298


FOREIGN RELATIONS, 1950, VOLUME I


likely to seek such additional appropriations. However, it was felt
that requests for such additional appropriations should not bedelayed
by the programming for NSC 68 as a whole over the longer period.
  Doubts were expressed over the possibility of meeting the target
date of August 1, particularly on the program for the military
build-up. It was widely felt, however, that delay in the formulation
of the military program would make it difficult or impossible for the
other programs to be formulated promptly and realistically. It was
the consensus that every effort should be made to have rough general
plans and estimates ready before August 1, 1950, in view of the Com-
mittee's responsibility for responding to the President's directive.
  Discussion -then shifted to the second point of the Execýutive Secre-
's memorandum of- April-28,viz., the implications of the con-
clusions of NSC 68. It was emphasized that the problem of achieving
a balance-between the fiscal, economic, domestic, political and security
implications of NSC 68 was of the greatest importance. Moreover, it
was pointed out that the President might desire to state publicly his
position on the policies envisaged-in NSC:68 early in June.
  The Committee then discussed the third point; the suggested list of
programs and the assignment of responsibility among the several
departments and agencies.
  After further discussion it was agreed-that:
  (1) Each agency commence urgently its programming on the basis
of a rough five-year projection; and
   (2) The Ad Hoc Committee in the meantime explore more fully
the reasoning and the implications of NSC 68.
   The meeting adjourned at 4: 15 p. m.
                                                 JAMES S. LAY, JR.

Policy Planning Staff Files
Miemorandum by the Deputy Chief of the Division. of Estimates,
  Bureau of the Budget (Schaub) to the Executive Secretary of. the
  National Security Council (Lay)

TOP SECRET                            [WAsHINGTON,] May 8, 1950.
       COMMENTS OF THE BUREAV OF THE BUDGET [ON NSC 68]
           1. WHAT SPECIFICALLY, DOES THE PAPER MEAN?'
Military
   a. Do we anticipate that Russia will strike in 1954 and- we should
 prepare to mobilize by-that date?
   If so, do we prepare the country and organize all of: our resources
 to meet that contingency?. This would require wartime c.ontrols in