White House Press Release, Statement by John R. Steelman

71 #1019 HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE emisio atedit FEBRUARY 21, 1947 book CONFIDENTIAL. The following Statement by the Assistant to the President, MUST BE HELD IN CONFIDENCE UNTIL RELEASED. Release to all Sunday newspapers of February 23, 1947. Release to radio commentators and news broadcasters for 6 p.m. EST, Saturday, February 22, 1947. PLEASE GUARD AGAINST PREMATURE PUBLICATION OR ANNOUNCEMENT. CHARLES G. ROSS Secretary to the President asawoms bloom bid John R. Steelman, Assistant to the President, today made public the following report on the Government's Inter-Agency fertilizer program: American farmers and home gardeners this year will use more fer- tilizer than ever before in the Nation's history -- twice as much as the average annual consumption in the 1935-39 period. But even the unprecedent- ed supply of fertilizer that will be available in this. country will not be large enough to satisfy all domestic demands. Serious regional shortages have already begun to appear, edd In devastated lands abroad, and particularly in the areas occupied by United States forces in Japan, Korea and Germany there are critical shortages of fertilizer Until fertility of the soil is restored in these areas, famine, disease and unreat will remain a constant threat. As long as this situation prevails food shipments from this country will have to remain at a high level and there will be little possibility of reducing the number of American soldiers stationed abroad. The post-war demand, both at home and abroad, for vastly in- creased supplies of fertilizer was foreseen well in advance of VJ-day when an Inter-Agency Committee was established to coordinate the steps which the Government could take to help expand commercial fertilizer production when hostilities ended. NITROGEN FERTILIZER Facilities for producing synthetic nitrogen, a basic component of both explosives and nitrogen fertilizer, were greatly expanded during the war. Upon the recommendation of the Inter-Agency Committee all ordnance plants suitable for the economic production of commercial nitrogenous fertilizer were offered` for sale or lease to private industry soon after VJ-day. Four of these former munitions plans are now pro- ducing nitrogen fertilizer for the domestic market and a fifth is expected to begin producing in May. In addition, the TVA--Muscle Shoals plant has continued to produce nitrogen for fertilizer. Production of commercial fertilizer nitrogen will reach an estimated annual rate of 673,000 tons in May, 1947, as compared to only 244,000 tons in 1940. Early last year the military commanders in Europe and Pacific areas informed the War Department they would require a minimum of 240,000 tons of nitrogen, or its equivalent in fertilizer materials, in the 1946-47 crop year. The Congress appropriated funds to fill this order. In addition the Combined Food Board asked the United States to export 97,000 tons of nitrogen to unoccupied foreign countries. Thus export demands totaled 327,000 tons while domestic production was estimated at 572,000 tons. At the same time it was estimated the United States would import 201,000 tons of nitrogen, or its equivalent, in the 1946-47 crop year to augment the domestic supply. It was clear that the export demands could not be met from the anticipated commercial supply of fertilizer in this country without inflicting grave harn upon our agricultural economy. Both the War Department (OVER)