Politico-economic situation
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/39
BRITISH EMBASSY,
WASHXHGTOH, D.O. ,
February 3rd, 1939.
i
Ho. 139
My Lord,
The President's Message on Health, which
was mentioned In paragraph 7 of ray despatch Ho*
101 S of the 26th January and the text of which was
enclosed la ay printed despatch Ho* 109 of the same
dated has, broadly speaking, been welcomed by the
press which recognises the need for many of the
measures reconmiended.   General approve! is, however,
given warily; for there are features, such as the
proposed scheme of compulsory insurance and the
suggestion of Federal grants-in-aid to the States,
which foreshadow, for some newspapers, a further
extension of the Federal government's powers over
the righto of States and individuals*
2* It la the cost of the programme which arouses
the moat misgivings*   This la estimated by the Proa*
i dent* a Interdepartmental Consult tee aa followsi-
Kxpanalon of existing Federal-State cooperation health
programme, $365 millions a year*   Federal grants-in-aid
for hospital and clinical facilities #146 millions
a year*   Federal grants-in-aid for medical attention
for the of *he population unable without health
insurance to afford doctors foes, v50 millions the
first year, rising eventually to #400 millions a year*
These are of course very large figures and in some
quarters/
The Bight Honourable
The Vie count Halifax, K* 0*,
etc.,     etc., etc*
mQEx
-8-
quarters It 1b argued that the nation oannot
afford them.
X have the honour to be,
with the highest respect.
My Lord,
Your Lordship's roost obedient,
hratole servant,
(SOD) Y.**X>.
H.M. Charg* d'Affaires