Evening star., 1951-12-12
u. ). Will Order
New 1OPct. Cut
Civilian Goods
Non defense Output
In 1852 to Drop to
Half Pre-Koreu Level
By james Y. Newton

A new cut of about 10 per cent
in materials for civilian produc-
ton will be made when the Gov
eminent announces ALLEGATIONS Of
scarce metals for the second
quarter of 1852, it was learned
today.
The new cut, made necessary
by increasing demands of the
armaments program for steel,
copper and aluminium, means that
production of automobiles, cleo
trical appliances and other civilian
hard" goods, will be reduced to
nearly so per cent of the pre-
Korea volume.
Government production officials
now are engaged in matching re-
quirements of the military. de-
fense-supporting and essential
Civilian programs against the
total supplies of materials to be
available in the second 1852 quar-
ter. ALLEGATIONS of materials for
use in the April-through-June
quarter will be announced early
next month.
Bigger Cutbacks in Prospect.
A top Government official said
the metals supply situation viii
be very difficult" all during 1852.
In order to meet demands of the
defense program, the prospect is
that even deeper cuts in civilian
production will have to be made
in the July-through-S September
quarter. That means the output
of automobiles, ETC., probably will
be reduced to less than half the
pre-Korea rate.
And aside from the overall
shortages of basic steel, aluminium
and copper, Scarcities of some in
dividual items, such as copper
wiring and of metals like nickel.
may bring even more drastic cuts
in civilian goods output.
Eve soon will be up against q
real guns-versus- butter situation
in nickel supplies" the official
said. adding that it appeared
there would hardly be enough
nickel for the aircraft production
program alone.
Nickel Vital to Defense.
Among other things, nickel Is
used in hardening steel for many
military items, automobile gears
and axles, and in pure form in
electronic equipment, radio and
television tubes. The question
facing production officials is one
of how deeply to cut civilian
nickel allocations. 1t is probable
the military program could use
the country's total supply, most
OF which is imported from
Canada.
Mobilization leaders earlier had
hoped for improvement in the
aluminium supply situation late in
1852 when the output of new
plants will be coming in. However.
the decision to expand the Ma
tons air strength to 143 groups
means the aircraft production
program will require all extra
aluminium that will be available.
The full impact of the stepped
up aircraft program will be felt
late next year.
An official said there "is nothing
but gloom" in the copper supply
outlook. The country imports most
of its copper and there is small
prospect of increasing the amount
coming in.
Steel Not as Dark.
The outlook for basic steel sup
plies was described by the official
as somewhat better than either
the aluminium or copper situations.
The output of steel will be stepped
up through 1852 as new mills come
into production. Steel production
is reaching record heights almost
weekly.
Despite the additional cuts that
must be made in production Of
civilian goods, the official said
shortages of various items are not
expected to develop until late next
year. Large inventories of goods
using metal. although greatly re-
duced already, are expected to last
that long.
Automobile manufacturers were
allotted enough steel, aluminium
and copper to make IL million
cars in the current quarter-year,
to a pre-Korea produc-
ion rate of about 1.6 million q
quarter.
ALLEGATIONS set for the first three
months of 1852 will be sufficient
,or producing an estimated 100000
autos. BY using scraps of inven-
tory and through conservation.
he automobile industry may up
he first quarter output to 1906
100 cars.
The prospective 10 per cent cut
or the second 1852 quarter means
manufacturers probably will be
given enough metals to make
lbout 100000 automobiles.