- 3 -

Major Issues - II
Questions

F. What is the role of civil defense in the face of thermo-nuclear attack?

1. Is a truly significant program possible?

2. Is it worth the effort as an added deterrent force in terms of cost and the disruption of civilian life?

G. Can the U. S. economy stand the mounting expenditures involved in the various phases of its international security program?

1. Can it afford to run the risk of not facing them?

IV. <u>Organization</u>

A. What problems does the new technology pose with respect to integrated strategic planning?

1. To the roles and missions of the various military services?

2. To the organization of our military establishment?

B. What problems does the increased weight of U. S. responsibility in world affairs together in relation to its military capability pose with respect to the organization of the government as a whole in respect to the development of integrated strategic planning, policy determination and coordinated action?

1. What changes if any are needed?

MAJOR ISSUES - III
Questions

SUBPANEL III - U. S. INTERNATIONAL ECONOMIC AND SOCIAL OBJECTIVES AND STRATEGY

- Questions -

I. Problems and Opportunities

A. What are the major problems the U. S. can expect to encounter in this field during the next ten to fifteen years?

B. What are the major opportunities that the U. S. might hope to encounter in this area during the next ten to fifteen years?

II. Objectives

A. Is an expanding free world economy essential to the continued strength and growth of the U. S. economy?

B. Would the opposite be true: namely, that continued vitality and growth in the U. S. economy are essential to the strength and expansion of the rest of the free world's economy?

C. To what extent does individual opportunity and well-being and the strength of our free institutions importantly depend on the vitality and growth of our economy?

1. Would the same be true for other free nations?

D. If the answers to the above three questions are affirmative, would it not indicate that the United States should identify itself with measures designed toward the growth and expansion of the economic and social life of the other members of the society of free nations?

Major Issues - III
Questions

- 2 -

E. To what extent would such a positive identification of the U. S. with the growth and expansion of the economic and social life of another nation tend to strengthen the cultural and political ties with that nation and its people?

F. What other reasons might the U. S. have for wanting to identify itself positively with the economic and social strength and growth of other countries?

... Military support?

... Supports of political objectives?

... Insurance of the availability of materials?

... Disaster relief and rehabilitation?

G. Can the U. S. contribute to an expanding world economy without concerning itself with the political and social institutions within which a growing economy can function?

### III. Strategy

A. What avenues are open to a democratic, private enterprise society such as that of the U. S. for co-operating with or assisting other countries in the economic and social fields in support of U. S. objectives?

Major Issues - III
Questions

- 3 -

B. What are the areas in which private enterprise may be
expected to play a role?

1. Financial?

.. Short-term loan?

.. Middle-term loan?

.. Intermediate-term credits?

.. Long-term loan?

.. Equity capital?

Where, and under what conditions?

2. Industrial?

.. Export of goods?

.. Assembly of goods abroad?

.. Manufacture of goods abroad?

.. Sale of managerial and technical knowledge abroad?

3. Agricultural?

.. Export of produce?

.. Production of food abroad?

.. Sale of managerial and technical skills abroad?

4. Engineering, Research and Technical Services?

.. Contract of services?

.. Establish offices abroad?

5. Transportation, Power and Communication?

.. Railroads?

.. Airlines?

.. Shipping?

.. Ports?

.. Power?

.. Telephones and Radio?

Major Issues - III
Questions

-4-

6. Public Works?

-- Highways?

-- Schools?

-- Irrigation?

-- Other community facilities?

7. Minerals?

-- Oil?

-- Other minerals?

C. Assuming that private enterprise will not invest in areas where social, economic, political or security conditions do not promise to yield a return that justifies assumption of the risk, can it be considered an effective instrument of national purpose only in those areas where conditions are favorable to its entry?

1. What measures, if any, are available to encourage the outflow of private foreign investment?

D. What are the areas in which religious and private philanthropic organizations may be expected to play a role?

1. Religious bodies?

-- Mission work?

-- Educational?

-- Health?

Where, and under what circumstances?

Major Issues - III
Questions

- 7 -

F. In assessing the role of the U. S. Government, it will be
important to identify:

1. The areas which are relatively stable politically and in which the growth of the economy can be achieved largely by economic means.

2. The areas in which political and economic revolutions are going on concurrently.

a. What purely economic measures are available to stimulate foreign economies?

b. What political and social institutions is it to our interest to encourage to bring about the environment in which a growing economy can flourish?

G. How extensive a direct role can the government play abroad in a democratic free enterprise society, in such fields as industrial and agricultural production, ownership and operation of public utilities or extractive industries?

H. What are the areas in which international and regional organizations may be expected to play a role?

1. Financial?

    .. Short-term loan?

    .. Intermediate-term credits?

    .. Long-term loan?

    .. Equity capital?

    .. Grants?

Major Issues - III
Questions

- 9 -

7. Minerals?

.. Oil?

.. Other minerals?

8. Technical assistance?

.. Government and financial services?

.. Health?

Agriculture?

.. Education?

Research?

I. Is the United States, which for the foreseeable future will be the major contributor to international and regional organizations, likely to be willing to see its money used by international bodies which are in direct competition with private enterprise in such fields as industrial and agricultural production or the ownership and operation of public utilities and extractive industries?

J. To the extent that the U. S. is unwilling to contribute to international bodies in competition with private enterprise, does it not create a situation where, in important areas of the free world, the U.S. or the international bodies cannot and U. S. private enterprise will not participate in industrial, agricultural, extractive or public utility developments?

1. Is this situation serious from the point of view of U. S. interests in those areas?

Major Issues - III
Questions

-10-

2. Would it not be possible to devise new types of instrumentality which would give greater flexibility in bringing to bear the creative and productive capacity of U.S. private enterprise in co-operation with the U.S. government in support of U.S. objectives?

3. What are some of the alternatives in this and other areas where U.S. objectives are not being supported to the full because of the lack of a vehicle through which to implement them?

#### IV. Organization

A. What are the existing channels within the U.S. government for determining its international economic and social objectives and developing the strategy to carry them out?

1. Are they adequate?

B. What changes in the organization of the U.S. government might improve the establishment of integrated objectives and long-range plans in this field?

1. The development of strategy?

2. Clear responsibility and authority for operations?

C. Can the U.S. government usefully develop closer relations with the international and regional organizations that will allow greater co-operation and flexibility in planning and carrying out programs of economic and social co-operation?

D. Can the U.S. government usefully develop closer relations with private economic and philanthropic organizations working in the international field?

Major Issues - IV

November 19, 1956

SUBPANEL IV - U.S. ECONOMIC AND SOCIAL POLICY

In this field our first accepted goal is a strong, growing economy. That growth must be maintained at a consistently *growing* rate; it must be also *stable* in the sense of avoiding extreme year-to-year or period-to-period fluctuations. It must, further, be kept *well balanced* as between geographical areas and industrial segments of our economy, and as between our economic and social objectives.

A second accepted goal is that fruits of growth should be shared broadly among all citizens. This means, first, that the direct rewards of workers, management and capital should increase as productivity increases, to provide a clear incentive for each to put forth the effort and commitment essential to sustained economic progress under our enterprise system. It means, further, that in addition to a general sharing of direct rewards, a true growth economy should provide progressively improving social benefits to our society as a whole -- to children, the aged and the handicapped, and to all citizens through the broad social services that require public direction.

The goal of constant growth of economy implies, first, a concept of the sound *rate* of growth. It must be a rate that can be consistently sustained, not one which fluctuates widely. Experience with the intolerable cost and waste of booms that are followed by busts has dictated the wisdom of finding a growth pattern that avoids excess in either direction.

We have learned, through bitter experience, that the preservation of a sound currency is requisite to the maintenance of orderly economic

Major Issues - IV

-2-

progress. Inflation can furnish the forced draught that gives the illusion of progress without its substance, while destroying the buying power of savings and pensions and laying the groundwork for subsequent deflation and recession. An effective discipline over purchasing-power stability of our currency is one of our chief instruments for preserving a vigorous but sustainable growth rate, and for preventing intolerably unfair distortions in the pattern of distribution.

The goal of growth also implies within itself the concept of constantly adjusted balance. No one segment of the industrial economy, or of the social fabric, should move ahead so rapidly (or, conversely, so slowly) that serious imbalances are introduced. This involves in turn a concept of balanced incentives and rewards in the private economy for labor, capital and management alike, plus a constant re-assessment in public policy of what are the criteria of this truly balanced growth. Balance is not a static concept, nor yet one that ought to change unpredictably.

The goal of stable growth, and the goal of a fair distribution of rewards both imply the need for a concept of preventive rather than remedial policies. Deviations from a healthy growth rate, and in turn from balanced opportunity of sharing in its fruits, should be headed off in advance, not corrected afterward. This is a challenge to a trying task because it involves the highest degree of prescience, and a constantly rising level of private and public awareness of the sources of imbalance. The infectiousness and danger of direct intervention, by public action, to supply *post-illness*

Major Issues - IV

-3-

remedies is a well-understood concept in economic thought. However, the
opposed concept of skillful preventive medicine commands far less general
understanding. The sincere attempts to employ this approach over the past
four years -- as exemplified by constructive fiscal and monetary procedures
and in farm policy -- have been subjected to violent attack by those whose
thought patterns have been conditioned to the "pound of cure" rather than to
the "ounce of prevention" approach.

The traditional aspiration of the people of the United States for a
steadily advancing level of welfare, economic and social, for all, will
continue to be realized only if we maintain a proper understanding of where
the wellspring of such progress resides. The growth of both the direct
returns and the social benefits that are in accord with our concepts of
humanity and justice are alike dependent upon continuing increase in the
productivity of our economy. Social benefits can be legislated, but this
turns into an empty gesture if it goes beyond what the economy is able to
support. It can be self-destructive if it takes a form that undermines the
incentives upon which the growth propensity of our economy depends.

On the other hand, a healthy growing economy can support an
increasing diversity of benefits and rewards, and can properly sustain a
widening program of equalizing and deepening social benefits to the under-
privileged, the handicapped, and certain age groups. A clear understanding
of the base on which our capacity to increase and diversify the flow of
benefits is essential to the maintenance of economic and social progress upon
all fronts.

Major Issues - IV

-4-

In attaining both our fundamental goals, the concept of cooperation between the directors of private enterprise, labor, and public authorities is essential to their attainment. Each must know and respect the abilities and strength of the other, comprehend each other's difficulties, assist in each other's tasks. Each is an accepted part of the American heritage.

Further, a healthy, growing, national economy must rest upon, and derive its strength from the international economy of which we are a part. The concept of interdependent economies (at least within the free world) is thus essential to attainment of the goal. Similarly, the sharing of benefits from that healthy growth must be wider than the American economy alone. We will, over the long run, derive a share of our real strength from others. To them a fair share of the benefits should return.

Over the next decade, those responsible for the framing and adminis-
tration of domestic economic and social problems will have to deal with a
variety of specific issues: the role of government in promoting economic
growth and stability; its farm and labor policies; its taxation policy; what
it needs to do to provide for the sound development and conservation of
natural resources, including water and land, minerals and timber; its role
in power development including the new field of nuclear power; its shipping,
air, land, transportation and communications policies; the problems of
distressed areas, urban and rural, and of rapidly expanding metropolitan
areas; policies and programs relating to social welfare; the thorny problem
of securing equality of opportunity and status for all racial groups.

Major Issues - IV

-5-

In each of the above-listed fields there will be a continuing need for
national policy formulation, and despite the special considerations that must
weigh heavily in the several decisions there is strong reason for believing
that each can be handled better if it is related to a coherent national aim
that has relevance to all. It is believed that the concepts set forth above,
relating to the maintenance of a stable growth economy, the opportunities
and fruits of which are made available to all citizens, can serve usefully as
such a unifying reference point.

Major Issues - IV

November 19, 1956

# SUBPANEL IV - U. S. ECONOMIC AND SOCIAL POLICY

## - Questions -

### I. Problems and Opportunities

A. What major problems will the U. S. face in this area during the next ten to fifteen years?

B. What are the major opportunities in this area during the next ten to fifteen years?

### II. General Policy Questions

A. What do we mean by economic growth?

1. What are the prospects of growth in the U. S. economy and which fields seem most promising?

2. What will be the likely impact of technological change on the growth of the U. S. economy?

B. What are the real incentives and sought-for rewards in the private-enterprise economy?

1. To the degree that these may be non-monetary, such as public rewards and public acclaim, what are they?

C. Does our taxation system discourage enterprise, or distort it undesirably?

1. If the answer to either question is affirmative, what type of changes should be made?

- 2 -

Major Issues - IV
Questions

D. Are some major sectors of our economy under some serious
basic handicap, e.g. agriculture, transportation, etc.?

1. Should we continue to try new public-action remedies to maintain their position, and if so, of what type, or should the natural forces of competition be allowed to play a more important role in bringing about their solution?

E. What public economic enterprises should be encouraged
and what should be the criteria of judgment?

1. Can they sustain their share of future growth as well,
   better, or less well than private sectors?

III. Policy Questions Related to Maintaining Stability in Growth

A. Do we have enough devices that will check or moderate
downward deviations?

1. Should there be more?

2. Do we lack an equally strong armory of weapons
to check dangerous upward deviations?

B. Can private enterprise assure itself of adequate future
resources of materials, energy, and skilled manpower, to sustain
a future rising rate of growth?

1. Or should public action be directed toward supplementing private planning, development, and acquisition and conservation of these resources?

-3-

Major Issues - IV
Questions

C. How can private and public efforts be jointly improved in the direction of better projections of changing public demands, so that instability from changing consumption patterns can be minimized?

IV. Policy questions Relating to the Relative Levels of Human Welfare as between Groups of the Population

A. To what extent can welfare devices, as transfer payments, be sustained without weakening the underlying strength of the economy?

B. There must be scrutiny of the actual policies by which direct welfare devices and payments are integrated with self-help. How should policies be formed which aim at encouraging or discouraging self-help by higher earnings in more productive work, by those who receive direct assistance or support, or at opening up new opportunities for future productive employment?

C. Are the private and public sectors of present and future welfare activities properly divided, and what principles should guide such division and the share of Federal versus local responsibility in the public sector?

D. Should there be more "welfare" activity which aims at future improvement, i.e., reduction in the future need for direct welfare assistance? Health research, specialized education, scientific research aimed at eliminating human weaknesses or handicaps, are examples.

Major Issues - IV
Questions

- 4 -

V. Policy Questions Aimed at Achieving a Future Solid Base for Our Economic Growth by Closer Association with Other Free World Partners

A. What policies will best assure our future access to materials, know-how and markets?

B. How can gradual expansion of our economic and social horizon to a broader base be achieved with a minimum of short-run injury to our own enterprise economy, and a maximum sharing of current as well as future benefits to inhabitants of other countries and areas?

Major Issues - V

November 19, 1956

# SUBPANEL V - UNITED STATES UTILIZATION OF HUMAN RESOURCES
## The American Citizen's Role in the Modern World

It is inherent in democracy that the individual citizen is the base of the entire structure. The citizen is not just a voter. He is far more than this. In the case of any particular individual, his role changes throughout life. In myriads of ways his place in the total democratic structure is complex and changing. He probably is both leader and follower, and at different times his role may be greatly changed. He may rise to political power and hold office. He may have great influence as a leader of greater or lesser degree in any number of private fields of endeavor. But at all times the individual is the citizen, and our democracy is an expression of the composite talents, contributions, participation and leadership of all its citizens.

The political, social, and technological changes of the last decade have imposed on the citizen burdens and responsibilities greater than citizens have ever had to bear before. Problems are increasingly complex. The organization to meet the problems becomes more complex. Grasping problems as a whole and relating them to other problems and related facts becomes more essential and more difficult.

An increasingly complex society requires constant improvement of human performance. The more complicated the machinery of society, both technical and organizational, the more vital it is in a democracy that the citizens be educated and prepared to discharge with competence and wisdom the varying responsibilities which they will bear during their lives.

- 2 -

Major Issues - V

The success of our democratic society in the long run will be a consequence of the ability and willingness of our citizens to discharge the myriad responsibilities of citizenship.

It would appear that the goal of our democracy should be to produce citizens adequately equipped to fulfill all of the tasks before us both domestically and internationally. The question is whether we are doing so today. Do we have an adequate balanced inventory of our needs in the coming years in technical and specialized fields on the one hand and preparation for assumption of general responsibility and leadership on the other? If so, is our system designed to fulfill the requirements? From time to time various specific requirements are accentuated. But it would seem questionable whether we should approach these problems on the basis of rushing frantically to fill the gaps after they have appeared. Is it not possible to forecast and to so orient our efforts that a balanced product would be the result.

Equally or more important than educating citizens with technical qualifications of adequate competence is the necessity that we shall not continue to drift in the direction of educating primarily specialists. The very essence of the concept of democracy and citizenship is that each individual must be a well-rounded citizen and not a technician alone. If the great bulk of our citizens ever come to the point where they abdicate their citizenship responsibilities, then our democracy will have failed.

We have seen evidences of recent years that specialists are ignoring their broader citizenship responsibilities. We have seen cases of monumental

-3-

Major Issues - V

failures on the part of outstandingly qualified people because they have
neglected their obligations as citizens. On the other hand our eyes must
not be closed to the increasing demand for specialization imposed upon
our citizens by the pace and character of developments at home and abroad.

The tasks that lie before our citizens need a thorough and profound
analysis in relation to the purposes, objectives and methods of our
democratic nation. We should inquire what are going to be the demands
upon our citizens, both at home and abroad, probe the meaning of these
demands and the requirements necessary to meet them. We should
recognize that we are dealing not simply with technical requirements but
also, and importantly, with the requirements that make up the individual
and national character. Moral and spiritual values, qualities of judgment
and wisdom as well as proficiencies are involved.

Having set forth our requirements, we need to consider, first,
the opportunities placed before our citizens to qualify themselves to meet
those requirements, and second, the inducements and incentives which
will lead them to seize and make the most of the opportunities.

Broadly speaking, the opportunities which our citizens have
available to help them mold their capabilities to their needs may be
classified under the single title "Education". So conceived, education
is partly formal, partly informal. It goes on throughout life.

The beginning point of the educational process is formal, in our
schools, colleges and universities. Since most of this formal education
is concentrated in the early and formative period of the citizen's life,

- 4 -

Major Issues - V

it is vastly important. We should consider carefully whether the curricula,
the quality of teaching and the host of intangible influences that surround
our educational system present the opportunities for learning, for
developing qualities of judgment, values, imagination and rational thinking
which should constitute the basic equipment of the American citizen for the
years that lie ahead. Similarly, consideration should be given to the
question whether we achieve satisfactorily the dual, almost contradictory,
objectives of offering equal opportunities to all and, at the same time,
offering opportunities tailored to the varying talents of each.

We should not ignore the importance of the continuing education that
goes on throughout life, partly through our work and partly on an informal
and voluntary basis. Our means of communication are now so highly
developed that the citizen has available to him an incredible mass of
informational and educational material. How much of it is poorly
presented because of the problems of communication between the
specialist and the non-specialist? What is overemphasized and where
are the gaps?

In a dictatorship people may within limits be told what oppor-
tunities to seize and be forced to take them or suffer the consequences.
Our democratic system denies both the moral and practical desirability
of such methods. One of the greatest of the citizen's freedoms is the
freedom to choose.

We have in our system various inducements to choice. Some of
them are based primarily on a sense of responsibility to society or the nation.

Major Issues - V

Others are based on monetary rewards; still others on prestige and intangible rewards. If we find that we have important shortages in citizenship qualifications, is it because of lack of sufficient incentives or because we are not offering the proper opportunities, or is it because the citizens are not taking the opportunities that are there? If the latter, why is this the case, and what should be done to seek to attract the citizens' interest in the needed directions?

The important thing would seem to be to see the problem in its true unity and to establish interrelationships within that unity. The goal of matching our citizenship to the challenge it faces is simple. Our eyes should be kept focused on the goal as we consider the infinitely complex problems involved in achieving it.

Major Issues - V

November 19, 1956

# SUBPANEL V - U.S. UTILIZATION OF HUMAN RESOURCES

- The American Citizen's Role in the Modern World -

- Questions -

## I. Problems and Opportunities

A. What are the foreseeable problems in this area during the next ten to fifteen years?

B. What opportunities can be anticipated in the next ten to fifteen years?

## II. A National Inventory of Requirements

A. Is it possible to state a national inventory of requirements for American citizens if America is to discharge its responsibilities and utilize its opportunities in the coming years?

B. Can such an inventory be divided between a statement of the fundamental requirements for all American citizens, for leadership groups and for professional and technical specialized requirements?

## III. The Citizen's Role

A. Can we anticipate the nature and character of the demands on our society in the foreseeable future?

1. Can these be translated into demands on the citizens?

2. If so, can we get a clearer indication of the changes needed in the educational and training facilities of the country?

3. Does our system of incentives encourage young people into the areas of greatest need?

Major Issues - V
Questions

-2-

B. What problems do we face with regard to obtaining the best contributions from our citizens?

1. What barriers exist to the fuller utilization of manpower?

2. How can they be surmounted?

#### IV. The Problems of Leadership

A. Do our social values encourage the development of the type of leadership we require for success and growth?

B. Are we producing leaders as well as experts? Do these leaders have qualities of character, imagination and broad understanding which enable them to relate their special field of endeavor to other fields? If not, what supplemental leadership training is needed?

C. Are there adequate facilities to give the developing leaders of our country, at the local, state and federal levels, the kind of experience and training which they need for the increasingly complex responsibilities which they have to carry?

1. Is special training and experience needed for responsibilities of leadership in the international field?

#### V. The Specialized Requirements

A. What will be the qualitative and quantitative requirements for specialized training and abilities for American citizens in such fields as:

Major Issues - V
Questions

- 3 -

1. Human organizations, national and international,
public and private?

2. Natural sciences?

3. Social sciences?

4. Engineering?

B. What educational and training facilities do we have to meet
these requirements?

1. Are they adequate and properly balanced?

2. If not, what supplements are needed?

3. What is the risk that expansion of programs may involve
a decline in quality?

VI. <u>The Citizen's Choice</u>

A. Do our citizens take fullest advantage of the opportunities
available to them:

1. The opportunities to better themselves and to qualify
for greater service?

2. The opportunities to serve?

B. If and to the extent that our citizens neglect these
opportunities, what further inducements do they need?

1. Is this a problem of education and information?

2. Is it a problem of incentives? If so, monetary or
prestige or other?

C. What other impediments stand in the way of the citizen's
maximum qualification for and rendering of service to the nation?

Major Issues - VI

SUBPANEL VI - UNITED STATES DEMOCRATIC PROCESS --
 ITS CHALLENGE AND OPPORTUNITY

We are committed to the proposition that democracy is the best form of human political organization. It is essential that our democracy demonstrate its inherent superiority.

The cardinal tenet of our democracy is the dignity of the individual as a human being. This is expressed in the whole bundle of what we call human rights which are enumerated in the Constitution. With this dignity goes also a responsibility, the responsibility of citizenship. In this fast moving, mechanized, scientific world we must be constantly aware of the nature and role of the individual citizen. We must be always careful to avoid regarding or treating him as just a human resource, a statistic, a unit to be manipulated.

In addition, we must be concerned with the organization of our
democracy. This is the political framework within which we as citizens
govern ourselves. Does that organization meet the requirements of the
present day and is it going to be able to meet the even heavier requirements
of the next ten to fifteen years?

Two ingredients of the modern world are of outstanding importance
and present the fundamental test of our organization. The first of these in-
gredients is the rapidity with which changes are taking place, and
accordingly the need for an organization which can adapt itself with reason-
able rapidity to those changes. The second ingredient is the vast change in
the position of the United States vis-a-vis the world, which greatly
increases the importance of the role of the national government in

- 2 -

our federal system. National action, national policy properly conceived
may hold the key to our survival.

It is inevitable in any form of government based primarily on
legal documentation that the pace of change is slow. The authors of
legal documents generally intend that this should be the case. They con-
ceive of themselves as creating an enduring and permanent structure.
Particularly is this the case of the United States constitutional structure
created as a product of 18th Century political philosophy and conceived
of as a permanent framework. We cannot accomplish constitutional
changes with the same facility with which the British can change their
unwritten Constitution.

Beyond this, our Constitution was created to pull together a loose
union of states to create something approaching a nation. It took a civil
war to demonstrate that the United States was a nation and not just a
free association of sovereign states.

Over the years since the Civil War the national power has been
dominant and, within the past half century, has grown enormously, but
there remain built in to our constitutional structure provisions, the
product of the best thinking of the end of the 18th Century, which in-
herently minimize the ability of our national government to think and act
on national problems on a national basis.

There are only two officers of the United States Government who
are elected by the nation as a whole, namely, the President and the Vice
President. Every other American official who is elected is elected
locally. As a consequence, every elected official other than the

- 3 -

President and the Vice President feels that his responsibility is primarily to
the local group whom he represents. Since the President and the Vice
President are elected only every four years, our national political parties are
not truly national parties with national responsibility; they are primarily, as
President Eisenhower recently pointed out, a confederation of local parties
or organizations whose main job is to elect local candidates and to
accentuate local issues. Once every four years these local organizations
coalesce into a temporary coalition to elect the President, after which they
tend to dissolve. Thus the President and the Vice President alone (and the
appointed members of the Cabinet) have a mandate to speak nationally and
think in terms of national policy.

In addition, within the Executive Branch of the Government, there
is a traditional organization into departments which is broadly functional.
The bureaucracy which staffs these various departments and which is to a
large degree beyond the control of the political heads of the departments is
not readily adaptable to change. This bureaucracy by tradition represents
in its activities a limited or specialized approach to the national interest.

Since few of the great policy problems which face the nation fail to
cross these functional lines, we have the inevitable and frustrating
pattern of effort to govern by interdepartmental committee. These
committees have by their nature a tendency to be negative, since each
representative carries with him the potential veto of his department.

Only the office of the President is divorced from these built-in
inducements to partisanship.

- 4 -

The Legislative Branch is made up entirely of individuals elected on a local basis and responsible to a local constituency. It is not surprising that only a very limited number of these elected representatives of the people feel that they can rise above local issues and assert a national position. The wonder of it is that so many of them do.

This built-in dominance of localism, which is a fundamental feature of our Legislative Branch, has its effect not only on the course and nature of legislation, but has its inevitable effect upon the Executive Branch, which must work with it. The too often underestimated power to grant or deny appropriations must be added to the ordinary legislative authority in appraising the influence of the Legislature over the Executive Branch.

There is nothing inherent in the democratic process or in the nature of democracy which calls for any such emphasis on localism as was built into the United States Constitution. But have we so organized our national government as to render it almost incapable of being national?

A similar problem of constitutional rigidity affects the ability of our democracy to meet its tasks at the state and local level. We need strong state and local governments, but we face a steady drift of power and responsibility away from them. As the Kestenbaum Commission stressed in its report on federal-state relations, one of the major reasons why the Federal Government is increasingly loaded down with the performance of duties which should be performed by the states and municipalities is that constitutional limitations within the states themselves prevent the states and municipalities from meeting their own problems, which then descend

- 5 -

upon the Federal Government. Self-imposed financial limitations upon local governments have much to do with this. The consequence is that the Federal Government grows bigger in the wrong places. Instead of concentrating on the great national problems, it grows bigger and more unwieldy doing things which the states and municipalities should and could do better. The effect is not only to overburden the Federal Government, but also again to accentuate the local quality of the Federal Government as against the national need.

Our states and municipalities are the training ground of our
democracy. Here our citizens learn the fundamentals of government and
here many of them have the chance to practice public service. The
declining role of our states and municipalities cannot be regarded as good
for our democratic system.

We have today many commissions studying the various aspects of
the problems discussed above, generally a specific phase of the problems.
It is submitted that some deeper and more overall thinking is called for
which will start with an estimate of the many important tasks to be performed
by the national, state and municipal governments and will then appraise our
constitutional and legislative governmental structure in relation to those
tasks.

MAJOR ISSUES - VI

November 19, 1956

# SUBPANEL VI - UNITED STATES DEMOCRATIC PROCESS -- ITS CHALLENGE AND OPPORTUNITY

## - Questions -

A. What problems do we foresee in this area in the next ten to fifteen years?

B. What are the opportunities that may appear to strengthen and make more effective the U. S. democratic process?

### II. The Challenge

A. Does the organization of our democracy meet the requirements of the present day and is it going to be able to meet the even heavier requirements of the next ten to fifteen years?

B. Do any factors of our national heritage, governmental or social, handicap us in the organization and functioning of government?

1. To what extent do the following assist or hamper our leadership in carrying out American policy?

a. The separation of powers?

b. The Federal structure?

c. The type and nature of our political parties?

d. Our attitude toward government?

Major Issues - VI
Questions

- 2 -

C. Can the U. S. effectively reconcile the conflicts that develop between its overall international interests and various segments of its domestic economy within the present government structure?

D. Can the organization of the Congress and its procedures evolve fast enough to meet the growing scope of its responsibilities and the diversity of its problems?

E. How can the Executive Branch of the Government attract personnel with the diversity, depth, and breadth of knowledge and understanding needed to deal wisely and effectively with the range of domestic and foreign problems that confront them?

F. Can state and local governments adapt themselves to the rapidly changing conditions and problems in a way that will stop the growing trend toward federalization?

G. What are the problems of the overall organization of the government with regard to producing and implementing long range policy decisions?

1. What are the relations between Congress and the Executive with regard to the decision-making process?

2. How well suited to participate in long range decision-making is:

a. The Department of Defense?

b. The Department of State?

Major Issues - VI
Questions

- 3 -

3. What is the role of the budgetary process in the formulation of national policy?

H. How does the basis on which congressional representatives of the U.S. are chosen affect the ability of our government to engage in long-range planning?

1. Can these representatives fairly reconcile the national point of view with the local interests of their constituents?

2. Can they reconcile our larger international interests in terms of world relations with pressing national problems of primarily local concern?

3. Can they resist the pressures to take over more and more of the responsibilities of the state and local governments?

I. How can non-governmental leadership be utilized to create public understanding of the possibilities and consequences of choice as to major American policies?

1. How can other leadership groups be brought into the decision-making process and be utilized to create public support for American policy?

2. How can major elements of this policy be removed from the political arena?

Major Issues - VI
Questions

III. Opportunity

A. As never before the people of the free world, both in Europe and the emerging countries, are looking for hope and faith in the future based on leadership in which they can trust, and based on values they believe in, and on the strength and competence to be successful. Can the people of the United States and their democratic organization provide what the people of the free world so desperately need?

SUBPANEL I - U.S. INTERNATIONAL OBJECTIVES AND STRATEGY

Chairman:

Dean Rusk
President
Rockefeller Foundation

Panel Secretary:

John King
Harvard Law School

PRIMARY PAPERS and AUTHORS

PAPER NO.

Nature of American Interests in the World

<table><tr><td>The National Interest</td><td>I-1</td></tr><tr><td>Walt W. Rostow</td><td></td></tr><tr><td>Center for International Studies</td><td></td></tr><tr><td>Massachusetts Institute of Technology</td><td></td></tr></table>

Psychological Strategy and Policy

<table><tr><td>Conflict of Ideas<br>(Not commissioned)</td><td>I-2</td></tr><tr><td>The Racial Factor in Our International Relations<br>Lester B. Granger<br>National Urban League</td><td>I-3</td></tr></table>

The Role of Alliances

<table><tr><td>Nuclear Technology and Alliances<br>Roger Hilsman<br>Chief, Foreign Affairs, Library of Congress</td><td>I-4</td></tr></table>

<table><tr><td>Theory of Alliances<br>Byron Dexter</td><td>I-5</td></tr></table>

<table><tr><td>Alliance as an Organizing Instrument<br>George S. Pettee<br>Operations Research Office<br>Johns Hopkins University</td><td>I-6</td></tr></table>

Colonialism and the Emergence of Dependent Peoples

<table><tr><td>The Colonial Problem<br>Froelich Rainey<br>Foreign Policy Research Institute<br>University of Pennsylvania</td><td>I-7</td></tr></table>

<table><tr><td>American Policy and the Politics of<br>Underdeveloped Countries<br>Lucien Pye<br>Center for International Studies<br>Massachusetts Institute of Technology</td><td>I-8</td></tr></table>

<table><tr><td>Prerequisites for Political Stability in<br>Backward Countries (Africa)<br>Max F. Millikan<br>Center for International Studies<br>Massachusetts Institute of Technology</td><td>I-9</td></tr></table>

November 16, 1956

SUBPANEL I (Continued)

-2-

Europe

Present and Future Relationships Between
U.S. and Western Europe
Lloyd A. Free
Institute for International Social Research
I-10

Trends in Europe
Waldemar A. Nielsen
The Ford Foundation
I-11

Europe in Transition the Next 10-15 Years
Howard Whidden
Business Week
I-12

Trends in NATO (Political)
Robert Strausz-Hupe
Foreign Policy Research Institute, University of Pa.
I-13

Trends in Germany
Fritz Kraemer
Office of Military Government
U.S. Army
I-14

Germany and NATO
Richard Scammon
Governmental Affairs Institute
I-15

The Role of the Anti-Communist "Left"
Sol M. Levitas
The New Leader
I-16

Iceland Case Studies
Porter McKeever
Committee for Economic Development
I-17

November 16, 1956

SUBPANEL I (Continued)

-3-

Latin America

Trends and American Attitude I-18
Adolph A. Berle
Private Law Practice
Former Ambassador to Brazil

The Policy of the U.S. toward the Countries of Central and South America I-19
Bryce Wood
Social Science Research Council

The U.S. and Latin America I-20
Arthur P. Whitaker
Foreign Policy Research Institute
University of Pennsylvania

Far East

America, Japan and the Asian Nations I-21
Paul M. A. Linebarger
School of Advanced International Studies
Johns Hopkins University

Trends and U.S. Policy in Japan I-22
Robert A. Scalapino
University of California
Berkeley

China, the U.S. and the Continuing Struggle I-23
Richard L. Walker
Yale University

China at Mid-Century I-24
Howard Boorman
Columbia University

Some Considerations Pertinent to a China Policy I-25
Lt. Col. Robert Ekvall
American Consulate, Geneva

November 16, 1956

SUBPANEL I (Continued)

-4-

Southeast Asia

U.S. Policies and Objectives with Respect
to Current Trends and Future Problems
Edwin F. Stanton
Former Ambassador to Thailand
I-26

Problems and Trends in Southeast Asia
William Phillips
School of Advanced International Studies
Johns Hopkins University
I-27

American Attitude Toward Southeast Asia
William Henderson
Council on Foreign Relations
I-28

Trends and U.S. Policy in India
John Cady
Ohio University
I-29

Middle East

The Dynamics of an American Policy for
the Middle East
Max Thornburg
I-30

The Arab-Israeli Dispute
Edwin Wright
The Middle East Institute
I-31

An Analysis of U.S. Policy toward the Middle East
Jacob C. Hurewitz
Columbia University
I-31a

Africa

Political Evolution of West Africa
L. Gray Cowan
Columbia University
I-32

Trends and Development in South Africa
Cornelis de Kiewiet
President, University of Rochester
I-33

Central and Southern South Africa
Eugene Dvorin
Bureau of Governmental Research
University of California
Los Angeles
I-34

November 16, 1956

SUBPANEL I (Continued)

-5-

**PRIMARY PAPERS and AUTHORS**

| | |
| :--- | :--- |
| East Africa<br>Carl G. Rosberg, Jr.<br>African Research and Studies<br>Boston University | I-35 |
| Belgian Congo<br>Joseph Van Bilsen<br>College of Overseas Territories<br>Antwerp | I-36 |

**Soviet Orbit**

| | |
| :--- | :--- |
| Trends in Soviet Orbit<br>Philip E. Mosely<br>Council on Foreign Relations | I-37 |
| Soviet Domestic Developments and the<br>Future of Soviet-American Relations<br>Frederick C. Barghoorn<br>Yale University | I-38 |
| Extent to Which U.S. Policy Can Affect<br>Soviet Development<br>Merle Fainsod<br>Harvard University | I-39 |
| Extent to Which U.S. Policy Can Affect<br>Soviet Development<br>Walt W. Rostow<br>Center for International Studies<br>Massachusetts Institute of Technology | I-40 |
| Extent to Which U.S. Policy Can Affect<br>Soviet Development<br>Mose L. Harvey<br>National War College | I-41 |
| Economic Development in the Soviet Union<br>Nicolas Spulber<br>Institute of East European Studies<br>Indiana University | I-42 |

**SUPPORTING PAPERS:**

*Subpanel II - U.S. International, Security Objectives and Strategy* All Papers

*Subpanel III - U.S. International Economic Objectives and Strategy* All Papers

November 16, 1956

SUBPANEL III - U.S. INTERNATIONAL ECONOMIC OBJECTIVES AND STRATEGY

**Chairman:** Milton Katz
Harvard Law School

**Panel Secretary:** Forrest D. Murden, Jr.
Ford Motor Company

PRIMARY PAPERS and AUTHORS

PAPER NO.

Economic Aid and Trade Policy as an Instrument
of National Policy
Lincoln Gordon
Harvard Business School

III-1

Objectives, Operations and Limitations
of Military Aid
H. H. Critz
Office of the Assistant Secretary
of Defense

III-2

Memo on Foreign Economic Policy
August Maffry
Vice President
Irving Trust Company

III-3

Imbalances in the World Economy
Hugh B. Kilbrough
Brown University

III-4

Foreign Economic Policy
Thomas Schelling
Yale University

III-5

Theory and Practice of Foreign Aid
Harlan Cleveland
Syracuse University

III-6

Companion paper: The Pattern of Soviet Policies
Toward the Underdeveloped Countries
Wladyslaw W. Kulski
Syracuse University

III-7

Labor Problems in Industrialization of
Underdeveloped Countries
Frederick Harris Harbison
Industrial Relations Section
Princeton University

III-8

November 12, 1956

SUBPANEL III (Continued)

| **PRIMARY PAPERS and AUTHORS** | **PAPER NO.** |
|---|---|
| Problems of Oil Resources<br>Walter J. Levy<br>Oil Consultant | III-10 |
| Effect of Foreign Population Trends on<br>Political and Economic Stability<br>Kingsley Davis<br>University of California<br>Berkeley | III-11 |
| Prospects for Population Growth and Their<br>Implications for Economic Development in<br>India, 1956-1988<br>Edgar Hoover<br>International Bank for Reconstruction<br>and Development, Washington, D. C.<br>Ansley Coale<br>Princeton University | III-12 |
| The Role of Agriculture in Underdeveloped<br>Countries and United States Policy<br>Arthur T. Mosher<br>Cornell University | III-13 |
| Demographic Difficulties and United States<br>Problems in Asia and North Africa<br>Irene Taeuber | III-14 |

SUPPORTING PAPERS:

Subpanel I - U.S. International Objectives and Strategy - All Papers

Subpanel II - U.S. International Security Objectives and Strategy - All Papers

November 12, 1956

Chairman:

Thomas B. McCabe

President, Scott Paper Company

Panel Secretary:

Bayless A. Manning

Yale Law School

PRIMARY PAPERS and AUTHORS

PAPER NO.

Governmental Responsibility for Economic
Progress and Stability

Government Responsibility for Economic
Growth and Stability
Dexter M. Keezer
McGraw-Hill Publishing Company
IV-1

America at the Threshold of Abundance
Gerhard Colm
National Planning Association
IV-2

The Hopes and Prospects for Economic Growth
Grover W. Ensley
Joint Economic Committee, Congress
IV-3

Taxation Policy

Long-Run Problems of Fiscal Policy
William J. Fellner
Yale University
IV-4

Effect of Taxation Policy on Economic Growth
and Stability at Various Levels
Richard A. Musgrave
University of Michigan
IV-5

Governmental Responsibility for Individual
and Social Welfare

Concept of Social Insurance
Herman Somers
University of California
IV-6

Political Implications of Social Welfare
Robert A. Dahl
Yale University
IV-7

Individual and Social Welfare
Lester B. Granger
National Urban League
IV-8

November 18, 1956

SUBPANEL IV (Continued)

-2-

Farm Problem

A Working Paper on Agricultural Policy
Theodore W. Schultz
Center for Advanced Study in the
Behavioral Sciences
IV-9

Some Concepts and Long-Time Objectives
of Agricultural Policy
J. Norman Efferson
Louisiana State University
IV-10

Distressed Areas

Uneven Industrial Growth
Franklin A. Lindsay
McKinsey & Company
IV-11

Resources

Outlook for Natural Resources
Joseph L. Fisher
Resources for the Future, Inc.
IV-12

Resources and Population Reports
"think" piece
Franklin A. Lindsay
McKinsey & Company
IV-13

Water Resources and the U.S. Economy
Fairfield Osborn
Conservation Foundation
IV-14

Transportation

Transportation Problems
Ernest Williams
Columbia University
IV-15

SUPPORTING PAPERS

Subpanel V - U. S. Utilization of Human Resources All Papers

November 16 1956

Chairman:

James R. Killian, Jr.
President

Panel Secretary:

Fred M. Hechinger
Associate Publisher
Bridgeport Herald

PRIMARY PAPERS and AUTHORS

PAPER NO.

A Look Ahead (Population Trends in U.S. and Sociological and Political Impact)
Dudley Kirk
Population Council
V-1

High Talent Manpower for Science and Industry
J. Douglas Brown
Dean of Faculty
Princeton University
V-2

Problems of Education in a Growing Society and Relation to Population Trends
Philip H. Coombs
Fund for the Advancement of Education
V-3

Overall Utilization of Manpower
Anna M. Rosenberg
Labor and Personnel Consultant
Former Assistant Secretary of Defense
V-4

Manpower Trends and Problems
Eli Ginsberg
Columbia University
V-4a

Overall Utilization of Manpower
Franklin A. Lindsay
McKinsey & Company
V-5

National Health - Sociological Aspects
Lowell T. Coggeshall
University of Chicago
V-6

Mental Health from a Broad Sociological Aspect
John C. Whitehorn
Chief of Psychiatry
Johns Hopkins Hospital
V-7

SUPPORTING PAPERS

Subpanel IV - U.S. Economic and Social Policy

All Papers

November 12, 1956

SUBPANEL VI - U.S. DEMOCRATIC PROCESS - ITS CHALLENGE & OPPORTUNITY

**Chairman:** John S. Dickey
President, Dartmouth College

**Panel Secretary:** Charles A. H. Thomson
Brookings Institution

Analysis of Democratic Structure
The Moral Basis for American Foreign Policy
William Y. Elliott
Harvard University

VI-1

Role of Executive
Executive Branch Organization for the Formulation and Execution of National Security Policy
William R. Kintner
Operations Research Office
Johns Hopkins University

VI-2

Integration of Presidential Control of Foreign Policy in the Federal Government
William Y. Elliott
Harvard University

VI-3

Improving the Executive's Relations with the Congress of the U.S. in the Formation of Foreign Policy
William Y. Elliott
Harvard University

VI-3a

Role of Congress and the Executive in the Formulation of Policy Decisions
Arthur Vandenberg, Jr.

VI-4

Role of Congress and the Executive in the Formulation of Policy Decisions
Stephen K. Bailey
Woodrow Wilson School
Princeton University

VI-5

Role of Budgetary Process to National Policy
Arthur Smithies
Harvard University

VI-6

Department of Defense
The Making of Timely Long-Range Strategic Decisions
General C. H. Bonesteel
Assistant Division Commander
24th Infantry Division

VI-7

November 12, 1956

SUBPANEL VI (Continued)

-2-

PRIMARY PAPERS and AUTHORS

PAPER NO.

Problems of Strategic Planning
N. E. Halaby
Servomechanisms, Inc.

VI-8

Department of State

American Foreign Relations: The Formulation
and Conduct of American Foreign Policy
Avra Warren
Former Ambassador to Turkey

VI-9

Organization for Decision-Making
Wallace S. Sayre
Columbia University

VI-10

SUPPORTING PAPER

Problems of Integrated Strategic Planning
(Subpanel II - 1 paper)

November 12, 1956