Foreign Relations of the United States: Diplomatic Papers, 1943, The British Commonwealth, Eastern Europe, the Far East, Volume III

841.24/2037

Memorandum by Mr. Theodore C. Achilles of the Division of European Afairs⁸⁰

[Washington,] June 30, 1943.

The principle of the Eden White Paper of September 10, 1941,⁸¹ by which the British Government undertakes not to export, with certain stated exceptions, materials in short supply in the United States which are being received under Lend-Lease,⁸² is regarded both by this Government and by the British Government as essential in combatting the charges that Lend-Lease goods are being used by the British for commercial exports to third countries.

At the same time its operation is considered unsatisfactory by both Governments. From our point of view, the extent of British compliance is questionable. From their point of view, the Paper is an aggravating check-rein on their already reduced exports and “policing” of it involves extensive red tape and a slight reflection on British honor. Each Government is actively considering, from opposing points of view, the possibility of a new statement of policy to take the place of the White Paper.

Mr. Magowan, Board of Trade Minister in the British Embassy, states that the Embassy has had considerable telegraphic correspondence with London and that a proposal for a new declaration is about to be made to us on a very high level. The Office of Lend-Lease Administration is also working on a new declaration but it will not be ready for some time.

If the British Government agrees to this Government’s proposal that it furnish as reciprocal aid raw materials from Empire sources in anticipated amounts of some $200,000,000 annually, the situation will be radically altered. The British would then be justified in asking us for a similar declaration that we would not utilize raw materials obtained as reciprocal aid in exports to third countries.

With each Government supplying raw materials to the other on Lend-Lease terms a simple reciprocal statement of policy that each Government would utilize materials furnished by the other in furtherance of the war effort, in ways which would most efficiently utilize manpower, production capacity and shipping space, and not for commercial advantage should meet the situation. Such an arrangement would probably not require “policing” by either Government.

It is accordingly hoped that the British proposal which is to be made shortly “at a very high level” will not be accepted pending the British Government’s acceptance of our request for raw materials as reciprocal aid. You may wish to speak to the President or Mr. Hopkins about it.⁸³

80. Addressed to the Secretary of State and the Assistant Secretary of State (Acheson).
81. For text, see Department of State Bulletin, September 13, 1941, p. 204; Anthony Eden was British Secretary of State for Foreign Affairs.
82. For correspondence on this subject, see Foreign Relations, 1941, vol. iii, pp. 16–36.
83. A marginal notation by Mr. Acheson indicated his agreement with the suggestion that the Secretary might wish to mention the subject taken up in the final three paragraphs with the President. No record has been found in Department files to indicate that this was done.