INCREASED AID.

Ashburton Guardian, Volume 61, Issue 69, 2 January 1941, Page 6

INCREASED AID.

MR ROOSEVELT’S PROPOSAL

PLAN FOR LOAN OR LEASE

WASHINGTON, December 30. Mr Arthur Purvis (leader of the British purchasing Commission) and Mr Henry Morgenthau, jun., Secretary to th© United States Treasury, lunched with Mr Roosevelt, who outlined his plans for implementing full aid to Britain.

Mr Purvis later said that Mi* Roosevelt’s “loan or lease” plan, opened a new! chapter on this subject. Mr Morgenthau indicated that ■Mr Roosevelt’s “loan or lease” plan for Britain might be lextended! to any country fighting against aggression., such as Greece or China, as far as production facilities allowed. He pointed out that the Chinese had been discussing with the Treasury the possibility of shipments of aeroplanes for China. “But,” Mr Morgenthau remarked, “there is just not enough to go round.” Mr Roosevelt, in reply to a question, said the United States was not negotiatng with or planning to ask Eire to open her ports and bases to Britain. He refused to enlarge on the reference made to Eiji’e in his speech. Mr Roosevelt said that the plan to lend or lease arms to Britain might easily be expanded to include raw materials, as well as munitions of war. He said the basic idea was to develop a replacement policy that could be decided upon by two friendly nations. “The tin and rubber which the United States needs might figure in deals for arms,” he said. “If this is done, the United States might, for example, give Britain aeroplanes and

take rubber and tin, in the future for ■v repayment.” The whole plan, howicver, would, not .be put into effect until Congress acted on it. He wished someone could tell him how to write legislation covering such a plan. For example, he wanted someone to tell him how the United 1 States could send three antiaircraft. guns to. Britain and gjet thire& guns back, the whole' transfer-' to be done legally within legislation passed by Congress. For example, one gun might never be fired, another might be used and need relining when returned, and the third, might be hit by a bomb and require complete replacement.

The “Journal of Commerce” states that in order to expedite shipments to Britain and Canada the State Department has granted the British Iron and Steel Corporation blanket licences for the export of iron and steel commodities.

The War Department iDiefence Commission has tentatively accepted plans calling on the General Motors, Chrysler, and Ford companies each to accept responsibility for the production of parts for one of three types of bombers. The Defence Commission’s sixmonthly report states that production figures (all on a monthly basis) are now 2400 engines, 700 aeroplanes, 100

light tanks, 10,000 semi-automatic rifles, and also one naval ship ever,12 days. The commission does not an ticipate the shortage of aluminium, to continue. nothin g to report

(Received This Day, 1,2.5 p.m.) LONDON, January 1

Am Air Ministry and Home Security communique, dealing with enemy air activity over Britain to-day, says there is nothing toi report.—British Official Wireless.