EXECUTIVE OFFICE OF THE PRESIDENT 
                               BUREAU OF THE BUDGET
                                    WASHINGTON, D. C.
 
 
                   MEMORANDUM FOR THE PRESIDENT:
 
 
        Letter of the Secretary of the Navy, dated January 15, 1942,
 
requesting your approval of an expanded program of 2,000 vessels
 
 requested as a result of conferences with the British Commission,
 
 was transmitted by you to me for the preparation of reply and is
 
 returned herewith.
 
       On January 16, 1942, in connection with consideration of Navy
 
 Department estimates for a supplemental in 1942 and changes to the
 
 1943 Budget, you approved this program insofar as the construction
 
 of 1,799 vessels is concerned. Accordingly, I have prepared and there 
 
is attached hereto for your signature a proposed letter to the Secretary 
 
of the Navy advising him of your action upon his request.
 
 
       I request your attention particularly to the following facts. The
 
 Navy Department advised that you had approved the 958 vessels and
 
 requested your approval of the 2,000 vessels (including a margin of 71)
 
 as set forth in the letter of the Secretary of the Navy. For your
 
 consideration, I presented the expanded program of 1,929 vessels
 
 (without the margin of 71); and, in accordance with your directions,
 
 after conferring with representatives of the Navy Department, I reduced
 the expanded program to 1,799 vessels by the elimination of seventy
 
 Motor Minesweepers, ten Harbor Craft, twenty 72' Motor Launches,
 
 and thirty (or half of the) 63' Aircraft Rescue Boats.
 
 
  John B. Blaneford. 
Acting Director