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1. The Bureau of the Budget was asked to prepare studies to cover:


 * a. Revisions of FY '55 and '56 budget plans.


 * b. Preparation of any necessary requests for supplemental appropriations.


 * c. Preparation of any necessary requests for additional statutory authority, these studies to be made under the alternate assumptions re Chinese Communist intervention.

2. The key to the upward revision in budget plans centers around Defense programs (60 per cent) plus mutual military aid and foreign economic assistance. The submissions by agencies indicate that without Chinese Communist intervention, additional current budget plans will be of the following order:




 * || ||| || | (in billions) || |
 * a. || New obligational authority || $2.1 || ||| $4.5
 * b. ||Expenditure |||  1.1 || | || | 4.2 ||
 * }
 * a. || New obligational authority || $2.1 || ||| $4.5
 * b. ||Expenditure |||  1.1 || | || | 4.2 ||
 * }
 * }

3. Under the assumption of Chinese Communist intervention, additions to current budget plans of the following order have been indicated:




 * || ||| || | (in billions) || |
 * a. || New obligational authority || $5.7 || ||| $9.6
 * b. ||Expenditure |||  2.5 || | || | 8.9 ||
 * }
 * a. || New obligational authority || $5.7 || ||| $9.6
 * b. ||Expenditure |||  2.5 || | || | 8.9 ||
 * }
 * }

4. Regarding necessary requests for supplemental appropriations, BOB says merely that supplemental appropriations would be necessary.

5. Regarding necessary requests fer additional statutory authority, BOB says that at this stage, they have not prepared any legislation. Rh