BLOW TO BRITAIN

Manawatu Standard, Volume LXV, Issue 228, 25 August 1945, Page 5

BLOW TO BRITAIN

END OF LEND-LEASE

MAJOR DEFICIT RESULTS. . (K T .Z. Press Association. —Copyright.) ( (Rec. 11.10 a.m.) LONDON, Aug. 24. i "We did not anticipate that the operations under Lend-Lease would continue for 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 prior discussions," the Prime Minister (Mr Attlee) told the House of Commons after announcing President Truman's directive ending Lend-Lease. "The sudden cessation puts us in a ] very serious financial position. Our g overseas outgoings on the eve ot i i Japan's defeat were equivalent j i to a yearly expenditure of ' about 1 £2,000,000,000, including essential food ( and other non-munition supplies, for j which we must now pay. < "Towards this our exports this year i are contributing £,'350,000,000 and cor- { tain other sources of income, mainly j temporary, £450,000,000. This initial , deficit with which we start the task i of re-establishing our own economy is • immense." ( VITAL ORGANISATION. < The Prime Minister explained that I , the system of Lend-Lease from the United States, mutual aid from Can--; ada and the accumulation of sterling , by the sterling area countries had been an integral part of the Allies' war organisations, and had enabled Britain to mobilise her domestic manpower for ] the war with an intensity unsurpassed, -j elsewhere and simultaneously under- j j take expenditure abroad for the sup- i i port of military operations over a j widely extended area, without having to provide exports to pay for her imports of food and raw materials or to provide the cash she was spending i abroad. < "The very fact of this right of divis- ] ion between ourselves and our allies ( leaves us, however, far worse off when ( the sources of assistance dry up than ] it leaves those who afforded us, that ; assistance," he added. "We have not : .yet had an opportunity of discussing I the situation resulting from the end- i ing of Lend-Lease by the United States s Administration. Our Treasury reprc- ; sentative in Washington has, however, ' received a letter from the Foreign . Economic Administrator inviting us to i enter immediate conversations to work 1 things out in a manner which will best ! promote mutual interests. I am there- i fore inviting Lord Halifax to return i to Washington, accompanied by Lord Keynes and officials of other depart- i me'nts, to participate in such eonver- ; sations. Reciprocal Lend-Lease will, of \ course, conform to the same dates for partial or complete termination as Lend-Lease. CONTINUING SUPPLIES. j "I must hope that President Truman will accept arrangements by which the shipping, food and any other supplies still required by our forces overseas and by the American forces overseas can continue to be furnished for a 'limited period under the Lend-Lease agree- | ment," Mr Attlee said. "It would j scorn reasonable to regard such sup- j ; plies 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 that the House, as negotiations on these complicated issues are about to start, will agree that the matter should not be the subject of a debate today. i The Leader of the Opposition (Mr j Churchill) said Mr Attlee's very grave (■and disquieting statement must overshadow all else in their minds. He agreed that a debate before the issues were properly weighed might easily be detrimental to the British national interest. Mr Churchill added that words might he said which would ham-1 per the negotiators' task. The utmost restraint should he practised not cnlv in the House, but also outside in all. comments on the situation. | "I cannot believe that this is ' the United States last word. I cannot believe that so great a nation, ivhose Lend-Lease policy I characterised ns the most unsordid act in the world's history, would proceed in such a rough and harsh manner r.s to hamper a faithful ally who held the fort while America's own armaments were prepared," added Air. Churchill. i Three members of the United States House of Representatives Foreign Affairs Committee emphasised at a Press conference in London that President Truman could not do anything else but end Lend-Lease, as he was only carrying out the law. One of the Americans opined that the committee \iould favour an interim arrangement, if feasible, for continuing supplies. It was not a blow against Labour. The food position in the United States was , getting serious. The cash box was 'low j and the cupboard was getting bare. , As a minor, if welcome, set-off to the difficulties created by the cessation j of Lend-Lease, the simultaneous stop- j page of Reverse Lend-Lease may mean I that certain stocks of meat ill Austra- j lia and New Zealand which the Ameri- | cans would have received will now be ' available for Britain, says the Press Association's lobbyist. Britain's supplies of American films, tobacco and chopped ham will be the principal im- | ports affected. |