[Report to the 78th Congress on Lend-Lease Operations] [From the U.S. Government Publishing Office, www.gpo.gov] REPORT TO THE 78IH CONGRESS ON LEND-LEASE OPERATIONS From the Passage of the Act, March II, 1941, to December 31, 1942 Submitted by Edward R. Stettinius, Jr. Lend-Lease Administrator* REPORT TO THE 78™ CONGRESS ON LEND-LEASE OPERATIONS From the Passage of the Act, March 11, 1941, to December 31, 1942 Submitted by Edward R. Stettin ¡us, Jr. Lend-Lease Administrator CONTENTS Chapter Page Letter of Transmittal.......................... 5 1. The Strategy of Lend-Lease....................... 7 2. The Lend-Lease Program to Date................. 15 3. Lend-Lease and the War Fronts.................. 34 4. Lend-Lease and Food............................ 42 5. Reciprocal Aid................................. 48 Appendix I. Lend-Lease Act............................... 56 IL Public Law 23, 77th Congress, Section 3...... 59 III. Public Law 282, 77th Congress, Section 102... 60 IV. Public Law 474, 77th Congress, Section 303... 60 V. Public Law 763, 77th Congress, Title II... .60 VI. Amounts of Lend-Lease Aid Authorized...... 61 VIL Executive Order Establishing Office of Lend-Lease Administration.............................. 64 VIII. Combined Boards............................. 66 IX. Russian Master Agreement..................... 70 X. Declaration by United Nations................ 74 XL Reciprocal Aid Agreements.................... 76 XII. British White Paper of September 10,1941.... 84 Index.....................................:.......... 87 3 LETTER OF TRANSMITTAL To the Congress of the United States of America: Under the authority vested in me by the Executive Order of October 28, 1941, and pursuant to the direction of the President, I am submitting herewith to the Seventy-eighth Congress, a report on operations under the Lend-Lease Act, from the passage of the Act, March 11, 1941, to December 31, 1942. Edward R. Stettinius, Jr., Lend-Lease Administrator. Washington, D. C., January 25, IP 43 5 Chapter 1 THE STRATEGY OF LEND-LEASE THE LEND-LEASE ACT The Lend-Lease Act was enacted by the Congress as a measure of national defense on March 11, 1941, nine months before the threat of Axis attack upon us materialized at Pearl Harbor. Full and lengthy public hearings and debates on the issues preceded passage of the law. Recognizing the threat against us, the United States in substance affirmed that: (a) It was essential to our security that all possible material assistance be furnished to those nations then fighting or threatened by the Axis. (b) It was in our interest that the flow of weapons and other supplies furnished to promote the defense of the United States should not be interrupted by a lack of dollar exchange. (c) Since aid was being furnished in our own defense and it was important to avoid the international debt experience of the last war, payment might be in kind or property or other benefits, rather than in dollars. The name under which the Act has become known is derived from its wording, which authorizes the President “to sell, transfer title to, exchange, lease, lend, or otherwise dispose of’’ defense articles. Its statutory title is “An Act to Promote the Defense of the United States.’’ Under the Act, the President is authorized by Congress “in the interest of national defense’’ to procure and provide “defense articles’’ and “defense information’’ for the government of any country whose defense he deems “vital to the defense of the United States.’’ Defense articles and defense 7 information are defined to include all types of goods and services necessary for the waging of total war. The Act provides that “the terms and conditions under which any such foreign government receives any aid . . . shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory.’’ Lend-lease is not a loan of money. Nor has it ever been an act of charity. The lend-lease program of providing goods and services to nations resisting the Axis aggressors was undertaken for the defense of this country and has been carried out in the interests of the people of the United States. We have aided other peoples under lend-lease because their interests coincided with our interests. LEND-LEASE BEFORE PEARL HARBOR When the Lend-Lease Act was passed, there was still the possibility that by putting the full weight of our economic resources behind those countries fighting the Axis, the defeat of the aggressors might be secured before we ourselves were attacked. Pearl Harbor ended that possibility. The Axis attack upon us vindicated the wisdom of lend-lease policy. By beginning the lend-lease program when we did, we greatly strengthened ourselves. We strengthened the nations whose fight was keeping Axis aggression from this hemisphere. We strengthened our inner defenses as well. Great Britain, then standing alone, was assured of a continuous and mounting flow of arms and food from the United States. China, then in its fourth year of heroic resistance to Japan, was assured more American supplies over the Burma road. After the Soviet Union was attacked, lend-lease support was assured the Red armies then battling desperately before Moscow. The process of industrial mobilization in this country was greatly speeded by operations under the Act. Lend-lease con 8 tracts as well as lend-lease expenditures started the construction of many new factories and the conversion of existing facilities to war purposes. They furthered the expansion of our shipyards and stimulated the production of machine tools and munitions of all kinds. Before December 7, 1941, over $7,265,000,000 of lend-lease funds had been allocated for the manufacture of arms and ships, and nearly $800,000,000 for new facilities. This stimulus to United States war production was in addition to British, French and Dutch munitions orders placed before the passage of the Act and totalling over $3,000,000,000, paid for in cash. These orders in most cases called for the expansion or conversion of plants and shipyards. As a result of the lend-lease and cash orders, this country’s capacity to produce arms on December 7 was far greater than it would otherwise have been. Factories and shipyards so built have since been turning out planes, guns, and ships for our own forces as well as for our allies. LEND-LEASE AFTER DECEMBER 7 Strengthening the United Nations Since December 7, lend-lease has become a still more important instrument for defeating the Axis. The basic war strategy of the United Nations is to combine all their material and manpower resources in such a way as will achieve the maximum possible impact upon the enemy in the shortest possible time. Lend-lease is a principal means by which the United States combines a share of its material strength with the material strength and manpower of our allies in order to carry out this strategy. When a General Sherman tank smashes through an Axis emplacement, the enemy is hurt just as much, whether the action is before Stalingrad or on the Axis flanks in Libya and Tunisia. An American-made fighter plane strikes effectively in the cause of the United Nations whether it is strafing the Japanese in occupied China or the Nazis in occupied France. 9 The Declaration by United Nations, together with the original signatories, is printed in Appendix X. The Master Agreement signed with the U. S. S. R. is contained in Appendix IX. Lend-lease agreements with the following countries are identical with the Russian agreement: Great Britain, Belgium, Poland, Netherlands, Greece, Czechoslovakia, Norway, and Yugoslavia. In addition, Australia and New Zealand have accepted the same principles. Canada agreed to the principles set forth in Article VII of the Master Agreements in an exchange of notes with the United States, dated November 30, 1942. 10 American steel shaped by British machine tools into 25-pounder guns at a factory in the English Midlands adds to the total fire power of the armies fighting the Axis. The same is true of American tools machining Indian steel into shells in a factory in the Central Provinces of India. American foods shipped abroad bring the day of victory closer by providing the calories necessary to sustain the energy and strength of those fighting our enemies, whether it be a Soviet soldier from Tiflis pushing forward against the Nazis through snow and ice—or a dockyard worker who went through the London blitz and is now unloading supplies for United States forces in Britain—or a British mother whose children are entrusted to a day nursery while she takes a man’s place at a lathe in a shell-making plant. Lend-lease supplies in the hands of the other United Nations serve the war effort of the United States. War Effort of the United Nations The United States is a major producer of arms and food for the United Nations. We have now the highest war production rate and our factories and farms are the most secure from seizure or destruction by the enemy. Nevertheless, only a small part of the weapons used up to now against the Axis have been of American make. Until last spring, Great Britain, with one-third of our population and industrial capacity, was producing more armaments than we were. At the same time Britain also produced most of the arms required in.the British Isles themselves. Soviet armies engaged in the greatest land fighting in this war have been supplied for 18 months chiefly with Russian-produced arms. More Nazi soldiers have been killed by Russian-made weapons since the beginning of the war than on all the other war fronts combined. Canada, Australia, and India are also important United Nations war production centers, and many other countries provide great quantities of essential raw materials. The supplies furnished so far by the United States have been important and in some cases decisive, but they have formed 11 only one of many streams flowing into the pool of United Nations resources. This year they will have a much greater effect. The goal of this country is to double its war production in 1943. Only in that way can the forces of the United Nations, including the United States, have arms in the quantities necessary for victory. Mutual Aid Lend-lease has never been a one-way affair. Our allies are not only supplying us with many of our needs; they are using this method increasingly in supplying each other. The United Kingdom has lend-leased to the Soviet Union thousands of planes and tanks and other military supplies. The United Kingdom has also provided under lend-lease equipment for the forces of many of the governments in exile fighting with the British armies. Great Britain has also been furnishing pay and other supplies on a lend-lease basis, as well as munitions, to Chinese troops operating in Burma and India. Canada is furnishing the United Kingdom with over a billion dollars worth of war production without payment. In relation to population this commitment would be the equivalent of 12 billion dollars worth of supplies from the United States. Furthermore, through reciprocal lend-lease aid, our allies on the battle fronts have matched the spirit of our lend-lease aid by supplying the U. S. armed forces with great quantities of food, medical supplies, equipment and services on a lend-* lease basis, and without the payment of cash. This aid has already saved the United States many hundreds of millions of dollars in maintenance and transportation costs of our forces overseas. Our allies have also freely contributed from their technical and other war experience to United States home defenses and techniques of war production. R. A. F. pilots fly United States Martin bombers in the Middle East, U. S. pilots fly British Spitfires over France and North Africa, British^barrage balloons are used to protect our West coast, Australians operate American planes and Mac-Arthur’s soldiers eat Australian food. Such mutual aid is of 12 rapidly growing importance in the pooling of United Nations’ skills, materials, and weapons. It saves shipping—one of our shortest war weapons. In this and in other ways it helps to mobilize the greatest possible combined force for use against the enemy. Other Methods of Combining Resources Besides using the lend-lease method, the United Nations pool many of their resources through the normal processes of purchase and international exchange. Cash exports, not including lend-lease, from the United States to the British Commonwealth of Nations, have exceeded $7,000,000,000 since the beginning of the war in 1939. This is considerably more than our lend-lease aid to the British up to December 31, 1942. The United States, in turn, has continued to buy many raw materials from the British Empire and the British are continuing to use dollars to make cash purchases from us outside the lend-lease program. Most of our exchanges with Latin-American countries remain on a purchase, rather than a lend-lease basis, in both directions. Lend-lease steps in whenever difficulties of international exchange might otherwise prevent the free flow of mutual help, or when, as generally is the case with military items, lend-lease methods can get the best war results more quickly and effectively. Whether exchanges are made, by lend-lease methods or by purchase, the principle is the same—to multiply the combined strength of the United Nations by the most efficient possible pooling of all our resources under coordinated global direction. Benefits to the United States Reciprocal lend-lease is only one of several benefits received by the United States in return for the supplies and services provided under the Lend-Lease Act. What the other United Nations do to bring about the defeat of the Axis is obviously a vital contribution “to the defense of the United States.’’ This is a benefit which cannot be measured in figures. There 13 is no standard of values by which the loss of a thousand Russian lives, for instance, can be compared with a thousand fighter planes. Those who have died fighting in Britain, in China and in Russia, in Africa and in Asia, died in defense of their own countries. But these peoples have fought and they fight now against enemies that are ours as well as theirs. Their sacrifices are saving American lives. China’s five-year struggle against Japan, the terrible toll taken of the Nazis by the Red Aimy, the defense of Britain and the destruction of German production centers by England’s R. A. F., and the protection of vital sea lanes by the British Navy—all have combined to save the United States from invasion, to preserve to us the means of victory and to speed its coming. This is one of the benefits set forth in Article II of the master lend-lease agreements * that have been concluded with the United Kingdom, U. S. S. R., China and seven other United Nations. Article II of each agreement provides that the government concerned “will continue to contribute to the defense of the United States of America and the strengthening thereof,’’ in addition to providing “such articles, services, facilities, or information as it may be in a position to supply.’’ Article V of the master agreements provides for the return to the United States after the war of such articles as have not been “destroyed, lost or consumed,’’ and as are useful to the defense of the United States and the Western Hemisphere. We may require the return of tanks, ships, cargo planes and other equipment if we think it to be in our interest to do so. Article VII of each agreement provides that in the final settlement the terms shall be such as to promote the economic objectives of the Atlantic Charter. It pledges each of the signatories to work with all other countries of like mind, for “the expansion, by appropriate international and domestic measures, of production, employment, and the exchange and consumption of goods, which are the material foundations of the liberty and welfare of all peoples.’’ * The master agreements aie discussed in Chapter 3 of the Fifth Report to Congress on Lend-Lease Operations, June 11, 1942. 14 Chapter 2 THE LEND-LEASE PROGRAM TO DATE Lend-Lease Appropriations. The first $7,000,000,000 was appropriated for lend-lease on March 27, 1941. Another $5,985,000,000 was appropriated on October 28, 1941. These appropriations were made directly to the President. They included provision for military as well as non-military supplies. A third appropriation for supplies and services other than finished munitions, totalling $5,425,000,000, became law March 5, 1942, making the total direct appropriations $18,410,000,000. Since Pearl Harbor there have been no direct lend-lease appropriations for military items, or for merchant ships. Instead, authorizations for the transfer under lend-lease of articles and services up to a stated value have been included in regular Army, Navy, and Maritime Commission appropriation acts and estimates for these measures have included provision for lend-lease requirements. Lend-lease transfers have been authorized of goods and services procured from regular Army, Navy, and Maritime Commission appropriations up to a maximum value of $35,970,000,000. This figure does not include the value of certain types of merchant and naval ships, which may be leased but not otherwise transferred to lend-lease .countries. The munitions procured with these funds may be transferred to our allies or they may be retained for our own forces. By this arrangement Congress has provided for a far-sighted flexibility in the allocation of munitions. 15 ALLOCATIONS AND OBLIGATIONS* Out of Lend-Lease Appropriations of $18,410,000,000 to the President, Cumulative to December 31, 1942 Millions of Dollars BY PROCURING AGENCY Procuring Agency Allocations Obligations War Department 5,963 5,507 Navy Department 3,163 2,278 Maritime Commission and War Shipping Administration 1,859 1,442 Treasury Department 2,718 1,855 Department of Agriculture 2,961 1,793 Other 14 12 Total 16,678 12,887 BY APPROPRIATION CATEGORY Category Allocations Obligations Ordnance and Ordnance Stores Aircraft and Aeronautical Material.... Tanks and Other Vehicles. Vessels and Other Watercraft Miscellaneous Military Equipment Production Facilities in U. S Agricultural and Industrial Commodities. . Servicing and Repair of Ships, etc Services and Expenses Administrative Expenses 1,844 2,708 791 2,209 362 1,147 6,641 515 445 16 1,622 2,597 662 1,737 328 1,024 4,356 331 216 14 Total 16,678 12,887 ♦Obligations are that part of the allocated funds which have been contracted or committed for the production or purchase of supplies and services. 16 Who Is Eligible for Lend-Lease Aid? The President has so far declared 31 nations, at war with one or more of the Axis powers, to be eligible for lend-lease aid. In addition all the other republics of the western hemisphere, whether or not they are at war with the Axis, have been declared eligible. So, too, have Liberia, Egypt, Turkey, Iceland, and Iran. The total number of eligible nations is 43. Not all of these countries have actually received lend-lease aid as yet. (See chart on page 10.) Office of Lend-Lease Administration The Division of Defense Aid Reports was established by Executive Order on May 2, 1941 to administer the Lend-Lease Act. Major General James H. Burns was appointed Executive Director of the Division on May 6, 1941. The Division of Defense Aid Reports was succeeded by the Office of Lend-Lease Administration. This office was created by Executive Order on October 24, 1941. E. R. Stettinius, Jr., was named by the President as Administrator. Under this Order the President directed the Administrator “to exercise any power or authority conferred upon the President’’ by the Lend-Lease Act and the appropriations made under it, in accordance with the policies prescribed by the President. The principal functions of the Office of Lend-Lease Administration are to: (1) Cooperate with lend-lease nations and other Government agencies in formulating programs for lend-lease aid; (2) Translate these programs into statements of requirements for critical materials and other articles in short supply and present them with adequate supporting data to the appropriate committees of the War Production Board for allocation; (3) Approve or disapprove requests of lend-lease nations for ¿cíense articles and services, except finished munitions and ships allocated from supplies procured under Army, Navy and Maritime Commission Appropriation bills; 17 505243—43----2 (4) Issue procurement instructions to the appropriate government departments and make the necessary funds available; (5) Assist in obtaining the necessary priorities; (6) Expedite the storage and transportation of lend-lease articles ready for shipment; (7) Assist in obtaining the most effective use of lend-lease material abroad; (8) Keep detailed records of all lend-lease transactions; and (9) Arrange, in consultation with the appropriate agencies of the United States and foreign governments, to obtain supplies and services for the United States on a reciprocal lend-lease basis. Allocation of U. S. Supplies Most United States production is used to supply our own armed forces and civilian population. Many United States departments and agencies, together with the Combined Boards, participate in making the decisions which govern the allocation of American supplies as between our own needs and those of our allies. Allocation of American munitions is made in accordance with requirements of military strategy as determined by the military, naval, and air commanders on the United States Joint Chiefs of Staff and the Combined Chiefs of Staff. All United States munitions production, both for our own forces and our allies, is planned, controlled, and scheduled by the War and Navy Departments and War Production Board in accordance with this strategy. Assignments of finished munitions are made by the Munitions Assignment Board under directives issued by the Combined Chiefs of Staff. In London a coordinate Combined Board performs the same function for British munitions production. Supplies of food and raw materials are allocated as among the United Nations by the Combined Raw Materials Board and the Combined Food Board. In making such allocations the Combined Boards frequently include recommendations as to the requirements of various United Nations. These 18 recommendations, insofar as they affect the United States, are referred to the American Requirements Committee or to the Food Administration of the Department of Agriculture. Allocations of industrial materials and products available to the United States are made by the Requirements Committee of the War Production Board to various claimant agencies represented on this Committee. This Committee consists of specialists in the field of industrial materials. The Office of Lend-Lease Administration is one of these claimant agencies and presents the case for countries and areas for which it is responsible. Broadly speaking, these are the United Nations. Similarly, decisions on food allocations are made by the Food Administration of the Department of Agriculture after consultation with the Food Advisory Committee. This Committee consists of the food experts representing Army, Navy, Lend-Lease, and other claimant agencies. The Combined Production and Resources Board acts to integrate the war production programs of the United States, United Kingdom, and Canada and to allocate responsibilities for the most efficient combined production in the light of military strategy, shipping, and other factors. Thus the joint decisions of this Board and the Combined Chiefs of Staff, determine in the last analysis the war production programs of these three countries and the division of the output among themselves and the other United Nations. The production and leasing of merchant ships for lend-lease countries is controlled by the Maritime Commission. Assignment of shipping to carry United States supplies to our allies is determined by the shipping experts on the Combined Shipping Adjustment Board and the Chiefs of Staff. The Shipping Board coordinates the American and British merchant shipping pools. These are operated respectively by the United States War Shipping Administration and the British Ministry of War Transport. The Combined Boards are Anglo-American with the exception of the Combined Production and Resources Board, of which Canada is a full member, together with the United States and the United Kingdom. In addition, combined mu 19 nitions assignment committees have recently been set up in Canada and Australia for the allocation of munitions produced by these two countries. The Combined Boards consult with representatives of Russia, China and other United Nations before making recommendations on matters which are of interest to these other countries. The Combined Boards are primarily coordinating and planning agencies. Their staffs are small. Their recommendations are left for execution to the operating departments and agencies of the governments concerned. The boards act only upon unanimous agreement. With the exception of the Combined Chiefs of Staff and Munitions Assignments Board, all the boards have one member only for each country.* Lend-Lease and Other Agencies The Department of State, in addition to negotiating the lend-lease agreements, is consulted on questions of foreign policy involved in lend-lease operations. The Board of Economic Warfare is consulted on lend-lease transactions within its sphere of operation. The Treasury and State Departments are consulted on the financial position of countries eligible for lend-lease and on other related factors bearing upon the extent of aid to be furnished. To prevent duplication and to get necessary standardization, procurement of lend-lease articles and services is carried out by the Departments of War, Navy, Treasury and Agriculture and the Maritime Commission and War Shipping Administration. Overseas Missions Lend-lease representatives abroad check on allied requirements at first-hand, observe the use to which lend-lease supplies are put, expedite reciprocal aid, and assist in working out distribution and supply problems as they arise. Lend-lease representatives are now stationed in ten countries. The largest missions are in London and Moscow. *See Appendix for complete lists of members of the Combined Boards and their powers and functions as defined by President Roosevelt and Prime Minister Churchill. 20 There are also lend-lease representatives in China, Australia, New Zealand, Egypt, Iran, Turkey, North Africa, and Iceland. Additional missions will be sent shortly to other areas. Lend-Lease Aid Lend-lease aid consists of goods transferred and services rendered. Goods transferred include military items, industrial materials, and agricultural products which have been transferred to the governments of the lend-lease countries. Transfers generally have been made before the goods leave this country. Chart No. 1 Military items include such classifications as aircraft of all types, together with spare engines, propellers, and other parts; tanks, tank destroyers, trucks, jeeps; auxiliary naval vessels and naval equipment; supply ships; ordnance stores such as ammunition and bombs of all types, small arms, anti-aircraft and anti-tank guns, naval guns and other artillery, mines and torpedoes, etc.; medical, signal, chemical warfare and miscellaneous equipment. 21 Industrial materials include such items as steel, copper, aluminum, zinc, various steel alloys, petroleum products; machine tools, and other machinery for munitions factories; road-building and airfield construction equipment; railroad equipment; farm tools and machinery. Agricultural commodities consist chiefly of foodstuffs, especially those in dried and concentrated forms, such as evaporated milk, dried skim and whole milk, cheese, canned and dried fruits and vegetables, concentrated fruit juices, dried eggs, canned and dehydrated pork and other meat products, canned fish, flour and high vitamin cereals, lard and other fats, sugar, some butter; and a few non-foodstuffs, principally cotton, and tobacco for use by allied armed forces and people living in war zones. Chart No. 2 Services rendered consist of shipping and supply services, including the rental and charter of ships, transportation and storage, the development and operation of air ferry routes and supply bases abroad; repair services for damaged allied 22 warships, merchant ships, and other equipment; production facilities—factories and shipyards built in the United States with lend-lease funds to manufacture war goods; and miscellaneous services such as the air training program for pilots of allied countries. 1941 Totals The dollar value of goods transferred under lend-lease in 1941 was $910,000,000. Services rendered totalled $334,000,000. The 1941 lend-lease total of $1,244,000,000 represented about 11 percent of our total war spending in that period. There was a steady acceleration in the monthly totals of lend-lease transfers and services in 1941: they rose from a low of $10,000,000 in March, to a high of $274,000,000 in December. In the early months, a very small proportion of the supplies furnished represented arms and other military items. This rose as the program developed but considerably more than half of all lend-lease supplies exported up to January 1, 1942, were food, raw materials, machinery, and related essential but nonmilitary items. Of the total value of goods exported in 1941, which was $790,000,000, 35 percent represented military items, 21 percent industrial materials, and 44 percent agricultural products. During the year $11,327,000,000 of lend-lease funds had been allocated for the production of munitions and ships, for the building of factories in -this country and the purchase of industrial and agricultural supplies. 1942 Totals The total value of lend-lease aid in 1942 amounted to $7,009,000,000, consisting of goods transferred in an amount of $5,637,000,000, and services rendered in an amount of $1,372,000,000. This was more than five times the total for 1941. In the last three months of 1942 alone, the value of lend-lease aid was $2,482,000,000, twice the total for all of 1941. 23 The cumulative value of lend-lease aid from March 11,1941, to December 31, 1942, was $8,253,000,000. Of this amount 79 percent was for goods transferred and 21 percent for services rendered. LEND-LEASE AID—MONTHLY AND CUMULATIVE Value of Goods Transferred and Services Rendered Millions of Dollars Monthly Cumulative 1941 1942 1941 1942 Jan 0 322 0 1,566 Feb 0 388 0 1554 Mar 10 468 10 2/22 Apr 28 554 388 2576 May 45 449 83 3/25 June 63 548 146 3573 July 101 595 247 4,568 Aug 126 560 373 5*128 Sept 181 643 554 5*771 Oct 182 915 736 6,686 Nov 234 810 970 7/96 Dec 274 757 1,244 8553 Lend-Lease Exports About 90 percent of goods transferred to the governments of lend-lease countries have been exported. The balance is awaiting shipment. Total lend-lease exports from March 11, 1941 to December 31, 1942 were valued at $5,959,000,000. Military items exported under lend-lease from March 11, 1941, to December 31, 1942, were valued at $3,300,000,000 or 55 percent of all lend-lease exports. Of this amount 8 percent was exported in 1941 and 92 percent in 1942. While all lend-lease exports were much greater in 1942 than in 1941, exports of military items rose more in proportion than non-military items. In October, November and December 24 LEND-LEASE AID—MONTHLY AND CUMULATIVE Detail of Goods Transferred and Services Rendered Millions of Dollars MONTHLY 1941 1942 Goods Transferred Services Rendered Total Aid Goods Transferred Services Rendered Total Aid Jan 220 102 322 Feb 260 128 388 Mar 6 4 10 362 106 468 Apr 20 8 28 455 99 554 May 35 10 45 394 55 449 Jun 41 22 63 459 89 548 Jul 73 28 101 504 91 595 Aug 95 31 126 446 114 560 Sep . 144 37 181 544 99 643 Oct 132 50 182 680 235 915 Ñov 164 70 234 620 190 810 Dec 200 74 274 694 63 757 CUMULATIVE 1941 1942 Goods Transferred Services Rendered Total Aid Goods Transferred Services Rendered Total Aid Jon • - 1 130 436 1 566 Feb 1,390 564 1 '954 Mar 6 4 10 1/752 670 2/22 Apr 26 12 38 2,207 769 2,976 May 61 22 83 2,601 824 3,425 Jun 102 44 146 3*060 913 3'973 Jul 175 72 247 3,564 1,004 4,568 Aug 270 103 373 4'010 1J18 5 J 28 Sep 414 140 554 4'554 1 '217 5’771 Oct 546 190 736 5'234 1/52 6'686 Nov 710 260 970 5'854 <642 7,496 Dec 910 334 1,244 6'548 <705 8'253 25 1942, all lend-lease exports totalled $1,840,000,000, compared to $462,000,000 in the corresponding months of 1941. While lend-lease exports of non-military items in these months were twice those of the year before, exports of planes, tanks, and guns, etc., rose nine times. This great increase reflects in part the tremendous rise in United States war production since December 7. However, United States munitions production has increased still more rapidly than shipments of munitions to our allies. We have been supplying our own forces here and overseas. As a result, the percentage of our total munitions production furnished to other United Nations has been less in 1942 than in 1941, although the quantities sent have been much greater Chart No. 3 Industrial materials and equipment exported under lend-lease from March 11, 1941, to December 31, 1942, were valued at $1,330,000,000 or 22 percent of all lend-lease exports. Most of this was for raw materials and the balance for machinery, tools, and miscellaneous equipment. Agricultural products, mostly foodstuffs, exported under lend-lease since the beginning of the program were valued at 26 $1,329,000,000, or 22 percent of all lend-lease exports to December 31, 1942. Services Rendered Services rendered since March 11, 1941 total $1,705,000,000. Of this amount 80 percent was rendered in 1942. In dollar value, services are about one-fifth of all lend-lease aid. In terms of making our aid effective, their relative importance is considerably greater.' (See Chart 2) About 50 percent of all such expenditures, or $835,000,000 to date, has been for the rental and charter of ships and the development and operation of air ferry routes, supply bases, and supply lines abroad. Another 35 percent, or $554,000,000 to date, has been used in building up America’s industrial plant. The remaining 15 percent, or $316,000,000, has been used for repairing allied warships and merchant vessels, for storage and loading facilities in this country, and for such other purposes as air pilot training. Exports Other than Lend-Lease Munitions and other supplies sent under lend-lease have been by no means all that we have sent to the other United Nations since March 11, 1941. Deliveries of munitions on direct purchase orders, placed prior to the Lend-Lease Act, and paid for in cash by our allies, were much greater in 1941 than lend-lease munitions deliveries. From March 1941 to December 31, 1942, the value of all supplies exported under lend-lease was $5,959,000,000. The value of exports to lend-lease countries, paid for in cash by these countries, amounted to $6,900,000,000. Many of these direct cash exports were supplies other than munitions, but they were supplies essential either to the war effort or to maintain the minimum civilian economy of our allies. It is only since March 1942 that monthly lend-lease exports have been exceeding non-lend-lease exports. This trend is continuing as more and more United States exports consist of 27 lend-lease goods. In the last three months of 1942, more than two-thirds of total U. S. exports were lend-lease. None of the export figures include the arms and other supplies sent to our own armed forces abroad. Chart No. 4 Lend-Lease in Relation to the Total U. S. War Effort Measured in terms of money spent, lend-lease represents about one-eighth of the total United States war effort. This country spent for all war purposes $63,408,000,000 from March 1, 1941, to December 31, 1942. The value of lend-lease aid during the same period was $8,253,000,000 or 13 percent. 1942 munitions exports, including both those made under lend-lease and those by direct purchase, were 19 percent of total United States munitions production. For the last six months these exports have been running at about 15 percent of production. We have sent considerably more than 19 percent of certain combat weapons to the other United Nations. Of our 1942 production of tanks and combat planes, excluding cargo 28 planes, trainers, etc., we have shipped, both under lend-lease and by direct cash purchase, about one out of every three to our allies. These weapons were most urgently needed on the battle fronts of 1942. On the other hand we have sent less than 15 percent, or none at all, of many other items. Chart No. 5 Industrial Materials Raw materials sent to our allies represent a relatively small proportion of our total supplies, but these shipments are vital to the war-production programs in Russia, the United Kingdom, the Dominions and India. By sending raw materials we not only increase the power of our allies to produce arms, we also save on vital shipping. In 1942, we exported under lend-lease the following percentages of our new supply of raw materials (current production plus imports in each case). Data for the last quarter are partially estimated. 29 LEND-LEASE EXPORTS IN PERCENT OF UNITED STATES NEW SUPPLY YEAR 1942 Percent Percent Aluminum 3.5 Petroleum Products. ... 6.3 Copper 7.2 Steel 7.3 Crude Rubber 0.0 Tin 0.1 Molybdenum 19.6 Tungsten 0.9 Nickel 1.0 Zinc 12.0 If our stock piles were taken into account, the export percentages would be smaller. At the same time, we were dependent upon imports from our allies and friendly countries for the following percentages of our new supply of certain strategic materials essential for our own production of war weapons; IMPORTS IN PERCENT OF U. S. NEW SUPPLY Year 1942 Material Percent Material Percent nniiYito ............. 25 i Mica (splittings) 98 Chromite 89 100 Crude Rubber 100 ¡ Tin Ore 99 88 ' 62 Mercury 44 Wool 74 Machine tools, machinery, and miscellaneous industrial equipment shipped to our allies under lend-lease from* March 11, 1941 to December 31, 1942, had a total value of $317,000,- 30 000. These shipments have saved hundreds of thousands of tons of shipping space that would otherwise have been required for finished munitions. They have enabled our allies to produce more planes and guns, ships and food, and to build airfields and roads now used by our own forces as well as by theirs. Lend-lease exports of machine tools alóne totaled $137,000,000 up to December 31, 1942. In addition we have made cash purchase exports of machine tools to the United Kingdom, Australia, and the U. S. S. R. totaling another $125,000,000. Chart No. 6 Exports of machine tools in the first three quarters of 1942 were 12.4 percent of United States production during that period, divided as follows: 6.1 percent to United Kingdom, 2.3 percent to Russia, 1.5 percent to all others under lend-lease, and 2.5 percent to Canada by direct purchase. Exports of farm machinery (excluding crawler tractors for agricultural use) and farm tools under lend-lease totaled $14,-000,000 from March 11, 1941 to December 31, 1942. Every piece of farm machinery exported saved valuable shipping 31 space and reduced the amounts of food needed by our allies from us. One pound of machinery can produce eight times its weight in food in one year. Agricultural Products Agricultural products, most of them foods, exported under the lend-lease program from March 11, 1941, to November 30, 1942, were valued at $1,329,000,000. Lend-lease food shipments increased during 1942, but were a small percentage of our total 1942 food supply. Our record 1942 food production exceeded 1941 production by an amount greater than was shipped under lend-lease. Thus, after lend-lease shipments were deducted, there remained more food for our own armed forces and civilians in 1942 than in 1941.* Lend-Lease and the United States Economy Virtually all lend-lease money is spent in the United States. A large part of it is paid to American farmers for the lend-lease food they raise, to workers in war factories turning out lend-lease goods, and to miners extracting metal ores. For each lend-lease dollar invested in factory equipment and machine tools sent abroad, several lend-lease dollars have been invested in such equipment here at home. More than $550,000,000 of lend-lease funds have already been spent for thus building up the American industrial plant. Over $50,000,000 in lend-lease funds were allocated to the expansion of the Ford tank and aircraft engine factories at Dearborn and Highland Park, and another $10,000,000 went into the plant at Willow Run. Other substantial lend-lease investments were made in the Chrysler tank arsenal, in the Boeing, Douglas, Bell Aircraft, and General Motors and Sperry Gyroscope war plants; in the certain merchant shipyards and in Navy shipways for building convoy escort vessels; in facilities for the manufacture of smokeless powder, howitzers, incendiary bombs, etc. In many cases lend-lease funds ♦Additional information on the lend-lease food program will be found in the chapter, “Lend-Lease and Food," on page 42. 32 represented 40 percent of the total for building such facilities. Lend-lease money has gone into the construction of war plants and storage depots located in 32 of the 48 States. Special Projects Lend-lease funds have been used in the development of a number of special projects relating to the transportation and delivery of lend-lease goods. One such project is the development of the type of cargo vessel originally known as the Sea Otter, now redesigned and rechristened the Seamobile. A full-scale test model of the Seamobile is under construction. The possibilities of this type of craft are being fully explored. Lend-lease has also played an important part in the development of improved processes for dehydrating, processing and packaging foods in order to save shipping space. It is due in large part to the lend-lease program that we have learned: how to ship the food equivalent of millions of dozens of fresh eggs in the form of small packets of egg powder; how to make milk powder which preserves the full butterfat content of whole milk; how to produce palatable and nutritious dehydrated pork and beef. These are processes which are proving of immense value—in view of the shortage of shipping—not only to our allies, but to our own forces overseas. Dehydrated and concentrated foods are helping to shorten the war by making more shipping space available for tanks and guns. 33 505243—43---------3 Chapter 3 LEND-LEASE AND THE WAR FRONTS Lend-lease supplies sent to our allies during 1942 included many thousand planes and tanks and more than 150,000 trucks, jeeps, and other motor vehicles. Many additional thousands of planes, tanks, and trucks were sent either to our own forces abroad or exported to our allies in fulfillment of direct-purchase contracts. Weapons for Offense We have made great strides this year in supplying combat equipment to the Soviet Union, although we have not been able to send as much as we should like or the Red Army needs, and part of what we have shipped has been lost on the way. Up to January 1, 1943, the United States had shipped to the Soviet Union under lend-lease more than 3,200 tanks, almost 2,600 planes and 81,000 trucks, jeeps, and other military motor vehicles. This is more than we have sent to the United Kingdom or any other military theatre under lend-lease since the beginning of the lend-lease program in March 1941, although lend-lease aid to Russia did not begin until October 1941—eight months later. This year we also concentrated on sending combat weapons to Egypt, India, Australia, and New Zealand. Most of our lend-lease planes, tanks, and trucks, outside those sent to Russia, went to these critical combat areas. At the same time the United Kingdom has lend-leased to the U. S. S. R. more than 2,600 tanks and more than 2,000 planes, almost all of them produced in British factories. In addition the United Kingdom sent great quantities of munitions to Egypt and later to North Africa, to India, and other areas of the Middle East. Ò4 The British Eighth Army was equipped for its drive from Egypt across Libya with weapons principally produced in the United Kingdom. However, the 1,000 planes, 500 medium tanks, and many anti-tank guns mounted on M-3 tank chassis, that we exported to the British in Egypt between February and November 1942, combined with United States air force squadrons operating on this front, gave the United Nations’ forces their decisive edge in air power, armor, and fire power. Incidentally, the General Sherman tanks that proved so successful in this campaign owed their design to the close Chart No. 7 collaboration of British and American tank experts, using the benefit of battle experience gained from earlier models. American and British forces began the North African campaign a month after the drive from Egypt was launched. This action, too, has been from the beginning a combined operation in which lend-lease and reciprocal aid ¡have played their part. Great Britain provided two-thirds of the warships and transports employed in the original landing operations. Sixty percent of the ground forces were American 35 LEND-LEASE AID Cumulative From March 1941 Through December 31, 1942 Thousands of Dollars Type of Aid United Kingdom Australia, New Zealand, India, Other British Territories, Egypt U. S. S. R. China Other Total GOODS TRANSFERRED Military Items: Ordnance 147,534 130,307 39,639 14,661 41,867 374,008 Ammunition 196,288 303,172 148,288 19,491 14,783 682,022 Aircraft and Parts 344,188 483,188 318,969 37,336 15,119 1,198,800 Tanks and Parts 60,298 255,400 210,305 922 8,790 535,715 Motor Vehicles 55,465 127,588 139,136 25,453 6,664 354,306 Watercraft and Parts 285,112 90,035 15,549 447 6,651 397,794 Miscellaneous 82,773 30,926 39,816 7,025 6,281 166,821 Total 1,171,658 1,420,616 911,702 105,335 100,155 3,709,466 wo c\ InT/ustrtal Materials: Machinery 141,369 74,792 62,001 3,603 183 281,948 Metals 251,673 131,390 113,909 8,975 617 506,564 Petroleum^Products 252,862 62,427 14,806 3,237 5 333,337 Miscellaneous 269,676 100,758 56,224 5,110 17,043 448,811 Total Agricultural Products: 915,580 369,367 246,940 20,925 17,848 1,570,660 Foodstuffs 880,891 56,227 101,869 1,553 1,040,540 Miscellaneous 211,778 14,722 513 227,013 Total 1,092,669 70,949 102,382 1,553 1,267,553 Total Goods 3,179,907 1,860,932 1,261,024 126,260 119,556 6,547,679 SERVICES RENDERED Ship Repairs, Etc 152,975 80,932 27,656 951 3,383 265,897 Shipping 429,785 227,379 106,160 13,057 59,098 835,479 Production Facilities 175,085 212,206 136,300 15,514 14,960 554,065 Miscellaneous 22,198 11,744 1,090 956 13,625 49,613 Total Services ■ 780,043 532,261 271,206 30,478 91,066 1,705,054 TOTAL LEND-LEASE AID... 3,959,950 2,393,193 1,532,230 156,738 210,622 8,252,733 Certain transfer totals include small amounts of goods diverted to United States armed forces after lend-lease transfer, but subject to future replacement. Q» and the air forces were equally divided. Of the landing craft employed most were American-built. Some had been lend-leased to Britain and were manned by British crews. United States fighter squadrons, on the other hand, flew 160 Spitfires provided by Great Britain under reciprocal aid. Most of the equipment used by United States forces came from American factories, but supplies lend-leased by Britain to our armed forces included such items as 100 miles of portable airfield runways, more than half a million anti-tank mines and grenades, 130 reconnaissance boats, four complete 1,000-bed field hospitals, and medical supplies for 100,000 men. One United States division was completely equipped with» British 25-pounders. On the Russian front combat weapons lend-leased from the United States and Great Britain are playing an increasingly important role in the Soviet’s winter offensive, although Soviet-produced weapons continue to make up by far the major part of the Red Army’s equipment. Aid to Soviet Production We have also sent to the U. S. S. R. machinery, machine tools, and raw materials such as copper for the production of weapons. These shipments have helped the Soviet Union to maintain its war production in spite of the loss of great industrial areas to the enemy. In some instances, machines and tools have been shipped under lend-lease to replace vital pieces of equipment lost or destroyed when machinery was moved out of the Donets industrial areas ahead of the Nazis to new production centers behind the Urals. The industrial-equipment program for Russia also includes a small amount of used machinery, such as the Ford tire equipment recently purchased for shipment. This part of the program involves a total cost of only a few million dollars but it will help to fill important gaps in Russian war production. It will also put to effective use in the war effort machinery that, for one reason or another^ was largely standing idle in this country. 38 Food as a Weapon of War We were not able to ship much food to the Soviet Union until the very end of 1942 because the limited shipping space available was used principally for munitions. However, the food needs of the Soviet Union have grown progressively more acute and we have now begun shipping much greater quantities of food to the U. S. S. R. We sent more food in December 1942 to the Soviet Union than to the United Kingdom. It is expected that the rate of food shipments to the U. S. S. R. will continue to be higher than to any other country. Nearly half of all lend-lease shipments to the United Kingdom have been food and other agricultural products. These had a value of a billion dollars up to November 30, 1942. Industrial materials and equipment have also been sent in important quantities. Most lend-lease munitions shipments have gone to British forces in Africa, the Middle and Far East. So far we have shipped twice as many planes and other armaments to the United Kingdom under direct cash purchase as under lend-lease. These represented deliveries on the large cash orders placed here by the United Kingdom in 1939, 1940, and early 1941. Our food shipments have been only about 10 percent of Britain’s total food supply in terms of volume. These food shipments, however, have represented a considerably higher percentage of the proteins and vitamins in the British diet. Our shipments of industrial materials and equipment have aided the United Kingdom to maintain a volume of war production that is still considerably greater than ours in proportion to population. Aid to China Lend-lease aid to China in 1941 was aimed especially at improving transport over the Burma Road. It resulted in more than doubling monthly tonnage carried over the route. Even then, however, transportation difficulties kept total shipments 39 comparatively small. Following the loss of Burma, shipments to China were reduced to a trickle, carried principally by cargo planes from India. We have now taken measures which are considerably increasing these plane shipments and we shall also find other means to get to China the arms she needs. Lend-lease shipments to China since the beginning of the lend-lease program include some planes, most of them fighters and trainers, several thousand trucks and some ordnance, ammunition, gasoline, medical and miscellaneous supplies. Aid to Other Lend-Lease Countries About two-thirds of our lend-lease shipments to India have been military supplies, in addition to long-range bombers ferried direct by air. We have also sent India considerable quantities of iron and steel, machinery for its munitions factories and for the construction of airfields and roads. The majority of lend-lease shipments to Australia, New Zealand and South Africa have been planes, guns, tanks, and other war weapons. These have been in addition to the arms supplied to our own forces. Lend-lease aid has also been provided to the forces of the Governments in exile—the Netherlands, Norway, Greece, Yugoslavia, Belgium, Poland, and Czechoslovakia—and to Fighting France, Iceland, Turkey, Iran, Iraq, Egypt. Lend-lease services and stores have helped to keep in operation for the United Nations the large Norwegian and Greek merchant fleets. Aid to the other American republics is partly on a cash reimbursement basis. Brazil has received the largest amount but total lend-lease exports to the American republics have been small, with a value of $24,000,000 to date. By far the larger part of our exports to Latin America have been direct cash purchase exports. Supply Routes and Bases One of the most important services performed under lend-lease has been the development and operation of supply routes 40 and supply bases abroad. Lend-lease played a part in the development of the air ferry route to England in 1941 and later in the ferry route to the Middle East and Russia via the bulge of Brazil, the South Atlantic and across the jungles and deserts of Africa. The African section of this southern route was pioneered by the British as early as 1936. It has been greatly developed in the past 18 months by Great Britain and the United States, working together, with the help of Fighting France. American participation in this enterprise was financed in important measure by lend-lease funds, as well as by army funds. Over this route thousands of planes have been flown to Egypt or North Africa; to Iran, and thence to Russia or to India. In addition, lend-lease funds helped finance the development of docks, warehouses, supply depots, assembly and repair shops throughout the Red Sea-Persian Gulf area; the building of pipe lines to carry oil to naval and air bases; the shipment of road-building equipment to develop highways and trucks to carry supplies over them, and rails, freight cars, and locomotives to expand the capacity of primitive railroads. This work is continuing. Facilities built with the aid of lend-lease funds throughout this area are now being used by United States Air Force planes, American ships, and American troops. 41 Chapter 4 LEND-LEASE AND FOOD Food has an important place in the lend-lease program. Food is a weapon of war. In its Way it is as essential to winning the war as planes or guns. Germany’s unrestricted submarine campaign in the war of 1914-18 was primarily an attempt to knock out England by cutting off her food supply. And food shortages in Germany and Austria resulting from the successful British blockade played a large part in the Allied victory then. In this war England is again vulnerable on the food front because it must import a large percentage of its food. The United Kingdom has made intensive efforts to increase its agricultural production. It now raises about 60 percent of its total food supply, compared to 40 percent before the war. Much of the rest of its food is being supplied by the Dominions, Colonies, and other areas. The balance comes from the United States under lend-lease. Strict rationing was introduced early in the war which reduced average British consumption of fats, meat, fish and many other foods to two thirds of the pre-war level. The British people have been limited to a dull diet which affords little choice or variety but which has a minimum nutritive standard high enough in calories to maintain the intensive British war effort. This result has been achieved, in spite of the sharp reduction in quantity and variety, because of lend-lease shipments of dried and concentrated foods from the United States. These bulked small in terms of shipping space, but large in proteins and vitamins. Increased Shipments to Russia Lend-lease food is now also being shipped to the Soviet Union in sharply increased quantities. In 1942, most lend- 42 lease food exports went to the United Kingdom. In December, however, we provided more food to the Soviet Union than to Great Britain, and this year we expect that more than half of all lend-lease food shipments will go to the U. S. S. R. The Russian people have long been on iron rations far more limited even than Great Britain’s. The Soviet Union has lost its best agricultural areas to the invader and has now passed through two growing seasons in which most of the adult population has been engaged in the desperate struggle against the Nazis, whether at the front or behind the lines. Meanwhile, established lines of transportation have been interrupted or strained to the limit and great numbers have been driven from their homes. Millions of the Soviet people are threatened with starvation, and the Soviet armyneedsfood as well as tanks. Lend-lease food shipments in 1943 are of number one importance in the Soviet’s great battle against the Nazi war machine. The United States is helping to meet these food requirements of its allies by producing and sh aring a total food supply that is the largest in the history of our country. We should be able to meet their needs without difficulty were it not for two other factors: first, food for our own forces (a soldier eats 25 percent more than a civilian); second, a great increase in civilian demand for food caused by higher purchasing power. As a result of the combination of these factors there is not enough of some foods to go around at home without rationing, even with record food production. Lend-Lease Food Shipments in 1942 Allocation of the total United States food supply as between the American people and our allies is determined on the basis of first providing for our own armed forces and assuring a supply for the civilian population sufficient to fulfill satisfactory nutrition standards. Once these needs have been met, we are, as a matter of military necessity, aiding our allies as far as we can to meet their pressing food requirements which they cannot fill elsewhere under present war conditions. In the lend-lease food program we have been concentrating on foods that can be shipped anywhere and that will store well. 43 Lard, cheese, dried milk, concentrated canned goods are examples. Thus we shall be prepared for military developments as they aflect the food situation in any part of the world. Actually, lend-lease requirements last year had little to do with the food shortages that developed in this. country. Lend-lease food exports in 1942 represented a small percentage of our total food supply. Of our total supply of beef we exported under lend-lease only one-tenth of one percent. We exported two-tenths of one percent of our veal, lamb, and mutton. Of the five meats now under voluntary rationing, pork was the only one of which we shipped considerable quantities. About 10 percent of our pork supply was exported under lend-lease. We exported under lend-lease less than 1 percent of our canned vegetables, less than 2 percent of our canned fruits, less than 1 percent of our butter, and less than a tenth of 1 percent of our coffee. The United States armed forces took much larger percentages of the supply of all these items than lend-lease. Greatly increased consumer demand and purchasing power has been the major cause of our shortages of these foods. Lend-lease shipments of cheese were 23 percent of the total cheese supply. We lend-leased over 20 percent of our dried milk. Nevertheless, lend-lease shipments of all milk products—in terms of fluid milk equivalent—were less than 4 percent of our total milk supply. Cheese is particularly important in lend-lease food shipments, because it supplements the highly restricted meat rations of our allies. Our production of eggs in 1942 was 4,414,000,000 dozen, which was by far the greatest on record and 15 percent above 1941 production. We shipped 10 percent of our total egg supply, mostly in the form of dried eggs, but less than half of 1 percent of our supply of corn and corn products and wheat and wheat products. Lend-lease food shipments have been generally small in relation to total United States supply. But their value to the peoples who received them was far greater than the lend-lease percentages of United States supply would indicate. The following table shows the quantities of major food 44 stuffs shipped under lend-lease in 1942, in relation to total United States supply: LEND-LEASE FOOD EXPORTS IN RELATION TO SUPPLY Year Ended December 31, 1942 Millions of Pounds Lend-Lease Exports Supply Exports in Percent of Supply All Meats 1 134 22,742 5.0 Beef 18 9J 55 0.1 Veal 0 1J10 0.0 Lamb and Mutton 4 l'O68 0.4 Pork 1,112 11,409 9.8 All Milk Products (expressed in terms of fluid milk equivalent) 4 272 125,466 3.4 Dry Whole Milkf 4 ' 66 6.1 Dry Skim Milkf 135 586 23.0 Condensed and Evaporated Milkf 347 4,842 7.2 Butter f 17 *2,294 0.7 Cheese f 312 1^352 23.1 Fats and Oils 723 5/70 13.2 Esss J684 6^819 10.0 Fish (frozen and canned) 156 2,189 7.1 Canned Vegetables 51 *6,630 0.8 Canned Fruits and Juices. 89 *5 J 50 1.7 Corn and Corn Products 415 300^048 0.1 Wheat Products 393 118,020 0.3 * Production. t Included in “All Milk Products." jDried eggs expressed in terms of fresh egg equivalent. The 1943 Lend-Lease Food Program The lend-lease food program for 1943 will take a much bigger share of many of these products than it did in 1942. In addition to the pressing requirements for the Soviet army and the Soviet people, we must be prepared to meet the new demands that will come when United Nations forces liberate areas now held by the Axis. The food deficiencies of North Africa, urgent as they are until this year’s harvest is in, are 45 small compared with those of most of oppressed and starving Europe. It is vitally important for the winning of the war that we be prepared to move in rapidly with food in the wake of any military developments that open these areas to the United Nations. Our troops cannot take the offensive successfully in the midst of famine and pestilence, riots and revolution. The British are collaborating in providing supplies for relief purposes, and have already assisted in North Africa by shipping food for the use of the civilian population. British Food Rations In the United Kingdom nearly all foods are rationed. The only exceptions of importance are bread, potatoes, and fresh vegetables. Fresh fruit and fresh fish are not rationed because the supply is too small to justify rationing. Some foods are rationed by quantities on a weekly basis and others are under point rationing. The sugar ration is 8 ounces a week and the butter ration 2 ounces a week. Fresh meats are limited to 24 cents worth a week, or about 18 ounces, depending on the quality of the cut. The bacon ration is 4 ounces, the cheese ration 6 ounces. Chocolate and other sweets are rationed at the rate of 3 ounces a week. The ration of some food items, including fresh eggs and fluid milk, varies considerably with changes in seasonal supplies. The average for fresh eggs is three per person per month. Dried eggs are rationed at a rate equivalent to four eggs per person per month. Fresh milk is rationed at present at two pints per week per person. During the flush season considerably more milk is available. In addition dried milk is rationed at the rate of one ounce a week. Nursing mothers, children and invalids get special allowances of both milk and eggs. A variety of foods are under the points rationing scheme. Since last July, 20 points have been allowed per person every four weeks for the purchase of a choice of such foods. Each food product has a fixed point value per pound. 46 A pound of canned sliced luncheon meat, for instance, is worth 16 points, while a pound can of baked beans with tomato sauce is worth 4 points. Purchase of these two items would use up all the points available for one person over a four weeks’ period. Similarly, a housewife who bought a No. 2 size can of pears (12 points) and four eight-ounce packages of puffed wheat (2 points each) would use up all her own points, or her husband’s, for four weeks. Foods under points rationing in Great Britain include canned salmon and other canned fish, various canned meats, rice and tapioca, dried peas and beans, dried fruits, all imported canned fruits, condensed milk, breakfast cereals,syrup and biscuits, canned peas, beans and tomatoes. The sale of all other canned vegetables has been prohibited since December 1, 1942, in order to build up a reserve for rationing when fresh vegetables are less plentiful. 47 Chapter 5 RECIPROCAL AID Through outgoing lend-lease the United States seeks to put a share of its material resources to most effective use against the enemy. Through incoming lend-lease, our allies are similarly contributing to our strength. We have been receiving reciprocal lend-lease aid from our allies since the beginning of the lend-lease program. Formal provision for reciprocal aid was first made in the Master Agreement concluded with Great Britain February 23, 1942, and in similar agreements subsequently signed with the U. S. S. R., China, the Netherlands, Norway, Poland, Yugoslavia, Czechoslovakia, Greece, and Belgium. In all of these agreements the signatory governments pledge to strengthen each other’s defenses and to contribute thereto such articles, services, facilities and information as they may be able to make available. In each case the agreements state that in the final determination of lend-lease benefits full cognizance shall be taken of all such aid and other benefits provided to the United States by the other government. These broad principles were reiterated and procedures developed for the provision of reciprocal aid to our armed forces abroad on September 3, 1942, in an exchange of notes between this country and the United Kingdom, Australia, New Zealand, and Fighting France. Other agreements are now under discussion with Belgium, China, and the Netherlands. The principle followed is to provide mutual aid in such a way as to prevent complications of international exchange from interfering with the most effective possible use of combined United Nations’ resources for the common war effort. Our forces abroad are being provided without dollar payment on our part with most of the supplies and services 48 furnished to them by our allies. Millions of tons of shipping space and hundreds of millions of dollars have already been saved in this way. This aid to us is rapidly mounting in value—both in military value and in monetary value. The savings in shipping enable us to build up more rapidly and effectively our offensive strength abroad. The savings in dollars multiply as more of our forces move overseas. It is not yet possible to estimate how great these savings will be when the fighting ends. We do know that in the last war, the U. S. War Department alone spent more than $2,000,000,000 in Great Britain and France for supplies, equipment, and services for our troops of the kind that are being provided in this war as reciprocal aid. In addition, we have received in the United States under reciprocal aid important assistance to our home defenses and much technical and highly secret data on the specifications of certain war weapons which have proved invaluable to our own armed forces. Most reciprocal aid has been furnished so far by the United Kingdom, Australia, and New Zealand. Aid has also been furnished our forces by the British in India, Egypt, and many parts of the British Colonial Empire, by the Fighting French in New Caledonia, by Belgium in the Congo and by China and South Africa. United Kingdom Reciprocal aid for our forces in the British Isles begins before they leave American ports, for many American troops and U.S. Army supplies bound for the United Kingdom are carried in British transports and are convoyed a large part of the way by the British Navy. In addition United States warships and merchant ships in British ports in many parts of the world are provided with fuel, services, supplies and repairs under reciprocal aid without payment by us. In the United Kingdom all accommodations and facilities for our troops, including headquarters office space, are furnished without dollar payment on our part. Two-thirds of all 49 505243—43---4 the British Army and civilian labor force available for military construction has been engaged in building hundreds of barracks, airfields, hospitals, supply depots, roads, and other facilities for our forces. The British Government is paying $240,000 a week in wages for civilian workers in the direct employ of United States forces. In addition, many existing facilities have been turned over to our use. Maintenance costs of airfields alone run into the tens of millions of dollars and these are paid by the British (the total cost to the British Treasury of new construction for U. S. forces in Britain is estimated by the British to be in excess of half a billion dollars). The British Government also pays the transportation cost of moving American troops and army supplies within the British Isles. Supplies other than construction materials furnished as reciprocal aid to our forces in the six months from May to November would have taken 1,200,000 ship-tons if transported from the United States. This is more than the tonnage of supplies we sent to our own forces from the United States during that period. All British-produced arms requested by our armed forces are supplied without cost as mutual aid. Most of our arms are American-made, but we have received quantities of miscellaneous war supplies. In addition to several hundred Spitfire planes and many field guns and howitzers, the United Kingdom has provided us with 1,450,000 square yards of portable airfield runways and is furnishing several million more. We have received such supplies as 15,000 bombs ranging from 250-pound incendiaries to 2,000-pound block-busters; 70,000 rounds of 6-inch shells; many millions of rounds of small arms ammunition; more than 250,000 anti-tank mines; electric batteries at the rate of 500,000 a month; 500,000 hand grenades; and more than 1,000 parachutes. The British are in the process of providing us with more than 300,000 camouflage nets. They have agreed to supply our forces in the United Kingdom with 2,000,000 blankets, 2,000,000 sets of underwear, and 4,000,000 pairs of wool socks. 50 In return we have agreed to provide similar quantities to British and Dominion forces in the Middle and Far East. U. S. Army engineers have received 1,500 miles of pipe. Several score new hospitals of semi-permanent construction with a bed capacity of 89,000 have been provided. We have received 20,000 one-hundred-pound reels of barbed wire, and millions of sandbags. Most United States troops receive American Army food rations in Britain, but these are supplemented from the limited British food stocks by fresh vegetables, tea, chocolate, sugar, cereals, and other items. Almost all the bread for our soldiers is now made from the whole-meal ‘ ‘national flour’ ’ furnished from British Government stocks under reciprocal lend-lease. Between June 1 and December 31, the British provided our troops with over 38,000,000 pounds of flour, potatoes, fruits, and vegetables and mixed rations. In 1943 the British have agreed to supply more than 290,000,000 pounds of food, including sugar, syrup, jam, and salt in addition to the above items. Canteen supplies are also lend-leased by the British for American troops. Cigarettes are an exception. Our men prefer to smoke American brands. Australia. Australia’s aid to us began at Bataan a year ago when she sent shiploads of food to the beleaguered American forces. Some of it got through and helped sustain resistance. Australia now supplies the greater part of the food rations of our armed forces there. Our men are receiving under reciprocal aid, milk, beef, pork, lamb, fresh fruits and vegetables, most of their field rations, and their canned meats and canned vegetables. They have received 26,900,000 pounds of Australian beef and veal, lamb, mutton and pork, 20,000,000 pounds of potatoes, 1,800,000 dozen eggs, and 5,464,000 quarts of milk among other foodstuffs. These supplies are taking a sizable share of the total food production of a country of only 7,000,000 inhabitants. The Australian people are going short of many things to supply our troops. Civilians were almost unable to obtain potatoes for several months, and 51 practically the entire supply of pork, canned meats, vegetables, and citrus fruits has been directed to the Allied armed forces. Australia is also undertaking to expand greatly its food production and processing program in order to supply our forces in the Solomons, New Guinea, New Caledonia, and the New Hebrides. In addition to food we are receiving from Australia as reciprocal aid many facilities such as barracks and airfields. Thousands of trucks and other vehicles have been provided and new roads have been built. Uniforms for United States soldiers and nurses are being made in Australian mills and furnished under incoming lend-lease. The following list shows the quantities of some of the foods supplied as reciprocal aid by Australia in 1942: Beef and veal...............................15,370,027 lbs. Lamb and mutton............................... 3,247,000 lbs. Pork, ham and bacon........................... 8,310,628 lbs. Potatoes.........<.......................... 20,030,992 lbs. Other vegetables and fruits.................. 25,337,328 lbs. Eggs.......................................... 1,800,000 dozen. Butter........................................ 3,944,777 lbs. Milk........................................ 5,464,116 qts. New Zealand New Zealand also is providing as reciprocal aid most of the food for United States armed forces stationed there. Our men have received, for example, 16,000,000 pounds of New Zealand beef, pork, veal, lamb, and mutton, 2,000,000 pounds of butter, 3,000,000 pounds of sugar, 1,400,000 dozen eggs. As in Australia, the people of New Zealand have gone without in order to provide these supplies. Civilian shortages of eggs, milk, potatoes, flour, fresh fruit, and cereals have been reported as particularly severe. New Zealand is expanding its capacity for dehydrating foods, has already furnished some clothing and blankets for our troops, and has a program under way to manufacture 400,000 army boots. Labor and construction resources have also been strained 52 severely in a country of less than 2,000,000 people in order to carry out work for the United States forces. For a time all cement supplies were reserved for defense work and a great part of the lumber supply as well. Most of these materials went into the construction of facilities for our men. Storage accommodations on a large scale have been constructed and airdromes and naval base facilities extended and improved. Last August after a severe earthquake had hit Wellington (and it was wintertime there) damage was left unrepaired and rubble remained in the streets for weeks because the New Zealand Government declined to release workers employed on construction projects for United States forces. The following list shows the quantities of some of the foods supplied as reciprocal aid by New Zealand in 1942: Beef......................................... 10,279,000 lbs. Mutton........................................ 1,721,000 lbs. Bacon, ham, and pork.......................... 4,054,000 lbs. Potatoes...................................... 4,787,000 lbs. Eggs.......................................... 1,407,000 dozen. Butter......................................... 2,032,000 lbs. Sugar......................................... 3,320,000 lbs. China A reciprocal aid agreement with China is now under negotiation, but without waiting for the agreement China is already furnishing part of the supplies of the United States Air Forces there out of its reserve stocks and has offered to turn back to the United States as reciprocal aid the famous P-40 fighter planes used by the “Flying Tigers” of the American Volunteer Group and originally obtained by purchase from the United States. Other Areas American forces in New Caledonia are receiving reciprocal aid from the Fighting French whenever supplies and services can be provided locally. We are getting important reciprocal aid in India where the manufacture of uniforms for our troops 53 has started. South Africa has provided naval supplies under reciprocal aid. Reciprocal aid has also been furnished to our troops by the British in Egypt, North Africa, the Middle East, the Fiji Islands, and in Iceland. Our Home Defense Soon after Pearl Harbor, Great Britain rushed thousands of barrage balloons to the United States under reciprocal aid which were sent to the west coast for defense against possible Japanese air attack. A considerable number of British antiaircraft guns are stationed alongside our own in many American cities and they also help to defend the Panama Canal. We have received machine tools for our shipyards and benzol, of which we were short, for aviation gasoline. Great Britain furnished us with all the specifications for its system of aircraft detection developed during many months of intensive air war, together with much apparatus as well. These have aided our own production of such equipment greatly. In addition there is a constant exchange of full information on the development of new and highly secret weapons. The best scientific brains of the United States and United Kingdom have been mobilized by the Office of Scientific Research and Development in Washington and its counterpart in London. Through the close collaboration of the two Offices literally thousands of scientists and inventors in both countries have been organized into a single team, although they work separately in many laboratories scattered throughout the United States and United Kingdom. They are engaged on secret assignments, testing, experimenting and developing weapons and techniques for increasing our offensive power and for saving lives through new discoveries in military medicine. The results of their work are freely pooled because the principles of lend-lease working in both directions have been applied to the laboratory as well as to the tank arsenal. In this exchange the United States has been receiving the full benefit of the lessons learned from Britain’s hard-won battle experience, which began more than two years before 54 ours. For instance, predictors and fire control gear are now being manufactured on a large scale in the United States from British design. Great Britain has also aided us in anti-submarine warfare off the Atlantic coast. We have received a number of corvettes and smaller craft under reciprocal aid which are manned by American crews. Since the resources of the United States available for lend-lease purposes are far greater than those of any of our allies, the dollar value of reciprocal lend-lease aid should not be compared with, nor expected to approach, the dollar value of outgoing lend-lease, even if it could be accurately measured on the same basis. This is not possible in many circumstances. Reciprocal aid is provided to our forces at points scattered all over the world and much of it is provided in combat areas, whereas outgoing lend-lease comes from a central source and can be readily recorded. Nevertheless, even on the basis of reco’rds that are likely to remain incomplete, it is already evident that reciprocal aid is a very important benefit to the United States, and an increasingly vital factor in the combined war effort of the United Nations. 55 APPENDICES Note: There are included in this section for purposes of convenience most of the principal laws and documents relating to lend-lease. Some of these documents have been included in previous reports, several of which are out of print. Appendix I LEND-LEASE ACT Further to promote the defense of the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as “An Act to Promote the Defense of the United States.” Section 2. As used in this Act— (a) The term “defense article” means— (1) Any weapon, munition, aircraft, vessel, or boat; (2) Any machinery, facility, tool, material, or supply necessary for the manufacture, production, processing, repair, servicing, or operation of any article described in this subsection; (3) Any component material or part of or equipment for any article described in this subsection; (4) Any agricultural, industrial or other commodity or article for defense. Such term “defense article” includes any article described in this subsection manufactured or procured pursuant to section 3, or to which the United States or any foreign government has or hereafter acquires title, possession, or control. (b) The term “defense information” means any plan, specification, design, prototype, or information pertaining to any defense article. Section 3. (a) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of national defense, 56 (authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government— Cl) To manufacture in arsenals, factories, and shipyards under their jurisdiction, or otherwise procure, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for the government of any country whose defense the President deems vital to the defense of the United States. C2) To sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government any defense article, but no defense article not manufactured or procured under paragraph (1) shall in any way be disposed of under this paragraph, except after consultation with the Chief of Staff of the Army or the Chief of Naval Operations of the Navy, or both. The value of defense articles disposed of in any way under authority of this paragraph, and procured from funds heretofore appropriated, shall not exceed $1,300,000,000. The value of such defense articles shall be determined by the head of the department or agency concerned or such other department, agency, or officer as shall be designated in the manner provided in the rules and regulations issued hereunder. Defense articles procured from funds hereafter appropriated to any department or agency of the Government, other than from funds authorized to be appropriated under this Act, shall not be disposed of in any way under authority of this paragraph except to the extent hereafter authorized by the Congress in the Acts appropriating such funds or otherwise. (3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress or both, any defense article for any such government, or to procure any or all such services by private contract. (4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this, subsection. (5) To release for export any defense article disposed of in any way under this subsection to any such government. (b) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (a) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory. (c) After June 30, 1943, or after the passage of a concurrent resolution by the two Houses before June 30, 1943, which declares that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote the defense of the United States, neither the President nor the head of any department or agency shall exercise any of the powers conferred by or pursuant to subsection (a); except that until July 1,1946, any of such powers may be exercised to the extent necessary to carry out a contract or agree 57 ment with such a foreign government made before July 1, 1943, or before the passage of such concurrent resolution, whichever is the earlier. (d) Nothing in this Act shall be construed to authorize or to permit the authorization of convoying vessels by naval vessels of the United States. (e) Nothing in this Act shall be construed to authorize or to permit the authorization of the entry of any American vessel into a combat area in violation of section 3 of the Neutrality Act of 1939. Section 4. All contracts or agreements made for the disposition of any defense article or defense information pursuant to section 3 shall contain a clause by which the foreign government undertakes that it will not, without the consent of the President, transfer title to or possession of such defense article or defense information by gift, sale, or otherwise, or permit its use by anyone not an officer, employee, or agent of such foreign government. Section 5. (a) The Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government involved shall, when any such defense article or defense information is exported, immediately inform the department or agency designated by the President to administer section 6 of the Act of July 2, 1940 (54 Stat. 714), of the quantities, character, value, terms of disposition, and destination of the article and information so exported. (b) The President from time to time, but not less frequently than once every ninety days, shall transmit to the Congress a report of operations under this Act except such information as he deems incompatible with the public interest to disclose. Reports provided for under this subsection shall be transmitted to the Secretary of the Senate or the Clerk of the House of Representatives, as the case may be, if the Senate or the House of Representatives, as the case may be, is not in session. Section 6 (a) There is hereby authorized to be appropriated from time to time, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to carry out the provisions and accomplish the purposes of this Act. (b) All money and all property which is converted into money received under section 3 from any government shall, with the approval of the Director of the Budget, revert to the respective appropriation or appropriations out of which funds were expended with respect to the defense article or defense information for which such consideration is received, and shall be available for expenditure for the purpose for which such expended funds were appropriated by law, during the fiscal year in which such funds are received and the ensuing fiscal year; but in no event shall any funds so received be available for expenditure after June 30, 1946. 58 Section 7 The Secretary of War, the Secretary or the Navy, and the head of the department or agency shall in all contracts or agreements for the disposition of any defense article or defense information fully protect the rights of all citizens of the United States who have patent rights in and to any such article or information which is hereby authorized to be disposed of and the payments collected for royalties on such patents shall be paid to the owner and holders of such patents. Section 8. The Secretaries of War and of the Navy are hereby authorized to purchase or otherwise acquire arms, ammunition, and implements of war produced within the jurisdiction of any country to which section 3 is applicable, whenever the President deems such purchase or acquisition to be necessary in the interests of the defense of the United States. Section 9. The President may, from time to time, promulgate such rules and regulations as may be necessary and proper to carry out any of the provisions of this Act; and he may exercise any power or authority conferred on him by this Act through such department, agency, or officer as he shall direct. Section 10. Nothing in this Act shall be construed to change existing law relating to the use of the land and naval forces of the United States, except insofar as such use relates to the manufacture, procurement, and repair of defense articles, the communication of information and other noncombatant purposes enumerated in this Act. Section 11. If any provision of this Act or the application of such provision to any circumstance shall be held invalid, the validity of the remainder of the Act and the applicability of such provision to other circumstances shall not be affected thereby. Approved, March 11, 1941. Appendix II PUBLIC LAW 23—77th CONGRESS Chapter 30—1st Session Sec. 3. Any defense article procured from an appropriation made by this Act shall be retained by or transferred to and for the use of such department or agency of the United States as the President may determine, in lieu of being disposed of to a foreign government whenever in the judgment of the President the defense of the United States will be best served thereby. 59 Appendix 111 PUBLIC LAW 282—77th CONGRESS Chapter 460—1 st Session Sec. 102. The President may, from time to time, when he deems it in the interest of national defense, authorize the head of any department or agency of the Government to enter into contracts for the procurement of defense articles, information, or services for the government of any country whose defense the President deems vital to the defense of the United States, to the extent that such government agrees to pay the United States for such defense articles, information, or services prior to the receipt thereof and to make such payments from time to time as the President may require to protect the interests of the United States; and, upon payment of the full cost, the President may dispose of such articles, information, or services to such government: Provided, That the total amount of the outstanding contracts under this section, less the amounts which have been paid to the United States under such contracts, shall at no time exceed $600,000,000. Appendix IV PUBLIC LAW 474—77th CONGRESS Chapter 141—2d Session Sec. 303. The term “defense article’’ as used in section 102 of the Third Supplemental National Defense Appropriation Act, 1942, approved December 17,1941 (Public Law 353), in section 102 of the Fourth Supplemental National Defense Appropriation Act, 1942, approved January 30, 1942 (Public Law 422), in section 301 of the Act of February 7, 1942 (Public Law 441), and in section 102 of this Act shall be deemed to include defense information and services, and the expenses in connection with the procurement or supplying of defense articles, information, and services. Appendix V PUBLIC LAW 763—77th CONGRESS Chapter 629—2d Session TITLE 11—DEFENSE AID The funds appropriated in section 1 (d) of the Defense Aid Supplemental Appropriation Act, 1941 (Public Law 23), in section 101 (c) of the Defense Aid Supplemental Appropriation Act, 1942 (Public Law 282), and in section 301 (c) of the Second Defense Aid Supplemental Appropriation Act, 60 1942 (Public Law 474), shall be deemed to be available retroactively as well as prospectively for the procurement, disposition, or furnishing of any defense information or defense service under the Act entitled “An Act to Promote the Defense of the United States,” approved March 11, 1941 (Public Law 11), whether or not such information or service is necessary to or connected with the procurement or disposition of any defense article, and the authority to dispose of defense articles granted in section 102 of the Third Supplemental National Defense Appropriation Act, 1942 (Public Law 353), in section 102 of the Fourth Supplemental National Defense Appropriation Act, 1942 (Public Law 422), in section 301 of the Act of February 7, 1942 (Public Law 441), in sections 102 and 303 of the Fifth Supplemental National Defense Appropriation Act, 1942 (Public Law 474), in section 201 of the Sixth Supplemental National Defense Appropriation Act, 1942 (Public Law 528), in section 103 of this Act, and in any other appropriation Act for the same purpose, shall be deemed to include the authority to procure, dispose of, or furnish any defense information or defense service under said Act of March 11, 1941, whether or not such information or service is necessary to or connected with the procurement or disposition of any defense article. Appendix VI AMOUNTS OF LEND-LEASE AID AUTHORIZED Lend-Lease Act—March 11,1941 This Act appropriated no money, but empowered the President to transfer a maximum of $1,300,000,000 of defense articles, obtained with funds appropriated prior to the date of the Act. First Lend-Lease Appropriation Act—March 27, 1941 This Act appropriated $7,000,000,000 for lend-lease, of which $13,-000,000 was transferred to the Treasury Department to cover the cost of 10 Coast Guard cutters turned over to Great Britain. First Supplemental Nat’l Defense Approp. Act—August 25,1941 Title III of this Act added $1,296,650,000 in appropriated funds and contract authorizations to the Maritime Commission’s general funds, established by the 1936 Merchant Marine Act, for ship and facilities construction, and empowered the President to lease vessels constructed or acquired with funds appropriated by this title. Second Lend-Lease Appropriation Act—October 28, 1941 Title I of this Act appropriated $5,985,000,000 for the procurement of defense articles, information and services under the Lend-Lease Act. In addition, it authorized the President to enter into contracts for the procure- 61 ment of defense articles, information or services for the government of any country whose defense has been deemed vital to the defense of the United States upon the agreement of such country to pay for the same, and also authorized the President to dispose of such articles, information, and services upon payment of the full cost thereof. This authority to contract is limited by the provision that the total amounts remaining to be paid under outstanding contracts shall not exceed $600,000,000 at any one time. Third Supplemental Nat’l Defense Approp. Act—Dec. 17, 1941 Title I of this Act appropriated money to the War Department and changed the provisions of the Lend-Lease Act in regard to the transfer of defense articles. The President was empowered to transfer War Department articles procured from funds appropriated prior to or since March 11, 1941, to the value of $2,000,000,000. The limitation of $1,300,000,000, which applied to goods obtained from appropriations made prior to March 11, 1941, was reduced to $800,000,000, and this new limitation was made to apply only to articles other than War Department articles. Fourth Supplemental Nat’l Defense Approp. Act—Jan. 30, 1942 Title I of this Act appropriated money to the War Department and empowered the President to lend-lease War Department articles procured from funds appropriated in this title to the value of $4,000,000,000. These articles will come principally from the aircraft category and to a lesser extent from ordnance and other categories. Naval Appropriation Act—-February 7, 1942 Title III of this Act empowered the President to lease, for a period of time not exceeding the duration of the existing emergency, ships to be constructed at a cost not to exceed $3,900,000,000, and to transfer defense articles procured from funds appropriated by this Act to the value of $2,500,000,000. Fifth Supplemental Nat’l Defense Approp. Act—March 5, 1942 Title I of this Act appropriated money to the War Department and empowered the President to lend-lease defense articles procured from funds appropriated in this title to the value of $11,250,000,000. These articles will come principally from the ordnance category and to a lesser extent from other categories. Title II of this Act appropriated to the Maritime Commission additional funds and authorized contracts totaling $3,850,000,000 for construction of ships and facilities, and empowered the President to lease ships authorized in this title. TitleTII of this Act appropriated directly to the President $5,425,000,000 for lend-lease. 62 Sixth Supplemental Nat’l Defense Approp. Act—April 28, 1942 Title I of this Act appropriated money to the War Department and empowered the President to lend-lease defense articles procured from funds therein appropriated up to the value of $2,220,000,000, and defined “defense article” to include defense information and services, and the expenses incurred in connection with the procurement of defense articles, information and services. Military Appropriation Act, 1943—July 2, 1942 This Act appropriated money to the War Department and empowered the President' to lend-lease defense articles procured from funds therein appropriated up to the value of $12,700,000,000, and defined ‘ ‘ defense article’ ’ to include defense information and services, and the expenses incurred in connection with the procurement of defense articles, information and services. Second Suppl. Nat’l Defense Approp. Act, 1943—Oct. 26, 1942 Title I of this Act empowered the President to lend-lease defense articles, information, and services procured from any funds appropriated to the Navy Department subsequent to March 11, 1941 up to a value of $3,000,000,000 for defense articles (other than ships), information and services, and authorized the leasing of ships without limitation as to amount—the $3,000,000,000 limitation on the lend-leasing of defense articles, information and services replacing the $2,500,000,000 limitation imposed by the Naval Appropriation Act of February 7, 1942. Title II of this Act expressly provided that funds appropriated for lend-lease purposes shall be available retroactively as well as prospectively for the procurement, disposition or furnishing of defense information or defense services whether or not such information or services are necessary to or connected with the procurement or disposition of any defense article. [For recapitulation of foregoing appropriation acts, see following page.] 63 RECAPITULATION OF AID AUTHORIZED The amount of lend-lease aid that may be provided under the various acts is summarized as follows: Lend-Lease Appropriations to the President First Lend-Lease Appropriation..................... $7,000,000,000 Second Lend-Lease Appropriation..................... 5,985,000,000 Third Lend-Lease Appropriation (Fifth Supp. 1942)... 5,425,000,000 Total......................................... 18,410,000,000 Transfers Authorized From Other Appropriations War Department—Third Supplemental, 1942............ $2,000,000,000 War Department—Fourth Supplemental, 1942 ........... 4,000,000,000 War Department—Fifth Supplemental, 1942............ 11,250,000,000 War Department—Sixth Supplemental, 1942............. 2,220,000,000 War Department—Military Appropriation Act, 1943.... 12,700,000,000 Navy Department—Second Supplemental, 1943........... 3,000,000,000 Departments other than War—Third Supplemental, 1942 . 800,000,000 Total.......................................... 35,970,000,000 Value of Ships Which May Be Leased Maritime Commission—First Supplemental, 1942....... 1,296,650,000 Maritime Commission—Fifth Supplemental, 1942 ...... 3,850,000,000 Navy Department—Naval Appropriation Act, 1942...(no limitation as to amount) Note.—Title III of the Naval Appropriation Act of February 7, 1942, authorized the leasing of specified naval ships to be constructed at a cost not exceeding $3,900,000,000. Under Title I of the Second Supplemental National Defense Appropriation Act, 1943, however, naval ships may be leased, but not otherwise disposed of, without limitation as to amount. In previous reports, the value of ships which may be leased was included in the table of transfers authorized. It is more accurate to separate this item since the appropriation acts provide that the ships may only be leased. Appendix V11 EXECUTIVE ORDER ESTABLISHING OFFICE OF LEND-LEASE ADMINISTRATION By virtue of the authority vested in me by the Constitution and statutes of the United States, and particularly by the Act of March 11, 1941, entitled “An Act further to promote the defense of the United States and for other purposes” (hereafter referred to as the Act), and by the Defense Aid 64 Supplemental Appropriation Act, 1941, approved March 27, 1941, and acts amendatory or supplemental thereto, in order to define further the functions and duties of the Office for Emergency Management of the Executive Office of the President in respect to the national emergency as declared by the President on May 27,1941, and in order to provide for the more effective administration of those Acts in the interests of national defense, it is hereby ordered as follows : 1. There shall be in the Office for Emergency Management of the Executive Office of the President an Office of Lend-Lease Administration, at the head of which shall be an Administrator, appointed by the President, who shall receive compensation at such rate as the President shall approve and, in addition, shall be entitled to actual and necessary transportation, subsistence, and other expenses incidental to the performance of his duties. 2. Subject to such policies as the President may from time to time prescribe, the Administrator is hereby authorized and directed, pursuant to Section 9 of the Act, to exercise any power or authority conferred upon the President by the Act and by the Defense Aid Supplemental Appropriation Act, 1941 and any acts amendatory or supplemental thereto, with respect to any nation whose defense the President shall have found to be vital to the defense of the United States: Provided, That the master agreement with each nation receiving lend-lease aid, setting forth the general terms and conditions under which such nation is to receive such aid, shall be negotiated by the State Department, with the advice of the Economic Defense Board and the Office of Lend-Lease Administration. 3. The Administrator shall make appropriate arrangements with the Economic Defense Board for the review and clearance of lend-lease transactions which affect the economic defense of the United States as defined in Executive Order No. 8839 of July 30, 1941. 4. Within the limitation of such funds as may be made available for that purpose, the Administrator may appoint one or more Deputy or Assistant Administrators and other personnel, delegate to such Deputy or Assistant Administrators any power or authority conferred by these orders, and make provision for such supplies, facilities, and services as shall be necessary to carry out the provisions of this Order. In so far as practicable, the Office of Lend-Lease Administration shall ute such general business services and facilities as may be made available to it through the Office for Emergency Management. 5. Executive Order No. 8751 of May 2,1941, establishing the Division of Defense Aid Reports and defining its functions and duties, is hereby revoked. FRANKLIN D. ROOSEVELT. The White House, October 28, 1941. 65 505243—43----------5 Appendix VIII COMBINED BOARDS Announcement of January 26, 1942 The powers and functions of the Combined Boards were defined by President Roosevelt and Prime Minister Churchill as follows: Combined Raw Materials Board. A planned and expeditious utilization of the raw material resources of the United Nations is necessary in the prosecution of the war. To obtain such a utilization of our raw material resources in the most efficient and speediest possible manner, we hereby create the ‘ ‘Combined Raw Materials Board.” This Board will: (a) Be composed of a representative of the British Government and a representative of the United States Government. The British member will represent and act under the instruction of the Minister of Supply. The Board shall have power to appoint the staff necessary to carry out its responsibilities. (¿) Plan the best and speediest development, expansion and use of the raw material resources, under the jurisdiction or control of the two Governments, and make the recommendations necessary to execute such plans. Such recommendations shall be carried out by all parts of the respective Governments. (?) In collaboration with others of the United Nations work toward the best utilization of their raw material resources, and, in collaboration with the interested nation or nations, formulate plans and recommendations for the development, expansion, purchase, or other effective use of their raw materials. Munitions Assignments Board. * 1. The entire munition resources of Great Britain and the United States will be deemed to be in a common pool, about which the fullest information will be interchanged. 2. Committees will be formed in Washington and London under the Combined Chiefs of Staff in a manner similar to the South-West Pacific Agreement. These Committees will advise on all assignments both in quantity and priority, whether to Great Britain and the United States or other of the United Nations in accordance with strategic needs. 3. In order that these Committees may be fully apprised of the policy of their respective Governments, the President will nominate a civil Chairman who will preside over the Committee in Washington, and the Prime Minister of Great Britain will make a similar nomination in respect of the Committee in London. In each case the Committee will be assisted by a. 66 Secretariat capable of surveying every branch and keeping in touch with the work of every subcommittee as may be necessary. 4. The Civilian Chairmen in Washington and London may invite representatives of the State Department, the Foreign Office, or production ministries or agencies to attend meetings. Combined Shipping Adjustment Board 1. In principle, the shipping resources of the two countries will be deemed to be pooled. The fullest information will be interchanged. 2. Owing to the military and physical facts of the situation around the British Isles, the entire movement of shipping now under the control of Great Britain will continue to be directed by the Ministry of War Transport. 3. Similarly, the appropriate Authority in the United States will continue to direct the movements and allocations of United States shipping, or shipping of other Powers under United States control. 4. In order to adjust and concert in one harmonious policy the work of the British Ministry of War Transport and the shipping authorities of the United States Government, there will be established forthwith in Washington a combined shipping adjustment board, consisting of a representative of the United States and a representative of the British Government, who will represent and act under the instructions of the British Minister of War Transport. 5. A similar adjustment board will be set up in London consisting of the Minister of War Transport and a representative of the United States Government. 6. In both cases the executive power will be exercised solely by the appropriate shipping agency in Washington and by the Minister of War Transport in London. Announcements of June 9, 1942 and November 10, 1942 Combined Production and Resources Board. The text of the joint statement issued by the President and the Prime Minister of June 9th, announcing the setting up of the Combined Production and Resources Board, was revised on November 10,1942, to read as follows: To complete the organization needed for the most effective use of the combined resources of North America (United States and Canada) and the United Kingdom, for the prosecution of the war, there is hereby established a Combined Production and Resources Board. 1. The Board shall consist of the Chairman of the War Production Board, representing the United States, the Minister of Production, representing the United Kingdom, and the Minister of Munitions and Supply, representing Canada. 2. The Board shall— (a) Combine the Production programs of the United States, the United Kingdom and Canada, into a single integrated program, adjusted 67 to the strategic requirements of the war, as indicated to the Board by the Combined Chiefs of Staff, and to all relevant production factors. In this connection, the Board shall take account of the need for maximum utilization of the productive resources available to the United States, the British Commonwealth of Nations and the United Nations, the need to reduce demands on shipping to a minimum, and the essential needs of the civilian populations. (b) In close collaboration with the Combined Chiefs of Staff, assure the continuous adjustment of the combined production program to meet changing military requirements. 3. To this end, the Combined Chiefs of Staff and the Combined Munitions Assignment Board shall keep the Combined Production and Resources Board currently informed concerning military requirements, and the Combined Production and Resources Board shall keep the Combined Chiefs of Staff and the Combined Munitions Assignment Board currently informed concerning the facts and possibilities of production. 4. To facilitate continuous operation, the members of the Board shall each appoint a Deputy; and the Board shall form a combined staff. The Board shall arrange for such conferences among United States and United Kingdom and Canadian personnel as it may from time to time deem necessary or appropriate to study particular production needs; and utilize the Joint War Production Staff in London, the Combined Raw Materials Board, the Joint Aircraft Committee, and other existing combined or national agencies for war production in such manner and to such extent as it shall deem necessary. Combined Food Board By virtue of the authority vested in me by the Constitution and as President of the United States, and acting jointly and in full accord with the Prime Minister of Great Britain, I hereby authorize, on the part of the Government of the United States, the creation of a joint Great Britain-United States board to be known as the Combined Food Board. In order to coordinate further the prosecution of the war effort by obtaining a planned and expeditious utilization of the food resources of the United Nations, there is hereby established a Combined Food Board. The Board will be composed of the Secretary of Agriculture and of the Head of the British Food Mission who will represent and act under the instruction of the Minister of Food. The duties of the Board shall be: To consider, investigate, enquire into, and formulate plans with regard to any question in respect of which the Governments of the U. S. A. and the U. K. have, or may have, a common concern, relating to the supply j production, transportation, disposal, allocation or distribution, in or to any part of the world, of foods, agricultural materials from which foods are derived, and equipment and nonfood materials ancillary to the production of such foods and agricultural materials, and to make recommendations to the Governments of the U. S. A. and the U. K. in respect of any such question; 68 To work in collaboration with others of the United Nations toward the best utilization of their food resources, and, in collaboration with the interested nation or nations, to formulate plans and recommendations for the development, expansion, purchase, or other effective use of their food resources. The Board shall be entitled to receive from any agency of the Government of the United States and any department of the Government of the United Kingdom any information available to such agency or department relating to any matter with regard to which the Board is competent to make recommendations to those Governments, and, in principle, the entire food resources of Great Britain and the United States will be deemed to be in a common pool, about which the fullest information will be interchanged. Members of the Combined Boards Combined Chiefs of Staff: Members for United States: Admiral William D. Leahy Gen. George C. Marshall Admiral E. J. King Lieut. Gen. H. H. Arnold Members for the United Kingdom: Field Marshal Sir John Dill Lieut. Gen. G. N. MacReady Air Marshal D. C. S. Evill Admiral Sir Percy Noble Munitions Assignment Board: Washington—Chairman: Harry L. Hopkins Executive: Major General J. H. Burns Members for the United States: Admiral J. M. Reeves Lieut. Gen. B. B. Somervell Major General Richard C. Moore Major General G. E. Stratemeyer Members for the United Kingdom: Admiral Sir Percy Noble Lieut. Gen. G. N. MacReady Air Marshal D. C. S. Evill London—Chairman: Captain Oliver Lyttelton, Minister of Production Members for the United States : Captain T. A. Solberg Major General J. K. Crain Brigadier General A. J. Lyon Colonel D. C. MacKeachie Members for the United Kingdom: Rear Admiral R. R. McGrigor Lieut. Gen. R. M. Weeks Air Chief Marshal Sir Christo- pher L. Courtney 69 Combined Production and Resources Board: Member for the United States: Donald M. Nelson Member for the United Kingdom: Captain Oliver Lyttelton (Sir Robert J. Sinclair, Deputy) Member for Canada: C. D. Howe (E. P. Taylor, Deputy) Combined Raw Materials Board: Member for the United States: William L. Batt (Howard C. Sykes, Deputy—Executive Secretary) Member for the United Kingdom: Sir Clive Baillieu (George Archer, Executive Secretary) Combined Food Board: Member for the United States: Claude R. Wickard (Leslie A. Wheeler, Executive Officer) Member for the United Kingdom: Robert H. Brand (Maurice I. Hutton, Executive Officer) Combined Shipping Adjustment Board: Washington: Member for the United States: Rear Admiral Emory S. Land (Lewis Douglas, Deputy) Member for the United Kingdom: Sir Arthur Salter London: Member for the United States: W. Averell Harriman Member for the United Kingdom: Lord Leathers Appendix IX RUSSIAN MASTER AGREEMENT Agreement between the United States of America and the Union of Soviet Socialist Republics on the principles applying to mutual aid in the prosecution of the war against aggression. Whereas the Governments of the United States of America and the Union of Soviet Socialist Republics declare that they are engaged in a cooperative undertaking, together with every other nation or people of like mind, to the end of laying the bases of a just and enduring world peace securing order under law to themselves and all nations; 70 And whereas the Governments of the United States of America and the Union of Soviet Socialist Republics, as signatories of the Declaration by United Nations of January 1, 1942, have subscribed to a common program of purposes and principles embodied in the Joint Declaration, known as the Atlantic Charter, made on August 14, 1941, by the President of the United States of America and the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, the basic principles of which were adhered to by the Government of the Union of Soviet Socialist Republics on September 24, 1941; And whereas the President of the United States of America has determined, pursuant to the act of Congress of March 11, 1941, that the defense of the Union of Soviet Socialist Republics against aggression is vital to the defense of the United States of America; And whereas the United States of America has extended and is continuing to extend to the Union of Soviet Socialist Republics aid in resisting aggression; And whereas it is expedient that the final determination of the terms and conditions upon which the Government of the Union of Soviet Socialist Republics receives such aid and of the benefits to be received by the United States of America in return therefor should be deferred until the extent of the defense aid is known and until the progress of events makes clearer the final terms and conditions and benefits which will be in the mutual interests of the United States of America and the Union of Soviet Socialist Republics and will promote the establishment and maintenance of world peace; And whereas the Governments of the United States of America and the Union of Soviet Socialist Republics are mutually desirous of concluding now a preliminary agreement in regard to the provision of defense aid and in regard to certain considerations which shall be taken into account in determining such terms and conditions and the making of such an agreement has been in all respects duly authorized, and all acts, conditions and formalities which it may have been necessary to perform, fulfill or execute prior to the making of such an agreement in conformity with the laws either of the United States of America or of the Union of Soviet Socialist Republics have been performed, fulfilled or executed as required; The undersigned, being duly authorized by their respective Governments for that purpose, have agreed as follows: Article I The Government of the United States of America will continue to supply the Government of the Union of Soviet Socialist Republics with such defense articles, defense services, and defense information as the President of the United States of America shall authorize to be transferred or provided. Article II The Government of the Union of Soviet Socialist Republics will continue to contribute to the defense of the United States of America and the 71 strengthening thereof and will provide such articles, services, facilities or information as it may be in a position to supply. Article III The Government of the Union of Soviet Socialist Republics will not without the consent of the President of the United States of America transfer title to, or possession of, any defense article or defense information transferred to it under the Act of March 11, 1941 of the Congress of the United States of America or permit the use thereof by anyone not an officer, employee, or agent of the Government of the Union of Soviet Socialist Republics. Article IV If, as a result of the transfer to the Government of the Union of Soviet Socialist Republics of any defense article or defense information, it becomes necessary for that Government to take any action or make any payment in order fully to protect any of the rights of a citizen of the United States of America who has patent rights in and to any such defense article or information, the Government of the Union of Soviet Socialist Republics will take such action or make such payment when requested to do so by the President of the United States of America. Article V The Government of the Union of Soviet Socialist Republics will return to the United States of America at the end of the present emergency, as determined by the President of the United States of America, such defense articles transferred under this Agreement as shall not have been destroyed, lost or consumed and as shall be determined by the President to be useful in the defense of the United States of America or of the Western Hemisphere or to be otherwise of use to the United States of America. Article VI In the final determination of the benefits to be provided to the United States of America by the Government of the Union of Soviet Socialist Republics full cognizance shall be taken of all property, services, information, facilities, or other benefits or considerations provided by the Government of the Union of Soviet Socialist Republics subsequent to March 11, 1941, and accepted or acknowledged by the President on behalf of the United States of America. Article VII In the final determination of the benefits to be provided to the United States of America by the Government of the Union of Soviet Socialist Republics in return for aid furnished under the Act of Congress of March 11, 1941, the terms and conditions thereof shall be such as not to burden commerce between the two countries, but to promote mutually advantageous economic relations between them and the betterment of worldwide economic relations. To that end, they shall include provision for agreed 72 action by the United States of America and the Union of Soviet Socialist Republics, open to participation by all other countries of like mind, directed to the expansion, by appropriate international and domestic measures, of production, employment, and the exchange and consumption of goods, which are the material foundations of the liberty and welfare of all peoples; to the elimination of all forms of discriminatory treatment in international commerce, and to the reduction of tariffs and other trade barriers; and, in general, to the attainment of all the economic objectives set forth in the Joint Declaration made on August 14, 1941, by the President of the United States of America and the Prime Minister of the United Kingdom, the basic principles of which were adhered to by the Government of the Union of Soviet Socialist Republics on September 24, 1941. At an early convenient date, conversations shall be begun between the two Governments with a view to determining, in the light of governing economic conditions, the best means of attaining the above-stated objectives by their own agreed action and of seeking the agreed action of other like-minded Governments. Article VIII This Agreement shall take effect as from this day’s date. It shall continue in force until a date to be agreed upon by the two Governments. Signed and sealed at Washington in duplicate this eleventh day of June, 1942. For the Government of the United States of America Cordell Hull, Secretary of State of the United States of America. For the Government of the Union of Soviet Socialist Republics Maxim Litvinoff, Ambassador of the Union of Soviet Socialist Republics at Washington. The following is an exchange of notes between the Secretary of State and the Ambassador of the Union of Soviet Socialist Republics at Washington: Department of State, Washington, June 11, 1942. Excellency: In connection with the signature on this date of the Agreement between our two Governments on the Principles Applying to Mutual Aid in the Prosecution of the War Against Aggression, I have the honor to confirm our understanding that this Agreement replaces and renders inoperative the two prior arrangements on the same subject between our two Governments, the most recent of which was expressed in the exchange of communications between the President and Mr. Stalin dated respectively February 13, February 20, and February 23, 1942. Accept, Excellency, the renewed assurances of my highest consideration. Cordell Hull, Secretary of State of the United States of America. His Excellency Maxim Litvinoff, Ambassador of the Union of Soviet Socialist Republics. 73 June 11, 1942. Excellency : In connection with the signature on this date of the Agreement between our two Governments on the Principles Applying to Mutual Aid in the Prosecution of the War Against Aggression, I have the honor to confirm our understanding that this Agreement replaces and renders inoperative the two prior arrangements on the same subject between our two Governments, the most recent of which was expressed in the exchange of communications between the President and Mr. Stalin dated respectively February 13, February 20, and February 23, 1942. Accept, Excellency, the renewed assurances of my highest consideration. Maxim Litvinoff, Ambassador of the Union of Soviet Socialist Republics at Washington. His Excellency Cordell Hull, Secretary of State of the United States of America, Washington, D. C. Appendix X DECLARATION BY UNITED NATIONS A Joint Declaration by the United States of America, the United Kingdom of Great Britain and Northern Ireland, the Union of Soviet Socialist Republics, China, Australia, Belgium, Canada, Costa Rica, Cuba, Czechoslovakia, Dominican Republic, El Salvador, Greece, Guatemala, Haiti, Honduras, India, Luxembourg, Netherlands, New Zealand, Nicaragua, Norway, Panama, Poland, South Africa, Yugoslavia. The Governments signatory hereto, Having subscribed to a common program of purposes and principles embodied in the Joint Declaration of the President of the United States of America and the Prime Minister of the United Kingdom of Great Britain and Northern Ireland dated August 14,1941, known as the Atlantic Charter, Being convinced that complete victory over their enemies is essential to defend life, liberty, independence and religious freedom, and to preserve human rights and justice in their own lands as well as in other lands, and that they are now engaged in a common struggle against savage and brutal forces seeking to subjugate the world, DECLARE: 74 (1) Each Government pledges itself to employ its full resources, military or economic, against those members of the Tripartite Pact and its adherents with which such government is at war. (2) Each Government pledges itself to cooperate with the Governments signatory hereto and not to make a separate armistice or peace with the enemies. The foregoing declaration may be adhered to by other nations which are, or which may be, rendering material assistance and contributions in the struggle for victory over Hitlerism. Done at Washington January First 1942 The Republic of Costa Rica by Luis Fernandez The Republic of Cuba by Aurelio F. Concheso Czechoslovak Republic byN. S. Hurban The Dominican Republic by J M. Troncoso The Republic of El Salvador by C. A. Alfaro The Kingdom of Greece by Cimon P. Diamantopoulos The Republic of Guatemala by Enrique Lopez-Herrarte The United States of America by Franklin D. Roosevelt The United Kingdom of Great Britain and Northern Ireland by Winston Churchill On behalf of the Government of the Union of Soviet Socialist Republics by Maxim Litvinoff, Ambassador National Government of the Republic of China Tse Vung Soong, Minister for Foreign Affairs The Commonwealth of Australia by R. G. Casey The Kingdom of Belgium by Cte. R. v. d. Straten Canada by Leighton McCarthy The Grand Duchy of Luxembourg by Hugues Le Gallais The Kingdom of the Netherlands by A. Loudon Signed on behalf of the Govt, of the Dominion of New Zealand by Frank Langstone The Republic of Nicaragua by Leon DeBayle The Kingdom of Norway by W. Munthe de Morgen-stierne The Republic of Panama by Jaen Guardia The Republic of Poland by Jan Ciechanowski La Republique d’Haiti far Fernand Dennis The Republic of Honduras by Julian R. Caceres India by Girja Shankar Bajpai The Union of South Africa by Ralph W. Close The Kingdom of Yugoslovaia by Constantin A. Fotitch Note: Mexico, The Commonwealth of the Philippines, and Ethiopia have since adhered to the Declaration by United Nations. 75 Appendix XI RECIPROCAL-AID AGREEMENTS Reciprocal-aid agreements with United Kingdom, Australia, New Zealand and Fighting France were concluded September 3, 1942, by the following exchanges of notes. The first three agreements were signed in Washington and the agreement with Fighting France was signed in London. Agreement with United Kingdom The Honorable Cordell Hull, Secretary of State, United States Department of State, Washington, D. C. Sir: In the United Nations declaration of January 1,1942, the contracting governments pledged themselves to employ their full resources, military or economic, against those nations with which they are at war and in the Agreement of February 23, 1942, each contracting government undertook to provide the other with such articles, services, facilities or information useful in the prosecution of their common war undertaking as each may be in a position to supply. It is further the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland that the general principle to be followed in providing mutual aid as set forth in the said Agreement of February 23, 1942, is that the war production and the war resources of both Nations should be used by the armed forces of each and of the other United Nations in ways which most effectively utilize the available materials, manpower, production facilities and shipping space. With a view, therefore, to supplementing Article 2 and Article 6 of the Agreement of February 23, 1942, between our two Governments for the provision of reciprocal aid, I have the honour to set forth below the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland of the principles and procedures applicable to the provision of aid by the Government of the United Kingdom of Great Britain and Northern Ireland to the armed forces of the United States and the manner in which such aid will be correlated with the maintenance of those forces by the United States Government. 1. While each Government retains the right of final decision, in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall, so far as possible, be made in common, pursuant to common plans for winning the war. 2. As to financing the provision of such aid, within the fields mentioned below, it is the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland that the general principle to be applied, to the point at which the common war effort is most effective, is that as large a portion as possible of the articles and services which each Government may authorize to be provided to the other shall be in the form of reciprocal aid so that the need of each Government for the currency of the other may be reduced to a minimum. 76 It is accordingly the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland that the United States Government will provide, in accordance with the provisions of, and to the extent authorized under, the Act of March 11, 1941, the share of its war production made available to the United Kingdom. The Government of the United Kingdom will provide on the same terms and as reciprocal aid so much of its war production made available to the United States as it authorizes in accordance with the Agreement of February 23, 1942. 3- The. Government of the United Kingdom will provide the United States or its armed forces with the following types of assistance as such reciprocal aid, when it is found that they can most effectively be procured in the United Kingdom or in the British Colonial Empire: (a) Military equipment, munitions, and military and naval stores. (b) Other supplies, materials, facilities, and services for the United States forces, except for the pay and allowances of such forces, administrative expenses, and such local purchases as its official establishments may make other than through the official establishments of the Government of the United Kingdom as specified in paragraph 4. (c) Supplies, materials, and services needed in the construction of military projects, tasks and similar capital works required for the common war effort in the United Kingdom or in the British Colonial Empire, except for the wages and salaries of United States citizens. (d) Supplies, materials and services needed in the construction of such military projects, tasks and capital works in territory other than the United Kingdom or the British Colonial Empire or territory of the United States to the extent that the United Kingdom or the British Colonial Empire is a more practicable source of supply than the United States or another of the United Nations. 4. The practical application of the principles formulated in this note, including the procedure by which requests for aid by either Government are made and acted upon, shall be worked out as occasion may require by agreement between the two Governments, acting when possible through their appropriate military or civilian administrative authorities. Requests by the United States Government for such aid will be presented by duly authorized authorities of the United States to official agencies of the United Kingdom which will be designated or established in London and in the areas where United States forces are located for the purpose of facilitating the provision of reciprocal aid. 5. It is the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland that all such aid, as well as other aid, including information, received under Article 6 of the Agreement of February 23,1942, accepted by the President of the United States or his authorized representatives from the Government of the United Kingdom will be received as a benefit to the United States under the Act of March 11, 1941. Insofar as circumstances will permit, appropriate record of aid received under this arrangement, except for miscellaneous facilities and services, will be kept by each Government. 77 If the Government of the United States concurs in the foregoing, I would suggest that the present note and your reply to that effect be regarded as placing on record the understanding of our two Governments in this matter. I have the honour to be, with the highest consideration, Sir, your most obedient, humble servant, Halifax. His Excellency the Right Honorable The Viscount Halifax, K. G., British Ambassador. Excellency: I have the honor to acknowledge the receipt of Your Excellency’s note of today’s date concerning the principles and procedures applicable to the provision of aid by the Government of the United Kingdom of Great Britain and Northern Ireland to the armed forces of the United States of America. In reply I wish to inform you that the Government of the United States agrees with the understanding of the Government of the United Kingdom of Great Britain and Northern Ireland as expressed in that note. In accordance with the suggestion contained therein, your note and this reply will be regarded as placing on record the understanding between our two Governments in this matter. This further integration and strengthening of our common war effort gives me great satisfaction. Accept, Sir, the renewed assurances of my highest consideration. Cordell Hull, Secretary of State of the United States of America. Agreement with Australia The Honorable Cordell Hull, Secretary of State, W ashington, D. C. Sir: As contracting parties to the United Nations Declaration of January 1,1942, the Governments of the United States of America and the Commonwealth of Australia pledged themselves to employ their full resources, military and economic, against those nations with which they are at war. With regard to the arrangements for mutual aid between our two governments, I refer to the agreement signed at Washington on February 23, 1942, between the Governments of the United States of America and the United Kingdom on principles applying to mutual aid in the present war authorized and provided for by the Act of Congress of Marceli, 1941, and have the honour to inform you that the Government of the Commonwealth of Australia accepts the principles therein contained as governing the provision of mutual aid between itself and the Government of the United States of America. It is the understanding of the Government of the Commonwealth of Australia that the general principle to be followed in providing such aid is that the war production and war resources of both nations should be 78 used by the armed forces of each, in the ways which most effectively utilize available materials, manpower, production facilities and shipping space. I now set forth the understanding of the Government of the Commonwealth of Australia of the principles and procedure applicable to the provision of aid by the Government of the Commonwealth of Australia to the armed forces of the United States and the manner in which such aid will be correlated with the maintenance of those forces by the United States Government. 1. While each Government retains the right of final decision, in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall, so far as possible, be made in common, pursuant to common plans for winning the war. 2. As to financing the provision of such aid, within the fields mentioned below, it is my understanding that the general principles to be applied to the point at which the common war effort is most effective, is that as large a portion as possible of the articles and services which each Government may authorize to be provided to the other shall be in the form of reciprocal aid so that the need of each Government for the currency of the other may be reduced to a minimum. It is accordingly my understanding that the United States Government will provide, in accordance with the provisions of, and to the extent authorized under, the Act of March 11,1941, the share of its war production made available to Australia. The Government of Australia will provide on the same terms and as reciprocal aid so much of its war production made available to the United States as it authorizes in accordance with the principles enunciated in this note. 3. The Government of Australia will provide as reciprocal aid the following types of assistance to the armed forces of the United States in Australia or its territories and in such other cases as may be determined by common agreement in the light of the development of the war. (a) Military equipment, ammunition and military and naval stores. (b) Other supplies, materials, facilities and services for the United States forces except for the pay and allowances of such forces, administrative expenses, and such local purchases as its official establishments may make other than through the official establishments of the Australian Government as specified in paragraph 4. (c) Supplies, materials and services needed in the construction of military projects, tasks and similar capital works required for the common war effort in Australia and in such other places as may be determined, except for the wages and salaries of United States citizens. 4. The practical application of the principles formulated in this note, including the procedure by which requests for aid by either Government are made and acted upon, shall be worked out as occasion may require by agreement between the two Governments, acting when possible through their appropriate military or civilian administrative authorities. Requests by the United States Government for such aid will be presented by duly authorized authorities of the United States to official agencies of the Commonwealth of Australia which will be designated or established in Can 79 berra and in the areas where United States forces are located for the purpose of facilitating the provision of reciprocal aid. 5. It is my understanding that all such aid accepted by the President of the United States or his authorized representatives from the Government of Australia will be received as a benefit to the United States under the Act of March 11,1941. Insofar as circumstances will permit appropriate record of aid received under this arrangement, except for miscellaneous facilities and services, will be kept by each Government. If the Government of the United States concurs in the foregoing, I would suggest that the present note and your reply to that effect be regarded as placing on record the understanding of our two Governments in this matter. I have the honor to be with the highest consideration, Sir, your obedient servant, Owen Dixon. The Honorable Sir Owen Dixon, K. C. M. G., Minister of Australia. Sir: I have the honor to acknowledge receipt of your note of today’s date concerning the principles and procedures applicable to the provision of aid by the Government of the Commonwealth of Australia to the armed forces of the United States of America. In reply I have the honor to inform you that the Government of the United States of America likewise accepts the principles contained in the agreement of February 23, 1942, between it and the Government of the United Kingdom as governing the provision of mutual aid between the Governments of the United States and of the Commonwealth of Australia. My Government agrees with the understanding of the Government of the Commonwealth of Australia as expressed in your note of today’s date, and, in accordance with the suggestion contained therein, your note and this reply will be regarded as placing on record the understanding between our two Governments in this matter. This further integration and strengthening of our common war effort gives me great satisfaction. Accept, Sir, the renewed assurances of my highest consideration. Cordell Hull, Secretary of State of the United States of America. Agreement with New Zealand. The Honorable Cordell Hull, Secretary of State, United States Department of State, Washington, D. C. Sir: As contracting parties to the United Nations Declaration of January 1,1942, the Governments of the United States of America and New Zealand pledged themselves to employ their full resources, .military and economic, against those nations with which they are at war. 80 In the Agreement of February 23, 1942, between the Governments of the United Kingdom and of the United States of America, the provisions and principles of which the Government of New Zealand considers applicable to its relations with the Government of the United States, each contracting Government undertook to provide the other with such articles, services, facilities, or information useful in the prosecution of their common war undertaking as each may be in a position to supply. It is the understanding of the Government of New Zealand that the general principle to be followed in providing such aid is that the war production and war resources of both nations should be used by each, in the ways which most effectively utilize available materials, manpower, production facilities and shipping space. I now set forth the understanding of the Government of New Zealand of the principles and procedure applicable to the provision of aid by the Government of New Zealand to the armed forces of the United States and the manner in which such aid will be correlated with the maintenance of those forces by the United States Government. 1. While each Government retains the right of final decision, in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall, so far as possible, be made in common, pursuant to common plans for winning the war. 2. As to financing the provision of such aid, within the fields mentioned below, it is my understanding, that the general principle to be applied, to the point at which the common war effort is most effective, is that as large a portion as possible of the articles and services to be provided by each Government to the other shall be in the form of reciprocal aid so that the need of each Government for the currency of the other may be reduced to a minimum. It is accordingly my understanding that the United States Government will provide, in accordance with the provisions of, and to the extent authorized under, the Act of March 11, 1941, the share of its production made available to New Zealand. The Government of New Zealand will provide on the same terms and as reciprocal aid so much of its production made available to the United States as it authorizes in accordance with the principles enunciated in this note. 3. The Government of New Zealand will provide the United States or its armed forces with the following types of assistance, as such reciprocal aid, when it is found that they can most effectively be procured in New Zealand. (a) Military equipment, munitions and military and naval stores. (b) Other supplies, materials, facilities and services for the United States forces, except for the pay and allowances of such forces, administrative expenses, and such local purchases as its official establishments may make other than through the official establishments of the Government of New Zealand as specified in Paragraph 4. (c) Supplies, materials and services needed in the construction of military projects, tasks and similar capital works required for the common war effort in New Zealand, except for the wages and salaries of United States citizens. 81 505243—43---6 (d) Supplies, materials, and services needed in the construction of such military projects, tasks, and capital works in territory other than New Zealand or territory of the United States to the extent that New Zealand is a more practicable source of supply than the United States or another of the United Nations. 4. The practical application of the principles formulated in this note, including the procedure by which requests for aid by either Government are made and acted upon, shall be worked out as occasion may require by agreement between the two Governments, acting when possible through their appropriate military or civilian administrative authorities. 5- It is my understanding that all such aid accepted by the President of the United States or his authorized representatives from the Government of New Zealand will be received as a benefit to the United Stated under the Act of March 11, 1941. Insofar as circumstances will permit, appropriate record of aid received under this arrangement, except for miscellaneous facilities and services, will be kept by each Government. If the Government of the United States concurs in the foregoing, I would suggest that the present note and your reply to that effect be regarded as placing on record the understanding of our two Governments in this matter. I have the honour to be, Sir, Your obedient servant, Walter Nash, Minister of New Zealand. The Honorable Walter Nash, Minister of New Zealand. Sir: I have the honor to acknowledge receipt of your note of today’s date concerning the principles and procedures applicable to the provision of aid by the Government of New Zealand to the armed forces of the United States of America. In reply I have the honor to inform you that the Government of the United States of America likewise considers the provisions and principles contained in the agreement of February 23, 1942, between it and the Government of the United Kingdom as applicable to its relations with the Government of New Zealand. My Government agrees with the understanding of the Government of New Zealand as expressed in your note of today’s date, and, in accordance with the suggestion contained therein, your note and this reply will be regarded as placing on record the understanding between our two Governments in this matter. This further integration and strengthening of our common war effort gives me great satisfaction. Accept, Sir, the renewed assurances of my highest consideration. Cordell Hull, Secretary of State of the United States of America. 82 Agreement with French National Committee. Text of Note to General Dahlquist from French National Committee The French National Committee sets forth below its understanding of the principles governing the provision of reciprocal aid by the United States of America to Fighting France and by Fighting France to the United States: 1. The United States of America will continue to supply Fighting France with such defense articles, defense services, and defense information as the President shall authorize to be transferred or provided. 2. Fighting France will continue to contribute to the defense of the United States of America and the strengthening thereof and will provide such articles, services, facilities, or information as it may be in a position to supply. 3. The fundamental principle to be followed in providing such aid is that the war production and war resources of Fighting France and of the United States of America should be used by the armed forces of each in the ways which most effectively utilize available materials, manpower, production facilities, and shipping space. While each retains the right of final decision, in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall, so far as possible, be made in common, pursuant to common plans for winning the war. 4. As to financing the provision of such aid, within the fields mentioned below, it is the Committee’s understanding that the general principle to be applied, to the point at which the common war effort is most effective, is that as large a portion as possible of the articles and services to be provided by each to the other shall be in the form of reciprocal aid. It is accordingly the Committee’s understanding that the United States Government will provide, in accordance with the provisions of, and to the extent authorized under, the Act of March 11, 1941, the share of its war production made available to Fighting France. Fighting France will provide on the same terms and as reciprocal aid so much of its war production made available to the United States as it authorizes in accordance with the principles enunciated in this note. 5. Within the territories under the control of Fighting France, or within the same theater of operations, the National Committee will provide the United States or its armed forces with the following types of assistance, as such reciprocal aid, when it is found that they can most effectively be procured in territory under the control of Fighting France: (a) Military equipment, munitions, and military and naval stores. (b) Other supplies, materials, facilities, and services for the United States forces, except for the pay and allowances of such forces, administrative expenses, and such local purchases as its official establishments may make other than through the official establishments of Fighting France as specified in paragraph 6. (c) Supplies, materials, and services, except for the wages and salaries of United States citizens, needed in the construction of military projects, tasks, and similar capital works required for the common war effort in territory under the control of Fighting France, or in the 83 same theater of operations, to the extent that such territory is the most practicable source of supply. 6. The practical application of the principles formulated in this note, including the procedure by which requests for aid are made and acted upon, shall be worked out by agreement as occasion may require through the appropriate military or civilian administrative authorities. Requests by the United States forces for such aid will be presented by their duly authorized authorities to official agencies of Fighting France which will be designated or established in the areas where United States forces are located for the purpose of facilitating the provision of reciprocal aid. 7. It is the Committee’s understanding that all such aid accepted by the President of the United States of his authorized representatives from Fighting France will be received as a benefit to the United States under the Act of March 11, 1941. Insofar as circumstances will permit, appropriate record of aid received under this arrangement, except for miscellaneous facilities and services, will be kept by each. If the Government of the United States concurs in the foregoing, the present note and a reply to that effect will be regarded as placing on record the understanding in this matter. Text of Note to French National Committee From General Dahlquist The Government of the United States of America agrees with the understanding of the National Committee, as expressed in the English text of the Committee’s note of today’s date, concerning the principles and procedures applicable to the provisions of aid by Fighting France to the armed forces of the United States of America and, in accordance with the suggestion contained therein, that note and this reply will be regarded as placing on record the understanding in this matter. Appendix X11 BRITISH WHITE PAPER OF SEPTEMBER 10, 1941 Foreign Office, S. W. I., 10 th September, 1941. My Dear Ambassador: With reference to the conversations about lend-lease material' which have recently taken place in London and in which you have participated, I enclose a memorandum on the policy of His Majesty’s Government in the United Kingdom with regard to exports from this country and with regard to the distribution here of lend-lease material. I shall be glad if you will transmit it to your Government. Yours sincerely, Anthony Eden. His Excellency The Honourable John G. Winant. 84 Memorandum. 1. All materials which we obtain under the Lend-Lease Act are required for the prosecution of the war effort. This principle governs all questions of the distribution and use of such goods and His Majesty’s Government have taken and will continue to take action to secure that these goods are not in any case diverted to the furtherance of private interests. 2. Lend-lease materials sent to this country have not been used for export and every effort will be made in the future to ensure that they are not used for export, subject to the principle that where complete physical segregation of lend-lease materials is impracticable domestic consumption of the material in question shall be at least equal to the amounts received under lend-lease. 3. His Majesty’s Government have not applied and will not apply any materials similar to those supplied under lend-lease in such a way as to enable their exporters to enter new markets or to extend their export trade at the expense of United States exporters. Owing to the need to devote all available capacity and manpower to war production, the United Kingdom export trade is restricted to the irreducible minimum necessary to supply or obtain materials essential to the war effort. 4. For some time past, exports from the United Kingdom have been more and more confined to those essential (I) for the supply of vital requirements of overseas countries, particularly in the sterling empire; (II) for the acquisition of foreign exchange, particularly in the Western Hemisphere. His Majesty’s Government have adopted the policy summarized below: (I) No materials of a type the use of which is being restricted in the United States on the grounds of short supply and of which we obtain supplies from the United States either by payment or on lend-lease terms will be used in exports with the exception of the following special cases: (a) Material which is needed overseas in connection with supplies essential to the war effort for ourselves and our Allies, and which cannot be obtained from the United States. (b) Small quantities of such materials needed as minor though essential components of exports which otherwise are composed of materials not in short supply in the United States. (c) Repair parts for British machinery and plant now in use, and machinery and plant needed to complete installations now under construction, so long as they have already been contracted for. Steps have been taken to prevent the export (except to Empire and Allied territories) of such goods which do not come within the exceptions referred to in (a), (b), and (c) above. (II) Materials similar to those being provided under lend-lease which are not in short supply in the United States will not be used for export in quantities greater than those which we ourselves produce or buy from any source. 85 5. The general principle followed in this matter is that the remuneration received by the distributors, whatever the method of distribution, is controlled and will be no more than a fair return for the services rendered in the work of distribution. The arrangements rigorously exclude any opportunity for a speculative profit by private interests from dealing in lend-leased goods. In most cases, lend-leased supplies will be distributed through organizations acting as agents of His Majesty’s Government in the strict sense of the term and not as principals. Where for strong practical reasons this cannot be done a full explanation will be supplied to the United States administration and their concurrence sought beforehand in any alternative arrangements proposed. The justification for retaining existing channels of distribution operating under strict Government control, is that the creation of elaborate new organizations in their place would inevitably result in loss of efficiency and the wasteful use of manpower, and retard the war effort. In the distribution of lend-lease goods there will be no discrimination against United States firms. 6. Food is a special case. Only some 5 or 6 percent in tonnage of the total British food supply is coming from the United States and without great practical complications it would be impossible to have a separate system for the distribution of lend-leased food. Food distribution is carried out in the United Kingdom by wholesalers, to whom the Government sells food as principals. In fact, the Ministry of Food has established a close control over all distributive margins so that neither the wholesalers nor the retailers receive any greater remuneration than is adequate to cover the cost of the services performed. No food obtained on lend-lease terms is, or will be, sold at uncontrolled prices. Thus the general arrangements as regards the issue of lend-leased food fit into His Majesty’s Government’s policy of stabilizing the whole price level of foodstuffs, a policy to which the Government contributes £100 millions a year. 7. In some cases direct free distribution is practicable and will be adopted. For example, some milk products (including lend-leased supplies from the United States) are distributed direct and free of charge to children and others in need through schools, clinics, and hospitals. The distribution is undertaken by State agencies and the cost of the distribution is borne by the Government. 86 INDEX Page Administrative expenses............................................ 16 Aeronautical material............................................. 16 Agricultural commodities : Exports of.................................................... 26,32 Transfers of................................................. 22 Agriculture, Department of...................................... 16,20 Aircraft......................................................... 16 Air ferry routes, development of................................... 41 Allocations..................................................... 16,18 Aluminum.......................................................... 30 Appropriations : Army.......................................................... 15,64 Lend-lease.................................................... 15,64 Maritime Commission........................................... 15,64 Navy......................................................... 15,64 Article VII, of Master Agreements............................... 14,72 Australia......................................................... 10 Reciprocal aid from........................................... 15 Bacon, received as reciprocal aid............................... 52, 53 Bauxite.......................................................... 30 Beef and veal.....................-.............................. 44,45 Received as reciprocal aid.................................... 52,53 Benefits for lend-lease aid..................................... 8,13 Board of Economic Warfare.......................................... 20 Brazil, lend-lease aid to.......................................... 40 British navy..................................................... 14 Burma Road......................................................... 39 Burns, Major General James H....................................... 17 Butter....................’..................................... 44,45 Received as reciprocal aid.................................. 52, 53 Canada.............................................,............ 10,19 Canned goods.................................................... 44, 45 Cash purchases.............................................. 9,13,27 Cheese.......................................................... 44,45 China......................................................... 8,14,20 Lend-lease aid to............,................................... 39 Reciprocal aid from............................................ 53 Chromite.......................................................... 30 87 Page Coffee............................................................ 44 Combined Chiefs of Staff.................................... 18,20,69 Combined Food Board........................................ 18, 68,70 Combined Production and Resources Board.....................19, 67,70 Combined Raw Materials Board................................ 18,66,70 Combined Shipping Adjustment Board.......................... 19,67,70 Copper............................................................ 30 Corn and corn products.......................................... 44 Crude rubber...................................................... 30 Declaration, United Nations....................................... 74 Defense Aid Reports, Division of.................................. 17 Defense articles................................................... 7 Defense information............................................... 7 Defense of the United States, Act to Promote.................... 7, 56 Dehydration........................;.............................. 33 Eggs.......................................................... 44,45,46 Received as reciprocal aid....................................... 52, 53 Egypt................'•............................................. 17 Campaign in....................................................... 35 Eligibility for lend-lease aid...................................... 17 Executive Order establishing Office of Lend-Lease Administration. . 64 Exports : Lend-lease........................................................ 24 Other than lend-lease.............!.............................. 27 Farm machinery...................................................... 31 Fats and oils....................................................... 45 Fighting French, reciprocal aid from................................ 53 Fiji Islands, reciprocal aid in..................................... 54 Fish...............Í................................................ 45 Food: Allocation of.................................................... 43 Exports of....................................................... 31,45 In relation to lend-lease......................................... 42 Increase of United Kingdom production............................. 42 Program for 1943................................................. 45 Requirements of U. S. S. R....................................... 39,42 Shipments to United Kingdom...................................... 39, 42 Shortages of, reasons for....................................... 43 Food Administration................................................. 19 Food Advisory Committee............................................. 19 Goods transferred................................................... 21 Dollar value of................................................... 21 Great Britain................................................. 8, 11,49 Iceland............................ ,............................... 21 88 Page India.............................................................. 12 Lend-lease aid to................................................ 40 Reciprocal aid from.............................................. 54 Industrial materials: Exports of....................................................... 26 Transfers of................................................... 22,29 Iran............................................................... 21 Joint Chiefs of Staff.............................................. 18 Lamb and mutton............................................... 44,45 Received as reciprocal aid..................................... 52,53 Leasing....................................................... 15,19 Lend-Lease Act................................................7,17, 56 Related laws............................................... 59, et seq. Lend-Lease Administration, Office of............................... 17 Lend-Lease aid: Amounts authorized............................................... 61 Eligibility for................................................ 17 General discussion............................................... 21 Goals of......................................................... 12 In 1941................................................... 23,24,25 In 1942 ................................................... 23,24,25 On the war fronts............................................... 34 Relative to total U. S. war effort............................... 28 Relative to U. S. economy........................................ 32 Value of...................................................... 36,37 Lend-lease exports............................................ 24, 26 Lend-lease principle, use by other nations......................... 12 Liberia............................................................ 17 Machine tools....................................................... 9 Manganese ore...................................................... 30 Maritime Commission................................................ 19 Master Agreements............................................. 14,48 WithU. S. S. R................................................... 70 Mercury........................................................... 30 Military items: Exports of....................................................... 24 Transfers of................................................... 21, 28 Milk......................................................... 44,45 Received as reciprocal aid....................................... 52 Ministry of War Transport, British................................. 19 Missions.......................................................... 20 Mobilization, industrial............................................ 8 Molybdenum......................................................... 30 Munitions Assignment Board...........,.................. 18, 20, 66, 69 89 Page Mutual Aid...................................................... 12,48 Navy Department......................................... 15,16,19,20 New Zealand, reciprocal aid from.................................. 52 Nickel............................................................ 30 North African campaign............................................ 35 Lend-lease aid in —..............................*.............. 35 Reciprocal aid in............................................... 38 Obligations....................................................... 16 Office of Lend-Lease Administration............................. 17 Executive Order establishing.................................... 64 Ordnance.......................................................... 16 Pearl Harbor, lend-lease before.................................... 8 Petroleum products............................................... 30 Plants, expansion through lend-lease.............................. 32 Pork......................................................... 44,45 Received as reciprocal aid..................................... 52 Production facilities............................................. 32 Projects, special................................................. 33 Rationing......................................................... 43 In United Kingdom............................................... 42 In United States, reasons for................................... 43 Reciprocal lend-lease aid....................................... 12,48 Agreements for................................................ 48,76 From Australia............................................... 51,78 From China...................................................... 53 From New Zealand.............................................. 52, 80 From United Kingdom........................................... 49,76 In North African campaign..................................... 35,38 Value of........................................................ 55 Red Sea area, development of...................................... 41 Requirements Committee of War Production Board.................... 19 Resources, combining of ................................... 11,13,19 Seamobile....................................................... 33 Sea Otter..........................j.............................. 33 Services rendered............................................. 22, 27 Dollar value of................................................ 27 Ships, servicing and repair of................................. 22,27 Shipyards..................................................... 9,32 Soviet Union.................................................... 8,14 Extent of lend-lease aid to..................................... 38 Extent of aid by United Kingdom................................. 12 Food needs...................................................... 42 Master Agreement with.......................................... 70 90 Page State, Department of................................................... 20 Steel............................................................... 30 Stettinius, E. R., Jr.................................................. 17 Strategic materials, imports of................................... 30 Sugar, amount of supplied as reciprocal aid............................ 53 Supply routes and supply bases, development of......................... 40 Tanks............................................................. 9,21,35 Tin...............................;.................................... 30 Treasury Department.................................................... 20 Tungsten............................................................. 30 Turkey................................................................. 21 USSR....:............................................................ 8,14 Master Agreement with............................................ 70 United Kingdom.................................................... 12,14,48 Lend-lease aid to........’....................................... 35 Reciprocal aid from.............................................. 49 United Nations: Declaration by................................................... 74 Strengthening of................................................ 9 War effort of.................................................... 11 Vessels............................................................... 16 War Department................................................... 15,18,20 War Production Board................................................. 18,19 Requirements Committee of........................................ 19 War Shipping Administration............................................ 20 Wheat and wheat products............................................. 44,45 White Paper, British................................................. 84 Wool.................................................................. 30 Zinc.................................................................. 30 91 U. S. GOVERNMENT PRINTING OFFICE: 1941