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PHW THE PRESIDENT HAS SEEN THE WHITE HOUSE WASHINGTON December 20, 1973 MEMORANDUM FOR: THE PRESIDENT FROM: ROY L. ASH SUBJECT: 1975 Budget Decisions: Health, Education, and Welfare; Labor; Housing and Urban Development; and Veterans Administration The 1975 Budget Review Board (Shultz, Laird, Harlow, Stein, and Cole, or their designates) met on December 7 and completed its review of recommendations covering the Depart- ments of Health, Education, and Welfare; Labor; Housing and Urban Development; and Veterans Administration. Five key issues have been identified for your consideration (detail at TAB A) . Department of Health, Education, and Welfare I. Cancer Research The National Cancer Institute recommends a $250 million increase over the 1974 level of $500 million. Review Board recommends a $75 million increase in recognition of the need to assure balance between cancer and other bio- medical research areas. It also reflects the lower priority of major non-research components of the request, e.g., construction and other resource development activities. Secretary Weinberger concurs. Decision: Agree Disagree See me II. Health Manpower Review Board and HEW recommend a gradual phaseout of operating subsidies for medical and other health professions schools. This would correct existing inequities whereby-Federal subsidies