Editorial Note
On May 24, President Truman submitted to Congress a Special Message on the Mutual Security Program in which, among other requests, he recommended $415 million in military aid for Greece, Turkey, and Iran, a portion of which would be available for other Middle Eastern nations if necessary. The President also recommended $125 million in economic aid for Middle Eastern countries, exclusive of Greece and Turkey for whom economic aid was provided as part of the aid program for Europe. The economic aid program for the Middle East also included programs of technical assistance to Libya, Liberia, and Ethiopia “whose economic problems are similar to those of the Middle Eastern countries.”
In recommending his program of Middle East aid under the Mutual Security Act, the President said, inter alia, “The countries of the Middle East are, for the most part, less developed industrially than those of Europe. They are, nevertheless, of great importance to the security of the entire free world. This region is a vital link of land, sea, and air communications between Europe, Asia, and Africa. In the free nations of the Middle East, lie half of the oil reserves of the world. No part of the world is more directly exposed to Soviet pressure. The Kremlin has lost no opportunity to stir these troubled waters, as the post-war record amply demonstrates. … There is no simple formula for increasing stability and security in the Middle East. … But the pressure against the Middle East is unremitting. It can be overcome only by a continued build-up of armed defenses and the fostering of economic development.” The President’s Message on the Mutual Security Program is printed in full in Public Papers of the Presidents of the United States: Harry S. Truman, 1951, (Washington, Government Printing Office, 1965), pages 302–313. Documentation on the formulation and implementation of the Mutual Security Program may be found in volume I, pages 266 ff.
E. How Will Nationalization Affect State Revenues and Prices of Products
The decision to nationalize petroleum marketing implies the State’s readiness to assume responsibility for assuring distribution and vending of petroleum products. Should operating expenses prove to be more costly than under private management, so that the profit margin enjoyed by private enterprise were eliminated, a reduction in retail prices could be accomplished only through a reduction in the tax income derived by the State, since the State would be obliged to defray a greater operating overhead while reducing the margin between the cost of products and their sale price.