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

800.24/8–1845: Telegram

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

Washington, August 18, 1945—4 p.m.

7012. To Clayton and Collado from Phelps and Maxwell. At White House Conference yesterday at which Byrnes, Vinson, Crowley, Leahy,⁸⁹ Snyder⁹⁰ were present, President determined policy with respect to FEA Lend-Lease after V–J Day⁹¹ as follows:

“While the Lend-Lease Act permits the delivery of supplies and furnishing of services thereunder so long as their delivery or furnishing, in the determination of the President, is ‘in the interest of the defense of the United States’, it has been stated by the Administration to the Congress on various occasions that Lend-Lease would be discontinued at the end of the war. In order that the best faith may be observed towards Congress and the Administration protect itself against any charge of misuse of Congressional authorization, it is recommended that the following action be taken immediately upon cessation of hostilities with Japan:

a. No new contracts will be entered into for goods to be furnished under Lend-Lease except for such items as the Joint Chiefs of Staff may approve for payment out of military appropriations.

b. Countries with which 3(c) agreements are in effect will take and pay for goods involved in contracts yet to be completed, goods awating shipment, those in transit, and inventories abroad.

c. Countries which have not entered into 3(c) agreements may obtain goods now in process of manufacture, in storage, awaiting shipment, being shipped, or in inventory abroad, upon their agreement to pay for them on such terms as may be determined by this Government.

d. All uncompleted contracts for goods not to be delivered under (b) and (c) above shall be immediately reviewed to determine whether their completion would be in the best interest of the Government and, unless so determined, such contracts will be cancelled.

It is also suggested:

(1) No formal announcement should be made by the President at this time that might be deemed to terminate his authority under the Lend-Lease Act to reinstitute any cancelled programs, should necessity arise.

(2) All interested Governments be advised promptly of this proposed action in advance of any publicity.”

It is understood that the JCS intend that issue of Army-Navy lend-lease goods and services will cease except for mopping up operations and except in certain unavoidable cases where cessation would cause undue hardships. Such exceptional issue shall not include arms and ammunition and shall not continue beyond 6 months from effective date of directive.

Issue shall include such items as rations, fuel, transportation services, medical supplies where these cannot reasonably be furnished by foreign government.

Maintenance items for U.S. equipment now in hands of Allied forces may also be issued against payment upon such terms and conditions as determined by State and FEA.

Full content of JCS document will be forwarded later.⁹² [Phelps and Maxwell.]

Byrnes

89. Adm. William D. Leahy, Chief of Staff to the Commander in Chief of the Army and Navy.
90. John W. Snyder, Director of the Office of War Mobilization and Reconversion.
91. On and about August 18, letters were sent from FEA to the various departments and agencies which procured lend-lease materials for the FEA. A copy of the letter sent by Mr. Crowley to Clifton Mack, Director, Procurement Division, Department of the Treasury, is included in History of Lend Lease, pt. I, ch. XI, p. 25. This letter indicated that lend-lease would continue until midnight of V–J Day or to 12:01 a.m. of V–J Day, if the President proclaimed V–J Day in advance. After that time, goods would have to be paid for on a cash or credit basis. This official History is on file in the National Archives.
92. See footnote 37, p. 124.