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(Page 2) DGA analyzed the basic elements of US policy as they applied to the mutual security program, and reviewed the proposed application of the program in the major areas of the world. With respect to Europe he said that "we are encouraged by the significant increases which our European partners have made in their military budgets over the past year. We understand and appreciate the problems created for our partners by the impact on their economies of great increases in defense expenditures. We feel that progress has been made toward dealing with these problems, but even larger effort is necessary. We believe that we can, by cooperation and the utmost effort by all of us achieve greater progress toward a level of military expenditure and production which will be adequate to ensure our common safety. DGA said that the mutual security program had been designed S. TRUMAN with the hope of developing collective strength and strong 'NATIONAL political relationships to deter any further Soviet drives ARCHIVES SERVICE' RECORDS AND against other nations. At the same time, he said, it was essential to proceed with the development of world-wide social and economic strength in the confidence that, in the long run, "free societies can out-build, out-produce, and out-last societies based on tyranny and oppression." Stres- sing the interdependence of military and economic aid, DGA cautioned the Congress not to take too narrow a view of the ambating increased problem: "Frankly, what concerns me most at this time is that too narrow a viow might be taken of this problem of Engressional cou- building strength, and that economic and technical assistance might be reduced because of a failure to demonstrate or centration on military recognize how essential this aid is in underpinning military strength. We have seen time and again how political and economic deterioration and loss of morale can rot the fibers aid. of military strength. We have also seen how political and economic recovery brings an upsurge of morale and an increase of military strength. 1f Marshall testifies In his testimony on the 28th Marshall estimated that the $6. 3 billion for military aid provided in the mutual security program would have to be continued at the same level in 1953 and 1954, and held that this was "a project of self-interest for this country of the highest and most pressing urgency. " After 1954, he said, most of the European nations would be in full production, and would have the financial ability to maintain their defenses without major assistance from the US. In the next few weeks a stream of witnesses appeared before the House Committee, including Harriman, Foster, Cabot, Bradley, Hoffman, Rockefeller, Perkins. Harriman noted that "this is the moment when the US must take the lead in going forward vigorously with all the security programs on which we have embarked. Bradley declared that "as far as

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    "ocrText": "(Page 2)\nDGA analyzed the basic elements of US policy as they applied\nto the mutual security program, and reviewed the proposed\napplication of the program in the major areas of the world.\nWith respect to Europe he said that \"we are encouraged by\nthe significant increases which our European partners have\nmade in their military budgets over the past year. We\nunderstand and appreciate the problems created for our\npartners by the impact on their economies of great increases\nin defense expenditures. We feel that progress has been\nmade toward dealing with these problems, but even larger\neffort is necessary. We believe that we can, by cooperation\nand the utmost effort by all of us achieve greater progress\ntoward a level of military expenditure and production which\nwill be adequate to ensure our common safety.\nDGA said that the mutual security program had been designed\nS.\nTRUMAN\nwith the hope of developing collective strength and strong\n'NATIONAL\npolitical relationships to deter any further Soviet drives\nARCHIVES SERVICE' RECORDS AND\nagainst other nations. At the same time, he said, it was\nessential to proceed with the development of world-wide\nsocial and economic strength in the confidence that, in the\nlong run, \"free societies can out-build, out-produce, and\nout-last societies based on tyranny and oppression.\" Stres-\nsing the interdependence of military and economic aid, DGA\ncautioned the Congress not to take too narrow a view of the\nambating increased\nproblem: \"Frankly, what concerns me most at this time is\nthat too narrow a viow might be taken of this problem of\nEngressional cou-\nbuilding strength, and that economic and technical assistance\nmight be reduced because of a failure to demonstrate or\ncentration on military\nrecognize how essential this aid is in underpinning military\nstrength. We have seen time and again how political and\neconomic deterioration and loss of morale can rot the fibers\naid.\nof military strength. We have also seen how political and\neconomic recovery brings an upsurge of morale and an increase\nof military strength. 1f\nMarshall testifies\nIn his testimony on the 28th Marshall estimated that the\n$6. 3 billion for military aid provided in the mutual\nsecurity program would have to be continued at the same\nlevel in 1953 and 1954, and held that this was \"a project\nof self-interest for this country of the highest and most\npressing urgency. \" After 1954, he said, most of the\nEuropean nations would be in full production, and would\nhave the financial ability to maintain their defenses\nwithout major assistance from the US.\nIn the next few weeks a stream of witnesses appeared before\nthe House Committee, including Harriman, Foster, Cabot,\nBradley, Hoffman, Rockefeller, Perkins. Harriman noted\nthat \"this is the moment when the US must take the lead in\ngoing forward vigorously with all the security programs on\nwhich we have embarked. Bradley declared that \"as far as"
}