Evening star., 1947-10-31
Armed Services
ToKeep5Bi||ion
WorthofSurpIus
Decision Only Shift
In Policy, Not New
Strategic Situation
BY the Associated Press

The armed services have de-
cided to hang on to some $5,000,-
100000 worth of goods they once
planned to dump into the war,
surplus market.
This decision to increase military
stock levels" was disclosed today by
War Assets Administrator Robert M.
Littlejohn, who also reported that
some goods already declared surplus
have been Withdrawn from public
offering.
The Withdrawals include clothing
and other supplies now being used
to relieve distress abroad and at
home and to carry out this country's
$400 ,000 900 Greek Turkish aid pro-
gram aimed at stemming Communist
advances into Southern Europe.
Only Policy Change.
At the Army Department it was
said the decision to keep more mate
riel does not represent "a new stra-
tegic situation" but only a policy
change relating to stocks on hand.
Mr.. Littlejohn, whose agency is
charged with selling or otherwise
disposing of goods declared surplus
by various Government agencies,
used these words to explain why the
total volume now is expected to
reach only $29, 100000 instead
of $4,000, ,0OO,O 900.
About s5,OOO,OOO,OOo of this
amount depended upon GER
tain military programs, such as uni
versal military training. But now
we have been informed that, because
of increased military stock levels
and the possible diversion of ma
teriel from the universal military
training program to other military
purposes, the $5,000,0O0,O00 will not
be forthcoming
Because of the policy shift, Mr.
Littlejohn's report said, the total
disposal job will be nearly 80 per
cent complete next summer
I'VE foresee' on June 30, 1948, an
inventory of approximately $780,
100000, nearly three-fourths of
which will be real property" he
estimated
Noting that goods worth $28, ,200,-
100000 already has been turned over
to WAA, Mr.. Littlejohn said:
THE task ahead is primarily one
OF disposing of inventories on hand.
These totaled $7,6O0,o00yoo0 on Sep
tember 80"
The sales chief forecast rapid
liquidation during the next six to
nine months" of the ramaining
consumer goods, industrial equip
ment aircraft and electronic equip
ment, but he foresaw a program of
several years duration" to get all
the surplus Government-built war
plants into private hands.
increasingly larger portions of
available inventory consist of con-
sumner and producer goods of poor
quality, special purpose machinery.
and 'hard-to-sell' real properties, y
the report said
A big cut in WAA'S payroll was
shown. From the November. 1916,
peak of $1,000 employees the rolls
were scaled down to $4,000 by the
start of this month.
Separation Rate High.
"Since January the separation
rate for WAA has been about three
times that for the Federal Govern
ment as a whole" Mr.. Littlejohn
said.
THE resignation rate is double
that of the total Federal service
because of the uncertainty of con-
tinued employment and the stated
short life of WAA."
The poor quality of current sur
plus offerings is reflected in de-
cline in sales from $2,6O0,0 100000 in
the second quarter of the year to
ST 300 100000 in the third quarter,
the report said.
Under the surplus Army prop
erty program, WAA is cooperating
with the Army in supplying surplus
to needy peoples in occupied areas
of Europe and Asia. Substantial
Withdrawals of used clothing al
ready have been made.
Transfers of property under the
Greek Turkish aid and disaster re-
lief programs, both authorized by
Congress, are also being made by
WAA."