“U.S. Seeking Changes In N.A.T.O. Structure”

Press, Volume XCIX, Issue 29366, 19 November 1960, Page 13

“U.S. Seeking Changes In N.A.T.O. Structure”

NEW YORK, November 18. The “New York Times” reported today that the United States would ask the North Atlantic Treaty Organisation to permit changes in United States troop dispositions and responsibilities in Europe.

The official request would be made through the N.A.T.O. military committee, which was to meet in Paris just before the Ministers’ meeting opening on December 16. the newspaper said in a report from Washington. The shifts were being sought with two aims. The first was to cut dollar expenses in line with President Eisenhower’s economy programme. The second was to take advantage of increased flexibility resulting from the reduction in overseas dependents ordered by the President as part of the economy drive. ...... In addition to the troop shifts, the United States was preparing to ask for relief from part of its share of the huge and complex supply and maintainance structure behind the N.A.TO. forces in Europe, the newspaper said. The United States* share of the total cost now was 37 per cent The distribution of costs was due for reassessment parly next year, the “New York Times” said. Any consideration of troop cuts must await the incominff Administration. defence officials s a,< J« according to the “New York Times.” „ . - The United States Secretary or State (Mr Herter' said last night in Boston that Western Europe should give more help to under-

developed nations, but the United States still must be “the major single free world source” of capital for backward areas.

The Secretary spoke on “the economic challenge in foreign policy” at the thirty-sixth annual New England conference. Mr Herter, discussing financial difficulties facing the United States in its role as leader of the non-Communist world, said adequate defence involved “more than a powerful military deterrent”—an effective programme must combine economic with military strength. Such a programme, Mr Herter said, “embraces a viable and expanding economy, a sound and stable dollar, a secure and realistic balance-of-payments position. and increased foreign trade.

“The United States is determined to continue those policies and programmes essential to the maintenance of confidence in the dollar and to the preservation and enlargement and consolidated economic and military power,” he said.

Mr Herter did not refer specifically to President Eisenhower's action on Wednesday in ordering a sweeping seven-point programme to slow the drain of United States gold and dollar reserves But he emphasised the necessity for maintaining a sound fiscal position.