Draft of a paper presented May 20, 1970, to the Armed Services Subcommittee on Strategic Arms Limitations Talks of the Committee on Armed Services, U.S. Senate. An examination of the performance of the Soviet economy under the present collective leadership emphasizes three sets of requirements competing for priority: (1) consumer needs, (2) military and defense industry claims, and (3) overall economic growth. It is conjectured that economic pressures have helped propel the Soviet Union into the SALT talks; evidence of the uneven performance of Soviet economy has multiplied since the latter part of 1969. A number of interrelated questions are discussed with regard to foreign and defense policy in the Soviet Union, including the technological dilemma and its implications, the motivation behind the Soviet strategic buildup during the past five years, and the issue of "militance and caution" concerning future Soviet behavior.
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