Evening star., 1951-12-04
U. 5. Arms Program
Geared Too High for
Safety, Reed Says
BY the Associoted Press

NEW YORK, Dec. Phillip D.
Reed. chairman of the board of
the General Electric Co., said to-
day the United States is attempt
ing to expand its rearmament pro-
gram too fast for economic and
political safety.
He urged that the defense pro-
duction program be reduced. or.
If that is impossible, that it be
spread over an additional two to
four years.
Mr.. Reed spoke at the first In
ternational Conference of Manu-
facturers, attended by some $50
American and European indus
trialists. The conference is spon-
sored by the National Association
of Manufacturers.
1T is my carefully considered
view," he said, that the peak of
the rearmament program as pres
emily projected is too high and
that it comes too soon. II the
military requirements in the ag-
gregate cannot safely be reduced,
I believe the program should be re-
phased. the peak or bulge taken
off and spread over two to four
additional years.
Would Reduce Spending Rate.
Expressed in terms of the
United States defense production
program, this would mean re-
ducing the projected peak ex-
penditure rate from IS or more
billions of dollars in 1858 to be-
tween so and SIS billions, and
holding expenditures at this re-
duced level for a longer period
than is now contemplated.
corresponding re-phasing. &C
cording to individual needs and
circumstances, should likewise be
effected in the program of the
other NATO countries"
Mr.. Reed said that his con-
clusion was mot lightly reached"
Il fully support the proposition
that the free world must become
militarily strong" he said, "and
that each country must accept
the hardships that go with doing
its full and fair share.
However, I believe the evidence
that Russia will not deliberately
precipitate another world war
within the forseeable future, and
I am convinced that if the NATO
countries undertake to meet the
defense program as recently
formulated and scheduled, serious
economic and political disturb
ances will result.
Imitation and the misery which
lies along that road are no less
formidable enemies than the rulers
Of Russia. 1--WE must defend our
selves equally and simultaneously
against both"
Some European industrialists
say they realize the need for in
creased production, but they add
that some American methods are
hard to adopt to their plants.
Reforms Suggested.
The Europeans made this reply
to American suggestions for re-
forms yesterday.
Unrestrained competition with
out agreements between indus
trialists fixing prices and terri
tories was urged by American
speakers in their appeals for great
er European production.
Sir Norman Ripping. director
general Of the Federation of Brit
ish Industries. said he feared such
competition and worried that raw
materials might be exhausted.
Mr.. Ripping also said that mass
production, as practiced in the
United States is not feasible in
Europe because the continent is
divided by many countries, each
with customs barriers.
Edmond Voituron, executive of
a firm in Brussels, Belgium, said
tradition and prejudice hamper
European trading.
Earlier, Charles E. Wilson, Cen
eral Motors president. called on
the Europeans to understand the
basis of American productivity
and rapidly boost their own out
put. Mr.. Wilson said Europe can
not depend on American foreign
aid for long.