YNATIONAL SECURITY POLICY


  The Soviet Union is now allocating nearly 40 percent of its gross
available resources to military purposes and investment, much of
which is in war-supporting industries. It is estimated that even in an
emergency the Soviet Union could not increase this proportion to
much more than 50 percent, or by one-fourth. The United States, on
the other hand, is allocating only about 20 percent of its resources to
defense and investment (or 22 percent including foreign assistance),
and little of its investment outlays are directed to war-supporting
industries,. In an emergency the United States could allocate more than
50 percent of its resources to military purposes and foreign assistance,
or five to six times as much as at present.
  The same point can be brought out by statistics on the use of im-
portant products. The Soviet Union is using 14 percent of its ingot
steel, 47 percent of its primary aluminum, and 18.5 percent of its
crude oil for military purposes, while the corresponding percentages
for thie United States are 1.7, 8.6, and 5.6. Despite the tremendously
larger production of these goods in the United States than the Soviet

Union, thelatter is actually using, for military purposes, nearly twice
as much steel as the United States and 8 to 26 percent more aluminum.
  Perhaps the most impressive indication of the economic superiority
of the free world over the Soviet world which can be ,made on the
basis of available data is provided in the following comparisons (based
mainly on the Economic Survey of Europe, 1948):
   Comparative Statistics on Economic Capabilities of East and West


Population
    (millions)
Employment in non-Agricul-
  tural Establishments
    (millions)
Gross National Production
    (billion dollars)
National Income per capita
    (current dollars)
Production Data §:
  Coal
    (million tons)
  Electric Poxwer
    (billion KWH)
  Crude Petroleum
    (million tons)
  Pig Iron
    (million tons)
  Steel
    (million tons),-
  Cement
    (million tons)
  Motor Vehicles
    (thousands)


       European
       NA T
 U.S.  Countries
1948-9  1948-9  Total
149     173      322

  45-------------


USSR
(1950  Satellites
Plan)   1948-9


Total


198      75    273

31 _...............


250      84      334    65 $    21    86
1700    480     1040   330     280   315

582     306      888   250      88   338
356     124      480    82      15    97


277      1      278    35


5     40


55     24       79    19.5     3.,2  22.7


80     32      112    25


6     31


  35     21       56    10.5     2. 1  12.6
5273    580    -5853   500      25    525


  t1949 data. [Footnote in the source-text.]
  §For ýthe European NAT countries and for the satellities, the
data include out-
put by major producers. [Footnote in the source text.]


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