THE WHITE HOUSE
				WASHINGTON



					     July 21, 1950


My dear Mr. Administrator:


	In my message of July 19 to the Congress, I announced that
I was directing the executive agencies

	"....to conduct a detailed review of Government programs,
	for the purpose of modifying them wherever practicable 
	to lessen the demand upon services, commodities, raw
	materials, manpower, and facilities which are in
	competition with those needed for national defense.
	The Government, as well as the public, must exercise great
	restraint in the use of those goods and services which
	are needed for our increased defense effort."

	In order to adjust the programs of the Federal Government,
I am writing to you and the heads of the other agencies whose
programs involve substantial use of materials and other resources
needed for the defense effort.  Please reexamine your programs,
giving particular attention, to the extent applicable, to the
following:

	(1)  All civil public works, ILLEGIBLE direct federal
	     programs, should be ILLEGIBLE with the objective, 
	     as far as practical of deferring, curtailing, or 
	     slowing down those projects which do not directly
	     contribute to defense or to civilian requirements
	     essential in the changed international situation
	     set forth in my message.

	(2)  Consistent with the restrictive policy already in
	     force for housing credit, other credit programs
	     should be tightened.  The only exceptions should be
	     those which directly contribute to meeting our 
	     defense and international responsibilities.

	(3)  Procurement of supplies and equipment should be held
	     to minimum amounts, especially purchases of motor
	     vehicles, typewriters, and other equipment using
	     critical materials.  Inventories should be reduced
	     to the lowest practical levels, and excess supplies
	     and equipment should be made available immediately 
	     to the General Services Administration.

	In addition, I shall expect that in the reexamination of the
programs of your agency, you will give first priority to those
activities which contribute directly to national defense, including
requests of other agencies for assistance.


	I am asking the Director of the Bureau of the Budget to work
closely with you in this review and to report to me on the steps which
you have taken in revising your program to meet these objectives.


				  	     Sincerely yours,



				     (signed)   HARRY TRUMAN

The Honorable


	The Federal Security Administrator