America To Double Expenditure On Defence By Next June

Wanganui Chronicle, 11 September 1950, Page 5

America To Double Expenditure On Defence By Next June

WASHINGTON, Sept. 9 (Rec. 9. pm).—United States defence expenditure would be increased to an annual rate of at least 30,000,000,000 dollars by next June from the present level of 15,000,000,000 dollars, President Truman said tonight in a broadoart t» the nation. The programme would mean increased taxation for everyone. “In the year after that we shall probably spend much more than 30,000,000,000 dollars,” said the President, "and we must be prepared to maintain a very strong defence programme for many years to come.” The defence programme could not be

achieved on the basis of "business as usual.” Ail must give up some of the things they would ordinarily expect to have. "We have to make absolutely sure that our economy turns out guns, planes, tanks and other supplies which are needed to protect the world from the threat of Communist domination.” Three hard, tough problems must be solved to do that job. Firstly, the materials and equipment needed for defence must be produced; secondly, the money must be raised to pay the cost of increased defence efforts; thirdly, inflation must be prevented.