State, the International Cooperation Administration, and their oversea missions.

During the past 12 months I have personally seen and discussed with our field representatives the progress, problems, and needs of the program in the Far East, in Europe, and in Latin America.

Knowledge of the military assistance program and the circumstances which make it necessary are no monopoly of the executive branch witnesses supporting it.

This year the program has been subjected to more intensive and searching scrutiny than it has had at any time during its life of 10

years.

In recent months many well qualified, public-spirited citizens have rendered great service to our country by giving careful and sober thought to the security interests of the United States and the means we must have to assure them.

It is no easy thing, in these days of perplexing world conditions, to say with certainty and competence what our exact needs are, and what methods, often to be chosen at the cost of painful alternatives, will be most wisely employed to meet them.

It is no great surprise, therefore, that not all patriotic Americans have seen eye to eye.

Of these valuable efforts, the imaginative, thorough and objective analysis of the Draper Committee has probably come to be the best known. The only motive of this group of distinguished and thoroughly qualified men, giving generously of their own time at the President's request, is one which we all share; that is, to evaluate our mutual security effort and recommend ways to improve its effective

ness.

THE CONTINUING DANGER

Among the first findings of this committee was that there has been no lessening of the total Communist threat to the survival of the free world; that, in fact, Soviet-Chinese capability to apply military, political and economic pressures is expanding.

General Norstad, Supreme Allied Commander, Europe, only recently stated to this committee that we are faced with a succession of challenges, political, military, and economic, as dangerous in their way as those which originally gave birth to the NATO alliance.

There are many sobering reminders of the continuing threat. One need only look at Iran, in which the question of Communist intentions and pressure is still a matter of free world concern, with implications far transcending the boundaries of the Middle East.

Quemoy, Tibet, Berlin, and Laos are other potential danger points of which you are well aware.

The tension generated by these threats is widely referred to as the cold war. This term does not in fact accurately describe the situation. An Asian friend and member of the free world has recently said that if we look back to the end of World War II, we will see that the cold war has almost always been hot, somewhere, for some people. The insidiousness of the Communist strategy is that we never know where it is going to be hot next. Confronted with this strategy, we have only one sound course, that is to maintain the greatest reasonable strength throughout the free world.

THE PROGRAM FOR FISCAL YEAR 1959

The Congress appropriated $1.515 billion for military assistance in fiscal year 1959. That appropriation, plus deliveries from prior year accounts, provided materiel and services to recipient countries and international organizations in the amount of $2.3 billion during the past year.

The delivery of this aid has resulted in better organization, better equipment, and improved training of the military units which received it.

The details of the fiscal year 1959 program are set forth in the presentation books before you.

Regional witnesses who will be appearing next week will be prepared to answer detailed questions on a country-by-country, itemby-item basis.

FISCAL YEAR 1960 PROGRAM

The planned geographical and functional distribution of the fiscal year 1960 program is shown in percentages on this chart. (The chart referred to appears on p. 211.)

IMPROVEMENT OF NATO FORCES

Mr. SHUFF. The 38 percent of the money requested for Europe is primarily for improvement of the NATO country forces, and the continuation of a modest program for Spain.

Almost half of the programs for the NATO countries will be used to provide additional missiles, and some new high performance aircraft for necessary modernization of air defense forces.

It should be noted that by the end of December this year all 10 of the European NATO countries whose NATO force objectives call for missile units will have received one or more units of the Nike, Honest John, Corporal, or Matador missile. These missile deliveries are made possible as a result of intensive technical training now being completed.

The additional missiles programed for fiscal year 1960 will enable us to maintain and to increase the momentum of this buildup of NATO's missile and battlefield nuclear delivery capabilities.

Most European countries have now assumed responsbility for providing most, and in some cases all, of their own force maintenance requirements, including followon spare parts.

FAR EAST

The Far East will receive 32 percent of the aid provided from fiscal year 1960 funds.

The most dramatic accomplishment of the military assistance program in this area during the past year was the resistance by the Nationalist Chinese to Communist aggression on the Taiwan Strait.

The Nationalist Chinese, well prepared with MAP equipment, logistic support, and training, in depth, successfully and professionally withstood the Communist assault. The effectiveness of the MAP training and equipment was manifest in all operations but especially in the air battles over the Taiwan Strait.

PRESENCE OF SEVENTH FLEET

Senator ELLENDER. Would you mind telling us what effect the presence of the 7th Fleet had there?

Mr. SHUFF. I think it had a material effect.

Senator ELLENDER. How do you think the Chinese would have fared except for the 7th Fleet being there?

Mr. SHUFF. I think the Chinese Air Force would have fared just as well as they did.

Senator ELLENDER. So the 7th Fleet was of little aid. Isn't that correct? That is bound to be your conclusion.

Mr. SHUFF. I will answer your question again, Senator. I think the Chinese Air Force would have done just as well.

Senator ELLENDER. Except for the 7th Fleet there, the Chinese might have landed, too. But we won't argue that. Senator STENNIS. Proceed.

The success of the Nationalist Chinese pilots is attributable to their professional skill, superior tactics, and truly outstanding battle discipline.

The fiscal year 1960 military assistance program in the Far East will assist the nations of that area in the maintenance of armed forces totaling approximately 1,800,000 men. This will provide for the repair and overhaul of aircraft engines, artillery, tanks, and naval vessels on a very austere basis.

Where the economic situation dictates items such as petroleum, oil, lubricants, and uniforms will be provided in addition to spare parts and ammunition.

In order to meet the Communist military threat, very selective modernization items, such as artillery, tanks, naval craft, and aircraft, have been programed. This will permit these countries to improve their air and submarine defense, as well as keep pace with improvement in Communist military hardware which opposes them.

NEAR EAST, SOUTH ASIA

During the past year the Near East was the scene of widespread political turbulence, open civil war, and violent revolution. The Soviets sought to capitalize on the situation by provocatively maneuvering on the borders of Iran and Turkey and by stepping up its propaganda offensive against nations alined with the West.

The MAP played a significant part in assisting hard-pressed friendly governments to resist the general wave of anarchy and subversion which seemed to threaten the whole area. Military strength developed through the MAP gave Iran and Turkey the confidence and fortitude to stand fast in the face of serious external threat of the Soviet Union.

The Near East will receive 23 percent of the fiscal year 1960 military assistance funds. It will continue to assist in maintaining the respectable military capability already created in the area, and will continue the modernization of conventional armaments, tanks, aircraft, communications, on a selective basis. It will continue essential military construction.

LATIN AMERICA

For Latin America we plan to use 5 percent of the fiscal year 1960 appropriations. With this modest amount we will continue aid to the countries which have accepted missions in defense of the Western Hemisphere.

Part of the program for Latin America is on a sales basis, financed by MAP funds.

The remaining 2 percent of the program will be used for administrative expenses and other charges not allocated on a regional basis.

PROGRAM BY CATEGORY FORCE MAINTENANCE

Maintenance of forces already built up with the help of past military assistance has the first claim and will be assigned 21 percent of the fiscal year 1960 funds. This program category includes overhaul or replacement of unserviceable equipment, spare parts, and training ammunition.

More and more of the countries that have the capability to do so are providing the cost for the maintenance of their own forces through their own resources.

In those countries of the Far and Near East which have the least capability to maintain their own forces, maintenance also includes some soft goods, such as petroleum, oil and lubricants, uniforms, and other consumables. It is for these countries that the bulk of our maintenance funds will be used.

Force improvement: The major part of the materiel program is for improvement of military readiness and effectiveness through the modernization of equipment, the provision of newer weapons systems such as missiles, and by providing additional initial equipment for certain war reserves, particularly ammunition.

Thirty-four percent of the funds will be applied to the improvement of forces by the addition of conventional items which include some modern high performance weapons such as the new Century series aircraft, a modern type of antisubmarine aircraft, some lightweight strike fighters, as well as 106-millimeter recoilless antitank rifles, and coastal and inshore minesweepers.

The Joint Chiefs of Staff and General Norstad have assigned a high priority to the provision of advanced missile systems to offset growing Soviet capabilities and 17 percent of fiscal year 1960 funds will be used for this purpose.

While final determination must still be made as to exact numbers and types of missiles which will be in the program when approved, items under consideration include Sidewinder, Nike-Hercules, and Bomarc, Honest John, Sergeant, the IRBM, and Hawk. Sidewinder and Hawk will be manufactured in Europe with the bulk of the cost to be borne by the Europeans.

TRAINING

The training of foreign military personnel either by attendance at military schools in the United States or overseas, or by technical representatives and mobile training teams assigned to countries or regions, will require 5 percent of the fiscal year 1960 funds.