White House Press Release

IMMEDIATE RELEASE JANUARY 11, 1947 17 John R. Steelman, Assistant to the President, today announced there will be no change in the Government's program for public purchase and control of importation of natural rubber until the Congress has had opportunity to act upon recommendations for interim legislation extending controls over domestic rubber consump- tion and inventories. Mr. Steelman said that if the Congress adopts the program recommended by the President, the public purchase program would no longer be necessary and would be discontinued on March 31. In a letter to Major General Philip B. Fleming, Administrator, Office of Temporary Controls, Mr. Steelman said the President will re- quest the Congress to make a declaration of policy with regard to the rubber program, and extend the war powers which authorize controls on consumption and inventories of rubber, for an interim period pending action on permanent legislation in support of the synthetic rubber industry. In the absence of action by the Congress, the rubber allo- cation and import control powers, which are derived from the Second War Powers Act, expire on March 31, 1947. The text of Mr. Steelman's letter follows: "My dear General Fleming: I have reviewed with great care the evidence regard- ing the question of continuation of public purchase of rubber, assembled in numerous conferences on this subject including particularly a joint meeting on December 20, 1946, of repre- sentatives of the several agencies of government concerned, representatives of rubber-consuming industries and of rubber importers and dealers. NARA The rubber-consuming industry, with the exception of a very few companies, has strongly urged the continuation of public purchase of natural rubber until such time as perma- nent legislation in support of the synthetic rubber industry has been enacted by the Congress. I am convinced that it would be inconsistent with the orderly decontrol policy of the President to continue public purchase this long, especially if, as seems probable, the Congress does not enact permanent rubber legislation until after March 31, 1947. On the other hand, the rubber traders have urged the immediate termination of public purchase, without reference to action by the Congress as regards either temporary extension of the war powers relating to rubber or permanent rubber legislation. I have come to the conclusion that such action might undermine the effective continuation of controls on the use of natural rubber, which we are agreed must be continued through and beyond March 31. I have discussed this matter with the President and he has informed me that he will request of the Congress action which will provide for the following: (1) A declaration of policy stating that it is the intention of the Congress, in the interest of national security, to protect and maintain a minimum synthetic rubber industry in the United States. (2) The designation of committees of the Senate and the House of Representatives to investi- gate the rubber problem and to recommend, at an early date, the enactment of permanent rubber legislation. (3) A temporary extension of the war powers as applied to rubber, authorizing continued exercise of controls on rubber consumption and inventories pending enactment of perma- nent legislation by the Congress. (OVER)