WESTERN HEMISPHERE DEFENSE                       659

assist in the economic development which answers to the aspirations
of the Latin American leaders and their people.
   c) The concentration of economic development in Latin America in
those basic fields which will contribute the maximum to:
       (1) The development of production which will minimize Latin
     Americas dependence on the United State as a source of supply
     in the case of emergency.
       (2) To maximize the output in Latin America of strategic and
     other essential materials required to meet expanded consumption
     requirements in the United States, plus the attainment of stock-
     pile objectives.
   d) To hold the drain on United States financial resources to the
minimum    compatible to the attainment of the foregoing objectives.
   3. Financial requirements of an economic program         for Latin
America.
   A reappraisal of financial requirements for Latin America has been
made necessary by the situation set forth in NSC 68/1 itself; particu-
larly in view of the disclosure that the gross national output projected
requires a much greater consumption of Latin American products and,
therefore, a rapid expansion in production of those items in Latin
America. In view of the foregoing, the summary of Latin American
requirements set forth in pages 2, 3 and 4 of Annex No. 2 have been
amended as follows:
   a) The projection on page 2 of Annex No. 2 should be amended to
read as follows: 7
                             1951     1952      1953     1954      1955
Latin America              40(40)     105       115      104        70

   b) Note 3 "Latin America,"8 page 4 of Annex No. 2, should be
amended to include the following additional sentences:
       "An additional grant-in-aid sum in the total of $164 million
for
     the 1951-55 period 'is required. Of this total,, $64 million will fi-

  'Reference is to projections of economic grant aid, including Point IV
funds
but excluding all military aid. In the mentioned table, other American republics
were allotted no grant aid for fiscal '19,51, $60 million for fiscal 1952,
and $70
million for each of the fiscal years 1953 through 1955. (S/S-NSC Files: Lot
63D351: NSC 68 Series)
  8 The mentioned passage reads as follows:
  "Latin America. It is estimated that the expansion and new development
of critical materials supply and associated transport and power facilities
will
require an investment of about $350 million per annum. It is further estimated
that the IBRD will be able to invest in Latin America at the rate of about
$125
[m.] per annum, leaving about $225 m. for U.S. Government loans. Grant aid
for
Latin America is scheduled to cover expanded IIAA assistance in increasing
indigenous food production ($20 M. for 1952 and $30 M. thereafter), increased
Point IV activities in other fields ($20 million a year), and an additional
$20
million a year as a contingency fund to cover unpredictable events such as
earthquakes, floods, riots, etc. It is 'expected that Latin America will
earn enough
dollars to take care of 'normal' development activities not embraced above."
(S/S-NSC Files: Lot 63D351 : NSC 65 Series)