NATIONAL SEC1URITY POLICY


Approximate Costs of Proposed Programs
  (In billions of dollars on an obligations basis)


          Programs
U.S. armed forces*
Foreign military and eco-
  nomic assistance
Information and educational
  exchange
Civilian defense-Federal
               -State
Stockpiling
Internal security (excluding
  the    Department     of
  Defense programs which
  will be included in "U.S.
  Armed Forces")


  FY       FY      FY       FY     FY
  1951    1952     1953    1954   1955


8.1697  10.409   10. 237 7.650   5. 010
233       .193     ;198   .200    .200
;150      .486    .632    .452   t
   -      ;429     .615   .418
1.800    1.000    1.000   .800      -



.112      .154    ;163    ;170    *176

Appendix B


Memorandum by the Chairman of the Council of Economic Adviser&
                           (Keyserling)

TOP SECRET                        [WASHINGTON, December 8, 1950.]
  Note: This is based on assumptions concerning the U.S. military
programs which appeared most reasonable on the basis of the NSC
Senior Staff meeting of Wednesday, December 6, 1950, namely:
       a) That the strength target for June 1952 would be 3.2 million
    men; and
       b) That -the force targets for June 1954 set forth in NSC
    68/1, dated September 21, 1950, would be accepted as targets for
    June 1952.
  The broad calculations flowing from these assumptions were in large
measure based on Annex A to the NSRB document of December 4,
1950, entitled "Instruction for Preparation and Presentation of Pro-
grams and Program Requirements.4 This Annex represented a pre-
liminary effort to translate these assumptions into terms of productive
effort.
  Should these assumptions be revised substantially upwards the
attached document would, of course, require major revision.
  * To be supplied by the Department of Defense. [Footnote in the source
text.]
  t The assumption is made that only recurring and maintenance costs will
be
incurred after FY 1954. [Footnote in the source text.]
  'Not printed.


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