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OCR Page 1 of 30EXECUTIVE 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
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