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('NATIONAL N ARCHIVES AND RECORDS is SERVICE (Page 1) THE IMPACT OF KOREA--JULY-SEPTEMBER 1950 -Synopsis F. Speedy Congressional Within ten days after the outbreak of war in Korea, on action on MAP July 5th, the Senate Appropriations Committee approved a measure appropriating funds for the $ 1.2225 billion military assistAnce program legislation adopted by the Senate on June 30th. On July 11th the House Foreign ffairs Committee accepted unanimously the Senate bill and on the 19th it passed the House by a vote of 361 to 1. On the 25th HST signed the bill and on Sept. 6th he as- signed the appropriations bill for the full $ 1.2225 in arms aid. Another $ 4 In the meantime, on Lugust lst, HST made public a request billion requested for an additional $ 4 billion to be added to the funds of the military assistance program. Of this sum $ 3.504 billion were scheduled for the North .tlantic area, $ 193 million for Greece, Turkey, and Iran, and $ 303 million for Southeastern Asia and the Philippines. HST statement HST declared that "the security of the free world requires the US and the other free nations to put forth a larger effort in a much shorter period of time than TRUMAH had originally been contemplated. It is important that NATIONAL A the Congress make the requested amount available as soon ACCURDS as possible. The bulk of this money will be used to SERVICE'' Es procure military equipment of the kind which takes a long time to produce Speed in getting this production under way is imperative, if we are to have the equipment for the expanded forces that are being formed While it will undoubtedly be necessary for the US to manufacture the major part of the equipment. a significant portion of the arms needed can be produced abroad It is con- templated, therefore, that part of the funds requested will be used to procure military items and production equipment and materials abroad, and to provide equipment and materials, procured in the US or in other countries for defense production abroad Equipment which is procured abroad under this program can either be used within the country which produces it or transferred to other countries engaged in the common defense (However) I wish to make it very plain that this equipment will go forward to other countries only to supplement, and not to take the place of, their own strong efforts. " In conclusion HST emphasized that "military power rests on economic strength" and hence must continue to give full support to the European Recovery Program. "