The problems incident to World War II war contract terminations are vastly greater and more complex than at the end of World War I because the war production program now in force is more than ten times that of World War I and involves a much larger proportion of the manpower and productive facilities of the country. It is now generally recognized that postwar problein number one will be that of prompt settlement of terminated contracts and that the consummation of most other postwar plans will depend, to a very great extent, upon the satisfactory solution of this problem. It is imperative that settlement for terminated war contracts be accomplished in a speedy, equitable, and efficient manner; otherwise, companies now engaged in war production will be unable to convert rapidly to peace production and, therefore, will be unable to maintain the high level of employment that will be needed to avoid national economic chaos following the war. Sight has been lost of late of the accounting problems incident to war contract terminations while Government procurement and administrative agencies and congressional committees have attempted to determine (a) who shall be held responsible for administration of war contract terminations, (b) how the Government's interests can be protected and to what extent they should be protected, and (c) what provisions should be made to assure that war contractors will receive prompt payment of at least a substantial portion of their claims to aid in the financing of a rapid and efficient reconversion to peace production. Pending the solution of these highly controversial problems, it is unlikely that very much progress will be made with the accounting problems. As a result of inter-governmental department controversy, a Joint Contract Termination Board was formed of procurement agency representatives under the chairmanship of Mr. John M. Hancock, and direction of Mr. Bernard Baruch. This Board prepared a uniform termination article for fixed-price supply supplemented by a statement of principles for determination of costs upon termination of Government fixed-price supply contracts, which was issued under a directive