.NATIONAL SECURITY POLICY


Committee (dated 'October 28, 1950). The equipment costs ,were based 4-
on these forces equipped in accordance with modified United States-
standards, after 'adjustments were made (for equipment on hand to--
gether with that equipment included in the fiscal year 1950 MDA
Program. This will provide initial armament maintenance parts and
ammunition. The equipment costs for capital equipment and mainte-
nance parts and replacement for that capital equipment (items 1(a)
and a portion of item 1 (b) of Table 2) were based upon current United
States prices. The gross cost of maintenance and expansion of Euro-
pean NAT ,forces (major portion of 1(b) of Table 2) was estimated
on the basis of current aggregate costs of supporting troopis (estimated
at a one to one ratio) in the country of recruitment. No allowance was
made either for the deployment of iforces in countries other than the
country of recruitment. The costs of stationing troops outside the
North Atlantic area are not included in the estimates of requirements
for the European NAT countries under the MTDP.
  4. The estimated ,cost of armament to be'furnished from the United
States (item 2 (a) of Table 2) in the form of capital equipment repre-
sents about 60 percent of the cost in terms of current United States
prices of meeting the aggregate capital equipment deficiencies of the
European NAT forces of a size and composition called for under the
MTDP and equipped according to modified United" States standards.
It is assumed that the European NAT countries (and Western Ger-
many)ý would produce or procure about 40 percent of their estimated
equipment deficiencies. The estimated cost of maintenance and replace-
ment equipment (item 2(b) of Table 2) was based on the assumption
that -the ,United States would furnish 16 percent of the gross main-
tenance requirements in fiscal year 1952 (,item 1(b), Table 2), 14
percent in fiscal year 1953, 12 percent in fiscal year 1954 and 10 percent
in fiscal year 1955. The 16 percent ,factor for fiscal year 1952 represents
about 60 percent of the total rates for maintenance parts and replace-
ment equipment for equipment on hand. Thereafter, it is assumed the
armament industry of Western Europe will supply an increasing por-
tion of current maintenance and replacement requirements for the
equipment on hand.
  5. T'he time-phasing of equipment requirements and oftoheestimated
cost of furnishing armament from the.;United States was related to
estimates of production lead time required to obtan the needed capital
equipment from current production both in the United States and in
the Western European countries. With respect to the United States,
it was assumed that our industrial mobilization base would be broad-
ened to accommodate the procurement by the Department of Defense
for ,the needs of the Unitd States armed forces as well as those of the


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