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(Page 2) HST maintained that despite "some unavoidable economic dislocations and inflationary pressures" the nation had thus far carried the burden of the major national security programs, including the mutual security program, with "remarkably little strain. He expressed the opinion, therefore, that with the continuing expansion of national production, present security expenditures were "clearly TROMAN within our economic capacity" and might even be carried more easily in the years ahead. He held that the $7.9 ARCHIVES 'NATIONAL RECORDS AND billion contemplated for the mutual security program would SERVICE' "bring returns no other policy could hope to produce so s economically, " and the only question about the amount was not whether it was too large, but whether it might be too small. Harriman and DGA Hearings began on March 13th with House and Senate commit- testify tees meeting jointly. Testifying first, Harriman stressed especially his belief that the proposed size of the program should not be reduced. He agreed that it could of course be cut, as any program could be cut, but said that he was convinced that such action would "reduce the strength which is being built in the free world" for common defense and would " gravely imperil" the national security. Both Harriman and DGA, who testified next, emphasized the importance of the European "defense support" funds. Harri- man stated that they were "not designed to provide our European partners with the means to live in comfort while we shoulder the burden of rearmement, If but at a "conserva- tive calculation" would result in military preparedness worth two or three times the actual amount expended. In addition to praising the "solid progress" made by the European nations toward tefense goals and expressing the opinion that increased programs for the current year "approached the limits" of European capacity, DGA made four major points: (1) the present was a historically important moment during which the US could, by its policies, press forward with the movement for a unified Europe or lose the opportunity to achieve results sought for certu- ries; (2) the limitations on the European economies were "real limitations which could not be removed by "exhorta- tion or by carping" but only by intelligent assistance; (3) technical and economic assistance to underdeveloped countries must be devised and timed to meet the conditions of the particular country concerned, which meant that although long-term, less costly projects were desirable in some areas, in others, particularly Asia, the "flowing tide of nationalism", "desperate discontent" and "ferment of communism" created an urgent need for immediate and effective action; and (4) situations of "utmost gravity" confronted the free mations in the Far East, making it

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    "ocrText": "(Page 2)\nHST maintained that despite \"some unavoidable economic\ndislocations and inflationary pressures\" the nation had\nthus far carried the burden of the major national security\nprograms, including the mutual security program, with\n\"remarkably little strain. He expressed the opinion,\ntherefore, that with the continuing expansion of national\nproduction, present security expenditures were \"clearly\nTROMAN\nwithin our economic capacity\" and might even be carried\nmore easily in the years ahead. He held that the $7.9\nARCHIVES 'NATIONAL RECORDS AND\nbillion contemplated for the mutual security program would\nSERVICE'\n\"bring returns no other policy could hope to produce so\ns\neconomically, \" and the only question about the amount was\nnot whether it was too large, but whether it might be too\nsmall.\nHarriman and DGA\nHearings began on March 13th with House and Senate commit-\ntestify\ntees meeting jointly. Testifying first, Harriman stressed\nespecially his belief that the proposed size of the program\nshould not be reduced. He agreed that it could of course\nbe cut, as any program could be cut, but said that he was\nconvinced that such action would \"reduce the strength\nwhich is being built in the free world\" for common defense\nand would \" gravely imperil\" the national security.\nBoth Harriman and DGA, who testified next, emphasized the\nimportance of the European \"defense support\" funds. Harri-\nman stated that they were \"not designed to provide our\nEuropean partners with the means to live in comfort while\nwe shoulder the burden of rearmement, If but at a \"conserva-\ntive calculation\" would result in military preparedness\nworth two or three times the actual amount expended.\nIn addition to praising the \"solid progress\" made by the\nEuropean nations toward tefense goals and expressing the\nopinion that increased programs for the current year\n\"approached the limits\" of European capacity, DGA made\nfour major points: (1) the present was a historically\nimportant moment during which the US could, by its policies,\npress forward with the movement for a unified Europe or\nlose the opportunity to achieve results sought for certu-\nries; (2) the limitations on the European economies were\n\"real limitations which could not be removed by \"exhorta-\ntion or by carping\" but only by intelligent assistance;\n(3) technical and economic assistance to underdeveloped\ncountries must be devised and timed to meet the conditions\nof the particular country concerned, which meant that\nalthough long-term, less costly projects were desirable\nin some areas, in others, particularly Asia, the \"flowing\ntide of nationalism\", \"desperate discontent\" and \"ferment\nof communism\" created an urgent need for immediate and\neffective action; and (4) situations of \"utmost gravity\"\nconfronted the free mations in the Far East, making it"
}