848A.24/8–744
The South African Minister (Gie) to the Acting Secretary of State
Dear Mr. Stettinius: In the third paragraph of your letter of August 3rd concerning Lend-Lease equipment furnished from United Kingdom stocks to South African Forces under British Operational Control you say that the State Department’s understanding of the financial arrangements between the Union Government and the Government of the United Kingdom is that the sum of £1,000,000 per month which the Union Government pays to the United Kingdom Government for the equipment and maintenance of South African Forces in the Mediterranean-European Theatre is not intended to cover Lend-Lease equipment furnished those forces, and for this reason it seems equitable that a similar payment should be made to the United States Government in respect of Lend-Lease equipment furnished to such forces.
I regret to say that this understanding does not reflect the factual position as explained at the meeting on August [July] 29th to officers of the State Department and of F.E.A. by Dr. Holloway and at several previous meetings by South African officials and officials of the British Treasury.
I am writing therefore again to explain that under the financial agreement with the U.K. Government, the Union Government supplies, as part of its contribution to the common war effort, such manpower as it is able to put in the field and in addition pays the global sum of £1,000,000 per month, as well as the salaries and allowances of such forces.
For its part the U.K. Government undertook to maintain and equip the South African forces under its operational control.
Whether or not the U.K. Government utilizes Lend-Lease equipment for these purposes is, of course, no concern of the Union Government.
It was assumed, at the time the agreement was made, that the U.S. Government would have no objection to the U.K. Government utilizing Lend-Lease supplies from stocks in its possession to equip and maintain in part the South African forces in the field in as much [Page 263] as these forces do not function as a self contained army but are in fact integrated and for all intents and purposes function as part of the British Armies, under their operational command.
For so far as the British Command makes Lend-Lease supplies available for use by the South African forces in the field these supplies were not and are not being transferred to the Union Government. They remain in the possession of the U.K. Government and remain available for use of any part of the forces under British Operational Control, wherever and whenever strategic needs demand.
I would add that in addition to the above, the South African Government makes a considerable contribution to the common effort in maintaining the air umbrella along the whole length of its coast, including the coast of the Mandated Area of South West Africa. This is primarily for the defence of the shipping of its Allies since, as you are no doubt aware, the ocean-going ships on the South African register are limited to a few units. The defence of purely South African interests in this matter would not justify the maintenance of this service. My Government, in accepting this service in the interest of its Allies and in assistance of the common effort, was primarily influenced by the fact that Lend-Lease supplies were available in respect of equipment beyond its ability to supply. The withdrawal of such Lend-Lease assistance at this stage would in fact mean that the commitments which my Government agreed to undertake would become much more burdensome than they were, when this commitment was so undertaken.
I trust that the foregoing will remove the misunderstanding, as to the factual position, which appeared to exist in the minds of the United States authorities.
With expressions [etc.]