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OCR Page 1 of 2LEAS
NATIONAL
ARCHIVES AND
RECORDS
ENTER
SERVICE
CABINET MEETING, FRIDAY, JANUARY 9, 1948
10 AM
Posed for photographers. Full Cabinet present.
THE PRESIDENT
Thought Cabinet would be interested in budget message. 39.7
billion this year. 2 billion more than last year. Without ERP the
budget would be about 34 billion.
In 1929 29% of budget was for Nat Defense & Foreign. In 1948
79% for Military & Foreign. 21% for all other govt functions.
KRUG
Endorsed the job done by Jim Webb. All members agreed - he was
fair - and intelligent.
GEN FLEMING
Never saw previous direction.
FORRESTAL
Budget is now a part of the govt not a monastic cell.
MARSHALL
When he became Chief of Staff had 15 B-17s and not enough money
to maintain them. Yesterday approved order to destroy over 2000 B-17s.
The #1 problem of defense is to compromise a reserve of planes
with the rapidity of manufacture in the event of an emergency.
THE PRESIDENT
If that is all OK.
10:40
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