END OF LEND-LEASE POLICY

Northern Advocate, 25 August 1945, Page 5

END OF LEND-LEASE POLICY

Serious Matter For United Kingdom

(Rec. 11 a.m.) LONDON. Aug. 24 The Prime Minister (Mr. Attlee), spoke in the House of Commons today on the decision of the United States to cancel all outstanding contracts under Lend-Lease, including stocks of food held in Britain. “Tnis sudden cessation puts us in a very serious uosition,” he said. Mr. Attlee explained that Britain's overseas outgoing' on the eve of the defeat of Japan, set against her exports this year and certain other sources of income, mainly temporary, left an immense initial deficit with which to start the task of re-establish-ing Britain’s economy. The Leader of the Opposition (Mr. Churchill) described the Prime Minister’s statement as very grave and disquieting. “I cannot believe,” he said, “that tiiis is the last word of the United States. I cannot believe that so great a nation, whose Lend-Lease policy was characterised by me as the most cnsordid act in the history of the war, will persist in such a harsh manner.” Working Thing's Out

Following a telephone conversation across the Atlantic, between President Truman and Mr. Attlee, British and American purchasing experts have started working on a series of “interpretations” of Mrs. Truman’s order halting Lend-Lease designed to ease the impact of cessation on the British diet and economy, says a message from New York. Mr. Attlee is understood to have expressed misgivings at the ultimate effects of the termination of Lend-Lease. Mr. Truman replied that the misgivings would not materialise. American officials then arranged to give the British time to establish substitute purchasing machinery. Furthermore, the lend-lease administration agreed to handle British-financed food purchases in the United States pending the arrival of a special mission from London. Left Worse Off Mr Attlee explained that the system of Lend-Lease in the United States, mutual 'aid from Canada and accumulation of sterling by sterling area countries, had been an integral part of the Allies’ war organisation. It had enabled Britain to mobilise her domestic manpower for war with an intensity unsurpassed elsewhere, and simultaneously to undertake expenditure abroad for the support of military operations over a 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 abroad. “The very fact of this right’ of division between ourselves and our Allies leaves us, however, far worse off when sources of assistance dry up than it leaves those who afforded us j that assistance,” he said. Serious Position

“If the role assigned to us had been to expand our exports to provide a large margin over our current needs, which we could furnish free of charge to our Allies, we should, of course, reconvert gradually, and the sudden cessation of support on which our war organisation so largely depended has put us in a very serious financial position.

“We have not yet had an opportunity of discussing the situation, resulting in extending Lend-Lease, with the United States Administration. The Treasury representative in Washington (Mr Brand) has, however, received a letter from the Foreign Economic Administrator, inviting us to enter into immediate conversations to work things out in a manner which will best promote mutual interests. “I therefore am inviting Lord Halifax to return to Washington, accompanied by Messrs. Keynes and Brand and officials of other departments, to participate in such conversations. Reciprocal Lend-Lease will, of course, conform to the same dates of partial or complete termination as lendlease.”

Hope For Solution

“I have much hope that Mr Truman will accept the 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 subject to a debate today.’’ As a minor, if welcome, set-off to the difficulties created by the cessation of Lend-Lease, the simultaneous stoppage of Reverse Lend-Lease may mean that certain stocks of meat from Australia and New Zealand, which the Americans would receive, are now available for Britain, says the Press Association’s lobbyist. Not Blow At Labour Britain’s supplies of American films, tobacco and chopped ham will be the principal imports affected. Cabinet had not received definite information about the cessation of Lend-Lease until the last 24 hours. It was generally expected that there would have been discussion 'on the most satisfactory method. It can completely be discounted that Lend-Lease would not have ended if a Conservative Government had been in power. 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 be was only carrying out the law. Mr Karl Mundt believed that the committee would 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 and the cupboard getting bare. . t