Executive Order 9689—Consolidation of Surplus Property Functions

WHEREAS the Surplus Property Administration has now substantially completed the performance of its policy-making functions, the War Assets Corporation is now vested with the major part of domestic surplus property disposal, and the State Department is now vested with the major part of foreign surplus property disposal; and

WHEREAS, after a reasonable period in which to make necessary administrative arrangements, it will be feasible and desirable to establish a War Assets Administration as a separate agency directly responsible to the President to exercise consolidated functions relating to the disposal of domestic surplus property;

NOW, THEREFORE, by virtue of the authority vested in me by the Constitution and Statutes, including Title I of the First War Powers Act, 1941 (55 Stat. 838), and as President of the United States, it is hereby ordered as follows:

1. The functions of the Surplus Property Administrator and of the Surplus Property Administration are hereby transferred, except as otherwise provided herein, to the chairman of the board of directors of the War Assets Corporation, and to the War Assets Corporation, respectively, and the Surplus Property Administration shall be deemed merged into and consolidated with the War Assets Corporation.

2. All functions of the Surplus Property Administrator and the Surplus Property Administration which relate to surplus property located outside the continental United States, Hawaii, Alaska (including the Aleutian Islands), Puerto Rico, and the Virgin Islands are transferred to the Secretary of State and the Department of State, respectively.

3. Effective March 25, 1946, (a) there shall be established, in the Office for Emergency Management of the Executive Office of the President, a War Assets Administrator, who shall be appointed by the President by and with the advice and consent of the Senate, and who shall receive a salary at the rate of $12,000 per annum unless the Congress shall otherwise provide, and (b) the functions of the War Assets Corporation relative to surplus property and of the chairman of the board of directors of the War Assets Corporation relative to surplus property shall be transferred to the War Assets Administrator.

4. There shall be transferred to the agencies to which functions are transferred by this order so much as the Director of the Bureau of the Budget shall determine to relate primarily to such functions, respectively, of the records, administrative property, personnel, and funds of the Surplus Property Administration, the Office of War Mobilization and Reconversion, the Reconstruction Finance Corporation, and the War Assets Corporation. All authorizations, commitments, or other obligations incurred as a disposal agency by the Reconstruction Finance Corporation or by the War Assets Corporation under the Surplus Property Act of 1944 shall be transferred to the War Assets Administration upon its establishment.

5. There shall be subject to the Classification Act of 1923, as amended, those positions transferred to the War Assets Corporation hereunder which are now subject to the said Act, and also all positions transferred to the War Assets Administration hereunder; provided that if the salary of the incumbent of any position so transferred to the said Administration is above the maximum of the allocated grade such salary shall not be reduced so long as the position is held by the incumbent. The provisions of section 1 hereof notwithstanding, the respective accounting and fiscal procedures in effect with respect to the functions merged shall continue in effect from February 1, 1946 to March 25, 1946.

6. Such further measures and dispositions as may be determined by the Director of the Bureau of the Budget to be necessary to effectuate the transfers provided for in this order shall be carried out in such manner as the Director may direct and by such agencies as he may designate.

7. All provisions of prior Executive orders in conflict with this order are amended accordingly. All other prior orders, regulations, rulings, designations, and other actions, relating to any function transferred by this order, shall remain in effect except as they are inconsistent herewith or are hereafter amended or revoked under proper authority.

8. Nothing in this order shall affect the provisions of section 101 (c) of the War Mobilization and Reconversion Act of 1944 (58 Stat. 785), or of section 10 (b) of the Surplus Property Act of 1944 (58 Stat. 766).

9. The provisions of this order shall, except as otherwise herein specifically provided, be effective as of the opening of business February 1, 1946.

HARRY S. TRUMAN

THE WHITE HOUSE,

January 31, 1946