Third: We must continue to strengthen our mutual security efforts. Most
people now realize that our programs of military aid and defense support
are an integral part of our own defense effort. If the foundations of the
Free World structure were progressively allowed to crumble under the
pressure of communist imperialism, the entire house of freedom would be in
danger of collapse.
As for the mutual economic assistance program, the benefit to us is
threefold. First, the countries receiving this aid become bulwarks against
communist encroachment as their military defenses and economies are
strengthened. Nations that are conscious of a steady improvement in their
industry, education, health and standard of living are not apt to fall prey
to the blandishments of communist imperialists.
Second, these countries are helped to reach the point where mutually
profitable trade can expand between them and us.
Third, the mutual confidence that comes from working together on
constructive projects creates an atmosphere in which real understanding and
peace can flourish.
To help bring these multiple benefits, our economic aid effort should be
made more effective.
In proposals for future economic aid, I am stressing a greater use of
repayable loans, through the Development Loan Fund, through funds generated
by sale of surplus farm products, and through the Export-Import Bank.
While some increase in Government funds will be required, it remains our
objective to encourage shifting to the use of private capital sources as
rapidly as possible.
One great obstacle to the economic aid program in the past has been, not a
rational argument against it on the merits, but a catchword: "give-away
program."
The real fact is that no investment we make in our own security and peace
can pay us greater dividends than necessary amounts of economic aid to
friendly nations.