Attachment 2



REPRODUCED AT THE NATIONAL ARCHIVES

                             CAUTION
                 FOR NIH ADMINISTRATIVE USE ONLY
                                 
MEMORANDUM          August 24, 1950

TO:       Directors of Institutes

From:     Dr. Dyer

Subject:  Request for $30 Million for Medical Research in Defense
          Plans

     At the request of a small bipartisan group of Senators,
headed by Senator Pepper, who have continued this interest in
supporting the defense responsibilities of the NIH following
defeat of the Magnuson amendment, the Surgeon General directed us
to assist in the preparation of two statements covering a $30
million defense program.

     We helped prepare first a one-page outline for the
president, which was delivered to him on Monday, August 21.  It
was reported to have received favorable reaction and was referred
to the Bureau of the Budget for consideration.  There was next
prepared a justification of the request to the President for
presentation by the Senatorial group to he Bureau of the Budget
yesterday, August 23.

     The statements are attached for your information and
discussion of details and the relationship of his proposal to
other budgeting proposals.
REPRODUCED AT THE NATIONAL ARCHIVES

III. Defense Research Funds Related to Mental, Heart, Cancer, and
Dental Research Areas.

     The present backlog of unpaid research and training grants
has developed during the expansion of medical research on a
peacetime basis.  Even thee are minimal figures, because limited
appropriations made it futile to request funds up to the total
needs and capacities of present research centers.

     The Korean crisis and the mobilization of the nation means
that medical research should be greatly expanded to advance
fundamental research as well as to solve immediate problems of
military combat and civil defense.  $8,000,000 of the $30,000,000
request would be needed to carry out basic and clinical research
projects along the lines already approved; the balance of
$22,000,000 would be available primarily for medical research
work of direct relation to defense.  A proposed distribution to
meet there needs would be: mental health $7,600,000; heart
disease $13,000,000; cancer $7,900,000, and dental research
$1,400,000.  These funds are needed to expedite answers to such
critical problems as:

     1.   Mental Health can develop simple and accurate screening
techniques to keep out of combat or key civil defense services
not only those who already have mental disorders, but also those
who will break mentally under various specified type of stress;
tests to select soldiers or industrial workers for assignments
equal to, but not exceeding, their highest capacities; and study
problems of mass hysteria and its relation to adjustments of
individuals under stress such as atomic attack, mass evacuation,
or actual combat.  In addition to expansion of the present
training of specialists in mental health, there should be started
immediately a system of short-term mental health training for
general practitioners, health officers, nurses, ministers,
teachers, and other community leaders so that they can recognize
and give counsel for simple emotional problems before they reach
the point of requiring expensive specialized care.

     2.   Heart Disease research can undertake a large-scale
program for developing and preserving blood fractions, plasma and
blood substitutes.  It should develop improved surgical methods,
such as arterial grafts, mechanical hearts and other device to
save lives and amputations of limbs in military and surgical
cases.  Heart circulation, blood, and blood vessel research are
the keys to better surgery and the treatment of wounds, shock,
burns, and radiation injury.

3.   Cancer Research embraces practically every approach to the
study of disease and human growth.  Additional funds for cancer
will be used to determine safeguards for military and civilian
populations against radiation contamination and injury.  Cancer
studies include the effects of mustard gases and other poisons,
and nutritional investigations such as ways to produce essential
food proteins for intravenous injection in sustaining the ill or
injured.   Cancer scientists also would study the early
identification of viruses and chemical and biological agents
which might protect against such biological warfare.

IV.  
     There are today almost 300 worthy applications totally 5.6
million for research, teaching and training and fellowships
already approved or expecting approval which have not been paid
because of lack of funds.  They include projects and courses in
all fields, many of which have direct relation the problems of
defense and war.

          No. of application            Amount of Money

Total          795                      $5,598,753
Cancer         40                       522,133
Heart          54                       1,068,013
Mental Health  239                      1,526,076
Dental         19                       101,149
General        3443                     2,381,382

States involved     41 and 1 territory and 6 foreign countries

     An estimated $2,000,000 additional will meet the expected
cost of meritorious prospects which will be submitted as soon as
it is known that basic research funds are available.