Now let us look at the credit side first.

Peace depends upon the free nations sticking together, and making a combined effort to check aggression and prevent war.  In this respect, 1951 was a year of great achievement.

In Korea the forces of the United Nations turned hack the Chinese Communist invasion-and did it without widening the area of conflict.  The action of the United Nations in Korea has been a powerful deterrent to a third world war.  However, the situation in Korea remains very hazardous.  The outcome of the armistice negotiation still remains uncertain.

In Indochina and Malaya, our aid has helped our allies to hold back the Communist advance, although there are signs of further trouble in that area.

In 1951 we strengthened the chances of peace in the Pacific region by the treaties with Japan and the defense arrangements with Australia, New Zealand, and the Philippines.

In Europe combined defense has become a reality.  The free nations have created a real fighting force.  This force is not yet as strong as it needs to be; but it is already a real obstacle to any attempt by hostile forces to sweep across Europe to the Atlantic.

In 1951 we also moved to strengthen the security of Europe by the agreement to bring Greece and Turkey into the North Atlantic Treaty.

The United Nations, the world’s greatest hope for peace, has come through a year of trial stronger and more useful than ever.  The free nations have stood together in blocking Communist attempts to tear up the charter.

At the present session of the United Nations in Paris, we, together with the British and the French, offered a plan to reduce and control all armaments under a foolproof inspection system.  This is a concrete, practical proposal for disarmament.

But what happened?  Vishinsky laughed at it.  Listen to what he said:  “I could hardly sleep at all last night ....  I could not sleep because I kept laughing.”  The world will be a long time forgetting the spectacle of that fellow laughing at disarmament.

Disarmament is not a joke.  Vishinsky’s laughter met with shock and anger from the people all over the world.  And, as a result, Mr. Stalin’s representative received orders to stop laughing and start talking.

If the Soviet leaders were to accept this proposal, it would lighten the burden of armaments, and permit the resources of the earth to be devoted to the good of mankind.  But until the Soviet Union accepts a sound disarmament proposal, and joins in peaceful settlements, we have no choice except to build up our defenses.

During this past year we added more than a million men and women to our Armed Forces.  The total is now nearly 3 1/2 million.  We have made rapid progress in the field of atomic weapons.  We have turned out billion worth of military supplies and equipment, three times as much as the year before.

Economic conditions in the country are good.  There are 61 million people on the job; wages, farm incomes, and business profits are at high levels.  Total production of goods and services in our country has increased 8 percent over last year—­about twice the normal rate of growth.