NATIONAL SECURITY POLICY


phasing of stockpile objectives. The stockpiling program as presented
here is intended to be kept flexible and can be readily revised as to
phasing to reflect changes in current requirements, material on hand,
materials available, and strategic assumptions. It should be noted that
the actual rate of acquisition of stockpile materials is the subject of
constant study and review. Changes may be made in the acquisition
rate of various materials ,from time to time depending upon current
availability weighed against demand of the current military and
war-supporting requirements.
  3. [s8c] In addition, stockpile objectives themselves are undergoing
constant review, particularly in the light of such questions as substi-
tution of other less critical materials, tests of necessity, and changes
in
military specifications. As results of the above studies become available,
stockpile objectives themselves are subject to the possibility of change,
upward or downward. The program presented here is the best con-
sidered opinion of all those concerned of what is essential and required
for our defense preparedness.
  4. Estimated requirements for funds include only those necessary
for the acquisition of materials, and do not include expenditures for
administration, handling, storage, and rotation. They are based on the
following assumptions:
   (a) General war may start at any time. For the sake of planning,
however, June 30, 1954 ,is taken as the date by which minimum stock-
piles must be on hand physically within the continental United States.
(The more materials stockpiled before 1954, the greater the national
security. However, for some ifew materials, it will be physically im-
possible to complete stockpiles by 1954.)
   (b) September 30, 1950 price levels (for purposes of comparison,
funds and expenditures on June 30, 1950 levels are also included).
   (c) Effective controls as authorized by the Defense Production Act
of 1950 to channel strategic and critical materials to military programs,
essential war-supporting programs, and the national stockpile.
  5. Overall dollar figures are given below, and quantitative details
for eleven of the most important materials are in the attached table.
About 70 materials are being stockpiled.
   (a) The acquisition of minimum stockpile objectives by mid-1954
will require, at September 30, 1950 prices, the appropriation of $4.1
billion new obligational authority, in addition to authorizations that
have already been enacted. These funds will be obligated and expended
in accordance with the following schedule:
                                                              After
                         FY '51   FY '52   FY '53   FY '54   FY'54
                         (Billions of Dollars-September 30, 1950 prices)
Obligation                  1.8      1.0      1.0      0.3
Expenditure                 0. 2§    1.6      1.0      0.8    0.05

  §See par. below. [Footnote in the source pext.I


MINIM-


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