PENTAGON HALTS SOME PAYENTS TO A CONTRACTOR
Defense Secretary Caspar W. Weinberger said today that he would suspend for 30 days a small part of the Pentagon's payments to the General Dynamics Corporation while the Defense Department looks into possibly improper billings by the nation's largest military contractor. In a speech at an American Legion convention here, Mr. Weinberger also announced a review of billing procedures and a tightening of claims for overhead expenses of all major military contractors. The General Dynamics suspension involves payments for general and administrative costs, or overhead. This is 8 percent of the company's Government billings, according to a statement issued by General Dynamics. A Pentagon spokesman, Michael I. Burch, told reporters the 30-day suspension represents about $40 million.