Any survey of the free world's defense structure cannot fail to impart a feeling of regret that so much of our effort and resources must be devoted to armaments.

Three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United State corporations.

Now all of us deplore this vast military spending. Yet, in the face of the Soviet attitude, we realize its necessity. Whatever the cost, America will keep itself secure. But in the process we must not, by our own hand, destroy or distort the American system. This we could do by useless overspending. I know one sure way to overspend. That is by overindulging sentimental attachments to outmoded military machines and concepts.

Arms alone can give the world no permanent peace, no confident security. Arms are solely for defense - to protect from violent assault what we already have. They are only a costly insurance. They cannot add to human progress.

My profoundest conviction is that the American people will say, as one man: No matter what the exertions or sacrifices, we shall maintain that necessary strength! But we could make no more tragic mistake than merely to concentrate on military strength. For if we did only this, the future would hold nothing for the world but an Age of Terror.

The United States stands at the pinnacle of world power. This is a solemn moment for the American democracy. For with primacy in power is joined an awe-inspiring accountability for the future.