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NOTED MAY 21 1945 EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET your WASHINGTON, 25, D. C. MAY 21 1946 My dear Mr. Latta: On May 15, 1946, you advised this office that H. R. 5604, "Reducing or further reducing certain appropriations and contractual authorizations available for the fiscal year 1946, and for other purposes, had been re- ceived at the White House and requested reports and recommendations as to the approval of the bill. The bill rescinds appropriations previously made available for the fiscal year 1946 in the amount of $6,403,638,311, which amount is $652,209,828 greater than the amount recommended by the President for rescission relating to the purposes set forth in the measure. The at- tached statement indicates the distribution of the aggregate amount of the rescissions as between executive agencies, the military establish- ment, and the naval establishment. The bill also cancels contract authorizations in the amount of $458,673,001; reduces corporate funds in the amount of $446,890; and reduces administrative expense limitations in the amount of $7,410,000. The attached statement sets forth the principal items of difference between the rescissions recommended to the Congress by the President and the rescissions contained in the bill. The bill contains a general provision which was inserted by the Senate providing that Philippine Scouts shall receive the same rate of pay, mustering-out pay, and certain other benefits accorded to American soldiers, except that payments would be made in pesos at the rate of one peso ($.50) for each dollar authorized by law. The Senate added a provision amending Public 301 of the 79th Congress whereby combatant vessels under construction on March 1, 1946, whose con- struction was more than 20% complete on that date, shall be completed. The cost of completing the 14 ships under construction will be approxi- mately $89,000,000. It is understood that Mr. Snyder may wish to place before the President some suggestion with respect to the completion of these vessels. The Bureau of the Budget has informally contacted the various de- partments and agencies concerned, and, except as hereinabove noted, none of them interposes objection to the approval of the bill.