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(Page 3) the North Atlantic area is concerned, there is no direction to go but forward. There is no hope of accomplishing the remainder of the job in the next few years without continued military aid from us. II Senate hearings - On July 21 th the Senate Foreign Relations Committee opened DGA testifies its hearings, with DGA as the first witness. His testimony was similar to that which he had given earlier to the House committee (see above). He pointed out in addition, however, that the program was not expected to be reduced in size over the next three years. He said, in answer to a question, that it was estimated that the US would spend about $25 billion for the defense of its allies in that period, after which it was hoped that there would be "an era of genuine rolaxation of tension" and "very substantial" reductions in the needed appropriations. Connally asked DGA. "Are you satisfied with the progress of our Western European allies under the plans for defense TRUMAN of Western Europe? Are you satisfied with the progress NATIONAL they are making?" DGA replied that "none of us can be ACCURDS satisfied with the progress that we or any of our associates SERVICE" Ess are making in this effort and we must constantly attempt to make greater progress I think we are doing everything we now can to encourage them and I think they are putting their hearts and strength into it to assist themselves, and I think all of us can do even more in the years ahead. If Witnesses who followed DGA were in the main those who had also appeared before the House Committee. Efforts to reduce During this period, a movement developed in both the Senate expenditures and the House to reduce the funds available for the mutual security program and to vest its administration in an agency independent of the State Department. The Senate Republican Policy Committee endorsed on July 30th the establishment of such a body to handle at least the economi C and technical assistance phases, although it postponed a decision on the military portion, pending further study. On August lst Chairman Richards of the House Committee on Foreign Affairs offered amendments to the proposed legisla- tion that would reduce the amount of the program by $700 million. On August 2nd Senators H. A. Smith and Saltonstall introduced legislation providing for an independent agency under a cabinet-level officer to administer all foreign aid programs, military, economic and technical. A similar plan was presented in the House Committee on Foreign Affairs early in August where, it was reported, a statement in opposition was made by the Budget Bureau Director on behalf of HST. It was stated that HST felt

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    "ocrText": "(Page 3)\nthe North Atlantic area is concerned, there is no direction\nto\ngo but forward. There is no hope of accomplishing the\nremainder of the job in the next few years without continued\nmilitary aid from us. II\nSenate hearings -\nOn July 21 th the Senate Foreign Relations Committee opened\nDGA testifies\nits hearings, with DGA as the first witness. His testimony\nwas similar to that which he had given earlier to the House\ncommittee (see above). He pointed out in addition, however,\nthat the program was not expected to be reduced in size over\nthe next three years. He said, in answer to a question,\nthat it was estimated that the US would spend about $25\nbillion for the defense of its allies in that period, after\nwhich it was hoped that there would be \"an era of genuine\nrolaxation of tension\" and \"very substantial\" reductions\nin the needed appropriations.\nConnally asked DGA. \"Are you satisfied with the progress\nof our Western European allies under the plans for defense\nTRUMAN\nof Western Europe? Are you satisfied with the progress\nNATIONAL\nthey are making?\" DGA replied that \"none of us can be\nACCURDS\nsatisfied with the progress that we or any of our associates\nSERVICE\"\nEss\nare making in this effort and we must constantly attempt\nto make greater progress I think we are doing everything\nwe now can to encourage them and I think they are putting\ntheir hearts and strength into it to assist themselves,\nand I think all of us can do even more in the years ahead. If\nWitnesses who followed DGA were in the main those who had\nalso appeared before the House Committee.\nEfforts to reduce\nDuring this period, a movement developed in both the Senate\nexpenditures\nand the House to reduce the funds available for the mutual\nsecurity program and to vest its administration in an\nagency independent of the State Department. The Senate\nRepublican Policy Committee endorsed on July 30th the\nestablishment of such a body to handle at least the economi C\nand technical assistance phases, although it postponed a\ndecision on the military portion, pending further study.\nOn August lst Chairman Richards of the House Committee on\nForeign Affairs offered amendments to the proposed legisla-\ntion that would reduce the amount of the program by $700\nmillion. On August 2nd Senators H. A. Smith and Saltonstall\nintroduced legislation providing for an independent agency\nunder a cabinet-level officer to administer all foreign aid\nprograms, military, economic and technical.\nA similar plan was presented in the House Committee on\nForeign Affairs early in August where, it was reported, a\nstatement in opposition was made by the Budget Bureau\nDirector on behalf of HST. It was stated that HST felt"
}