Program costs—originally estimated at $4 billion for the United States — increased by $7.7 billion last year with $6.3 billion of this resulting from the addition of 73 F‐16B two‐seater aircraft to the program. The Air Force believes it can justify the addition of the other $1.4 billion.

Planes to Be Built In Europe

The co‐production sector has also raised some difficulties. The United States is committed to offsetting European procurement costs through European participation in production. Under the General Dynamics plan there will be two F‐16 assembly lines in Europe, operated by the Dutch and the Belgians, each assembling 174 fighters.

Fabrique National in Belgium will assemble Pratt & Whitney F100 engines for the European fighters.

The G.A.O. report estimated that approximately 55 contracts would be awarded for European co‐production. In late 1976 only 23 contracts had been signed, largely because differences in European and American contractual and business practices had to be resolved.

The report also said that the Air Force did not know the extent of the impact that European co‐production would have on overall costs. The Air Force replied that it did not believe that European participation would increase costs.

General Dynamics, in an answer to some parts of the G.A.O. report, declared, “The F‐16 fighter program is and has been proceeding on schedule and we do not anticipate any delays in the future. The F100 engine has performed in excellent fashion and we have experienced no (unintentional) engine stalls or engine restart problems.”

Assertions by Tactical Air Command officers are included in the report on the need for radar‐guided air‐to‐air missiles for the F‐16 in addition to the infraredguided missiles that are now its basic armament. According to the G.A.O., the F‐16 does not have space for the additional missiles suggested by the Tactical Air Command.

Other changes in the F‐I6 have been necessitated to give it a dual capability; air‐to‐ground as well as air‐to‐air. These changes are due in part to urgings from the European allies.