Evening star., 1952-03-06

U -
ram, 1853 (in MiIIions)
e::ss: s:ssss: sas Asslis.: F.ss .s:s
1919 q ,899
1876 8O2
4os q, l.o1s
22 81
80 50
rs rs
!, 1918. s56 IS 1900 ts]
military nassrsA efforts in southeas. Asia and th'
,csuse Of rounding.
/ necessary equipment and con-
Istruction to support them.
BY the end Of this calendar year,
General Eisenhower's command is
Expected to have at its disposal a
formidable force including some
l50 army divisions, about half OF
them on active duty, and some
4 900 military planes and a sound
base for further build-up in 1858
and 1854. These forces. Joined by
those Of Greece and Turkey. will
bring within measurable distance
the time when even the most fool
hardy man in the Kremlin Will
not dare risk open attack.
In order to equip the forces be-
ling raised by our allies under the
Lisbon agreements. we as well 81
they must step up our efforts,
There have been delays ia our
own production and delivery Of
arms. And combat requirements
lfor Korea have, Of course, received
top priority for deliveries from our
current output. I am assured that
production is now being acceler-
ated substantially, and I have
consequently directed that de-
liveries to the North Atlantic
Treaty defense forces be greatly
Speeded up.
The rearmament effort has also
created problems in Europe. The
European economy, after its ex-
traordinary comback in the years
of the European Recovery Pro-
gram, has now been subjected to
new and severe pressures. The
Marshall Plan was designed to
help restore minimum economic
health, not to produce a surplus
capable of creating military forces
adequate for European defense.
Today, not only has rearmament
imposed a heavy direct burden,
but the global consequences Of
Irearmament - including rises in
the prices both of raw materials
|generally' and Of finished goods
from the United States - have
drastically upset the European
balance of payments. Substantial
and sustained efforts will be nee
|essary to meet these problems.
even with our help.
Economical Aid to Security.
However, the European coun-
tries have a Sizable capacity to in
crease their armed forces. to con-
struct military bases and facili-
ties, and TO produce military
equipment and supplies If we pro-
vide the crucial margin Of raw
materials and other support for
their defense efforts. II we pro-
vide this margin Of resources, the
European countries will be able
to produce. far more military
equipment than they otherwise
could, and to maintain far larger
armed forces than would other
wise be possible. Our defense sup
port will allow them to use plants,
machinery, materials and man.
power which exist in Europe, but
which otherwise could not be de-
voted to defense purposes. For
this reason. our defense support
is an extremely economical way to
achieve military strength for our
mutual security. The funds in
cluded In the Mutual Security
Program for defense support will
yield, according to the best esti-
mates, more than twice as much
military strength in Europe as
would the same funds spent for
the direct transfer of military
equipment from the United States.
Accordingly, the: Mutual Sc
curity Program for Europe Is
planned so that the United States
will provide both weapons and
defense support. The form Of as
sistance-whether military equip.
|ment or assistance in financing
imports Of raw materials and
other items where required to
make possible the necessary level
Iof European defense efforts-has
been decided in each case on the
basis Of which form produces the
most results in defensive strength
at the least cost.
In addition to the funds for the
North Atlantic Treaty countries
and Western Germany, limited
amounts are included in the
Mutual Security Program for
Yugoslavia, whose defiance of the
Soviet Union is giving heart to
untold millions behind the Iron
Curtain; for Austria, where con-
tinued economic assistance is
necessary to maintain economic
stability in the face of occupation
Of part Of the country by Soviet
forces; and for facilitating emf
grafton from Europe under inter-
national arrangements. We expect
soon to complete arrangements
with Spain which will assist In the
defense Of the Mediterranean
area; our part in these arrange
ments will be carried forward with
funds already made available by
the Congress.
ASIA, AFRICA
AND LATIN AMERICA.
| Outside of Europe, our policy
Iof building collective strength for
peace must meet and overcome q
very different range Of problems
1 trVVH- - 4