847.24/89a
The Department of State to the British Embassy33
Memorandum
The United States Government wishes to take up with the Australian Government and the British Government through whatever procedures are mutually agreeable to them certain questions outlined below which arise from, but are not necessarily related solely to, the presence of American military and naval forces in British and Dominion territory. The first step is to ascertain the desired procedure for these discussions. Should this be by joint discussion or by separate discussions?
The Questions to be Discussed
The presence of American forces in Australia and in Northern Ireland raises questions as to how these forces are to be supplied and the necessary tasks performed in connection with their operations, including the question as to how lend-lease and reciprocal lend-lease procedures can be most effectively and equitably utilized.
- 1.
- Lend-Lease Agreement. There is a growing necessity for the shipment of articles under lend-lease to Australia. It is assumed that the principles governing such shipment and the procedures established thereunder would be consistent with the political, military, and financial arrangements between the British and Australian Governments. It is also assumed that any procedures devised should [Page 539] maintain the organization heretofore established in the interest of unity of command and decision. The problem here is to devise arrangements for extending to Australia in a manner mutually agreeable the principles contained in the Lend-Lease Agreement recently entered into between the United States and the United Kingdom.34
- 2.
- Aid to American Forces in the Field. This heading involves the implementation of the broader agreement which may be reached under the preceding paragraph. It is assumed that the efficient use of tonnage requires the shipment from the United States of such articles as do not already exist in Australia or Northern Ireland and that, wherever practicable, the American forces should look to the authorities of those areas for such supplies as already exist there and for the performance of such tasks as can be performed there. A further question arises as to the financing of such arrangements. It would seem desirable as a general principle that whatever may be furnished or performed within the area should be furnished or performed as reciprocal aid, and that shipments from the United States for the American forces be limited to such goods as are necessary to supplement supplies of the area. This will leave available the maximum tonnage for Lend-Lease shipments of materials urgently needed by the local authorities. This matter will require mutual study and discussion, and it may be found that a certain degree of flexibility is necessary. So far as the payment of American forces in the field is concerned, it appears desirable that that should be undertaken by the United States through such financial arrangements as may be mutually agreeable.
- 3.
- Shipments to the United States or upon its Order. When the other Governments concerned may be able to provide military equipment for the use of the United States, it seems desirable that that should be provided as reciprocal aid. In respect of other imports, it would not seem wise at the present time to disturb the existing arrangements for payment in dollars.
- 4.
- British Commonwealth Dollar and Exchange Position. In view of the fact that decisions upon the subjects suggested above may affect or be affected by the dollar and exchange positions of the British Commonwealth, that subject will also require consideration.
Since the matters suggested above are pressing and since tentative procedures are already being inaugurated in Australia, it is hoped that mutually agreeable procedures for the inauguration of the discussions can be determined upon at the earliest possible moment and the discussions begun.