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18. In many of these uncommitted areas, forces of unrest and of resentment against the West are strong. Among these sources are racial feelings, anti-colonialism, rising nationalism, popular demand for rapid social and economic progress, over-population, the breakdown of static social patterns, and, in many cases, the conflict of local religious and social philosophies with those of the West. The general unreliability of the governments of these states and the volatility of their political life complicate the task of building firm ties with them, of counteracting neutralism and, where appropriate and feasible, of responding to requests for assistance in solving their problems. Outside economic assistance alone cannot be counted on either to solve their basic problems or to win their cooperation and support. Constructive political and other measures will be required to create a sense of mutuality of interest with the free world and to counter the communist appeals.

19. The United States must maintain a sound economy based on free private enterprise as a basis both for high defense productivity and for the maintenance of its living standards and free institutions. Not only the world position of the United States, but the security of the whole free world, is dependent on the avoidance of recession and on the long-term expansion of the U. S. economy. Threats to its stability or growth, therefore, constitute a danger to the security of the United States and of the coalition which it leads. Expenditures for national security, in fact all federal, state and local governmental expenditures, must be carefully scrutinized with a view to measuring their impact on the national economy.

20. The economy of the country has a potential for long-term economic growth. Over the years an expanding national income can provide the basis for higher standards of living and for a substantial military program. But economic growth is not automatic and requires fiscal and other policies which will foster and not hamper the potential for long-term growth and which Will operate to reduce cyclical fluctuations. Rh