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 |