Lawmakers used the gulf crisis as an excuse for protecting gold-plated weapons systems of dubious military value. The House had proposed halting production of the B-2 Stealth bomber beyond the 15 currently authorized. But House-Senate conferees approved $4.1 billion to continue the program. The Pentagon has been trying to kill the vertical-takeoff V-22 Osprey aircraft, but Congress, seeking to protect jobs in 34 states, voted to spend $603 million to keep the program alive. The trouble-plagued Strategic Defense Initiative survived with a $2.9 billion appropriation, $1.6 billion less than the Administration requested. While the Pentagon sought $1.7 billion for six C-17 cargo planes to improve the airlift capability that had been inadequate in the gulf deployment, Congress approved only $540 million. As for sea lift, which was also deficient, an extra $250 million was committed toward an unspecified number of faster ships.

One expensive item that the defense-spending bill does not include is Operation Desert Shield. The buildup was funded through Oct. 1 with a special $2 billion appropriation. The Pentagon estimates it could cost as much as $15 billion over the next 12 months. Congress refused to provide that much, since it considers the sum inflated. The lawmakers are also waiting to see whether the Saudis, who have pledged $6 billion, and European allies will share the burden.