Clear Policy

In an official statement, notably clear, a U.S. top committee of three* last week outlined the proposed future schedule of Lend-Lease.

Temporary Shelter. Until Germany's defeat, Lend-Lease supplies to Britain will be continued at the present rate, about $5 billion a year. But immediately after V-E day, Lend-Lease will be whittled down to about 43% of this sum. The new V-E schedule will supply war materials needed by Britain to continue the fight against Japan. In addition, Lend-Lease goods aimed at easing the hard lot of the war-weary British civilians will then be made available in larger quantities. The two principal items for civilians: 1) more foodstuffs to implement the dreary diet Britons have endured for over six years; 2) building materials and prefabricated houses to provide temporary shelter.

Temporary Trade. To a large extent this new schedule of Lend-Lease after V-E day removed a ticklish problem that had worried the British industrialists. Under the terms of Lend-Lease, British manufacturers were barred from using Lend-Lease raw materials in the manufacture of goods for commercial exports. As Lend-Lease tapers off, British industries will be free to purchase the raw materials needed to produce finished goods for their foreign customers. Example: iron & steel will probably be removed from the list of Lend-Lease shipments after Jan. 1, 1945, and put on the list of items British metal fabricators may purchase direct from U.S. mills. Thus, between V-E day and V-A day, British exporters will get a fair start in the competitive race with U.S. exporters for world markets.

The terms of Phase II of Lend-Lease were received in London with cheers, tempered with the sober realization that the British bankroll is no longer fat enough to purchase in the open market all the raw materials she will need. By combing the lining of her moneybags Britain might be able to scrape together enough money to pay cash for the first few consignments of raw materials her factories must have.

Temporary Hurdle. The U.S. was not unaware of this financial embarrassment on the part of its closest ally and best customer. Before a Congressional subcommittee on foreign trade last week came Dean Acheson, the able Assistant Secretary of State. He strongly recommended that Congress substantially increase the lending power of the Export-Import Bank and at the same time repeal the Johnson Act which prohibits private loans to nations that have not repaid their World War I debts to the U.S.

* The committee: Henry Morgenthau Jr., Secretary of the Treasury; Edward R. Stettinius Jr., Secretary of State; Leo T. Crowley, Foreign Economic Administrator.

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