NATIONAL SECURITY POLICY


   A Mutual Defense Assistance Program for Fiscal Year 1951 is'being
 developed for presentation to Congress in thenear future.-Plans and
 policies forthe 1951 program will be based on a comprehensive review
 of our overall political and strategic objectives and the fundamental
 considerations underlying United States military assistance.
   Since the action contemplated by NSC 14/1 was completed by the
 enactment of Public Law 329, and since the developments in Mutual
 Defense Assistance will be the subject of a semiannual report by the
 President to COngress, Progress :Reports on NSCG 14/1 are being
 discontinued.
                                                    JAMES E.WEBR

 Policy Planning Staff Files.
   Menorandwum by the ,Deputy Assistant Secretary of State for
      European Affairs (Thompson) to therSecret aryofState'
 TOP SECRET                           [WASHINGT    ,] April 3, 1950.

 Subjeot: Draft report- to the President and the State-Defense Staff
     study'
   WNVhile we 'feel that thedraft report to the President and ,the State-
 Defense Staff'Study contain many useful analyses, with most of which
 we are in agreement, the conclusions reached do not -appearto flow
 logically from.this analysis and some of the most important Sugges-
 tions in thelpaper are not directly supported by the analysis. We sug.
 gest it would be advisable to reorganize the study in order to have it
 flow logically tothe conclusions reached. For example, the quotations
 in the chapter. on conclusions from NSC 20/4'2might be placedu't the
 beginnhing of the. paperas the statement of our objectives'.Apart from
 the conclusion's on atomic" ene'rgy, the important conclusions of -the
 paper, in our opinion, are those set forth on page 24 of the report to
 the President and'on page 25 of chapter 9 of the longer document. The
 second conclusion recommendsa Sharp, increase in military expendi-
 tures, the third provides fora sharp increase in military assistance
 programs and the fourth more increase in economic iassistance pro-
 grams. These are exceedingly important conclusions, yet neither of
 the papers discusses our present programs in these fields nor our pro-
 jected plans. Ifth~ese conclusions are to be supported, it would appear

 'The documents under reference, prelimin;ary draffs in the preparation of
NSC -68, April 14 (p..:-234)), 7aredescrib ed'in Under"Seteketary- Webb's
memorandum
of March 30 and footnotes 2 and 3 thereto, p. 210.
  2 For text of NSC 20/4, a report to the President by the National Security
Coun-
cil onU.S. Objectivese With Respect to the ,U.S.SR. to Counter Soviet Threats
to
U.S. Security, November 23, 1948, see Foreign Relatio ns, 948, vol.j, Part
2, p, 662.


496-362-77--15


213