TOP SECRET Larded in with Khrushchev's propaganda statements Lad been a number of interesting remarks, suc! as the one in which Karushchey consigned military aircraft to museums in the future. With respect to this remark, Mr. Dulles pointed ott that U. S. intelligene hac not observed as many Soviet heavy bombers on airfields as nac This raised the question as to whether the Scviuts expected. the process of de-emphasizin, tne role cf the heavy bomber beer are dn There had been no clear verdict yet by *ne intelligence commurnit; =: question. ~his Mr. Dulles thought that there wes no doubt that in cearing up all this propagande of recent days and weeks, the Soviets hed had an eye to the situation in the Middle East, and wished to exert the Mush of the maximum influence they coulaé summon on that situation. Soviet propaganda comment is following closely the original soviet boast relating their scientific azscomplishments to the effec iveness of the Communist social system. ‘The target for this partitu.ar thrust, thought Mr. Dulles, was evidently the underdeveloped nations in the world. He informed members of the Council that ne had copie: of an FBIS summary of Soviet comment, wich, were available to any thc wished to have them. The Chinese Commurn.st reaction was to declare quic.ty that the launching of the earth satellite was proof of Soviet mil tavy anc scientific supremacy over the United States. Maximum pias o this theme was being provided in all tne Soviet satellites. Thereafter, Mr. Dulles touched on the reactions in Western Europe, in Asia, and in Africa. He concluded his remarks oy emphasizing that the Soviet Union was making a major propaganda e ‘Port which was exerting a very wide an: deep impact. At the conclusion of Mr. Alen Dulles' briefing, M:. “utler asked Secretary Quarles to sneak. Secretary Quarles beren ©. svacing thet much of what he was going to say woule be familiar tc te rresident and other members of the Counci.. The President quippe. that this was indeed the case, and he was beginning to feel somewnat numt on the subject of the earth satellite. Secretar, Quaries of 1954. The President had ennounced in 195° the natux cf earth satellite program, scientific objectives. ce Il in which ne had stressei tne s prem.c of S. Secretary Quarles vent on ~c point out that our American scientists had recommended aioption + f the proposal of ‘he li.wy Department which had come to b° snoun since as PROJECT VANGUAT: de - TOP SECRET REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY ° we Thereafter, outlined briefly the development of satellite programs vepinuing with the period of World War II. The possiprilities of a satellit» had been picked up first in this country by the Air Force, because of its interest in the possibilities of e reconnaissance satellite. Me birt of the earth satellite program occurred in Rome, at the ISY eeting ONINtiteinde le . -- - -~

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