In the Western Hemisphere we shall continue to develop harmonious and mutually beneficial cooperation with our neighbors.  Indeed, solid friendship with all our American neighbors is a cornerstone of our entire policy.

In the world as a whole, the United Nations, admittedly still in a state of evolution, means much to the United States.  It has given uniquely valuable services in many places where violence threatened.  It is the only real world forum where we have the opportunity for international presentation and rebuttal.  It is a place where the nations of the world can, if they have the will, take collective action for peace and justice.  It is a place where the guilt can be squarely assigned to those who fail to take all necessary steps to keep the peace.  The United Nations deserves our continued firm support.

FOREIGN ASSISTANCE AND TRADE

In the practical application of our foreign policy, we enter the field of foreign assistance and trade.

Military assistance must be continued.  Technical assistance must be maintained.  Economic assistance can be reduced.  However, our economic programs in Korea and in a few other critical places of the world are especially important, and I shall ask Congress to continue them in the next fiscal year.

The forthcoming Budget Message will propose maintenance of the Presidential power of transferability of all assistance funds and will ask authority to merge these funds with the regular defense funds.  It will also propose that the Secretary of Defense have primary responsibility for the administration of foreign military assistance in accordance with the policy guidance of the Secretary of State.

The fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved.  By continuing to surpass her prewar levels of economic activity, Western Europe gains self-reliance.  Thus our relationship enters a new phase which can bring results beneficial to our taxpayers and our allies alike, if still another step is taken.

This step is the creation of a healthier and freer system of trade and payments within the free world—­a system in which our allies can earn their own way and our own economy can continue to flourish.  The free world can no longer afford the kinds of arbitrary restraints on trade that have continued ever since the war.  On this problem I shall submit to the Congress detailed recommendations, after our Joint Commission on Foreign Economic Policy has made its report.

ATOMIC ENERGY PROPOSAL

As we maintain our military strength during the coming year and draw closer the bonds with our allies, we shall be in an improved position to discuss outstanding issues with the Soviet Union.  Indeed we shall be glad to do so whenever there is a reasonable prospect of constructive results.  In this spirit the atomic energy proposals of the United States were recently presented to the United Nations General Assembly.  A truly constructive Soviet reaction will make possible a new start toward an era of peace, and away from the fatal road toward atomic war.