Special Message to the Congress Requesting Extension of Certain Wartime Controls.

To the Congress of the United States:

Last July, the Congress enacted the Second Decontrol Act of 1947 which extended certain limited wartime economic controls over key materials and facilities still in short supply as a result of the war. Specifically, it authorized distribution and use controls over tin and tin products, antimony, and cinchona bark, quinine and quinidine; import controls over fats and oils, rice and rice products, nitrogen fertilizer and pig tin; the power of granting priorities assistance under certain specified conditions where the prompt export of a material is clearly advantageous to the national interest; rail transportation controls; and export controls.

This Act expires on February 29, 1948. The export controls and rail transportation controls have already been extended for one year. I have already recommended, as a part of the broader allocation powers contained in the anti-inflation program submitted to the Congress on November 17, 1947, the enactment of provisions which will include the continuance of the other controls provided by the Second Decontrol Act.

It appears unlikely that a decision will be reached by February 29 on the broader aspects of this program. In the meantime, these limited controls over a few vital commodities, which are essential to the protection of our domestic economy and the carrying out of our international responsibilities, must not be permitted to lapse by default.

In extending these powers last July the Congress recognized that controls were still needed because of the continued world-wide shortage of many critical materials. This need has not diminished. On the contrary, supply shortages for some commodities in the coming year are expected to be as acute as at any time since the end of the war. This is particularly true in the case of some commodities for which we are heavily dependent upon foreign sources of supply not yet recovered from the war.

As required by the Second Decontrol Act, the Secretary of Commerce has already submitted to the Congress two quarterly reports describing operations under the Act, the policy framework under which controls are being administered, and the results which have been obtained by the actions taken. As provided by the Act, these reports contain specific recommendations as to whether or not these controls should be continued in effect, with a full statement of the considerations underlying these recommendations. The second report, dated January 30, 1948, recommends the continuation of all of these powers except the power to allocate quinine, which is no longer needed.

Some of the serious consequences which would result if these powers are not extended beyond February 29, 1948, are as follows:

1. The international arrangements under which the United States secures an equitable share of the world tin supplies would be disrupted, and it would be impossible to assure that an adequate supply of tin would be available in the United States for essential purposes, such as food preservation.

2. Our efforts to add to a stock pile of tin in the United States and to conserve tin for this purpose would be seriously handicapped.

3. It would be impossible to carry out the international allocations of fats and oils, rice and rice products, and nitrogenous fertilizer, planned on a cooperative basis by the International Emergency Food Council, a United Nations body. Failure to meet these planned allocations would injure the economies of foreign countries and seriously hamper the attainment of United States foreign policy objectives.

4. It would be impossible to assure the export of minimum quantities of tinplate and nitrogenous fertilizer urgently needed abroad to increase food production and to prevent food from going to waste. The inevitable result would be greater suffering abroad and larger foreign requirements for basic foods grown in the United States.

I cannot believe that the Congress wishes to bring about the confusion both at home and abroad which would result from the expiration of these powers at this time. I, therefore, urge that prompt action be taken to continue the powers contained in the Second Decontrol Act of 1947 which are now scheduled to expire on February 29, 1948.

HARRY S. TRUMAN