TITRE (ESET ek Sie Cabinet Meeting, May 12, 1960 page 3 Mr. Stans called attention to the new statistical procedures for estimating housing starts. Dr. Saulnier said that a recent study of this had revealed that estimates were generally low by about 200, 0¢ units, Future estimates, corrected by the new method, will be accordingly at a higher level. This will cause a re-estimate of th 3 GNP with a resulting increase of about $3 billion. Soviet Manpower q After prefatory remarks by Mr. Dulles, Mr. Robert Amory took note of the new Russian census taken in 1959, then went on to present a series of charts comparing estimates of Russian man- (and woman) power with similar statistics for the United States. Some of the significant facts brought out were that o ur population growth in the '60s will be at least as rapid as that of Russia, that women make up 55% of the Russian labor force as con- trasted with about 33% in the United States, that despite irregulariti es in Russian age groups as a result of the wars, the Russians are hol Hing their labor force fairly steady by reductions in the armed forces an H by restricting temporarily the enrollment in day schools, Also, 50 of Russian workers are engaged in farming, 30% in industry and 201 fo in service trades, In the United States, these fipures are 10%, 36% and 55%, respectively. Regarding GNP, Mr. Amory presented an estimate that Russia is closing the gap but will still be well behind in 1970. Mr. Herter requested copies of these charts, and Mr. Amory indic ated a booklet would be distributed to Cabinet Members. Mr. Herter questioned the arrangement of the GNP praph which was on a logrithmic basis. Mr. Amory agreed that this distorted the absolute figures but presented fairly the percentage difference between Russ and the United States, Sec. Benson was interested in the possible effect on population grow th of the fact that so many Russian women are engaged in heavy manu labor. Mrs. Schraeder stated that Russian population growth is slowing up and that there has been much discussion in Russia about making life easier for women. She thought the bad housing conditio in the cities were a contributing factor but she wanted to point out that the high Asiatic fertility rate was a big compensation. Operation Alert 1960 of the operation, - Gov. Hoegh made a preliminary evaluation setting forth the procedures which had added realism to the exercise, and concluding that it had been a very effective exercise, that the soundness of the national plan was confirmed, that there remains need for strengthening State and local government preparedness (emphasizing the need for approval of pending lepislation), and that there is a continuing need for training exercises in future years. The President remarked on the good impression made upon membertS} of the NSC by the improvements effected at the OCDMsite. The President then remarked on the possible desirability of further development of the Defense Department site so as to accommodate certain CORFDENTIN DreCLASSIFI EO E.0. 12955, Sec. abog 2. Cede py 79 bere F/25/5 72

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