Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

855.24/4–245

Memorandum by the Acting Secretary of State, the Secretary of the Treasury (Morgenthau) and the Foreign Economic Administrator (Crowley) to President Roosevelt

[Washington,] March 29, 1945.

We have been discussing lend-lease and reciprocal lend-lease with representatives of Belgium and the Netherlands.²⁴ Having signed the 3–C agreement with France,²⁵ we feel that political considerations make it desirable to have agreements on similar lines with Belgium and the Netherlands. In each case the gold and dollar position, the future balance of payments, and the volume of reciprocal aid would be taken into account.

We have worked out a Belgian-Luxembourg proposal of a relatively smaller amount than the French agreement. The proposal contemplates $325 million for the remainder of the calendar year and follows in general the pattern of the recent French agreement, with no item for transfer of title to ocean shipping. We are also examining proposals for the Netherlands. In each case the nature, extent and duration of lend-lease will be determined by the contribution which such aid will make to the prosecution of the war and we shall provide for periodic review of the program in the light of the changing war situation. Consideration is also being given to an arrangement with Norway.

If you approve, we shall immediately move forward with the representatives of Belgium and the Netherlands and possibly Norway looking towards early conclusion of such arrangements.

We do not intend to conclude any of these agreements until Congress has approved the extension of the Lend-Lease Act.

Joseph C. Grew

Acting Secretary of State

Henry Morgenthau, Jr.

Secretary of the Treasury

Leo T. Crowley

Foreign Economic Administrator

24. For text of mutual aid agreement between the United States and Netherlands signed at Washington April 30, 1945, see Department of State Executive Agreement Series No. 480 or 59 Stat. (pt. 2) 1627.
25. Reference to Lend-Lease Agreement with France February 28, 1945; see footnote 22, p. 96. 3–C is reference to Section 3(c) of the Lend-Lease Act, approved March 11, 1941, 55 Stat. 31, as amended by Acts of March 11, 1943, 57 Stat. 20, and May 17, 1944, 58 Stat. 222. Subsequent amendment occurred in Act of April 16, 1945, 59 Stat. 52.