Letter to the Chairman, War Production Board, on Measures To Speed Reconversion.

Dear Chairman Krug:

I have consulted with the Director of War Mobilization and Reconversion regarding steps to be taken by this Government to speed reconversion.

Every opportunity must be given to private business to exercise its ingenuity and forcefulness in speeding the resumption of civilian production, subject to war needs. The Government has a major responsibility to assist in the achievement of an orderly transition from war production to civilian production. This is essential to the war production that continues and to the development of a healthy national economy.

You and I have agreed that the War Production Board can and should play an important role in reconversion. In order to help industry to obtain unprecedented civilian production it is necessary, as you have suggested, for the War Production Board to continue, for the present, some of the effective measures it adopted to achieve our unprecedented war production. These controls, however, should be lifted as soon as they are no longer needed.

Accordingly, I request you to continue the following program which you have been carrying out:

1. A vigorous drive to expand production of materials which are in short supply, not only because of military demands, but to meet civilian demands as well.

2. Limitation upon the manufacture of products for which materials can not yet be made available, so as to avoid excessive pressure on supply which would threaten our stabilization program.

3. A broad and effective control of inventories so as to avoid speculative hoarding and an unbalanced distribution which would curtail total production and endanger our stabilization program.

4. Granting priority assistance to break bottlenecks which may impede the reconversion process.

5. Allocation of scarce materials necessary for the production of low-priced items essential to the continued success of the stabilization program.

In carrying out this request, I know that you will give due regard to the demobilization and reconversion policies established by the Congress, as set forth in Sections 203 and 204 of the War Mobilization and Reconversion Act of 1944, and act under the guidance and direction of the Director of War Mobilization and Reconversion.

I am appreciative of the tremendous accomplishment of the War Production Board under your direction and that of your predecessors. I am equally confident of the great contribution which you and your Agency can make to the transition from our fully mobilized war economy to a sound and fully employed peacetime economy.

To carry out these responsibilities I hope that all the officials and staff of your Board whose services are needed will stay on the job. Their work is not yet done. The people of the United States expect them to be good soldiers and remain in service until the need has passed.

Very sincerely yours,

HARRY S. TRUMAN

[Honorable J. A. Krug, Chairman, War Production Board ]