We must maintain freedom of the seas. This means nuclear submarines and cruisers; improved anti-submarine weapons; missile ships; and the like. We must maintain all necessary types of mobile forces to deal with local conflicts, should there be need. This means further improvements in equipment, mobility, tactics and fire power. Through increases in pay and incentive, we must maintain in the armed forces the skilled manpower modern military forces require. We must be forward-looking in our research and development to anticipate and achieve the unimagined weapons of the future. With these and other improvements, we intend to assure that our vigilance, power, and technical excellence keep abreast of any realistic threat we face. 3. MUTUAL AID 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. This is no "give-away." Let's stick to facts! We cannot afford to have one of our most essential security programs shot down with a slogan! 4. MUTUAL TRADE Fourth: Both in our national interest, and in the interest of world peace, we must have a five-year extension of the Trade Agreements Act with broadened authority to negotiate.