Evening star., 1944-09-10

Bprnes' report to President
Roosevelt on plans ;or, industrial
recomrersion .phen Germany sur
renders.
Cutbacks.
Gen. (Brehon b. Somervell, com.
mander of the Army Service Forces
with the approval Of the chief ol
staff, Gen. George Co. Marshall
has directed:
(A) That the strategic reserve bs
Immediately studied in the light oi
current production and strategic
situation without delay.
(B) That authority be given him
10 Immediately suspend procurement
on not TO exceed so per cent of the
material provided in the current
strategic reserve.
This strategic reserve embraces
supplies of initial equipment for an
additional million men, The de-
cision Of Gen. Somervell will not
result in cutbacks of existing orders
but it will result in reducing by SC
per cent orders placed after this
date for supplies for these strategic
reserves.
Still Some Shortages.
At the supply depots stocks here
tofore have been authorized at 9C
days of anticipated issue. In the
light of current procurement and
strategic conditions, Gen. Somervell
has ordered that the depot stocks
be reduced to go days of expected
issue for items vital to combat and
As days for expected issue of other
items. This also will reduce future
procurement orders.
The ample supply of some NUM-
tions and some supplies will not
however, lessen the emphasis all
Government agencies have beer
placing upon the necessity for over
coming the shortages in certain
other critical supplies. They con.
tinue short. Reports continue o1
the short supply of certain artil.
lery ammunition, requiring our Of.
ficers to restrict the number oi
rounds fired per day. For the last
week the conduct of the war, fortu.
nately. has lessened the demand
upon the supply of heavy artillery
ammunition. But no one can tel
when demands will again increase
The Army cannot gamble as te
the day of surrender.
We Victory in Europe) Day.
With the defeat of Germany, tht
requirements of the procurement
agencies for materiel and supple!
will be reduced by approximately
40 per cent. The primary objec.
tives in the cutback procedure viii
differ somewhat from those now ir
effect. The need will still remain
to give full protection to the neces.
sary war programs for the conduct
Of the war against Japan, but in
30 doing, every opportunity will be
provided to permit the resumption
of maximum civilian production
without delay, thus preventing ex-
tended unemployment.
The procurement agencies con-
fronted with major readjustments
following the defeat of Germany
have prepared special procurement
programs for the continuing wal
with Japan which are ready for i'm
fermentation Immediately upon the
defeat of Germany.
These agencies are now engaged
In notifying prime contractors Of
their tentative plans under poll
cies prescribed by the War Produc.
ton Board.
War Controls.
There will be some time lag be-
tween the curtailment and cancel
lation of war contracts and the re-
sumption of large civilian produc.
ton. The length of that period
may be lessened by the promptness
with which wartime restraints are
removed.
To insure the utmost speed in re-
conversion and to permit the
prompt resumption of civilian pro-
duction at least equal to the civilian
production of the United States in
1889, controls now in existence will
be released or modified to the full
est extent possible to pedmit manu-
facturerS a freedom in planning fol
the resumption of civilian produc-
tion and in ordering materiels and
componets which will assure maxi
mum speed.
The military needs for the war
against Japan must be assured. Un-
questionably there will remain areas
OF tight supply which will necessi-
tate war production receiving a
preferential position. However. the
controlled materiels plan, with its
necessary but cumbersome paper
work, will no longer be required,
provided industry as a whole con-
tinues to recognize the Importance
OF war and essential civilian pro-
duction and the necessity for the
protection of small business.
Plant Reconversion.
An essential step to the prompt
reconversion of a war facility to
civilian production is the removal
OF war materiels and equipment
from the plant. This clearance is
part of the contract termination
procedure which has been planned
in detail by all of the procurement
agencies in close cooperation with
the director of contract settlements
and with the Surplus War Property
Administrator.
Arrangements for prompt advance
payments and for loans assure the
war contractor of quick financing
.
To further facilitate reconver-
sion the Surplus War Property Ad-
ministrator has approved the i'm.
mediate sale of machine tools and
industrial equipment being used by
manufacturers for war work fir