The defense portion of President Bush's new budget helps show that if world peace ever comes, it may wreak havoc with Utah's economy - which is based heavily on defense industries.

The $295 billion budget reveals the cuts that the Pentagon decided should come from the end of the Cold War. It does not include costs of the Persian Gulf war - which should be revealed separately later this month in a special, off-budget funding request.Those Cold War cuts could have slapped Utah hard financially if not for the extra business expected from Operation Desert Storm. For example the proposed 1992 budget would:

- Cut funding for construction at Utah's military bases by 64 percent - or $67 million - compared to fiscal 1991.

- Trim by 28.8 percent - and billions of dollars - numerous missile programs participated in by such companies with Utah operations as Hercules, Thiokol, Williams International, Litton, Varian and Flameco/Barnes.

- Not just trim, but terminate the Peacekeeper MX missile program participated in by Thiokol, Hercules and Litton, and the Tacit Rainbow missile participated in by Williams International and E-Systems.

- Cut by 15.9 percent the funding for construction of new aircraft that use materials, parts and systems from such Utah companies as Flameco, Litton, Hercules, Unisys, Rockwell-Collins, Teleflex, Lucas/Western Gear and Parker-Bertea Aerospace.

On top of those identifiable challenges for Utah companies, the budget announces planned cutbacks in troop levels, consolidation of many bases and closure of others - which all could affect Utah operations.

But the end of the Cold War and the new budget do bring some possible offsetting boosts to the Utah economy. For example, the budget would increase by hundreds of millions the amount spent to destroy the nation's aging chemical weapons - 42 percent of which are stored at Tooele Army Depot.

And the nation will spend hundreds of millions more a year to convert the Strategic Defense Initiative from a system to knock down intercontinental nuclear missiles to target more of the ballistic missiles that Third World nations may use. Utah State University has received heavy SDI research funding in the past.

All of those developments bear heavily on Utah, where three of the state's top 20 employers - as of 1988 - were defense contractors, and another two are military bases.

They are Hill Air Force Base, with 13,500 employees (the state's largest employer); Thiokol, 8,000; Hercules, 4,500; Tooele Army Depot, 4,000; and Unisys, 3,500.

Following are details of how the new budget would affect various Utah defense operations:


Construction at Utah bases would decrease from $104.1 million in 1991 to $37.1 million in 1992. The Pentagon said that budget pressure nationally forced it to cancel all construction not needed for environmental cleanup, troop housing or support of new weapon systems.

Construction funding proposed for Utah includes $14.7 million to complete a plant to destroy aging chemical arms at Tooele Army Depot. That is on top of the $61.65 set aside for that plant in fiscal 1991.

The budget also includes $4 million for a fitness training center at Dugway Proving Ground; $4.05 million for a depot production support facility at Hill Air Force Base; $2.7 million for a weapons and release system shop at Hill; and $11.6 million to build 130 units of family housing at Hill.MISSILE TERMINATIONS

The Pentagon announced termination of two missile programs involving companies with Utah ties - the Peacekeeper MX and the Tacit Rainbow.

A senior Pentagon budget official told the Deseret News that the MX is being terminated because the military has purchased enough missiles - 114 - to fill 50 hardened silos, provide test firings and test a system to fire MXs from rail cars. More could be made in the future if needed.

Funding for the MX - which involved Thiokol, Hercules and Litton - goes from $918 million to $458.2 million in 1992 with the end of the program expected in 1993.

The Pentagon official said the Tacit Rainbow is being canceled "because we could never get it to fly right." Funding for the Tacit Rainbow - which involved Williams International and E-Systems - funding goes from $85.5 million in 1991 to zero.OTHER MISSILE CUTBACKS

The budget proposes cutting funding by 82 percent for the Patriot missile program, now famous for its success in the Persian Gulf against Scud missiles. Again, that does not rule out possible additional purchases needed because of the war - which will come in a separate request.

Patriot funding would drop from $759.4 million in 1991 to $140 million. Williams International, Thiokol and Varian make portions of the Patriot.

The Tomahawk cruise missile would be cut 30 percent, from $710.2 to $499.7 million. Williams and Flameco/Barnes have built portions of that missile.

Percentage cuts for other major missile systems and companies with Utah ties involved with them are: Trident II, 24 percent (Hercules, Thiokol); Hellfire, 79 percent (Hercules, Thiokol); AMRAAM, 23 percent (Hercules); HARM, 36 percent (Thiokol); and the Standard, 30 percent (Hercules, Thiokol).

Conversely, missile systems where increases in funding are proposed include: the TOW, 23 percent (Hercules, Thiokol); and the AGM-130, 78 percent (Hercules).

Funding for all missile systems with Utah ties - totaling terminations, decreases and increases - would fall from $6.5 billion to $4.6 billion, or 28.8 percent.AIRCRAFT PRODUCTION CUTS

Funding for such aircraft with ties to Utah companies as the Apache and Blackhawk helicopters and the F-14D, F/A-18, F-15E and the F-16 would be cut 15.9 percent overall, from $5.9 billion to $4.9 billion.

Those aircraft use materials, parts and systems from such companies with Utah operations as Flameco, Litton, Hercules, Unisys, Rockwell-Collins, Teleflex, Lucas/Western Gear and Parker-Bertea Aerospace. CHEMICAL ARMS DESTRUCTION

Besides money to build the new chemical arms destruction plant at Tooele, the Army is planning a 62 percent increased in research and operations in 1992 as such plants start work.

The increase is from $292.7 million in 1991 to $474.8 million in 1992 - and an increase to $626 million projected in 1993 to hire employees and buy supplies needed nationwide.OTHER DEFENSE ACTIONS

Other actions announced that could affect Utah include plans to cut the number of active-duty service people from 1.89 million in 1992 to 1.66 million 1995.

The Pentagon also said it plans to merge many of its defense and logistics depots and close others. Tooele Army Depot should be safe because it was chosen to receive a new Consolidated Maintenance Facility last year.

Strategic Defense Initiative funding is proposed to increase from $2.89 billion to $4.58 billion to reconfigure it more to confront threats from the Third World.