A Confused Muddle

The disposal of billions in U.S. surplus property abroad has been badly mismanaged; it is such a confused muddle now that no one knows, for sure, what is going on. So the Senate's Mead Committee reported last week. What is even worse, said the committee harshly, "The basic problems in the disposal of our surplus war assets abroad remain unsolved. . . . The most favorable period for selling surplus property is now behind us. . . ."

Who was to blame? Almost everyone, the committee felt.

The Army and Navy had taken too long to declare supplies surplus. (Out of total overseas inventories of $27,253,000,000, only $3,589,000,000 has so far been declared surplus.) Too many ships had been kept idle in the Pacific for too many months while the services tried to decide what to do with the cargoes.

The Office of War Mobilization and Reconversion had "given only slight attention" to returning surpluses that were much needed by the civilian U.S.

The State Department had failed to prevent foreign governments from imposing such tight restrictions on selling that disposal was made doubly difficult.

The Foreign Liquidation Commission had sold only $893,000,000 worth of surplus goods, had often sold materials without any regard to their actual value.

Example: Great Britain bought over $6,000,000,000 worth of surplus property and unused Lend-Lease materials for $650,000,000. Said the committee: "A poor bargain."

As a result of mismanagement, the ultimate return from sales of surpluses abroad will be only a small fraction of their original cost to U.S. taxpayers. The committee was well aware that the shortage of dollar credits was the chief bar to selling surpluses. So why not swap surpluses for raw materials or other property (embassies and consulates) which the U.S. wants?

Answer: a bill to give FLC the right to make such swaps has been gathering dust in Congressional pigeonholes since last fall.

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