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EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON, 25, D. C. MAY 2 1946 My dear Mr. Latta: On April 22, 1946, you advised this office that S. 1757, "To amend the Surplus Property Act of 1944 with reference to veterans' preference, and for other purposes," had been received at the White House and requested reports and recommendations as to the approval of the bill. The bill amends the Surplus Property Act so as to improve the preference position of veterans in respect to acquisitions of surplus property. Veterans are accorded a first priority, to the exclusion of even Government agencies, to secure such types of surplus property (except real property) as the Administrator of the War Assets Admin- istration may determine to be appropriate for exclusive disposal to veterans for their own personal use and to enable them to establish and maintain their own small business, professional, or agricultural enterprises. The bill also accords to veterans a priority, second only to the priority given the Government agencies, with respect to all other types of surpluses that may be disposed of under the Surplus Property Act, thus placing veterans, for the first time, in a preference posi- tion over States and their political subdivisions, and small businesses. The bill would also preclude disposal agencies from making trans- fers of surplus property to Government agencies without reimbursement or transfer of funds, unless a transfer on such terms is authorized by legislation approved subsequent to June 21, 1944. This provision is designed to end the anti-budgetary practice of some Government agencies in procuring surplus property without charge therefor being made against their appropriations. A facsimile of the enrolled enactment has been referred to the Departments of State, Treasury, Commerce, and Agriculture, the War Assets Administration, the Veterans' Administration, the Office of Price Administration, and the Office of War Mobilization and Reconver- sion, and their replies are attached. While all of the reporting agencies either recommend approval of the bill or interpose no objection to its approval, a number of them call attention to the fact that the provisions of the bill, broadening the scope and extent of veterans' preference in this field, will im- pinge adversely on their procurement programs. The Director of the Office of War Mobilization and Reconversion and the Treasury Depart- ment, for instance, point out that the bill will eliminate the priority