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The Secretary of State said the State Department was ex-
Admiral Strauss said the ABC had been dispersed as a substitute for shelter.
The President asked in what respect Mr. Gray differed with
the Treasury-Budget figures.
Mr. Gray replied by saying that economic recovery would
cause GNP to increase faster than shown on the charts. The Treasury-
Budget figures, in his view, showed a "“too-late take" from taxes.
The figures assumed civilian expenditures to be growing as part of
GNP, while tax receipt were falling as part of GNP.
.
Mx. Brundage said fiscal considerations should not deter-
’ mine the decision on shelters.
r~e
Mr. Scribner felt the charts were optimistic as to tax
receipts beyond 1959.
The President said that every time a new military program
was started, the third, fourth and fifth year costs were greater
than originally estimated. He felt that the fixed cost for the Department of Defense shown in the Budget charts was a very bed assumption. The factor of increase should be taken into account in the
estimates.
Mr. Allen, Director of the U. &. Information Agency, said
the effect abroad of a shelter program would be bad. The Buropeans
already think we have a war psychosis. A shelter program would lead
them to think we have succumbed to war hysteria. As far as shelters
strengthening our diplomats was concerned, his ow attitude as a diplomat would be to apologize for a vast shelter program. During his
stay in Greece, tourists from Russia had not mentioned shelters, but
had talked only of peace. Nations intending to commit aggression
have usually built up a combative spirit, not peace talk. Mr. Allen
suggested that from a public relations point of view (which of course
was not decisive), the shelter aspect of the Gaither Report should be
made public and flatly rejected.
The President said he was told, during his conversations in
Europe, that a great U. &. shelter program would insure neutralism in
Europe.
The Vice President suggested that it be assumed that 40 mil-
lion people would be killed in event of enemy attack if we had shelters,
and 60 million would be killed if we did not have shelters.
If 40 mil-
lion were killed, the United States was finished. He did not believe
we could survive such a disaster. Our major objective must be to avoid
the destruction of our society.
Would 40 million vs. 60 million make
Arcee
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Glad ees hen,
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:
‘NOP SECRE’