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SUMMARY OF ODM STUDIES RE MOBILIZATION PLANS IN THE EVENT OF U.S. ARMED INTERVENTION IN INDOCHINA WITHOUT CHINESE INTERVENTION (SITUATION A) OR WITH CHINESE INTERVENTION (SITUATION B)

The need for mobilization actions depends far more on the induced effects of public interpretation of events than on the direct impact of military outlays. The expectations and interpretations of the public will lead to serious economic consequences unless offset by appropriate government action. The increased direct effects of the military programs would be moderate for either Situation A or B in FY 55 and FY 56. The induced effects of either situation could have a very serious result particularly on price level and less seriously on the supply and distribution of materials. They would have only a slight effect on overall manpower availability. The measures which ODM proposes are most comprehensive in the field of stabilization and least so in manpower.

1. The Defense Materials System will continue to be a key element in industrial mobilization.

2. The rate of stockpile accumulation for a selected few critical materials will be protected.

3. Inventory controls will be imposed in both Situations A and B.

4. Funds will be requested to erect plants and acquire equipment to overcome deficiencies in the mobilization base.

5. Preparatory work for more serious military conditions will go forward.

1. The potential supply of military manpower available in the s elective service pool and military reserves is sufficient to meet anticipated requireme nts under Situation A or B. However, certain policies and actions would be required to meet the demands of Situation B. Briefly they are:


 * a. Statutory authority for involuntary recall or reservists.


 * b. Statutory authority for extension of terms of service.


 * c. Elimination of fatherhood as a basis for deferment.

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