To Dorothy from Lois

                         WAR DEPARTMENT
                           WASHINGTON
 
 
                                   December 26, 1941
 
MEMORANDUM FOR THE PRESIDENT:
 
     SUBJECT:    VICTORY PROGRAM.
 
 
     The Victory Program is now on its way to becoming a reality.
The Office of Production Management and Supply Priorities and Allocations 
Board estimate that the total munitions production potential of the 
country for the year 1942  is approximately 40 billion dollars. Of this
40 billion dollars, 27 billion dollars of munitions are already scheduled. 
We intend to increase this schedule to the limit of the country's poten-
tial, that is, another 13 billion dollars worth of munitions. An 
adequate carry-over into the year 1943 will be assured by certain 
measures which are now in process in the War Department and which are 
described below.
 
              The War Department is at present expediting estimates for 
an appropriation of approximately 12 billion dollars for aircraft and 
its accessory equipment. It is anticipated that this money will be 
made available during January. This sum will insure that scheduled 
aircraft production rates will not only be maintained but will be 
increased through 1942 and 1943. To illustrate, it will permit the 
construction of new and converted facilities for heavy bombers suffi-
cient to increase the production rate of this class of aircraft from 
775 to 1,000 a month.
 
     The War Department is also preparing new estimates for sub-
mission to Congress early in January to cover additional munitions 
other than aircraft. By expeditious action both in the War Department 
and Congress, a sum of approximately 14 billion dollars for munitions 
other than aircraft and about 3 billions for expediting production can 
be made available during January for subsequent releases to industry.
 
     The estimates referred to in the preceding paragraphs will, 
with the funds appropriated by the Congress for Army equipment on 
December 17, 1941, aggregate about 33 billion dollars which should be 
translated into contracts and taken over by industry in the early 
months of 1942. The breakdown of this vast sum into the general 
categories comprising the proposed expenditures for munitions is shown 
in Inclosure 1. Whereas these categories are expressed in terms of
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