distribution of wealth is, I do not think any greater than ours. Germany does not have a large amount of that type of distribution in its system. The United Kingdom is fairly heavy.

Mr. VORYS. You are going to have a chart on the take-home pay. Mr. FITZGERALD. We are preparing two charts now. One shows the take-home pay for selected income groups broken down, and another one shows the gross national product in relation to taxes, country by country, in a somewhat different form than this and I think it is a little more useful. Those will be up here tomorrow. Mr. VORYS. I did not mean literally take-home pay, but as I understand it, the income over there is about $550 a head, is it not? Mr. FITZGERALD. That is the average per capita GNP. In some countries it is lower than that.

Mr. VORYS. If it is $550 a head then you have to figure, after you take out taxes from that and ours, which is, what, $1,800 or $2,000 a head-the amount the person has left is significant, due to the fact that we have more left over when we pay our taxes, we are in better shape.

I find it is all set out in page 60 of the basic data book.

Mr. FITZGERALD. We will have a chart bringing that up to date for

you.

(A classified chart was shown entitled, "Extraordinary Dollar Receipts (Millions of Dollars).")

Mr. FITZGERALD. This next chart shows what we call extraordinary dollar receipts of Western European countries for fiscal year 1952, 1953, and forecast for 1954.

As you will notice, there is a slight increase in the 3-year period, but I wanted to draw particular attention to the difference in the composition.

Defense support in 1952 was nearly $1.5 billion. In fiscal year 1953 it is estimated at about 1.3 billion.

Defense support per se for the coming fiscal year is estimated at $307 million. Some other forms in which aid is made available have some comparable results. We will discuss the details of that later, but at most, even adding these comparable forms together, the estimate here is about $900 million.

On the other hand, there has been an increased opportunity for Europe to earn its way through United States military defense expenditures in Europe, and through payments made by the Defense Department for the offshore procurement contracts which are going to be discussed, as I understand it, tomorrow morning.

Mr. VORYS. Mr. FitzGerald, we were told yast year that the troop item would amount to over $1 million, $1,050 million. That is our purchases for our troops. What you mean by United States military expenditures, that is the sort of purchases that are necessary for our own forces, is that right?

Mr. FITZGERALD. This is for the use of, or by, our own forces. It includes troop pay, it includes purchases of supplies. equipment and other things in Europe for the use of our troops in Europe. It also includes contribution to NATO common infrastructure and United States construction in Europe.

Mr. VORYS. We were told that that figure would be over $1 billion for 1953.

Mr. FITZGERALD. The latest estimate we have from the Defense Department is that, with 9 months gone, the estimate is now $790 million. Was this recently you were told this, during these hearings?

Mr. VORYS. No, a year ago it was $1,050 million, as I recall the figure.

Mr. FITZGERALD. We will check the record and see what we did estimate a year ago.

(The information referred to follows:)

COMPARISON OF ESTIMATED UNITED STATES MILITARY EXPENDITURES IN EUROPE FOR FISCAL YEAR 1953

The estimate of $1,052 million for "United States military expenditures" in Europe in fiscal year 1953 referred to on page 1053 of Hearings Before the Committee on Foreign Affairs, House of Representatives, 82d Congress, H. R. 7005, included both OSP payments and United States military expenditures as follows: United States military expenditures--. OSP payments---

Total______

$833, 300,000 219, 300, 000

1,052, 600, 000

The MSA presentation for fiscal year 1954 includes an estimate of United States military expenditures of $790.2 million for fiscal year 1953 as compared to the original estimate of $833.3 million; the revised figure reflects actual data for the first 6 months of fiscal year 1953.

The original estimate of OSP payments of $219.3 million for fiscal year 1953 included in last year's presentation has, on the basis of recent Defense Department estimates, been increased to $246.2 million.

Mr. VORYS. At any rate, that is what that figure is.

Mr. FITZGERALD. Yes, sir.

Mr. VORYS. I do not understand what "use of pipeline" is, in 1952. Mr. FITZGERALD. There is "use of pipeline" in each one of these 3 years.

(A chart was shown entitled "European Country Aid, Obligations, Expenditures, and Pipeline" which appears on opposite page.)

Mr. FITZGERALD. This chart I will discuss briefly now because it will be a subject you will want to get into in the aggregate before this hearing is over. This shows the unexpended balances of funds obligated by the Mutual Security Agency.

Beginning with June 30, 1949, running through these, of course, up through June 30, 1952, are actual and the last 2 years are, of course, forecast.

This shows that at the peak, on June 30, 1950, the pipeline of unexpended obligations were $1,850 million. They dropped to $1,493 million June 30, 1951, and at June 30, 1952, to $1,093 million. We estimate $876 million as of June 30 this year and a further decline to $698 million by June 30, 1954.

A drop from year to year as reflected in this other chart is use of pipeline. This means that countries have been able to obtain not only the actual obligations made in the year but also the use of resources resulting from a decline in the unexpended obligations at the end of each fiscal year.

Chairman CHIPERFIELD. The committee is adjourned.

(Whereupon, at 1:07 p. m., the committee adjourned to reconvene at 10:30 a. m., Friday, May 15, 1953.)

MUTUAL SECURITY ACT EXTENSION

FRIDAY, MAY 15, 1953

HOUSE OF REPRESENTATIVES, COMMITTEE ON FOREIGN AFFAIRS, Washington, D. C.

The committee met in executive session, pursuant to call, in room G-3, United States Capitol, at 10:55 a. m., Hon. John M. Vorys presiding.

Mr. VORYS. The committee will come to order.

STATEMENT OF HON. C. TYLER WOOD, DEPUTY TO THE DIRECTOR FOR MUTUAL SECURITY

Mr. VORYS. Mr. Wood, would you please outline to the committee what the proposed program is this morning?

It is slightly different.

Mr. WOOD. We will be glad to do so, sir.

Mr. Chairman, we thought, subject to your wishes, that we would start now with the country-by-country presentation in the European area and NATO.

I suggest that we start with General Stewart, who will tell you the programs for the military end items and training field in France. STATEMENT OF MAJ. GEN. GEORGE C. STEWART, DIRECTOR, OFFICE OF MILITARY ASSISTANCE, DEPARTMENT OF DEFENSE

General Stewart

General STEWART. Mr. Chairman, you asked for a chart yesterday, and I promised it to you. I have it here, sir.

(A chart was shown entitled "Mutual Defense Assistance Program, Comparison of Fund Utilization, Previous MDAP Versus Proposed Fiscal Year 1954 Legislation-Europe".)

General STEWART. We saw this chart yesterday, but we have drawn in the black lines to show the money value of the deliveries in those particular items.

Mr. VORYS. Why does that chart have to be secret?

Can you find out about that? We need not debate this question this morning, but I would like to have that in our report.

Mr. Woods. May I say, Mr. Chairman, that we are now examining each of these charts and all of our data from the standpoint of classification, and we think we may be able to declassify a considerable number of them. We will do the very best we can in the light of the national security.

381