IV.

First, how fares the grand alliance? Free Europe is entering into a new

phase of its long and brilliant history. The era of colonial expansion has

passed; the era of national rivalries is fading; and a new era of

interdependence and unity is taking shape. Defying the old prophecies of

Marx, consenting to what no conqueror could ever compel, the free nations

of Europe are moving toward a unity of purpose and power and policy in

every sphere of activity.

For 17 years this movement has had our consistent support, both political

and economic. Far from resenting the new Europe, we regard her as a welcome

partner, not a rival. For the road to world peace and freedom is still

long, and there are burdens which only full partners can share--in

supporting the common defense, in expanding world trade, in aligning our

balance of payments, in aiding the emergent nations, in concerting

political and economic policies, and in welcoming to our common effort

other industrialized nations, notably Japan, whose remarkable economic and

political development of the 1950's permits it now to play on the world

scene a major constructive role.

No doubt differences of opinion will continue to get more attention than

agreements on action, as Europe moves from independence to more formal

interdependence. But these are honest differences among honorable

associates--more real and frequent, in fact, among our Western European

allies than between them and the United States. For the unity of freedom

has never relied on uniformity of opinion. But the basic agreement of this

alliance on fundamental issues continues.

The first task of the alliance remains the common defense. Last month Prime

Minister Macmillan and I laid plans for a new stage in our long cooperative

effort, one which aims to assist in the wider task of framing a common

nuclear defense for the whole alliance.

The Nassau agreement recognizes that the security of the West is

indivisible, and so must be our defense. But it also recognizes that this

is an alliance of proud and sovereign nations, and works best when we do

not forget it. It recognizes further that the nuclear defense of the West

is not a matter for the present nuclear powers alone--that France will be

such a power in the future--and that ways must be found without increasing

the hazards of nuclear diffusion, to increase the role of our other

partners in planning, manning, and directing a truly multilateral nuclear

force within an increasingly intimate NATO alliance. Finally, the Nassau

agreement recognizes that nuclear defense is not enough, that the agreed

NATO levels of conventional strength must be met, and that the alliance

cannot afford to be in a position of having to answer every threat with

nuclear weapons or nothing.

We remain too near the Nassau decisions, and too far from their full

realization, to know their place in history. But I believe that, for the

first time, the door is open for the nuclear defense of the alliance to

become a source of confidence, instead of a cause of contention.

The next most pressing concern of the alliance is our common economic goals

of trade and growth. This Nation continues to be concerned about its

balance-of-payments deficit, which, despite its decline, remains a stubborn

and troublesome problem. We believe, moreover, that closer economic ties

among all free nations are essential to prosperity and peace. And neither

we nor the members of the European Common Market are so affluent that we

can long afford to shelter high cost farms or factories from the winds of

foreign competition, or to restrict the channels of trade with other

nations of the free world. If the Common Market should move toward

protectionism and restrictionism, it would undermine its own basic

principles. This Government means to use the authority conferred on it last

year by the Congress to encourage trade expansion on both sides of the

Atlantic and around the world.

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