White House Press Release

IMMEDIATE RELEASE September 5, 1945 PRESIDENT RECOMMENDS CUTBACKS OF BILLION IN CIVILIAN WAR AGENCIES The President today recommended to the Congress rescissions amounting to $2, 755, 981, 394 in war-related ap- propriations for the fiscal year 1946, affecting 28 agencies, and $794,561.1 208 in rescissions of portions of several con- tract authorizations. These rescissions do not include any for the military activities of the War and Navy departments, for which the President stated he would make recommendations within a few days. He also declared that "this proposal is one of many I shall make for orderly reductions in war appro- priations which Congress has provided for by enacting section 303 of the Second Deficiency Appropriation Act of 1944.' The action of the President was alse in accord vith a request from Chairman Clarence Cannon of the House Ap- propriations Committee that agencies be prepared for immed- iate hearings before the Deficiency subcommittee. These hearings began Wednesday (this) morning. In response to Chairman Cannon's request, the Bureau of the Budget and the various agencies during the past two weeks developed the data upon which was based the President's action of today. In addition to theilarge rescissions named above, the President proposed reductions of $9,318,307 in the 1946 limitations on administrative expenses of several Government NARA corporations and agencies; transmitted a proposed provision / returning to the Treasury certain corporation funds, amount- ing to $1,190,500; proposed provisions extending the availa- bility of certain "national defense" appropriations to June 30, 1946, as well as a provision facilitating the liquidatien of war agencies. The President's letter to the Congress included the statement: "In making these recommendations for reductions in wartime appropriations, I am sensitive to the responsibility which lies on Congress and the President to make such reductions in a way that will best serve the national interest. We shall be impelled by a natural desire to reduce war appropriations quickly, but in many cases the question of whether reductions should be made or to what extent they should be made will in- volve decisions en problems of major importance to the future well-being of the nation which require time for careful con- sideration and resolution. "With these considerations in mind, it seems to me that a sound course is to take action to reduce appropriations only to the extent such reductions can be entirely supported by conditions existing or clearly foreseeable at the time. Where further reductions must be based partially on judgment as to unknown future conditions, I believe it is the sounder course to delay them until their effect can be predicted with more reasonable assurance. "I thus view this proposal as one of many which I shall make under the procedure for orderly reductions in war appropriations which Congress has provided by enacting section 303 of the Second Deficiency Appropriation Act of 1944. In a few days I shall transmit recommendations with respect to ap- propriations for the War and Navy Departments. I also plan another full review of war and war-related appropriations and a report to Congress on January 3, 1946 containing recommenda- tions for further adjustments. In the meantime, I shall pro- ceed to take administrative action to the full extent of my authorit to speed reduction in war and war-related activities." (OVER)