NATIONAL SECURITY POLICY


velopment of an economic and social structure within which the
peoples of Asia can make more effective use of their great human and
material resources.
  Seventh, and perhaps most important, there are indications of a
let-down of United States efforts under the pressure of the domestic
budgetary situation, disillusion resulting from excessively optimistic
expectations about the duration and results of our assistance programs,
and doubts about .the wisdom of continuing to strengthen the free
nations as against preparedness measures in light of the intensity of
the cold war.
  Eighth, there are grounds for predicting that the United States and
other free nations will within a period of a few years at most experi-
ence a decline in economic activity of serious proportions unless more
positive governmental programs are developed than are now available.
  In short, as we look into the future, the programs now planned will
not meet the requirements of the free nations. The difficulty does not
lie so much in the inadequacy or misdirection of policy as in the in-
adequacy of planned programs, in terms of timing or impact, to
achieve our objectives. The risks ,inherent in this situation are set
forth inthe following chapter and ,a course of action designed to re-
invigorate our efforts in order to reverse the present trends and to
achieve our fundamental purpose is outlined in Chapter IX.
C. Military
  The United States now possesses the greatest military potential of
any single nation in the world. The military weaknesses of the United
States vis-a-vis the Soviet Union, however, include its numerical in-
feriority in forces in being and in total manpower. Coupled with the
inferiority of forces in being, the United States also lacks tenable
positions from which to employ its forces in event of war and
munitions power in being and readily available.
  It'is true that the United States armed forces are now stronger than
ever before in other times of apparent peace; it is also true that there
exists a sharp disparity between our-actual military strength and our
commitments. The relationship of our strength to.our present com-
mitments, however, is not alone the governing factor. The world situa-
tio~n, as well as commitments, should govern; hence, our military
strength more properly should be related to the world situation con-
fronting us. When our military strength is related to the world
situation and balanced .against the likely exigencies of such a situation,
it is clear that our military strength is becoming dangerously
inadequate.
  If war should begin in 1950, the United States and its allies, will
have the military capability of conducting defensive operations to
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