Foreign Relations of the United States: Diplomatic Papers, 1945, The British Commonwealth, The Far East, Volume VI

102.1/6–445: Telegram

The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)

Washington, June 4, 1945—5 p.m.

4443. From Treasury for Taylor:⁵ Please inform the Ambassador of the following pertaining to the present status of the Stage II Lend-Lease program for Great Britain worked out last fall in consultation between the appropriate American and British representatives.

1. Early this month General Somervell⁶ reported to Secretary Morgenthau that he believed the British were exporting goods commercially in circumstances not contemplated in the Quebec⁷ and Stage II understandings and stated that, inasmuch as the Stage II programs constituted no inter-government agreement and no firm commitment, he was going to begin to cut down or deny British requisitions. The War Department has apparently referred to Judge Vinson the question of accepting certain British requisitions.⁸

2. The British have recently expressed serious concern as to the acceptance by the United States of the principles underlying the Stage II Lend-Lease program for Great Britain and the implementation of that program. This concern was first expressed in a memorandum from E. H. Brand to Secretary Morgenthau May 17. After reviewing the understandings arrived at last fall, Mr. Brand makes the following statement:

“It is understood, however, that the U.S. War Department have suggested that the agreements were not finally approved by the President and that in consequence the basic position requires reaffirmation. In particular, certain questions have been raised as to the use of U.K. munitions capacity before Lend-Lease demands are made on the United States. Accordingly the U.S. War Department have asked Judge Vinson to advise them as to the status of the munitions agreements reached in the Fall. It is hoped that Mr. Secretary Morgenthau will be willing to bring to the notice of Judge Vinson the principles underlying the agreements reached in the Fall and their continued validity to-day. It is essential to the war effort of the United Kingdom against Japan on the basis of the approved combined strategy that the programmes framed in accordance with these agreements should be agreed without delay.”

More recently Sir John Anderson⁹ and Oliver Lyttelton¹⁰ in a joint message¹¹ addressed to Secretary Morgenthau and Judge Vinson and transmitted through K. H. Brand and Sir Henry Self¹² reiterated the British view of the Stage II arrangements and expressed the hope that any misunderstandings that may exist in the minds of any of the U.S. agencies operating the program might be removed and that appropriations adequate to cover the requirements scheduled in the programs could be supplied.

We understand that President Truman has now received a communication from the Prime Minister on this subject.¹³

3. On May 14 Under Secretary of State Grew issued a press release¹⁴ on Lend-Lease for Stage II which stated that the supply program for Britain had been agreed upon in discussions between American and British representatives and that it is proposed to carry out the program subject to such adjustments as supply considerations require. Mr. Brand’s letter to Secretary Morgenthau of May 17 quotes from this press release but it is evident that the British would like to have a specific reaffirmation of U.S. intention to carry out this program subject to supply considerations.

4. This whole matter is now before the President. We shall keep you and the Ambassador informed of developments. [Treasury.]

Grew

5. William H. Taylor, Assistant Director, Division of Monetary Research, Treasury Department, assigned as representative of the Treasury Department in London.
6. Lt. Gen. Brehon B. Somervell, Commanding General, Army Service Forces.
7. Reference is to the Second Quebec Conference, September 11–16. 1944; documentation on this subject is scheduled for publication in a subsequent volume of Foreign Relations. For texts of pertinent documents from the Quebec Conference relating to Phase II of Lend-Lease, see Foreign Relations, 1944, vol. iii, p. 58.
8. For the resolution of this question, see the letter from Fred M. Vinson, Director of War Mobilization and Reconversion, to Secretary of War Henry L. Stimson, June 13, 1945, Foreign Relations, The Conference of Berlin (The Potsdam Conference), 1945, vol. i, p. 815.
9. British Chancellor of the Exchequer.
10. President of the British Board of Trade and Minister of Production.
11. Not printed. Copy of this message in the records of the Foreign Economic Administration at the National Archives is undated, but apparently it was transmitted just prior to May 28, 1945; see H. Duncan Hall, North American Supply (London, Her Majesty’s Stationery Office, 1955), p. 456.
12. Deputy Chairman, British Supply Council in Washington.
13. For text of the telegram, dated May 28, 1945, see Foreign Relations, The Conference of Berlin (The Potsdam Conference), 1945, vol. i, p. 807, footnote 5.
14. For text, see Department of State Bulletin, May 20, 1945, p. 940.