As result of conferences between the President, the National Commander of the American Legion, Louis Johnson, and the Director of the Budget, the following conclusions have been reached.

As a result of the application of the veterans' regulations, it now seems that the cut in compensation of service-connected World War veterans with specific injuries has been deeper than was originally intended. The regulation and schedules in this respect will, therefore, be reviewed so as to effect more equitable levels of payment. Careful study also will be made of the other regulations and their effects.

By reason of the burden incident to rerating and in order that undue hardship will not be imposed upon veterans in their application for adjudication of their cases, regional offices of the Veterans' Administration will not be closed as has been reported, except where it has been clearly demonstrated that regional facilities are not necessary.

It is not contemplated that Government hospitals will be closed pending a careful, studious survey of the entire hospital situation. This, of necessity, will require considerable time.

These conclusions are in line with the President's original statement that the regulations and schedules would be drafted so as to effect the most humane possible treatment of veterans truly disabled in war service.