The Nation : Defense Savings Ordered

The Navy has begun a new procurement policy requiring civilian contractors rather than the government to pay for tools used to build ships, planes and other weapons, a spokesman said. The policy, opposed by the defense industry, was begun immediately under an order signed Wednesday by Navy Secretary John F. Lehman Jr. Navy spokesman Lt. Max Allen said no estimate was available on the amount of money involved in the change. But Lehman told the Washington Post that the move will save billions of dollars by requiring contractors to invest in their own plants just as they do for commercial business.