NATIONAL SECURITY POLICY


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NAT community, but nevertheless will require continued economic
aid to sustain their economies. These countries include, at least in fiscal
1952, Austria, Greece, Iceland, Ireland, Sweden, Trieste and Turkey.
Aid for this latter group is included in Part B of this annex. United
States aid will also be needed in support of European international
economic institutions, such as the European Payments Union, the
Schuman Plan, and the Program of Trade Liberalization. The total
aid figures in Part A and in Part B of this annex for European coun-
tries include such funds as may be required for these institutions
although the specific amount needed for this purpose has not yet been
determined.
   8. Greece, Turkey and Iran, on the southern periphery of the Soviet
Bloc, are the recipients of military aid under Title II of the Mutual
Defense Assistance Act. The tense international situation requires
continuation of measures to maintain and, as practicable, increase the
military potential of these countries which are among those likely
to be the targets of further Soviet aggression and which are in an
area whose security is of vital concern to the security of the United
States.
  9. The danger of satellite states engaging in hostilities against
Greece counsels against the reduction of Greek forcesf under arms as
was contemplated at the beginning of fiscal year 1951. Increased mili-
tary supplies and economic assistance from the United States are essen-
tial to maintain these forces and to prepare them with the type of
equipment needed to defend themselves.
  10. Notwithstanding the. marked effect of American military aid
already rendered, the numerically strong Turkish armed forces still
lack adequate military equipment, supplies and training needed to
attain the level of combat effectiveness deemed essential for that coun-
try. In order to attain combat effectiveness of the Turkish Forces, it
is essential that the United States support the establishment and train-
ing of a non-commissioned officers corps in the Turkish Forces.
  11. It is necessary to 'iaintain a steady flow of military supplies to
Iran in support of the :forces required to maintain internal order in
that country and to give, the Government and people confidence in
their ability to do so. The Iranian Forces should be adequate to dis-
charge delaying action in the event of Soviet aggression in order to
permit the withdrawal of the Shah and Government, with some forces,
to the southern mountains in accordance with the Iranian military
plans and to permit implementation of a demolition program.
  12. The five-year program recommended under Title II for Greece,
Turkey and Iran (in millions) is as follows:
        195-1      1952        1953        1954        1955
      $325.9      $271.3      $287.4      $262.14     $242.2
      496-3C2--77--29