May 22, 1947
To the Congress of the United States:
In March of this year the Congress passed and I approved a bill known as the First Decontrol Act of 1947, extending for three months a few of the powers originally granted in the Second War Powers Act. This extension was authorized to enable the Congress to make a further review of the specific controls needed during the coming year.
Since the enactment of this law, the interested departments have reexamined the need for continuation of these powers. Their review shows that it is still essential to maintain certain limited materials controls, in order to prevent harm to our own economy and give concrete support to our foreign policy.
Since V-J Day, American industry, agriculture and labor have established notable production records. If production abroad had reached similar heights, no materials controls at all would be needed today. But the progress of world reconstruction has been necessarily difficult and slow. In a few respects the United States has been adversely affected by this delay, and therefore, in a few instances, controls over certain imported commodities are still needed. However, any adverse effects suffered by us are slight in comparison with the tragic conditions of life faced by most countries of the world today. It is primarily because of these conditions, with their enormously important political and social repercussions, that we must still retain a very limited portion of our wartime powers over materials.
The remaining powers which it is necessary to retain fall into two groups:
(1) Allocation and priority powers to maintain the stability of our economy.
(2) While our economy is still hampered by the lack of a number of imported materials, there are only a few in which the lack is so serious and the importance so great that continued controls are required. The need in these cases is well known. Specifically, it is necessary to continue the power to allocate the following imported materials: tin and tin products, manila and agave fibers and cordage, antimony, cinchona bark, quinine and quinidine. Except in the case of tin products, where the allocation of tin plate is also essential to the solution of world food problems, the continuation of these controls is solely for the purpose of assisting our own industry and agriculture.
(b) As a corollary to the above, it is also necessary to continue the power to issue export priorities for materials needed to increase the production abroad of products that we urgently need in this country. This is a matter of direct and immediate self-interest.
(2) Allocation and priority powers needed to carry out our foreign policy and to assist in world reconstruction.
(a) FOODS. Our own food production has reached great heights, and our own food supplies are excellent. In contrast the food situation abroad continues to be desperate. For that reason we are actively participating in the International Emergency Food Council, which is a noteworthy example of practical international economic cooperation. Our participation in this activity conforms with our national ideals and interests. But participation is not merely a matter of words. We must be able to take the steps necessary to make certain that we do not add to the hunger of other peoples by importing more than our agreed share of scarce foods. I recommend, therefore, continued authority to maintain import controls on fats and oils, and rice and rice products.
(b) FERTILIZER. The world fertilizer situation is similar to, and is directly related to, the world food situation. While our own fertilizer production and consumption have risen spectacularly since the pre-war period, supplies available to foreign countries have fallen sharply. This has resulted in retarded agricultural recovery, loss of food production and consequent malnutrition over widespread areas. The lack of fertilizer is particularly acute in the case of nitrates. It is therefore essential that there be continued authority to restrict imports and to issue priorities for export of nitrogenous fertilizer materials.
(c) INDUSTRIAL MATERIALS. In general our supply of industrial 'products and materials has reached the point where delays in production and delivery are no longer crucial. The pipelines are full, or are filling up, and no general use of allocation powers is needed. But economic and political conditions in many other countries are so critical that it is necessary to continue the power to issue export priorities in special cases for key industrial items that are vitally required for reconstruction and rehabilitation. In most countries, supplies of industrial materials and products are still far short of minimum essential levels. Entirely apart from the use of priorities, the United States is furnishing substantial quantities of industrial equipment and supplies so urgently needed to reactivate the economies of these countries. However, great damage can be done by inability to obtain an occasional machine, or machine parts needed to complete a program or project. It is in such cases that priority assistance is needed. The Congress has already recognized the importance of supporting our foreign policy with financial assistance. Financial assistance alone, without occasional priority backing, may be useless in instances where speedy aid in concrete form is essential. The use of the priority powers that I am recommending would be limited to cases certified by the Secretary of State to be of high public importance and essential to the successful carrying out of the foreign policy of the United States.
In this message I have not considered it necessary to discuss certain powers originally derived from the Second War Powers Act but now covered by separate legislation, i.e., the Sugar Act, the Rubber Act and the Patman Act. I have also omitted reference to the great importance of continued authority to allocate the use of transportation equipment and facilities by rail carriers. This matter is covered by separate bills, H.R. 3152 and S. 1297, now pending before the Congress. Prompt action on these bills is urgently needed. Similarly, the Congress now has under consideration an extension of the Export Control Act. It, too, is essential in implementing our foreign policy. I also urge prompt action on this bill.
The further extension of the Second War Powers Act in the limited form described above is of direct interest to our own economy and is indispensable in supporting our international policy. The powers that I have outlined are the minimum needed to accomplish these ends. I therefore recommend that the Congress enact legislation to extend these powers for a period of one year.
HARRY S. TRUMAN
NOTE: On July 15 the President approved the Second Decontrol Act of 1947 providing for an extension until February 29, 1948, of certain emergency powers of the President. For his statement upon signing the act, see Item 143-
To the Congress of the United States:
In March of this year the Congress passed and I approved a bill known as the First Decontrol Act of 1947, extending for three months a few of the powers originally granted in the Second War Powers Act. This extension was authorized to enable the Congress to make a further review of the specific controls needed during the coming year.
Since the enactment of this law, the interested departments have reexamined the need for continuation of these powers. Their review shows that it is still essential to maintain certain limited materials controls, in order to prevent harm to our own economy and give concrete support to our foreign policy.
Since V-J Day, American industry, agriculture and labor have established notable production records. If production abroad had reached similar heights, no materials controls at all would be needed today. But the progress of world reconstruction has been necessarily difficult and slow. In a few respects the United States has been adversely affected by this delay, and therefore, in a few instances, controls over certain imported commodities are still needed. However, any adverse effects suffered by us are slight in comparison with the tragic conditions of life faced by most countries of the world today. It is primarily because of these conditions, with their enormously important political and social repercussions, that we must still retain a very limited portion of our wartime powers over materials.
The remaining powers which it is necessary to retain fall into two groups:
(1) Allocation and priority powers to maintain the stability of our economy.
(2) While our economy is still hampered by the lack of a number of imported materials, there are only a few in which the lack is so serious and the importance so great that continued controls are required. The need in these cases is well known. Specifically, it is necessary to continue the power to allocate the following imported materials: tin and tin products, manila and agave fibers and cordage, antimony, cinchona bark, quinine and quinidine. Except in the case of tin products, where the allocation of tin plate is also essential to the solution of world food problems, the continuation of these controls is solely for the purpose of assisting our own industry and agriculture.
(b) As a corollary to the above, it is also necessary to continue the power to issue export priorities for materials needed to increase the production abroad of products that we urgently need in this country. This is a matter of direct and immediate self-interest.
(2) Allocation and priority powers needed to carry out our foreign policy and to assist in world reconstruction.
(a) FOODS. Our own food production has reached great heights, and our own food supplies are excellent. In contrast the food situation abroad continues to be desperate. For that reason we are actively participating in the International Emergency Food Council, which is a noteworthy example of practical international economic cooperation. Our participation in this activity conforms with our national ideals and interests. But participation is not merely a matter of words. We must be able to take the steps necessary to make certain that we do not add to the hunger of other peoples by importing more than our agreed share of scarce foods. I recommend, therefore, continued authority to maintain import controls on fats and oils, and rice and rice products.
(b) FERTILIZER. The world fertilizer situation is similar to, and is directly related to, the world food situation. While our own fertilizer production and consumption have risen spectacularly since the pre-war period, supplies available to foreign countries have fallen sharply. This has resulted in retarded agricultural recovery, loss of food production and consequent malnutrition over widespread areas. The lack of fertilizer is particularly acute in the case of nitrates. It is therefore essential that there be continued authority to restrict imports and to issue priorities for export of nitrogenous fertilizer materials.
(c) INDUSTRIAL MATERIALS. In general our supply of industrial 'products and materials has reached the point where delays in production and delivery are no longer crucial. The pipelines are full, or are filling up, and no general use of allocation powers is needed. But economic and political conditions in many other countries are so critical that it is necessary to continue the power to issue export priorities in special cases for key industrial items that are vitally required for reconstruction and rehabilitation. In most countries, supplies of industrial materials and products are still far short of minimum essential levels. Entirely apart from the use of priorities, the United States is furnishing substantial quantities of industrial equipment and supplies so urgently needed to reactivate the economies of these countries. However, great damage can be done by inability to obtain an occasional machine, or machine parts needed to complete a program or project. It is in such cases that priority assistance is needed. The Congress has already recognized the importance of supporting our foreign policy with financial assistance. Financial assistance alone, without occasional priority backing, may be useless in instances where speedy aid in concrete form is essential. The use of the priority powers that I am recommending would be limited to cases certified by the Secretary of State to be of high public importance and essential to the successful carrying out of the foreign policy of the United States.
In this message I have not considered it necessary to discuss certain powers originally derived from the Second War Powers Act but now covered by separate legislation, i.e., the Sugar Act, the Rubber Act and the Patman Act. I have also omitted reference to the great importance of continued authority to allocate the use of transportation equipment and facilities by rail carriers. This matter is covered by separate bills, H.R. 3152 and S. 1297, now pending before the Congress. Prompt action on these bills is urgently needed. Similarly, the Congress now has under consideration an extension of the Export Control Act. It, too, is essential in implementing our foreign policy. I also urge prompt action on this bill.
The further extension of the Second War Powers Act in the limited form described above is of direct interest to our own economy and is indispensable in supporting our international policy. The powers that I have outlined are the minimum needed to accomplish these ends. I therefore recommend that the Congress enact legislation to extend these powers for a period of one year.
HARRY S. TRUMAN
NOTE: On July 15 the President approved the Second Decontrol Act of 1947 providing for an extension until February 29, 1948, of certain emergency powers of the President. For his statement upon signing the act, see Item 143-