611.59A31/100c: Telegram

The Secretary of State to the Minister in Iceland (MacVeagh)

133. On Friday, November 21, the Lend-Lease Agreement between the United States and Iceland27 providing, in substance, as follows, was executed:

(1)
The United States will procure defense articles for Iceland insofar as both Governments deem such procurement in their mutual best interests.
(2)
Iceland will pay for such articles before delivery, except when the United States deems prior payment necessary to protect its interests.

When the agreement was signed, the Secretary handed a note28 to the Icelandic Minister, stating that the United States would consent to distribution of the material procured under the agreement by usual distributing agencies within Iceland, subject to certain specified conditions.

The Delegation was also handed a memorandum29 which set forth the basis upon which products within Iceland would be purchased by the United States for ultimate transfer as Lend-Lease aid to the British. A telegram dealing with this memorandum and related questions follows.

A copy of the Lend-Lease Agreement and the related note is being sent to you.

Hull

[In January 1942, at the request of the Icelandic Government, negotiations for a trade agreement were transferred to Iceland. With instruction No. 41, March 19, 1942, proposed schedules and general provisions were sent to The Chargé in Iceland. The subject, however, received only intermittent attention and the reciprocal trade agreement was not signed until August 27, 1943. For text of agreement, see Department of State Executive Agreement Series No. 342, or 57 Stat. (pt. 2) 1075.]

  1. For text of agreement, see Department of State Executive Agreement Series No. 429, or 58 Stat. (pt. 2) 1455.
  2. Not printed.
  3. Not found in Department files, but see letter to the Chairman of the Icelandic Trade Delegation, supra.