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P
Y
e.
If needed equipment is to be delivered by 1 July 1954 (the
NATO planning target date), (a 1-2 year time lag is involved because of the lead
times required), the greater portion of the necessary funds (in cash or contract
authority) must be made available now in order to place orders with industry to
initiate the increased production program. Accordingly, I believe that 1/3 of
$12 billion or $4 billion, in addition to the $1.2225 billion involved in FY 1951 MDAP,
could well be used now to initiate the task of putting industry to work to arm the
U.S.
and
its
allies.
In
this
connection,
attention
is
invited
to
the
fact
that
approximately
$4 billion will be required to completely equip Western European forces now in being,
or programmed to be organized by 1 July 1951.
3.
In a covering note to the above-mentioned memorandum to Mr. Leva,
I emphasized that I did not believe that these funds should necessarily be requested
solely for MDAP purposes, but suggested that they be blended with the equipment
needs of our own forces and submitted as a "single package". They could be
described as the funds needed to initiate production of the equipment needed to
'strengthen the Armed Forces of the United States and our Allies' or to "create
an arsenal of Democracy,' or both.
4.
I also pointed out that the distribution of this combined (for U.S.
Forces and MDAP) output of equipment will be completely controlled by our own
Armed Forces up to the time shipments are made to our Allies. Thus, equipment,
produced for MDAP purposes increases our own military potential in several
respects, thus:
a.
Before shipment, it increases U.S. equipment potential, for
use by U.S. forces, if necessary, or
b.
After shipment, it increases the effectiveness of our Allies.
/s/ L. L. Lemnitzer
Major General, U.S. Army
Director, Office of Military Assistance
TOP SECRET
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"ocrText": "TOP SECRET\nP\nY\ne.\nIf needed equipment is to be delivered by 1 July 1954 (the\nNATO planning target date), (a 1-2 year time lag is involved because of the lead\ntimes required), the greater portion of the necessary funds (in cash or contract\nauthority) must be made available now in order to place orders with industry to\ninitiate the increased production program. Accordingly, I believe that 1/3 of\n$12 billion or $4 billion, in addition to the $1.2225 billion involved in FY 1951 MDAP,\ncould well be used now to initiate the task of putting industry to work to arm the\nU.S.\nand\nits\nallies.\nIn\nthis\nconnection,\nattention\nis\ninvited\nto\nthe\nfact\nthat\napproximately\n$4 billion will be required to completely equip Western European forces now in being,\nor programmed to be organized by 1 July 1951.\n3.\nIn a covering note to the above-mentioned memorandum to Mr. Leva,\nI emphasized that I did not believe that these funds should necessarily be requested\nsolely for MDAP purposes, but suggested that they be blended with the equipment\nneeds of our own forces and submitted as a \"single package\". They could be\ndescribed as the funds needed to initiate production of the equipment needed to\n'strengthen the Armed Forces of the United States and our Allies' or to \"create\nan arsenal of Democracy,' or both.\n4.\nI also pointed out that the distribution of this combined (for U.S.\nForces and MDAP) output of equipment will be completely controlled by our own\nArmed Forces up to the time shipments are made to our Allies. Thus, equipment,\nproduced for MDAP purposes increases our own military potential in several\nrespects, thus:\na.\nBefore shipment, it increases U.S. equipment potential, for\nuse by U.S. forces, if necessary, or\nb.\nAfter shipment, it increases the effectiveness of our Allies.\n/s/ L. L. Lemnitzer\nMajor General, U.S. Army\nDirector, Office of Military Assistance\nTOP SECRET"
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