FOREIGN" RELATIONS, 1950, .VOLUME I


estimated United States Iassistance needed toý meet those requirements
is given in Table 2.6 Estimated total costs of the MTDP requirements
for Western E ufrope are $5740 billion for the four fiscal years 1952-
1955, inclusive. As indicated in more detil below, these are United
States estimates of requirements costs which will be subject to refine-
ment as the European NAT, countries: furnish information on their
costs of metýing ttheir requirements under the MTDP. The estimated
,amount of :resources .which- the European NAT Countries could
mobilize and devote to defense needs is about $45.00 billion, assuming
the United States continues to furnish general economic support at
rates averaging almost $2.0 billion a year. From this total should be
deducted about $5.0 billion or more for essential defense expenditures
of such countries ias the United Kingdom -and France in areas outside
the North A4tlantic Treaty ;area. In order to close this gap between
requirements for NAT defense and available resources which could
be devoted to defense in Western Europe, it is estimated that about
$25.40 billion ,of United States assistance is required between fiscal
year 1952 ;and 'fiscal year 1955. The form of this required assistance
is flexible within limits. 'In Table 2, it is estimated that United States
assistance in the form of military equipment and training (items 2c
and 6) will be $17.59 billion and in the form of general economic
support for European military production land increased forces will
be $7.81 million, or roughly in the ratio of 2 to 1. The extent to which
the form of United States 'assistance could land should vary 'as between
armament and economic support depends on a number of political,
military and economic factors, including the overriding need for
trained and organized European forces, the promptness with which
European industry is mobilized for w'ar production, 'the flexibility and
expansibility of the war industries in both ,the United States and
Western Europe, and the extent to which the Unitd States industry
can and should be called upon to meet the armament requirements of
this country land a major portion of those of the MDAP countries.
The estimated division given above is believed to be practicable on
the basis of present :inform'ation, but .can land should be varied as cir-
cumstances require. The basis of the estimates are explained below.
  3. The estimates of the costs of raising, maintaining and equipping
thel European ' NAT combat forces are ,based on the requirements of
the Medium Term Defense Plan (MTDP) as developed by the NAT
Regional Planning Groups and approved by the Defense Committee.
The size and composition of the 'forces required for the defense of the
European NAT area are those set forth"in document 28 of the-Defense

  6 Not reproduced.


434