~Z2-= It was pointed out that if we do not maintain research and continue our development, we might get into a situation where some of the free countries could find themselves vulnerable to intimidation because of reports of the Russian tests. Possibility of using the UN to provide greater economic aid to under-developed countries. Cabot says not to play it down - say it is something we have been thinking about. Dullea speech of Monday -- urged expansion of NATO politically and economically. President said we should not discuss the ideas because they will be proposed in the NATO Council. President said that NATO was a great organization of partners and they have means and mechanisms which could study lots of problems. Farm Bill. Situation not changed. Republicans agreed to Soil Bank. Democrat position is that they have given us money, but no authorization. President will take occasion to point out again that he has been urging relief for farmers since beginning of year. If asked why Administrative tools were not used before, he will say he wanted a good farm bill. He will not say that he personally called Joe Campbell to urge speed in decision as to whether fundsappropriated could be used. Funds apparently can be used for one year only, not for advance payments, and in very limited amount. Hauge explained situation re corn supporbennon, price. * el Lyndon Johnson speech. ~~ Never comment on other people's opinion. Tax surplus, balancing budget, possible tax cuts. President will repeat concensus of opinion reached at Readers' meeting yesterday. President said he was very worried about Studebaker-Packard. we will get a bad political jolt. May get question on rediscount rate. Afraid President fully aware. REPRODUCED AT THE DWIGHT D. EISENHOWER LIBRARY Highway bill - making progress. As he was being cautioned against saying too much, the Fresident say, "You don't make hay by always being afraid of things because they are hot." Bricker Amendment - position is perfectly clear. Gas Bill - position is perfectly clear.