White House Press Release

IMMEDIATE RELEASE MAY 3, 1946 In keeping with the Administration's policy of winding up the affairs of war agencies as quickly as their wartime responsibilities have been discharged, the President has today signed an Executive Order terminating, effective May 8, 1946, the Petroleum Administration for War. In terminating the agency, the President stated that it had successfully completed its wartime program. At the same time, the President has expressed to Secretary Krug, by letter, the wish that he undertake the initiative in obtaining the coordination and unification of Federal policy and administration in respect to functions and activities relating to petroleum. Pointing to the success of Government-Industry cooperation in the war oil program, the President has further suggested to the Secretary that an industry committee be established to consult and advise with him. Mr. Ralph K. Davies, the Deputy Petroleum Administrator for War, has been asked to remain for a short time to direct winding up of that office and to assist in launching these activities, thus affording the Government the benefit of his Government-Industry experience in oil. The letter to the Secretary of the Interior follows: NARA My dear Mr. Secretary: In keeping with the Administration's policy of winding up the affairs of war agencies as quickly as possible after their emergency responsibilities have been discharged, I have acted upon your recomendation to terminate, effective, May 8, the Petroleum Administration for War, which has SO successfully completed its war-time assignment. I am in agreement with your views that steps should now be taken to assure coordination in peace-time of the Federal Government's many interests in petroleum, petroleum products and associated hydrocarbons. To the extent possible one agency must bear the primary responsibility for providing a focal point for leadership and information for the numerous agencies of the Federal Government dealing with petroleum. I, therefore, request that you undertake the initiative in obtaining coordination and unification of Federal policy and administration with respect to the functions and activities relating to petroleum carried on by the various depart- ments and agencies. Where practicable and appropriate govern- mental activities relating to petroleum should be centralized and I ask that from time to time you submit to me for consideration proposals looking to the accomplishment of this objective. You should, through such office as you designate, serve as the channel of communication between the Federal Government and the petroleum industry, and as the liaison agency of the Federal Government in its relations with appropriate State bodies concerned with oil and gas. I have been impressed with the great contribution of government-industry cooperation to the success of the war petroleum program, and feel that the values of such close and harmonious relations between Government and industry should be continued. I, therefore, suggest that you establish an industry organization to consult and advise with you. In this connection, I think it would bo most helpful if Mr. Ralph K. Davies, Deputy Petroleum Administrator throughout the war, were to remain on for a brief period to assist in organizing and launching these activities and to superviso winding up the affairs of the Petroleum Administration. Mr. Davies possesses a broad experience in oil, and enjoys a high standing both within Government and within the potroleum industry. I believe that his participation would assure the full cooperation and support that is so essential in the initial phase. (OVER)