SUDDEN END OF LEND-LEASE

Auckland Star, Volume LXXVI, Issue 201, 25 August 1945, Page 5

SUDDEN END OF LEND-LEASE

Financial Crisis IMMENSE HANDICAP AGAINST RECOVERY Rec 10.30 a.m LONDON, August 24. We did not anticipate that the operations under lend-lease would continue f or any length of time after Japan's defeat but we hoped that the sudden cessation of this great mutual effort would not be effected without consultation* and pS discussions Mr Attlee told the House of Commons after announcing President Truman's directive ending lend-lease. "The sudden cessation puts us ma very serious financial position. Our overseas outgoings on the eve of Japan's defeat were equivalent to a yearly expenditure of about £2,000,000,000, including essential food and other non-munition supplies for which we must now pay.

i our exports this year would contribute £350,000,000, and certain other sources of income, mainly temporary, £450,000,000. This initial deficit, with which to start the task of re-establishing our own economy, is immense." Mr. Attlee added: "I much hope President Truman will accept arrangements whereby the shipping of food and any other supplies still required by our forces overseas and by American forces overseas can continue to be furnished for a limited period under the lend-lease agreement. It would seem reasonable to regard such supplies and services arising from the war as belonging to the common war effort, and there are indications in the communication to us that the American Administration may so regard them.

"I earnestly hope the House, in view of the negotiations of these complicated issues about to start, will agree that the matter should not be the subject of debate to-day."

Mr. Churchill said that Mr. Attlee's very grave and disquieting statement must overshadow their minds. He agreed that a debate before the issues were properly weighed might easily be detrimental to British national interest. Mr. Churchill added: "Words might be said which would hamper the negotiators' task. The utmost restraint should be practised, not only in the House, but outside, in all comments nn the situation.

"I cannot believe that this is the United States' last word. I cannot believe that so great a nation, whose lend-lease policy I characterised as the most unsordid act in the world's history, would proceed in such a rough and harsh manner as would hamper a faithful ally who held the fort while our own and American armaments were prepared."