FOREIGN RELATIONS, 19 5 0, VOLUME I


              Appendix " IA"-Army ,Programs
              Appendix "B"--Navy Programs
              Appendix "C"---Air Force Programs5

  6. The following general assumptions apply to all the Service pro-
grams contained in the appendices hereto:
  a. Hostilities in Korea will terminate by 30 June 1951.
  b. The forces and end strengths shown for'FY         1951 Will be
approved.
  c. The general level of forces and end strengths shown for FY
1952 will be maintained throughout the following three fiscal years.
  d. Funds for the procurement of war reserves are phased and
balanced over the four-year period from FY 1952 ,through FY 1955.
Only a minimum of war reserves are provided for during FY 1951.
  e, Programmed readiness levels in war reserves will be attained by
the end of FY 1956. However, procurement programs and production
capacity will be adjusted to the extent practicable so as to attain the
capability of rapid acceleration of production if the world situation
indicates the necessity of reaching materiel readiness- levels prior to
the end of FY 1956.
   f. Prices are based generally on an aVerage increase of 10% over
those contained in the President's budget for Fiscal Year 1951.
                                        For the Joint Chiefs of Staff:
                                        GENERAL OmA     N. BRADLEY

  5 Appendices "A", "B", and "C" are not reproduced
herein.


  S/S-NSC Files: Lot 63D351: NSC-68 Series.
  Memorandum by the Director of the Policy Planning Staff (Nitze)-to
                       the Secretary of State

 TOP SECRET                       [WAsHINGTOl,] November 22, 1950.
     BRIEFING FoR NSC CONSIDERATION OF NSC 68/1, AwNmx 1"'
   1. At this meeting it is necessary to decide, at a minimum, what is
   This briefing paper was drafted in preparation for the 72nd Meeting of
the
 National Security Council, November 22. , SC Action No. 386, taken at that
 meeting, President Truman presiding, read as follows:
   "[The National Security Council] Agreed to advise the President that
the
 Council, without prejudice to normal budgetary review of the cost estimates,
 considers the proposed military program for Fiscal Year 1951, enclosed with
 the reference memorandum dated November 20, to be generally consistent with
 the policies and objectives stated in NSC 68/2.
   Note: The above action subsequently submitted to the President. Mr. Blaisdell
 (for the Secretary of Commerce), the Acting Economic Cooperation Adminis-
 trator, the Director, Bureau of the Budget,-and the Chairman, Council of
 Economic Advisers, participated with the Council and the Secretary of the
 Treasury in the above action." (S/S-NSC Files: Lot 66D95: NSC Actions)
   The "reference memorandum dated November 20" Was Lay's memorandum
cir-
 culating Deputy Secretary of Defense Lovett's memorandum of the same date;
for
 text of the latter, see p. 416.
   NSC 68/1, Annex 1, "Military Programs," ,September 21, is not
printed. For
 NSC 68/3 and its annexes, December 8, see pp. 425 and 432, respectively.


418