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Publications; Correspondence and Drafts
-
box: 570
folder: 11
-
1963
-
EF ee ee ee
or
it
Ed
or
ni
Se
r,
to
As
d
l
a
r
e
G
.
Mr
Saturday Evening Post
666 Fifth Avenue
New
Dear
York 19, New York
Mr.
Astor:
a
on
e
cl
ti
ar
e
th
g
in
it
wr
re
Mr. Reuther is currently
.
er
tt
le
r
ie
rl
ea
ur
yo
of
t
ip
ce
re
new strategy for peace, following
y
gl
in
ed
ce
ex
s
hi
by
ed
us
ca
s
wa
The delay in undertaking the task
u
yo
g
in
nd
se
be
ll
wi
he
at
th
r,
ve
we
ho
e,
ev
li
be
I
.
le
du
he
sc
sy
bu
e.
id
ts
ou
e
th
at
o
tw
or
ek
we
xt
ne
e
th
in
th
wi
t
p
i
r
c
s
u
n
a
m
d
se
vi
the re
to
y
it
un
rt
po
op
e
th
d
ha
ve
ha
u
yo
d
When it arrives an
review it, Mr.
ur
yo
e
iv
ce
re
to
d
se
ea
pl
be
d
ul
Reuther wo
comments and editorial advice.
Sincerely,
=
Irving Bluestone
Administrative Assistant
to the President
IB: gs
oeiud2
ee
P *
Walter
Reuther
Nat Weinberg
Attached Draft of Saturday Evening Post Article
Attached is a copy of my try at redrafting the
‘margin of survival’ article. I hope it comes somewhat closer
.
to what you want than the earlier efforts.
It is still much too long.
Cithauks See a0 to Os One Has CERN
to us for our+ approv a.
NW tpme
Attachment
cc: Irv Bluestone —
oeiudZaficio
But since it is exceedingly
+ ougynet Hat we send it off
do Sey cutting and submit the cut version
The editors must <S
er in cut
Draft -- May 11, 1963
Page 1 -- rev.
FREEDOM'S MARGIN OF SURVIVAL -- A STRATEGY FOR
g
n
i
t
s
e
t
r
a
e
l
c
u
n
d
n
e
o
s
t
n
e
m
e
e
r
g
a
e
l
b
a
t
p
e
c
c
a
an
and future generations of
mankind,
may he preserved from the dew of death.
¥ee On both sides of the Iron Curtain
pressed by President Ker
“Today,
every inhabitant
of this planet must
contemplate
the da
and
woman,
man,
Every
habitabl
e.
when it may no longer be
child lives under a nuclear sword of Damocles, hanging wy fthe
slenderest of threads, capable of bei 5 cut at dette moment b
on.
;
accident, miscalculation, or madness
must be abolished before they abolish as...”
a
|
means to draw humanity back before it is toe late from what Sir
.
”
l
l
e
h
f
o
m
i
r
e
h
aptly called “t
A leading
America
recently sponsored a conference on disarmament in
live customers.“
Andy Speaking for world comraunis
We want a beautiful empire on earth. “
|
It is thie commmon interest in survival that provides a basis for negotiati
and that led President Kennedy to declare,
let us never fear to negotiate."
Yet dis:
:
in
nt
co
r
a
W
ld
Co
e
th
in
s
de
si
both
“Let us nev
Page 2
3
6
9
1
,
May 11
9
,
h
t
Nay
inevit
end not inabl
victory but
y in
m
e
c
a
gy
e
te
r
ra
r
st
e
t
ve
e
ti
d
si
po
f
a
o
by
d
y
e
c
g
a
l
e
p
e
t
r
a
r
be
t
t
us
a
e
v
i
t
a
g
e
n
The
for peace if mankind is to step back in time from the m
in this article is to propose a strategy for peace
that I believe would break the
A difference
in the size of the stakes does not alter the fact t
certain basic characteristics that are comme
Dba
tnteticl
process get themselves committed to rigid, inflexible,
+f, iniaendll
uncoropremising
LS
2 «= which is where we-are in Geneva.
negotiations may result in a strike or a loch out ~~ or both,
casé in the New York newspaper
serious darmage to the parties,
strike.
as was the
A breakdown in bargaining can cause
and, in certain critical industries,
to the whole
Peace Draft
May 11, 1963
Page 3
A breakdown in bargaining in Geneva threatens
What can we learn from «
mankin
to avoidd
this fate?
How do we get off dead c
be done
in a situation where both parties have paint
corners and have ne room left to maneuve
within the framework of
same kind of im
do we break our way out when,
ions, each party has forfeited its initiative
that uow imprisons the disermament negotiator.
We had our proposal -~ for a guarante«
different proposal which it claim -d would accomplish the same purpose as ours.
t
p
e
c
x
e
e
r
e
h
w
o
n
us
g
in
tt
ge
s
a
w
s
l
a
s
o
p
o
r
p
o
tw
e
th
of
s
t
i
r
Arguing the me
nearer
to
the strike deadline.
To avoid what could have beea a
very
y
n
a
p
m
o
c
e
h
t
d
n
a
to the workers
sposal
to ours.
We said,
“Let the
hev during his visit to the United States.
At the end of the meeting,
he scornfully dubbed me "Chief lackey of American capitalism", a characterization
that he obviously neglected to clear with either General Motors or the NAM.
Page 5
Peace Draft
May
1963
il,
ng te appraise him.
He is not
is riding the wave
e . Most of all he is confident that Communism
and cocky
only crud
As a dogmatic Marxist,
it is his view that our free society is composed
of
ncilable pressure groups incapable of rising abeve
national unity in the absence of war.
He believes we are capable of full employment,
‘ces only when they are goared to +-
ebleresat
da that America is
by Wall Street
dominated and controlled
While histery has taught Mr.
Khrushchev
confronted with the challenge of war,
ongers who fatten on the profite of war.
that we are capable of a total effort when —~—
he is convinced that we are wholly incapable of
lex
a comparable effort when faced with the infinitely
challenge of winning
the peace.
His view of America is reinforced by the facts that we have permitted three
recessions and rieing plateaus of unemployment
alth
wen
st o
loi
inl
labor and $600 bil
t
million man-years of
dur
tial affluence, we permit 50 million of our people to suffer sq
of
s
r
e
b
m
e
m
at
th
th
al
we
in
s
ar
ll
do
of
ns
io
ll
bi
se
lo
s
s
e
c
o
r
p
e
in th
ghadly create if given equal opportunity.
min
Peace draft -- May 11, 1963
Page 6
ushchev knows, and has boasted about the fact, that in July, 1961,
777
Peace Draft -- May 11, 1963
Page 7
ths
nig
to meet the needs and wants of hin coultesmer
?
e
M
!
s
u
r
h
K
y
b
d
e
t
i
n
g
i
e
r
e
w
e
f
i
l
r
bette
further streas on
us
kts
already overstrained econc
I propose that we do this by challenging Khrushcl
mpete with us in
jc development of the emergi
on the line,
faith in freedom
c
that, by so doing, we would assure the future of freedom in the world.
The first step in our peace strategy would be publicly and dramaticall
nited States to a massive long-range program of econom
enough to move the countries of the underdev: loped world steadily toward a break-
5
he
i
Le
25°
purpose over the next at-os_40 years.
might net be able to use that much
effectively at the beginning, before the recipient countrie
for massive aid; perhaps less w uld be needed toward the end of the period as some
of the countries acquired their own economic momentum.
commit ourselves to
8 earmarking for economi
: aid
-@f an average of atleast
Peace draft -~ May 11,
1963
}
Page 8
$20 billion
a year over the whole period
to be spent when and where it can best
accomplish the intended objectives of raising
tment would be coupled
i ing st
with a formal challenge to the Soviet
d
an
es
in
ch
ma
n,
me
e
th
t
if
sh
d
to
n
a
t
en
em
re
nent ag
This would be, in effect,
a declaratic m of peace
-- but
The initiative would be in our hands and Ki rushchev
with a difference.
would have only those
nhe
an
Henge he would ponder whether |
n
e
e
w
t
e
b
t
s
e
t
n
o
c
e
th
e
t
a
c
(1) abdi
|
|
fredom and t
ch would permit him to sta
in y
the contest
:
,
Conribedin
|
Peace Draft
May 11, 1963
|
t
a
h
s
t
u
o
i
v
b
It ie o
Page 9
|
Pye. paren
hae
ate the conftest.
We
woulc
ial aystem ie superior to ours.
he professes so L
Seviet people on radio and television on Aug: et 7, 1961, he boasted:
*.
” - VinGiante
llyich
ay
aad
- *
pro! tev sie
to 3 atunnan Oe
n
o
i
t
i
t
e
p
a
e
c
c
i
m
o
n
o
c
e
o
t
t
m
capitalio
a
ce
n
u
o
c
is
th
e
s
o
p
m
eyetian nead not i
of arma."
It is in the field of economic
ia
developmen
e
ov
m
e
t
s
y
s
r
i
e
h
t
f
o
y
t
i
r
o
i
r
e
p
u
s
e
h
t
e
v
o
to pr
¢
n
i
t
i
o
d
o
t
e
v
a
h
l
l
i
w
e
h
,
a
u
y
r
u
b
o
t
g
n
i
o
g
s
i
e
that, if h
forging viet
outside the countries where it is
alr
become a diminishing force in the world.
American announcement of a free world peace offensi
e
hav
ld
wou
rs
so
hrushe
es
cc
Ni
su
his
and
bluff.
hev
shc
st
communi
would, in effect, call the
no choice but to stay in the game
communism,
a losing game.
«-- even
thoug
. it must ultimately prove to be, for
Peace draft -- May 11, 1963
Page 20
Obliged, then, to compete with us in an economic contest, where would “~,
Mr. Khrushchev can successfull
belts to pay for nuclear weapons in defense against the “threat of the Wall Street
ver,
that he is enough of a gambler to
r
o
f
e
l
p
o
e
p
n
a
i
s
s
u
R
e
h
t
n
o
p
g u
to pay for economic aid to other countries.
‘4
t
a
h
t
s
d
r
a
d
n
a
t
s
g
n
i
v
i
l
r
e
h
g
i
h
io
furth yr drastic
sacrifices
lready there have been disturban ces in
s between workers and police
when meat and butter prices were raised last year; a strike last summer by
shoremen in the Black Sea port of Odessa in protest against shipmen
consumer goods badly needed at home.
long
Peace Draft -- May 11,
a
L
wt hy
ri
qued
L
1963
so
irae
na
ag
s
u
e
r
u
s
s
a
d
l
u
o
w
t
a
h
t
s
m
r
e
t
e
s
u
l
o
b
t
“ms accepta
s.
de
si
th
bo
r
fe
l
ve
le
r
we
lo
a
on
t
bu
,
rs
ou
d
an
ll
l
ki
a
er
ov
i
r
t
fo
n
e
t
o
p
s
hi
between
t.
en
am
rm
sa
di
l
ta
to
ek
se
d
ul
co
he
Or
réies ond Saha in ‘eae ienade or they ¢
i
ee
backs. "’
ih
nized as by far our most successful foreign p:
Page 13
Peace draft -- May 11, 1963
»
fmt
thee
implement the peace strategy which lnow propose.
in
a
a
mt
This is always the fir
In bow
oe eet
-4
are
o
wh
on
si
vi
ss
le
d
an
th
fai
tle
lit
n
of
e
m
the
new,prepesal by
5 percent we would be growing less rapidly than a number of
countries.
And the difference
other industrializec
7777
n 2} percent and 5 percent over the next 10
years would amount to $950 billion -- an average of $95 billion
a year.
If we were
mic aid -- $17 billion more than we are now
ercent,
stillleaave us
an average of nearly $80 bill: _
would
777?
l
e
v
e
d
r
e
d
n
u
e
th
l
al
in
n
o
s
r
e
p
r
pe
5
8
.
1
$
ly
on
to
d
e
t
n
aid, amou
the Communist bloc.
d
e
d
i
v
o
r
p
e
w
,
s
i
s
a
b
a
t
i
p
a
per c
Oan
assistance under the Marshall Plan as we are doing
since the days of the Marshall Plan.)
unde
near
aomic aid programs
And the needs of the underdeveloped
sly greater than those of the countrie:
od by the Marshall Plan.
In
Certainly there are problems in the effective administ
mensurate with the dimensions of the task.
For example,
°
political rebrms needed in sorme countries if aid is to |
fairly distributed among the masses of the
results in a few countries
«
r
e
h
t
o
f
o
peoples
where |
f
P
thern to enjoy the benefite of
Peace Draft
May 11, 1963
Page 17
s
mi
af
sity
ene:
|
negativ
e
the
by
together
held
could be reshaped
noble
task
i
of
‘ de Ba
4
xe : ac alliance
ee
PLA)
zing
Te
€Bact Ma
a wereak
esee
ae lis
ye
3
|
"a ay:
~44
-
4
+e"
;
&
za
Ewe
3
ee
ft
et
&
ae |
a universal blessing.
may dictate other courses.
As so staunch an adherent of priv
Thomas J. Watson, president of International Busines
“Whether we like it or not, most Latin Americar
n
i
m
@
af
r
e
h
t
a
n
e
v
o
m
r
o
f
e
n
o
gon Cownnte
arepara
untapped resources ~~ freedom's
peace.
.
ens
)
;
»
4
¥
i‘
:
4
CEBRRERS
of national urgency.
'
)
Eh
b
;
OSE
Re
FE
a dee
We need
r
OFFICES
EDITORIAL
THE
THOMAS
Pare
Dear
Mr.
0
ff Mp
s
FIFTH
NEW YORK
AVENUE
CITY 19
£
Bluestone:
Gerald Astor as editor of "Speaking Out", and
came to me. I'm delighted that Mr. Reuther is
article. By your note, I can expect it quite
I've taken over from
so your May 1 letter
progressing with the
soon,
666
ee
Px ; enh
ASSOCIATE EDITOR
f } f}
SATURDAY
EVENING
POST
JR.
B. CONGDON,
MAY 16 1963
if not this week then early next.
That would be splendid,
Very
Mr. Irving Bluestone
Administrative Assistant
UAW
Solidarity House
8000 Jefferson Avenue,
Detroit 1), Michigan
to
the
Sincerely,
|
President
Chriy)re
|
East
TBC/bek
THE
CURTIS
PUBLISHING
COMPANY
you please make a final editing
by Monday or Tuesday.
IB:ks
oeiuéZaficio
Mr.
ACTA
8
B,
Congdon,
Jr.
Associate Editor
The Saturday Brening Post
666 Fifth Avenue
New York City 19, New York
’
om
ed
re
‘F
e
cl
ti
ar
e
th
of
t
af
dr
a
is
Emelosed
Margin of Survial ~ A Strategy for Peace" concerning which
you
with
Blu
my administrative assistant Irving
last week.
This article, as you know,
was discussed with
Mr. Gerald Astor and expands considerably on the peace
proposal which was noted in earlier drafts.
I would appreciate it if you world refer to me
editorial changes you feel necessary for final approval.
May I hear from you shortly.
WPR:mip
oeiu 42
Enel.
Walter
:
dent
P.
Reuther
r!
te
ac
ar
ch
c
si
ba
n
ai
rt
ce
e
ar
e
er
th
mankind te avoid this fate?
How do we get off dead center in Geneva?
inted thenaselves inte their
and we in the United States have what is aceded to provide
of«
thev during his visit to the Un:
not only crude and cocky.
Most of all he is confid
d
e
t
n
o
r
f
n
o
c
n
e
h
w
t
of a total effor
l
b
a
r
a
p
m
o
c
a
f
o
e
l
b
a
p
a
c
n
i
y
l
l
o
h
w
we are
more complex challenge of winning the peace.
e
h
e
w
t
a
h
t
s
t
c
a
f
e
h
t
y
b
d
e
c
r
o
f
n
i
e
r
s
i
a
c
i
r
e
m
A
f
o
w
e
i
v
His
n
o
i
l
l
i
b
0
0
6
$
d
n
a
r
o
b
a
l
f
o
years
dollars in wealth that members of minority groups coul<
te
Against thie, whisath
i, struggling economy ~- hard pressed to stay in the arrns and spac
races and at the same time to meet the
n
M
y
b
d
e
t
i
n
g
i
e
r
e
w
ns for a better life
mvineed that, upon analysis, he will
!
n
o
c
e
h
t
n
i
y
a
t
s
o
t
m
permit hi
from the arms r
arena where he professes se loudly t
sanaiee
feree of evens.”
prove
Mr.
to be,
for Cormmunism
Khrushchev find the resources?
Se long as the contest proceed.
ximately $3 billion :
2 -~ he can stay in
!
l
a
i
c
e
p
s
e
,
n
o
i
t
i
t
e
p
com
d
n
a
s
n
e
e
m
c
n
r
i
u
o
s
e
r
e
h
t
d
n
can fi
s
s
i
d
l
a
t
o
t
k
e
e
s
d
l
u
o
c
e
h
r
O
sides.
materiale
|
~ 14+
would compel them to seek agreement on further arms reductions
v
e
h
c
h
s
u
r
h
K
.
r
M
r
o
The only real answer f
{1}
l
ro
nt
co
l
na
io
at
rn
te
in
th
wi
,
ban
t
tes
r
ea
cl
nu
le
A workab
(3)
i
¢
t
l
e
f
I
.
s
p
r
o
C
e
c
a
e
P
e
h
t
f
o
the concept
and social fronts and not on the battle fronts.
I pointed
ie rule, text b
1
,
r
e
g
n
u
h
,
y
t
r
e
v
o
p
t
s
n
i
a
g
a
ia the fight
ance and disease, the less likeli!
s
r
e
w
o
r
h
t
e
m
a
l
f
d
n
a
s
n
u
g
th
wi
m
e
h
t
d
n
e
s
to
be
ll
wi
there
battle fronte.
h
c
i
h
w
y
g
e
t
a
r
t
s
e
c
a
e
p
e
h
t
t
n
e
m
e
l
p
m
required to i
e
l
l
o
f
s
y
a
d
k
r
a
d
e
h
t
n
i
"
too late
,
l
a
i
t
n
e
t
o
p
ll
fu
s
t
i
s
s
e
n
r
a
h
t
u
b
l
l
i
w
e
w
asset and, if
|
aetna
rnin
g
n
i
g
r
e
m
e
e
in th
nations
n
a
s
e
l
p
o
e
p
"
t
o
n
e
v
a
h
“
e
h
t
f
o
e
m
e
e
l
b
t
o
r
a
p
thev
aggra
them and the “haves”.
We must help these peopl:
ism and tribaliecm and te give them a chance
‘talin
3 d da
an
lf
ha
d
an
d
fe
lf
ha
d
rl
wo
a
in
re
cu
se
de
ma
be
cannot
Mao,
starvi
in
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to develop in their own way for, unlik
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(3)
(4)
they are unwilling to deal with the pressing problems and ¢
One of the last official acta of General Eisenhower as President
of the United States was to warn the American
people,
against "the acquisition of unwarranted influence,
f
in of farewell address,
/
whether
by the military-industrial complex".
sought or unsought,
/
General Eisenhower continued: /
/
"... The potential for the¢ fisastrous rise of misplaced
power exists and will pe fsist.
We must never let the
weight of this combinat fon endanger our liberties or
democratic processes, We should take nothing for
granted, Only an al¢ rt and knowledgeable citizenry
can compel the proper meshing of the huge industrial
and military machinery of defense with our peaceful
methods and goals,
prosper togethey
President
expressed much the same
so that security and liberty may
™
manned di, y, in a special message
am
on the defense
budget,
i Liste
“Neither ogr strategy nor our psychology as a nation -and certajnly not our economy--must become dependent
upon our /permanent maintenance of a large military
establish ment,"
|
Despite
t
ese warnings,
the huge
industrial and military
machinery of defense’ oak s on into the age of overkill.
We already have the
_
nuclear capacity to send fhe inhabitants of all the major cities of the world to
kingdom come many tim¢s
our arsenal,
over,
missile fof missile,
The Russians,
have
although they have not matched.
enough destructive
power
to qualify for the
overkill club and to sti ry in the grisly game we call the ‘balance of terror",
General Medaris,
Program,
retired head of the United States Missile
stated at the time of his retirement two years ago that the United States
had a nuclear destructive capability equal te ten tons of TNT for every man,
and child in the —
it wae
estimated that the Soviet Union
woman
had a cornparable
nuclear destructive enahiting.
Many experts hold out the hope that the “balance of terror"
will become
more
stable when the Russians,
“invulnerable striking force’
in nuclear submarines.
happy,
Then,
as well as ourselves,
have an
housed in hardened underground silos or dispersed
the theory goes,
each side will be less trigger-
since no attack can hope to destroy all of the opponent's counterforce.
Even the smallest of hopes is welcome in our dangerous age,
but this particular hope leaves much out of account:
human error,
irrationality,
the unsettling consequences of the entrance of other powers into the nuclear
weapons club--particularly Red China; and the possibility of further technological
advances in weaponry.
Even as we understand and accept the need to maintain a strong
defense establishment in this dangerous period of the cold war, we must understand as well that the whole human
record argues against the proposition that
preparations for war can bring peace.
of the entire world,
The people of this country,
are instinctively aware of that truth.
of Russia,
President Kennedy
voiced their common anxiety when he told the United Nations:
and
"Today, every inhabitant of this planet must contemplate
the day when it may no longer be habitable. Every man,
woman,
sword of Damocles,
and child lives under a nuclear
hanging by the slenderest of threads,
at any moment by accident,
capable of being cut
miscalculation,
or madness.
The weapons or war must be abolished before they
abolish us..."
The choice before the people of the world is clear and compelling.
Either the human race must put an end to the nuclear arms
arms
race or the nuclear
race will put an end to the human race.
The question is:
What can “an alert and knowledgeable citizenry"
do to stop the arms race--without endangering the security of the United States
and the free world?
Many Americans are seeking an answer to that question,
government,
in labor,
an International Arms
in industry,
in the universities.
I recently participated in
sponsored by the Bendix Corporation
Control Symposium
and the University of Michigan,
in
said to be the first such gathering held at the
invitation of a leading business firm.
This is encouraging,
for it is evident that
within the very ‘military-industrial complex" of which General Eisenhower
there is a growing awareness of the dengeve
spoke
implicit in the constant bidding up of
nuclear power,
It is significant that some industrialists--whose corporation's
profits rely upon the build up of the arms
build up of the search for peace.
race--are turning their attention to the
This is a heartening development in the projection
of our world image as a peace loving nation and in preventing other nations from
basing their policies on outworn cliches about the United States.
At the root of the cold war is the Soviet assertion that big business
in the United States is in control of government and advocates a ‘capitalist
imperalist” policy of war-mor gering.
United States,
leaders,
When Mr. Khrushchev was visiting the
I met with him for four hours together with several other labor
His refrain was unchanged:
and Big Business run the country.
capitalism is the root of all evil; Wall Street
My effort to reach him with facts resulted only
m",
lis
ita
cap
an
ric
Ame
of
key
lac
ef
chi
e
“th
m
Ia
t
tha
t
eha
ent
his
in
.
ibe
scr
sub
dly
har
ld
wou
ors
Mot
l
era
Gen
ch
whi
te
a statement
Russia attempts to prey on the
e
rul
al
oni
col
of
e
urg
sco
the
m
fro
ng
rgi
eme
now
rninds and hearts of the peoples
by pounding constantly on this theme.
In the simplest terms,
the Soviet argument holds that:
1.
Big business has a vested interest in war
2.
Big business controls the United States
3.
Therefore,
the United States is a war-minded nation.
There are in our society those in the ultra-right who continue to
rattle the saber and call for war-mongering
nuclear helocauset.
policies which could lead only to a
Their voice is loud and raucous,
and still carries an influence
far beyond their numbers.
rs
lde
bui
s
arm
the
ds
fin
fit
pro
r
ate
gre
for
ve
dri
the
en
Too oft
allowing their interest in the arms
seeking the peace.
However,
build up te overshadow
their interest in
there is the growing realization among an increasing
number of corporation executives that nuclear war will release forces which will
destroy the human family,
that no one will inherit the world--or ite profits.
vice president ofa leading defense firm summed it up bluntly recently:
The
"We want
to go on serving live customers."
Today,
there are leaders in the industrial complex who have begun
g
win
gro
a
in
nce
lue
inf
r
thei
and
ies
tor
ora
lab
r
thei
nt,
tale
r
thei
ble
ila
to make ava
effort to help break the nuclear stalemate.
They realize not only that peace is
essential to the continuing existence of the human family; they understand as well
that the weapons of peace are profitable too and carry greater promise of having
available customers in the future.
Their efforts are expanding in many directions.
Together with scientists,
engineers and labor experts,
their work is going forward under the direction of the Arms
Agency,
much of
Control and Disarmament
a recently formed executive department that reports directly to the
President.
They are refining
aerial and satellite cameras,
and other detecting instruments.
radar,
seismographs
Some of these fantastic computing and electronic
devices are already being used to keep tabs on Soviet missile strength.
Others are
being developed in anticipation of the possibility of a nuclear test ban or the chande
of some form of agreement on inspection.
Tests are also underway to determine
the potential peacetime uses of these complex gadgets.
Industry is teaming up with social and political scientists at
Harvard,
M.1.T.,
California and the University of Michigan to study negotiating
techniques and the way people behave in crisis situations.
As I have already noted, a leading business firm,
Corporation,
sponsored an International Arms
officials of government,
Control Symposium,
where high
labor, industry and the universities gathered to examine
the problem of disarmament and exchange ideas.
Victor Kharpov,
Bendix
Russia was represented by
the First Secretary of the Soviet Embassy.
At this Conference,
Bendix Vice President Russell D.
explained why business is fighting for peace.
O'Neal
‘The day-to-day concerns of
industrial decision-makers are no longer parochial," he said.
"Because tensions<--
national and international--directly influence the state of business,
modern
corporations watch the course of social and political developments
as closely
as governments do.
“Until recently businessmen noi
deal with the threat of war.
little confidence that they could
But now people both in and out of business believe
that industry has the analytic capability,
the computer technology and an approach
to problem-solving which can be a prime national asset in seeking arms control
solutions,"
a
4 spokesman for a major defense company adds:
“There is no
doubt that a sudden withdrawal of defense business would create severe problems for
us.
Yet we do not believe that the problems of transition should constitute a
barrier to an effective arms
reduction program.
government is equal to the challenge."
The ingenuity of industry and
Another company official says:
"The
results would be invigorating not only te the American economy but also to the
entire free world, "
Thus far, however,
there has not emerged a national,
integrated,
mobilized effort in which the total nation bends its energies to check the arms
race and achieve disarmament.
The whole human family lives in a kind of twilight zone which is
an unprecedented blend of war and peace.
We enjoy no genuine peace; yet we are
We
not totally involved in what might be termed a conventional military conflict.
find ourselves,
life.
instead, caught up in a continuing contest between two ways of
It is a contest that cannot be decisively waged in military terms without
destroying the way of life we seek to preserve,
Our
central problem,
therefore,
is that of developing a strategy for waging that contest by other means.
Part of any such strategy must include some means for checking
the nuclear arms race and moving toward genuine disarmament; otherwise,
shall remain
we
under the constant threat of annihilation.
We need, in other words,
a strategy for peace,
,
ing
liv
tly
sen
pre
are
we
as
e
liv
to
ue
tin
con
to
d
ne
are condem
Without it, we
in a no~man's land
between the abyss of a thermonuclear doomsday and the road leading to a peaceful
world community that we have not yet determined to travel,
To put it another way,
avoiding war.
our problem is not just the problem of
It is also the problem of moving away from the nuclear stalemate
into an environment of dynamic peace,
in which the long-term threat of Communism
can be met by democratic initiative in the social and economic fields wherever
freedom is threatened.
Our defense program,
United States Arms
in the words of a report prepared for the
Control and Disarmament Agency,
“absorbs nearly a tenth
of the total U. S. production of goods and services and employs,
indirectly,
directly and
a like percentage of the labor force,"
The full impact of the defense program,
however,
goes beyond
its strictly economic effects to permeate our "psychology as a nation".
become,
not war-mongers,
recent years,
but ‘defense-mongers"
we have lived in a slack economy
We have
-~- particularly since,
during
suffering from unemployment
which has persisted at the intolerably high rate of over 5 percent of the labor
force for the last five years.
Something like 20 percent of our productive
capacity has lain idle.
Defense expenditures have meant the difference between "high-~
level stagnation" - sluggish economic growth periodically chilled by recession
and streaked with persistent unemployment
-~ and what,
without such expenditures,
could have been a plummeting economic decline.
Even with the defense program,
continuous slack in the American economy.
there has been an almost
Im the last ten years,
as a result of
our national failure to maintain full employment and full production,
we have lost
d
an
s
od
go
in
n
io
ll
bi
00
$6
d
an
nt
me
oy
pl
em
ve
ti
uc
od
pr
of
s
ar
ye
n
ma
n
24 millio
services that could have been added to the American standard of living and could
have strengthened our efforts to preserve peace and freedom in the world by a
massive attack on world poverty.
This tragic economic waste of $600 billion in our gross national
product, I believe,
represents on the home front the margin of economic progress
we have lest in terms of higher Hving standards, more adequate educational
greater security and dignity for the 17 million
opportunities for our children,
of our older citizens, improved medical care, and all the other things that need
doing.
And on the world front, it could be the margin of survival in freedom's
contest with tyranny.
Much of Mr.
Khrushchev's confidence that he will "bury us"
stems from the fact that America is not harnessing its ma» mum
potential.
for the first time the Soviet Union produced more
During the month of July 1962,
steel than the United States.
economic
This is a basic economic fact that America can ignore
only at great peril to our future.
The Soviet Union produced
more steel because
the steel industry in the United States was operating at 43% of its potential
productive capacity.
Even today,
despite the stock piling of steel and the relative
beem of a seven million passenger car year in the autemotive industry,
the largest
cons umer of steel, the steel industry is operating at only near the 60% level of
capacity.
The great unused potential of the American economy,
in these statistics of slack,
suggested
can be converted to an asset in winning the cold war.
Brought to bear as the motive power in a strategy for peace,
that vast unused
«~ 10+
potential can constitute what I call "freedom's margin of survival’.
It offers us
the means of transforming the arms race into a peace offensive aimed at saving
the have-not peoples of the world from
poverty and the risk of Comm
version - and the whole human family from the risk of anni nilation in a nuclear
holocaust.
The long years of test ban negotiations in Geneva are once
again grinding to a deadlock.
on the Arms
Control front.
The United States canne
It can,
however,
; take unilateral action
capture the initiative by unilateral
action on the peace front.
Here,
carried out.
in brief outline,
is how such a peace strategy can be
It would begin with a formal announcement by the President of
the United States that we are committing ourselves,
as a nation,
to a massive
long-range program large enough to move the countries of the under-developed
world steadily toward an economic breakthroy gh out of poverty and misery into
self-sustaining growth.
+ Page
11 -
_ We would accompany that announcement with a formal challenge
to the Soviet Union both to join us in the global campaign against poverty,
and disease and to conclude a fool-proof disarmament agreement,
ignorance
in order that
additional resources saved by cutbakks in military budgets might be shifted to
the peaceful tasks of development.
The financial commitments could be in the foom
or grants or both.
as
nian
of either loans
Loans would be interest free, not to be repaid until such time
standards in the borrowing nation had reached the level of $1, 000 per
capita income annually.
The United Nations would be urged to establish a special agency
through which a major
portion of the resources allotted to this program for peace
would be distributed in order to accomplish in the most efficient way the elimination of poverty and hunger and the development of continuing dementia
the emerging nations.
growth among
This would insure against suspicion as to motive and intent
- and make certain that poesia everywhere will understand and accept the basic ob-
jectives of the program,
namely, to win the peace and to raise living standards
|
all over the world.
In any event,
Peace Offensive",
we would launch our own program--our own "Total
in conjunction and in cooperation with those of the advanced
free-world nations prepared to join us.
This challenge of the United States and the industrialized nations
of the free world to a peaceful economic contest between the competing social
u
m
m
o
c
e
th
d
an
d
l
r
o
w
ee
fr
systems of the
.
m
e
t
s
y
s
s
hi
of
y
t
i
r
o
i
r
e
p
u
s
e
th
d
e
t
s
a
o
b
s
ha
he
h
c
i
h
w
in
a
n
in the very are
tically,
they could:
i nations--
1) abdicate the economic contest for the emerging and Wace
;
nge
lle
cha
the
ept
acc
to
se
fu
re
and
ck"
tri
ist
ial
per
call it another “im
or
ped~-up program
of aid to the underdeveloped nations by cutting into the living standards
of the Russian people;
3) accept the challenge~-but meet ;it through serious efforts to negotiate a
disarmament agreement which would enable them to shift their scarce
resources
from arms
to the new economic
contest.
| ‘The Soviets cannot back off from such-a challenge. They cannot
abdicate such a contest because,
first,
they themselves om
declared that it is in
that very arena of economic development that they will prove the ensintasite
their system and thereby succeed finally in "burying" us; and,
second,
of
the leaders
of the Kremlin understand as we do that winning the hearts and minds of the hundreds
of millions of uncommitted people will be decisive in the cont est between democracy
and communism.
if Krushchev
is going to bury us, as he boasts,
have to do it in the have-not lands,
he ia gaing to
where most of the people go to bed hungry every
night and where Communism counts on forging fictory out of poverty, misery and
desperation.
Announcement of an American peace offensive in those very
lands would,
in effect, call the communist bluff.
would have no choice but to stay in the
prove to be, for Communism,
Krushchev and his successors
game--even though it would ultimately
a losing game.
Whe re would the Soviets find the resources to engage us in
this contest over the future of the have-not peoples?
‘is marked by slack,
While the American economy
the Russian economy is marked by strain.
While we have
great unused resources of men and plant, the Russians dort have enough of anything to meet their needs and their plans.
While we have surpluses of food and fibers, the Soviet economy
and all other communist countries suffer from acute agricultural shortage.
»~ [4
«
,
ng
ri
fe
uf
-s
ng
lo
e
ar
le
op
pe
n
ia
ss
The Ru
revolution of 1917,
Since the Bolshevik
e
th
in
n
io
at
iz
al
ri
st
du
in
n
ia
ss
Ru
of
en
rd
bu
e
they have borne th
prolonged postponement of consumer
satisfactions and necessities,
Since the
ey
th
h
ic
wh
in
or
rr
te
e
th
of
on
ti
xa
la
re
n
death of Stalin, they have known a certai
er
um
ns
co
a
of
ts
ui
fr
er
ag
me
t
rs
fi
e
th
had lived and died - and they have tasted
Mr,
economy,
Khrushchev,
,
an
pl
ar
ye
7et
vi
So
t
en
es
pr
e
th
g
in
in herald
,
le
op
pe
et
vi
So
e
th
of
s
rd
da
an
st
ng
vi
li
e
th
g
giant strides forward in raisin
promised
The
d
te
ca
lo
al
s
ha
it
at
th
y
om
on
ec
et
vi
So
e
th
d
xe
ta
er
ov
burden of the arms race has so
s,
er
iz
il
rt
n
fe
d
io
an
at
iz
an
ch
me
in
le
tt
li
o
to
or
ct
al
se
ur
lt
cu
ri
ag
to its
Mr.
to
le
op
pe
et
vi
So
e
th
on
up
ll
ca
ly
ul
sf
es
cc
su
n
ca
ev
ch
sh
Khru
t
ea
hr
“t
e
th
et
me
to
s
on
ap
we
r
ea
cl
nu
of
st
co
gh
hi
e
th
r
tighten their belts to pay fo
of the Wall Street war mongers,"
ev
ch
sh
ru
Kh
at
th
r
ve
we
ho
e
ev
li
be
t
to
ul
ic
ff
di
It is
ple
peo
n
ia
ss
Ru
the
ing
ask
of
es
nc
ue
eq
ns
co
le
sib
pos
the
k
is enough of a gambler to ris
fer further,
drastic sacrifices to pay for economic
aid to oth sy countries,
Already
ity
ter
aus
new
of
e
wak
the
in
on
Uni
iet
Sov
the
in
ces
ban
tur
dis
n
bee
e
hav
there
measures
e
wer
ces
pri
ter
but
and
t
mea
n
whe
ice
pol
and
s
ker
wor
n
wee
bet
- riots
t
tes
pro
in
ssa
Ode
of
t
por
Sea
ck
Bla
the
in
men
ore
gsh
lon
by
ike
str
a
raised last year;
,
home
at
ed
need
y
badl
s
good
umer
cons
of
Cuba
td
ment
ship
the
nst
agai
mer
sum
last
Mr,
Khrushchev will almost certainly be compelled to reduce the
ng
ati
oti
neg
le
tab
e
enc
fer
con
the
to
ing
com
by
y
nom
eco
ned
rai
rst
ove
his
on
den
bur
's
sia
Rus
k
bac
cut
to
him
ble
ena
l
wil
t
tha
ent
eem
agr
nt
ame
arm
dis
a
th
fai
in good
military establishment,
thereby releasing men and materials required in meeting
the challenge of our total peace offensive,
« 18 «
,
e
v
i
t
a
i
n
r
t
i
i
e
a
e
n
l
v
t
h
l
i
t
will sti re
The West howe
For the unused
e
e
c
s
y
u
a
h
e
s
m
c
e
l
t
r
u
o
p
l
a
b
n
u
s
a
n
o
a
e
s
p
i
t
o
u
n
s
t
c
e
e
n
e
of our pr
pote
strain,
We can do it, in fact,
,
e
g
a
g
t
n
n
i
a
w
v
o
n
d
r
a
ow g
even,
strain and without cost,
not only without
ful start toward meeting those needs,
~
g
n
g
i
n
n
i
a
k
e
a m
By ma
we can generate enough demand in the
American economy to take up our present slack,
achieve an adequate rate of economic growth,
because
but to our
if need be, without an arms cut,
t
o
n
e
s
v
d
e
a
nations are vast,
e
h
e
h
of t
Th ne
American economy,
strategy without
sustain full employm ent and
During the past ten years,
of idle workers and idle productive capacity,
the
has
%
grown at the low rate of approximately 24% annually as contrasted with the
rate of growth in West Germany,
Canada,
Except for
% in Sweden,
% in Italy and
the United States has had the lowest rate of economic
trialized nation in the world on either side of the Iron Curtain,
growth of any indus-
If the American
economy continues at the 25% annual rate of economic growth over the next ten years
rather than a growth rate of 5%,
billion in goods and services,
which is within our capacity,
On the other hand,
we shall lose $
billion
if we achieve this §
increase in our gross national product through a policy of full employment,
production,
and an adequate rate of economic growth,
we could commit $20 billion
annually to waging a total peace offensive and still have an average of $
per year additional income to raise living standards at home,
build more
train and employ more teachers to wipe out our educational deficits,
the slums,
full
billion
schools,
We can clear
build more hospitals and highways and do the many other things needed
to improve the quality of American society,
» 16-
By seizing the initiative with a bold total peace offensive equal
to the dimensions of the staggering needs of the emerging nations,
our tremendous economic potential,
we can harness
much of which is going to waste,
and in so
doing solve our most difficult domestic problems by putting the millions of unemployed to work,
We can also make
powerful leverage of our economic
the precarious peace more
secure by using the
superiority to discipline Mr,
a test ban on nuclear arms with a workable
Khrushchev into
system of inspection and verification
as the first step toward meaningful disarmament,
Aslong as the United States spends $3 billion a year to aid the
underdeveloped nations
of the world,
the Soviet Union spending $2 billion a year
can effectively compete without undue strain,
At the point however that we raise
our commitment to $20 billion a year and our allies in the free world add an
additional $5 to $8 billion a year, the Soviet Union will be priced out of the competition,
The Soviet Union has no such margin of economic power,
pelled to reduce armaments,
a disarmament agreement,
we shall still be in command
It will therefore be com-
Even after we have disciplined the Russians to negotiate
thus releasing Soviet resources for the peace contest,
of the situation,
For we,
too,
will be able to cut back
military spending and commit additional resources to aid in economic and social
development of the emerging nations,
educational levels,
to improve living standards,
raise health and
and to reduce the pressures of human desperation so that people
will not be subverted by communist propaganda and be tempted to trade freedom
for bread,
This massive economic effort will enable us to give answer to the com-
munist propaganda with the most powerful propaganda yet devised by man -~ the
propaganda of the democratic deed,
Thus,
we can prove to hungry people that it
7
ee
is possible within the framework of a free society to resolve economic and social
problems and to put food in their empty stomachs without putting their souls in
chains.
To stay in the peace race, the Russians will be obliged, in fact,
to move rapidly toward the general and total disarmament they now profess to
desire.
A phased reduction in arms would have to take proper account,
to say, of the possibilities of aggression by other countries,
China,
needless
notably Communist
as long as such powers might balk at joining the disarmament talks.
Such a peace strategy is well within the immediate capabilities
of the American economy.
It remains for American leadership and the American
people themselves to comprehend the urgent need for such a strategy if we are to
check the drift teward a nuclear Aumnaptden
mass
poverty on other continents
and prevent the “third world" of
from disintegrating into chaos,
then hardening
inte communist-type tyrannies.
This is a race against the clock.
created one world.
Science and technology have
The gap between the world's rich and poor is widening.
Pobula-
tion pressures on resources are aggravating thegtroubles of the emerging nations.
lf the privileged minority of industrially advanced countries don't intervene soon
on a massive scale to move those nations out of feudalism and tribalism and give
them a chance of achieving Twentieth-Century living standards under conditions of
freedom-~-then the have-not lands will go the route of forced-draft development
marked out by Stalin and Mao in which humm freedom is forfeited for the promise
of bread.
The peace strategy I have outlined offers us the leverage to win
democratic command of the forces now convulsing the have-not peoples,
communists claim that we are too rich, too smug,
too indifferent,
The
and too divided
into selfish conflicting and irrevocable economic pressure groups to mobilize the
untapped resources of our free societies for such a bold and massive
ful ~ attack on the world's fundamental problems,
~ and peace-
So it is gospel in the Kremlin
that, whatever the current problems of communism,
history is on their side and
will eventually sweep us into the dustbin where empires and nations wind up when
they lose their grip on reality,
The peace strategy is a strategy geared to the dimensions of the
challenges that beset us,
It should be taken up and debated in the Congress and
throughout the country,
for it is an issue that will separate those who regard them-
selves as being “hard”
on communism but who wax hysterical over a few thousand
Russian troops in Cuba - and those who are touch-minded enough to understand that
Castro is only one manifestation of the total problem and that the whole
werld"
"third
of poverty can fall under communist control through democracy's default,
We went to the brink of nuclear war over the Cuban missile bases,
President Kennedy,
at the moment when Khrushchev backed
down,
stated that the
world had reached a point “where events could have become unmanageable, "'
The whole question lies there:
Are we going to drift from crisis
to crisis - in new Cubas and Congoes - until one day events really do become unmanageable?
Or are we going to seize and hold the initiative long enough to move
o 1%
mankind back from the nuclear abyss and begin to lay the foundations of a world
community in which men can have a reasonable chance at both bread and freedom?
The saber rattlers with little vision may be content to drift from
crisis to crisis, each time urging a war which no one can win,
touch,
The realists -the
practical leaders with imagination and vision will mobilize America's
great
untapped resources ~ freedom's margin of survival + in behalf of a strategy for
peace,
I have unlimited faith in free men and the capability of our free
institutions,
I am confident that our system of freedom is equal to the challenge
we face if we will but make a total effort at waging the peace,
Pearl Harbor,
we,
as a people anda nation,
that half-way and half-hearted measures,
were
We need a greater sense of national urgency,
3«5-63
oeiu4dZ
Today,
when the survival of the
we need to understand with equal clarity that a total effort
is necessary if we are to meet the infinietely
purpose,
unanimous in our understanding
and policies of too little and too late,
were not adequate to meet the challenge of war,
human family is at stake,
In the dark days of
more
complex challenge of peace,
We need a deeper sense of national
We need a total commitment to wage and win the peace,
EDITORIAL
THE
OFFICES
SATURDAY
EVENING
666 FIFTH AVENUE
NEW YORK CITY |9
FOUNDED BY
L
Pay 2 4
JR.
THOMAS B. CONGDON,
ASSOCIATE EDITOR
y
7
f
4
3
;
-
June 26, 1963
Dear
Mr.
Bluestone:
I'll take most of
We seem to be moving awfully slowly on this one.
I want this piece -- I think it will be something we'll
the blame.
be proud of -- and I want to have it in unimpeachable form when it
comes before the ivory throne here.
What I and the other article editors who have read the article seek,
in brief, is a few paragraphs anticipating objections that readers
(especially our readers) will raise when confronted by Mr. Reuther's
Most of these objections need merely to be acstaggering proposal.
One or two might deserve
knowLedged and then dealt with in a sentence.
a bit more attention.
let me
First
our Business
call
attention
your
though
Brown,
Editor.
to
enclosed
the
memo
from
he has reservations,
Sandy
Brown,
understands
that in a Speaking Out an author has the right to state his case and
But by doing what you can to meet Brown's
leave the rebuttal to others.
arguments, you'll considerably diminish the risk of reader disaffection.
Here
are
and waste
some
other
points:
in the countries
(1)
Will
aid
to which it goes?
administrators and techniciaris be required?
(The Peace Corps, I understand, already has
for present tasks.)
that
of
size
mean
corruption
(2) Will huge numbers
of
Where will they come from?
trouble finding volunteers
(3) Isn't effective use of that much aid contingent
on sweeping political and economic reforms within the countries -- reforms
in light of our Alliance for
it seems unlikely we can force, especially
Progress
countries
spurt?
experience?
the
kinds
THE
of
(1) Are the kinds
things
CURTIS
produced
of things needed in backward
by
PUBLISHING
the
U.S.
industries
COMPANY
that
need
a
June 26,
-2-
Mr. Irving Bluestone
1963
You may
I'm sure you are already aware of these possible objections.
if necessary,
Ty
I hope they can be dealt with
know of others.
write long and I'll prune.
As a matter of fact, there'll have to be considerable pruning, and I'm
Mr. Reuther, of course, will see the compact version
ready to do this.
and have full rights of approval.
Please
call
me
if
I can
do
anything
to help
or
to make
our
Sincerely,
Thomas
Mr.
UAW
Irving
Bluestone
8000 East Jefferson Avenue
Detroit 11, Michigan
TBC :al
PMC e
B.
Congdon,
dr.
requests
plainer.
¥
GS20TA
OOOR1
-
THE
CURTIS
PUBLISHING
COMPANY
MEMORANDUM
Date
.
To 1om Congdon
Sandy
From
Brown
Subject__teuther
piece
But
I agree that the guts ofthis would make a fine "Soeaking Out!
“euther could bolster what seem to me to te sone
it would be improved if
fairly shaky economic assumptions in his arguments.
must
Reut her
out
have
reasons,
the
reason for
some
briefly,
would
this
setting
the
strengthen
figure
p case
there is
of rhetoric. As it is,
thing out of the air.
slow down the flow
just @ plucked the
billion?
instead of ¥30 billion or sO
For example, why $20 billion,
a goale
as
even
reason
though
Spelling
it
ti suspect
might
that
he
"Can we afford it?" is a legitimate question, blithely dismissed here, In
off with-spse: hnaking
be shuff
to -p
nt
oiled
Fact, 4&6. is tie question,antnot-a
19)
(p.
alth"
al"we
hetic
hypot
in
n
billio
$950
or
m’
frecdo
of
"cause
the
about
The program would increase government spending by ~20 billion a yeare ‘vjile
nert
govern
the
es,
revenu
tax
boost
thus
amd
my
econo
it would stinulate the
or nore.
$15 billion
probably at leasy
sock,
would still be out by a sizeable
or
rg,
spendi
m
icit
by«ef
rates,
tax
g
raisin
by
up
this
make
It would have to
Lmpose
would
ses
incre«
rate
Tax
two,
the
of
n
natio
combi
a
(more likely) by
ts
defi-i
y;
econom
the
of
sector
e
privat
the
a drag on the expansive forces in
world
in
ion
posit
shaky
y
alread
our
erode
would
here
of the magnitude implied
hon
quest
The
.
growth
ic
econom
our
of
fits
ben.
markets and negate some of the real
on
negati
and
on
erosi
dragg
much
hoy
of
ion
is the quest
Noan we affard it?"
begin
sion
expan
x
draft
forced
of
ges
vanta
disad
before the
the ecnomy can take
bo mubwipinc:
the advantages.
outweigh
conviction
implied
I agree with Reutherfs
its
below
enough
far
and
,
enough
ient
resil
and
that the economy is strong
w
arkzHo
them.
from
t
benefi
and
behind
the
in
capacity, to take quite a few kicks
but
=
answer
ve
positi
no
with
ion
quest
annimx
is
take
can
thm many kicks its
and
be raised,
should
it
dismissed,
casually
not
The difficulty is that Reuther
doctrine
the longtime AFI-CIO
embraces
the
t,
cos
t
wha
ter
mat
no
ab
es,
wag
se
rai
/or
and
s
that \once you provide job
n
iro
l
wil
d")
man
"de
sed
rea
inc
ee
(ie
s
fer
wor
by
ng
ndi
benefits of incfeased spe
m
for
the
in
re,
the
ll
sti
xtw
are
es
nkl
wri
out thevrinkles. But dammit, the
for
t
deb
t
men
ern
gov
of
d
loa
ger
big
a
and
ers
of hicher prices for consum
ever yboadyo
not
sentence
The
give
a thing
it
of delight
and growth,
hinge
away"
«e."we
is
it seems
a kind
of summation
in itself).
on demands While
to
in aid
give away
me,
demand
only what
of Heuther's
They key word
camot
be
judged
not produce
we would
credo
is "produce"
by production
can be ax "artificially"
(asifie
from
did
ifw
being
= economic health
alone
created
but
must
also
by government
ly
al
tu
en
ev
t
mus
)”
se
ea
g
pon
n
ai
rt
ce
spending, the process inevitably involved
in
,
es
iv
nt
ce
in
ed
ae
EG
DR
an
es
tax
er
gh
hi
in
,
be paid for by os fone te sector
are
e
1er
ts
ec
ff
de
an
es
us
ca
The
b.
we
po
ng
ed purchasi
EAS
bigger deficits
e
us
ca
be
ed,
not
b®
to
ht
oug
s
ie
it
il
ib
ss
po
obviously imprecise<as hell.x But the
this is the crux of the issuée
«
a
I dontt
think
the
disruption
of world
trade
isa
;
in
serious
itself.
The
objectiongxthe
t
n'
ca
ey
th
s
od
go
th
wi
s
ie
tr
un
co
ed
op
underdevel
program would be supplying
s
et
rk
ma
me
so
ct
fe
af
y
nl
ai
rt
ce
d
ul
wo
It
.
se
ca
y
an
in
of
ch
mu
afford to buy
l
al
t
bu
s,
ip
sh
on
ti
la
re
cy
en
rr
cu
on
d
an
es
ic
pr
e
o
c
me
so
on
have an impact
:
m
e
x
s
it
ng
vi
ie
ch
a
ar
ne
re
he
yw
an
me
ca
it
if
e
bl
ra
le
to
an
th
re
this would be mo
ends.
st
Po
g
in
en
Ev
ay
rd
tu
Sa
-er
tt
le
t
af
Dr
1963
July 3,
Following
Mr.
and
asked
Bluestone
He
issue.
This
involved.
assumes
Product
National
in Gross
Mr.
Reuther
pages
17 and
the latter
and
would
(GNP),
conclusion
on Mr.
Reuther's
to the economy,
equal
article.
afford it?"
to the ''can we
is devoted
26
letter of June
to your
in terms
to the amount
of increase
of economic
that a $20 billion government
aid
aid
"accelerator"
discusses
ts
is
om
on
ec
at
wh
t
un
co
ac
to
in
ke
ta
to
neglects
effects
these effects,
18 of the draft article,
of increased
government
without using the technical
call
expenditures,
terms,
on
hs
ap
gr
ra
pa
o
tw
st
la
e
th
in
ly
ar
particul
of
page.
An increase in government
effects
be
with you on Monday,
a $15 billion increase in the deficit.
But this assumption
the "multiplier"
memo
the stimulus
is implicit in his
expenditure means
Brown
by Mr.
Brown's
The bulk of Mr.
apparently
you in response
to write
me
memorandum
the attached
conversation
his telephone
similar,
in principle,
expenditures
to the effects
has
of an increase
secondary (and tertiary,
in private
spending
etc. )
Post
g
in
en
Ev
ay
rd
tu
Sa
-er
tt
le
Draft
July 3, 1963
resulting
me
autiiatinms, effects
Unpack
of the
or
magnify
that the ultimate increase
increase.
expenditure
of an excerpt from
Economic
that,
would
much
becomes
To illustrate
The
analysis
as a result of the multiplier
be more
increase
larger
arithmetic
in GNP
is room
nt
ie
ic
ff
su
is
e
er
th
as
ng
lo
so
multiplier
and
accelerator
to work
in expenditure
as large
enclosing
so
as that
a reproduction
Joint
report of the Congressional
in this reproduction indicates
a tax cut of $10 billion
in federal revenues
of opinion
the magnitudes
involved
times
These
tax reduction.
from
flowing
the
by the tax cut.
generated
for difference
but the principle
I am
and accelerator,
to be used in estimating
accelerator,
several
presented
than offset by an increase
from
increase
initial
the point,
annual
recent
the most
Committee.
There
Thus,
in GNP
2
Page
with respect to the detailed
is univer sally accepted
slack in the
thems elves
economy
out,
and
of the multiplier
among
to permit
it is certainly
economists.
the
a tenable
Post
g
n
i
n
e
v
E
y
a
d
r
u
t
a
S
Draft -July 3, 1963
c
i
m
o
n
o
c
e
in
e
s
a
e
r
c
n
thesis that an i
increase
in tax rates
things,
other
the degree
it takes
no
and
estimates
no
e
r
i
u
q
e
r
ll
wi
r
a
e
y
a
n
o
aid to $20 billi
deficit.
t
n
e
m
y
o
l
p
m
e
n
u
of
l
e
v
e
l
pr acticable
of the minimum
to which productivity
time
for the miltiplier
would
and accelerator
to work
themselves
full employment
to increase
is increasing
d
e
t
o
m
o
r
p
e
b
d
l
u
o
w
which
more
much
steadily and,
figure
per
of th
any number
out.
Third,
of this
Brown's
y
r
a
r
t
i
b
r
a
e
b
t
s
u
m
kind
capita in the recipient
Plan.
of
conditions
proposal,
would
tend
rapidly.
r
e
b
m
u
n
a
in
d
e
i
f
i
t
s
u
j
can be
Marshall
Reuther's
by Mr.
.
r
M
y
b
d
e
s
i
a
r
t
n
i
o
p
r
The othe
While
under
and
But the exact
.
d
e
d
n
a
p
x
e
t
u
p
t
u
o
as
e
s
i
r
.
l
e
v
e
l
d
i
a
n
o
i
l
l
i
b
0
2
$
e
th
to
p
u
g
n
i
s
a
h
p
s
t
s
e
g
g
u
s
8)
e
g
a
p
(
e
l
c
i
t
r
a
t
the draf
y
m
o
n
o
c
e
e
h
t
of
y
t
i
c
the capa
Page
Revised
of ways.
countries
One
memo
to some
is 'twhy $20 billion?"
degree,
the $20
billion
r
u
o
g
n
i
r
b
d
l
u
o
w
it
t
a
h
t
is
approximately
to the per
capita level
Draft -- Saturday Evening
Page
Post
To turn now to the points made
l.
20-A of the draft.
on page
by adding
waste
the intolerable
Ido
2.
are
necessarily
Corps
same
the proposal
pay
and
experience
heavy
exceedingly
might be enough
beside
into insignificance
difficulties
proposal.
sacrifices
high recruitment
the crusading
In fact,
'And let us remember that
aid pales
Reuther's
demands
into effect should
qualified personnel.
in the paragraph beginning
and unemployment,"
relevant to Mr.
maintains
of reasonable
economic
not think the recruitment
very little,
pays
time
of war
letter:
this paragraph might be strengthened
However,
accompany
as may
is recognized
the second line of page 21):
(following
such waste
of waste
danger
The
in your
4
of the Peace
As you know,
of its members,
standards.
reasonable
pay and
in themselves.
the Peace
and
at the
A combination
spirit that would be generated
suffice to attract the necessary
Corps
by putting
complement
of
the opportunity for overseas
incidentally,
(which,
dealt with on page
in the recipient countries
need for political reform
The
3.
21
is related
5
Page
Post
Draft -- Saturday Evening
July 3, 1963
to your point about waste)
to us to be
seems
as is feasible in an article
of the draft as adequately
of
this length.
The latest McGraw-Hill
4.
other
data,
indicates
on the
survey
that there is a significant amount
as
as well
subject,
of unused
capacity in
practically
/ all industrial
repeatedly
that it is highly
aid requirements
should
capacity
additional
employment
adaptable
the American
would
to demand.
in response
we
run into bottlenecks,
be created
As
here
we
economy
has
If certain
can be confident
opened
at home
proven
specific
the needed
up those bottlenecks,
both in making
and in
the new machines.
I hope
letter
case,
will be forthcoming.
additional
manning
In any
categories,
and Mr.
the above
Brown's
serves
memo.
to meet
Perhaps
the problems
raised by your
you will want to incorporate
some
1 ore
Draft -- Saturday Evening
July 3, 1963
of the ideas
outlined
above
into the article.
the
entire
article
tunity to discuss
forward
Page
Post
to meeting
In any
next Thursday,
you then.
Sincerely,
NW:pms
Attachment
oeiu42Zaflcio
case,
Gigi
we
will have
I am
6
oppor-
looking
- Item sets