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Accordingly, the basic Soviet objectives continue to be consolidation and expansion of their own sphere of power and the eventual domination of the non-communist world.


 * . Soviet strategy has been flexible and will probably continue so, allowing for retreats and delays as well as advances. The various "peace gestures" so far have cost the Soviets very little in actual concessions and could be merely designed to divide the West by raising false hopes and seeking to make the United States appear unyielding. It is possible, however, that the USSR, for internal and other reasons, may desire a settlement of specific issues or a relaxation of tensions and military preparations for a substantial period. Thus far, there are no convincing signs of readiness to make important concessions to this end.


 * 4. . The capability of the USSR to attack the United States with atomic weapons has been continuously growing and will be materially enhanced by hydrogen weapons. The USSR has sufficient bombs and aircraft, using one-way missions, to inflict serious damage on the United States, especially by surprise attack. The USSR soon may have the capability of dealing a crippling blow to our industrial base and our continued ability to prosecute a war. Effective defense could reduce the likelihood and intensity of a hostile attack but not eliminate the chance of a crippling blow.


 * . The USSR now devotes about one-sixth of its gross national product to military outlays and is expected to continue this level. It has and will continue to have large conventional military forces capable of aggression against countries of the free world. Within the next two years, the Soviet bloc is not expected to increase the size of its forces, but will strengthen them with improved equipment and training and the larger atomic stockpile.

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