Minutes of Cabinet Meeting

MINUTES of CABINET MEETING February 12, 1953 The following were present: President Eisenhower Vice President Nixon Secretary of Labor Durkin Secretary of State Dulles Ambassador Lodge Secretary of Treasury Humphrey Director of Mutual Security Stassen Secretary of Defense Wilson Federal Security Administrator Attorney General Brownell Mrs. Hobby Postmaster General Summerfield Budget Director Dodge Acting Secretary of Agriculture Assistant to the President Adams True D. Morse Administrative Assistant Cutler Acting Secretary of Commerce Congressional Liaison Gen. Persons Walter Williams Secretary of Interior McKay (Arthur Flemming and Gabriel Hauge were present for the discussion of Item #1.) Secretary McKay left the meeting in the middle of discussionof Item #1.) The meeting was opened with a half minute of silent prayer. Library l. Proposed Decontrol Actions. ( mmod " Mr. Flemming presented proposals for decontrol (Copies of the two memoranda from the ODM and Advisory Group in Mrs. Whitman's file). After lengthy discussion, it was agreed that the first group of items should be decontrolled but that announce- ments on the other groups should be delayed until scheduled action. In the meantime, continuing studies of the critical items are to be made. The Controlled Materials Plan was ended, and the ODM is to study what action may be necessary after June 30. In the discussion several warnings were voiced, although all were agreed that the action should be taken. Mr. Dodge indicated that some price rises may be expected, which will increase the cost of national defense. Mr. Dulles warned that the grave international situation may take a turn for the worse and require the readoption of controls. Mr. Stassen believed that for certain critical items both price and allocation controls will be needed; for some of our allies, unlike the United States, will not be able to absorb such price rises as might materialize. The question was raised as to whether critical items could be controlled effectively with allocation restrictions but not price controls. Mr. Humphrey believed the situation will not be serious if the Government carries out its intentions of reducing ex- penditures. The President emphasized that we are on a high plateau of tension and that we cannot risk living all our life- time under emergency measures. In regard to measures after June 30, the President noted