Lines of Decision

Not only rockets for NATO, but other decisions--some with far-reaching implications--were in the works last week:

¶ The White House called for a "flash" estimate of the Pentagon's 1959 budget, got an answer of $42 billion as a working figure. This meant probable expenditures of from $39½ billion to $40 billion next year, with an increased schedule thereafter. The notion of a $38 billion ceiling on defense spending is as dead as a rubber check, perhaps for many years to come. ¶ There will be no tax cut next year; there may be an Administration request to Congress to lift the $275 billion national debt limit, although budgeteers will make heroic attempts to stay within the limits.

¶ The Federal Government will get into the business--with precise method still undecided--of speeding up the training of young scientists (see below). ¶ The Administration will probably request $4 billion for foreign economic and military aid -- $1 billion more than Congress approved last summer, ¶ A definite effort will be made to cut and defer nonessentials in the federal budget, e.g., rivers and harbors projects, and the President will put the responsibility for cutting pet congressional projects squarely on Congress. ¶ Pentagon Missile Adviser William M. Holaday will now have full power "to direct all activities in the Department of Defense relating to research, development, engineering, production and procurement of guided missiles," i.e., to crack down on interservice rivalries. ¶ Defense Secretary Neil McElroy said that within a month he would appoint a single manager for new outer-space and anti-missile missilery programs.

As decisions were being taken, the personality of Defense Secretary Neil McElroy began to emerge. McElroy, 53, had come five weeks ago from the presidency of Procter & Gamble at the most difficult possible time--a time of instability caused by technology, politics, economics, interservice rivalries and Sputnik. While he learned the ropes, most of Washington wondered if he was much more than a soap salesman. Last week, at his first press conference, he proved that he knew what he was talking about. Principal points: he admitted without argument or alibi that the U.S. is behind in satellite and long-range-missile development, and he told of the plans to offer IRBMs to NATO.

The temper of the week was perhaps best reflected by Vice President Richard Nixon in a speech to 1,200 business leaders. Said Nixon: "The major threat from Russia does not lie in overt aggression, but from aggression in the economic, political and psychological fields . . . The concern I have tonight is that while we are, as we should be, putting emphasis on military strength, we might fail to develop what we need to do to avoid losses in other fields . . . There are many differences among the uncommitted countries of the world, but they all want economic progress, and they want it quickly."

Implicit in Nixon's speech was the conviction, probably shared by most Americans, that the U.S. will shortly get its military house in order and its scientific talents mobilized. Beyond this short-range response, the Vice President pointed to a great opportunity to strengthen free nations by a program of free trade, investment, mutual economic assistance and rising living standards. Such a program would provide a counterattack against Communism in areas where the Communists have no weapons but misery.

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