expenditures further figures are being assembled to translate certain
of the more important categories into units produced per given period. 
When these are available, I shall forward them to you but I venture 
to caution you regarding their use as I feel to disclose them would 
aid the enemy.
 
     With the appropriation of the funds covered by the estimates 
mentioned above, action may proceed with the orderly provision of 
raw materials, a broadening of the base for procurement, the con-
struction of new facilities, and the renegotiation of contracts 
where advisable, with the result that a greatly accelerated production 
schedule will be achieved. As indicated in a previous paragraph, 
the production potential for the country for 1942 is estimated by 
SPAB and OPM to be approximately 40 billion dollars for the all-out 
war effort during this period compared with 27 billion dollars now 
scheduled. Of the margin available for new production in 1942, it 
is expected that approximately 6 billion dollars will be for ground 
army munitions, 3 1/2 billion for aircraft and accessories, and the 
remainder for military construction, the Navy, Maritime Commission 
and other purposes.
 
     While the plan as outlined above is being put in effect, and 
under it, industry is absorbing the orders resulting from the proposed 
appropriations, the War Department will continue with its re-analysis 
of the list of materiel originally submitted for the Victory Program 
to the end that its portion of that program will be on as firm a 
basis as it is possible to make it for an all-out industrial effort. 
Although this analysis is now under way, it may be substantially 
influenced by the present Joint Conferences. While the date of
March 1, 1942 has been set for the completion of the War Department's 
re-study of the Victory Program lists, unless difficulties arise that 
are not foreseen, it is expected that a completion date substantially
prior to March 1 will be achieved. With completion of this re-analysis, 
the War Department will then be prepared to furnish SPAB and OPM with 
additional estimates for the purpose of enabling them to plan the 
complete production of the War Department's share in the total program.
 
     The War Department has been in close contact with the repre-
sentatives of SPAB and OPM. The procedure outlined above is fmiliar
to them and has their hearty approval.
 
                         /s/ Henry L. Stimson
                         Secretary of War
 
 
 
lnclosure