848A.24/11–344
The Assistant Secretary of State (Acheson) to the South African Minister (Gie)
My Dear Mr. Minister: I refer to the State Department’s memorandum of May 8, 1944, regarding the placing of Lend-Lease operations between the United States and the Union of South Africa on a cash basis, to the revised draft note which was received from your Legation on October 8, 1944, and to the subsequent discussions which have been held by Mr. Andrews of the Union of South Africa Government Supply Mission and representatives of the Foreign Economic Administration.
In the light of these discussions the United States Government is prepared to accept the proposal of the Government of the Union of South Africa for cash basis settlements as outlined in the revised draft note referred to above with certain clarifications. These are as follows:
- (1)
- Omit the words “in principle” in the eighth line of the first paragraph of the draft note.
- (2)
- Alter the second sentence of the third paragraph of the draft note to read, “The Union Government would, therefore, be liable solely for goods received in accordance with the provisions of the preceding paragraph, and it would not be liable for any goods which the United Kingdom Government …”
It is my understanding that the word “shipped” in the first sentence of the second paragraph is intended to denote the time at which the United States Government transfers the goods to the recipient government and further, in the case of South Africa, that this transfer takes place when the goods are actually placed on board ship. In further reference to that sentence, it is my understanding that any goods retransferred by any government and accepted by the Union Government are considered to be “on orders placed by the Union Government”.
I hope that these suggestions will meet with the approval of your Government.
Sincerely yours,