Memorandum Approving Defense Procurement Policies in Aid of Areas of Economic Distress.

Memorandum for: The Secretary of Defense; the Chairman, Atomic Energy Commission; the Administrator, General Services Administration

The Director of the Office of Defense Mobilization recently issued a Manpower Policy designed to increase the number of defense contracts that are placed in areas where there has been a large amount of unemployment. At the same time he directed that new defense plants located in areas where unemployment has been high over a considerable period of time should be given a rapid tax write-off on a larger percentage of their capital investment than would otherwise be the case.

I am in complete agreement with both of these policies.

I would appreciate it if you would communicate my views on this matter to all procurement officials. I am asking the Director of Defense Mobilization to provide me with periodic reports on the results achieved under the two directives.

DWIGHT D. EISENHOWER