White House Press Release, Message from President Harry S. Truman to the United States Congress

HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE- 73 MARCH 5, 1948 CONFIDENTIAL To be held in STRICT CONFIDENCE and no portion, synopsis or intimation to be given out or published until the READING of the President's Message has begun 16 either the Senate or House of Repre- sentatives. Extreme care must therefore be exercised to avoid premature publication. CHARLES G. ROSS Secretary to the President TO THE CONGRESS OF THE UNITED STATES: In accordance with the Government's settled policy of eliminating temporary war agencies as soon as practicable, I recommend that the`Congress now provide for the liquidation of the temporary arrangements for disposing of surplus war property and for the completion of the remaining disposal activities within the permanent Federal establishment. At the same time, the Congress should provide for a number of improvements in the permanent system for the procurement, use and disposal of Government property, For a number of years the Federal Government has needed a better system of property management. The present arrangements, which have been developed under piecemeal legislation dating as far back as 1870, are inadequate to meet the present requirements of the Government. That legis- lation contains many obsolete provisions and does not provide for the central leadership and direction necessary to coordinate the complex activities concerned with the procurement, use and disposal of Government property. NARA The Congress has considered basic revisions in the Government's system of property management in the past. The 77th and 78th Congresses devoted much attention to this subject. This work was interrupted, how- ever, by the more urgent need for emergency legislation to provide for the disposal of surplus war property. The Surplus Property Act of 1944 was enacted for this purpose. The War Assets Administration and its predecessor agencies have been responsible for the disposal of surplus war property at home. The Depart- ment of State has been responsible for posing of surplus property located abroad. The Surplus Property Act was not designed to be permanent property management legislation. Rather, its purpose was to achieve a number of special objectives which would make the disposal of the huge war surpluses a constructive force in demobilization and reconversion. An effective job has been done in achieving these objectives, Disposal operations have been carried on without the uncontrolled dumping of surplus stocks which would have created hazards to business and employ- ment. Many thousands of veterans have been assisted in establishing or improving their own business, professional, and agricultural enterprises. The competitive position of small business has been protected and strength- ened. State and local governments and schools throughout the country have received substantial benefits. Our surplus property abroad has been disposed of in a manner which would make the greatest contribution to world recovery efforts. The critical period in disposing of war surpluses is now drawing to a close. By June 30, 1948, the total amount of war property declared surplus, both at home and abroad, will have reached nearly $40 billion, in terms of original cost. By that date, it is expected that all but about $6 billion in property will have been disposed of. Of the original $40 billion total, property costing about $11 billion was located abroad, of which about $600 million will be left next June. This small remaining inventory, which is widely dispersed, can be liquidated most efficiently by transferring responsibility for its disposal from the Department of State the owning agencies - primarily (OVER)