wLoehitiGwelrs ravers, {Ann Whitman file) Ly55-OL nt wh cent] ibysco Reel ila 1. REPORT BY THE NET EVALUATION SUBCO!MITTER (SC Actions Nos. 1260, 1330, 1430, 1463, 1532, and 1641; nsc 5605) Generel Cutler opened the meeting by informing the Council that it was to hear a briefing of the annual report submitted by the Net Evaluation Subcomaittee of the NSC, pursuant to the directive recoumended by the Council end approved by the President on May 2h, 1956 (uSC 5605). Under the terms of the eforementioned directive, the Sub- cormittee wes established es part ofa perranent procedure "to provide integrated evaluations of the net capabilities of the USSR, in the event of gensrel war, to irflict direct injury upon the continental United States and to provide continval vatch for chenges wolch would significently alter its net capabilities." General Cutler identified the members of the NSC Subcommittee as follows: General Twining, Chaixran; the Director, Office of Defense Mobilization; the Cheirran, Atomic Energy Conmission; the Federal Civil Defense Administrator; the Director of Central Intelligence; end the Chairmen of the Council's Internal Seeurity Connittees. He also rcferred to the Svbeci-nittea's Staff Director, appointed by the Fresident, General Gerald C. Thoxss, USEC (Rat.). 1 Cutler then introtuced the Chairman of the Subcommittee, ning, who in turn introduced General Thoms. General Thoms sviuwsrised the Subecoittee's terms of reference &s outlined in HSC 5605 noting thet the report ccvered the period through mid-1060. He added that, although the USSR ves not credited th an ICBM capability in this year's report, the Russians will indeed have a substantial ICEM ceyability in 1960, according to reliable repcerts recently received vy the Subcomniittee. General Thomas iniicated that in its vor-gaming for parposes of this year's report, the Subconnittee omitted cversees bases, corfining itself, irsofar as U.S. forces were concerned, to continental U.S. elements. He indicated thet et the outset the Subcomalitee Steff prepared euxiliary terms of reference and basic sesusptions consistent with MSC 5605. These terns ard essunptions facilitated the raking of a realistic evaluation of U.S. and VESR cepebilities and vulnerabilities. After outlining the Subecrmittte's general &pproach to the problem, General Thco.as minticned trierfly the several agencies which contributed to and othervise participated in the prepsra- REPRODUCED AT THE DWIGHT, D. EISENBOWER LIBRARY ma.” ‘a tion of this year's Net Eveluaticn Report. General Thomas next intreduced Brig. General W. W. Smith, USAF, the osputy Director of the Subcoraittee Staff. General Sith outlined in dctail the basic assumptions on which this year’s net evaluation exercise wes tased. These included the assumption that the USSR would roy There follows a summary of the discussion at the meeting and the main points taken.

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