Statement on the Establishment of a Unit in the Office of War Mobilization to Deal with Postwar Problems.

At my suggestion Justice Byrnes, Director of War Mobilization, yesterday met with heads of various agencies concerned with the problems of terminating or revising war contracts in light of the changing demands of our war strategy. The War and Navy Departments are now in the process of revising more than eight thousand contracts involving several billions of dollars.

It is planned to set up within the Office of War Mobilization a unit to deal with war and postwar adjustment problems and to develop unified programs and policies to be pursued by the various agencies of Government concerned. The unit will study and consider the whole range of problems which will ultimately arise out of the termination of war contracts, including the problems of reconversion and disposition of plants and property no longer required for war use.

The work has deliberately been placed within the Office of War Mobilization to insure that such reshaping of our war pro gram as may be required will be carried through with a view to increasing the effectiveness of our war effort. While we must prepare for necessary postwar adjustments, this preparation must not interfere with the long and hard war programs which are still ahead of us.