Evening star., 1945-04-01

40 per cent by the end OF IL
month period.
The Army proposes to utilize
all usable equipment in Europe
in the Pacific. This equipment
must be repackaged and re-
Grated. While plans have been
made to expedite this movement,
deliveries from the United
States will be needed to support
operations in the Pacific until
the pipeline from Europe to the
Pacific has been filled. Then the
need for deliveries from United
States production will decrease
rapidly.
Reconversion Schedule
After We Day Given.
The report emphasizes the ac-
tions which have been taken to
coordinate the activities of the
several Government agencies
having reconversion responsible
ties.
When Germany is defeated,
our total release of resources
from munitions production will
be about 20 per cent in the first
quarter, an additional S per cent
in the second quarter and still
another 5 per cent in the third
quarter.
Unemployment problems fol-
lowing the defeat of Germany
will be temporary in nature.
The tremendous backlog of ci-
william demand, with savings in
Guiding War Bond holdings, at
total of 14O billion dollars,
should quickly provide employ
ment.
The temptation to embark in
large public-Works and other
programs designed to provide
employment in this period must
be resisted as these programs
would interfere with war produc-
ton and reconversion.
The report points out that pro-
duction controls must be re-
leased as promptly as possible to
encourage private enterprise to
reconvert with maximum dis
patch. The War Production
Board plans to relax controls,
first through the increased use
of spot" authorizations, Sec
ondly through the discontinue
ance of the materials control
plan at an early date with the
substitution of a simple priori-
ties plan and thirdly, the open
ending of the materials control
plan while it is continued.
Limitation orders will be re-
leased except as required by con-
tinuing shortages such as in tex
tiles, paper and pulp, lumber,
leather, containers and chemi-
Gals. The War Production Board
is prepared to take prompt ac-
tions to prevent the building of
excess inventories and to protect
small business. War ManpoWer
Commission controls will be con-
tinued in all tight labor areas.
More Attention Needed
To Government Economy.
When Germany is defeated we
must devote more attention to
economy in Government. The
report states: What is necessary
to win the war we will do, and as
Christian, humane people we will
gladly do our part to relieve suf-
fering and distress in a war-torn
world. However, we must give
consideration also to the people
who will pay the bills"
The report reviews the basic
machinery for partial reconver-
sion on We day. 1t points out
that sound policy governing
the placing of cutbacks is now in
effect, that experienced person.
mel is available to settle contracts
rapidly and that contractors have
also provided trained stats for
this purpose. War Department
settlements in February required
an average of only 3.4 months as
compared with AZ months in De-
cember. The Navy cut its settle
ment time from SO months to
ga months in the same period.
While the Surplus Property
Board was not established until
January, the procedures de-
veloped previously by the ad-
ministrator enabled the RESPONSE
BILE agencies to gain valuable ex-
perience. The Surplus Property
Act is complicated to admins
ter. However, more experience is
necessary under the act before
specific recommendations can be
made to the Congress for its
modification.
Much attention has been given
to making space available for
the quick storage of termination
inventory and Is million square
feet will be ready by June in
Sc centers to meet emergency re-
quirements.
The report points out that the
sale of war plants is desirable
even before these plants have
become surplus if they are to be
converted to civilian production
quickly. The director has asked
the Department of Justice to
work with the Surplus Property
Board and the Reconstruction
Finance Corp. to develop pro-
cedures for giving an opinion on
such proposed sales under the
antitrust laws. The director
recommends that the Surplus
Property Board be removed from
the direct supervision of the Of
flee of War Mobilization and Re-
conversion.
Sterilization Controls
Needed After We Day.
In discussing economic stabili-
zation, the report emphasizes the
necessity for continuing price,
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