North American Defence Output Mobilised

Manawatu Times, Volume 66, Issue 96, 23 April 1941, Page 7

North American Defence Output Mobilised

U.S.-Canadian Agreement RESOURCES PLACED BEHIND BRITAIN United Press Association —By Etectrt® Telegraph—Copyright. WASHINGTON, April 21. President Roosevelt and the Canadian Prime Minister, Mr. Mackenzie King, yesterday issued a joint statement announcing that they had agreed to mobilise the defence production resources of their respective countries. It is now thought that the statement, which was made after a seven-hours conference, is tantamount to a virtual merging of the economies of the United States and Canada for the production of war materials for Britain and for the defence of the Western Hemisphere. The agreement is likely to be tallowed by arrangements for ever greater collaboration between the United States and Canada, The agreement will greatly ease Canada’s problem of financing her huge war expenditure. The New York Times says: “Obviously this is one of the most far-reacning moves made by the United States since the war began.” President Roosevelt returned to Washington this morning from Hyde Park, his country home, where the agreement was negotiated.

Mr. Mackenzie King, in a press interview, said the latest arrangement between the United states and Canada was “the real answer to Hitler’s birthday celebration—tho expressed determination of the two countries to use all their resources in the common cause.

* ‘ The arrangement proposes tha mobilisation of the resources of this continent to assist Britain in the quickest possible and most efficient way.'' Tha Prime Minister said Canada asked for nothing under the Lease and Lend Act. The purchases the United States proposed to make from Canada would total two or three hundred million dollars yearly. Canada’s exchange situation would be eased to that extent, also to the extent to which the goods being purchased ultimately for Britain would enter under the Lend and Lease plan. Hitherto Canada has had to take com plete responsibility for financing all British Government contracts placed here.