,NATIONAL SECURITY --POLICY30


."2. A- substantial increase in expenditures for. military pur-
poses.
  "3.ý'' Asubstantialýincrease in milit, ary assistanceprograms
 0-..
  "4. Some increasein economic assistance~programsl and,"recognition
of the need to continue these programs, untiltheitr purposeszhave been
accomplished.
  "5. A concerted attack on the problem ofthe United States balance
of payments.-...
  1"6. Dev~elopment of programs designed to build and maintan con-,
fidence among other peoples in our strength and resolution, and to
wage overtpsychological warfare....
  T7. Intensification, of . operations by cov er means....
  "8. Development of internal security and civilian defense programs.
  "9. Improvement and'itensificatiofi0of intelligence activities.
  "10. Reduction -of Federal expenditures for purposes other than
defense and foreign assistance, if necessary by the deferment.of cer-,
tain- desirable programs.-
  1. incre ased taxes." (pp. 56,i57)

  Again,-the Council isin no position to. appraise those policy conclu-
sions relating to the basic military security and foreign policy of the
United -States. The Council's: concern is that the conclusions and, pro-
gra   r recommmendations--that may be approved both reflect and con-
tribute to our basic economic strength.
- From this -standpoint, "the development of an adequate political
and economic framework for the achievement of our long-range ob-
jectives" would appear to be the governing concept which embraces
all the specific areas of activity listed in NSC 68, and in the light
of which specific programs must be appraised. It embraces not only
ponderable elements of economic and military strength, but also the
imponderables of political faith and action. It embraces not only the
conduct of our foreign policy, but also"the conduct-of our domestic
piolicy.
  It would seem of the highest importance that the development of
a broad policy framework be regarded as central in the work of the
Ad HOc Committee rather than as an ancillary project for continuing
studyOnly such a framework can giveadequateguidance in approach-
ing such problems as how, over a considerable period of years, economic
and social reSources can be devoted.t0 military ends withmaximum
emphasis upon the productive economic strength of the whole econ-
omy; or the way in which the structure of taxation- and incentives in
our economy-might best-be used to ensure the full achievement of our
potential.
  Viewed in: this light, there appears to be a need for an expansion of
the areas of specific eation which are listed in NSC 68. The inclusion

  See p. 285.
     496-362 77--21


309.