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Synopsis M, Developments Subsequent to Lisbon, March-June, 1952

  • Part of Dean Acheson Papers, Princeton Seminars Files

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SYNOPSIS M (Page 1) DEVELOPMENTS SUBSEQUENT TO LISBON March - June 1952 1. The Mutual Security Program HST requests $7.9 HST asked the Congress on March 6th to authorize the con- billion for the tinuance of the Mutual Security Program for the fiscal Mutual Security year ending June 30, 1953, one year beyond what was its Program scheduled expiration date. HST divided mutual security expenditures into two major categories: (1) "assistance in building up the military strength of friendly nations;" and (2) "economic and tech- nical assistance, primarily for the underdeveloped areas of the world.' He further separated military assistance into two types: " (1) Direct military aid, primarily in the form of military equipment and components thereof, and (2) defense support---primarilyin the form of raw TRUMAND materials, commodities, and machinery---to enable other *NATIONAL countries to sustain and increase their military efforts, ARCHIVES ANU RECORDS where that type of support produces greater returns in s SERVICE military strength than would an equal amount of direct military aid." He recommended that $7.9 billion be spent on the mutual security program during the fiscal year 1953 divided as follows: Europe, $4.1 billion for direct military ai d and $1.8 billion for defense support, including economic assistance for Austria; Near East and Africa, $606 million for direct military aid and $196 million for economic and technical aid; Asia and the Pacific, $611 million for military aid and $408 million for economic and technical aid; the American republics, $62 million in military aid and $22 million in economic and technical aid; $30 million for multilateral technical assistance, migration, and relief package freight; and $75 million for administration. HST also outlined the objectives of the program in each of the broad werld areas for which assistance was planned, noting especially that "the record abundantly warrants confidence in our European allies, and our continued steadfast support of them," particularly in view of their progress in the face of the severe pressures created by the rearmament effort. He stated that the funds included in the mutual security program for European defense support would yield, "according to the best estimates, more than twice as much military strength in Europe as would the same funds spent for the direct transfer of military equipment from the US. "