Foreign Relations of the United States: Diplomatic Papers, 1944, The British Commonwealth and Europe, Volume III

848A.24/11–344

Revised Draft Note From the South African Minister to the Secretary of State ¹⁶

undated

Dear Mr. Secretary: With reference to the memorandum dated’ May 8th from the State Department and recent discussions between representatives of the Union of South Africa and those of the State Department and the Foreign Economic Administration concerning the proposal that all forms of mutual aid provided by either of the governments of the Union of South Africa and the United States to the other should be financed by cash payments as from February 15, 1944, I am directed to inform you that the Union Government agrees in principle to the application of such a cash basis in its relations with the United States Government.

(2) The Union Government is accordingly prepared to accept liability for all combat material, aircraft and other goods shipped on and after 15th February, 1944, and supplied direct by the Government of the United States, or by means of retransfer from other Governments, on orders placed by the Union Government. This would include equipment for coastal defence undertaken by the Union Government in agreement with the Government of the United Kingdom, but would not include the provision of aircraft and equipment for the Flying Boat Squadron No. 262 at present based on Durban, which is, by agreement with the United Kingdom Government, a liability of the latter government, in so far as the procurement of aircraft, spares and related equipment is concerned.

(3) The basis of the foregoing proposal is that liability for goods supplied should follow the authority responsible for the issue of the order of procurement. The Union Government would, therefore, be liable solely for goods ordered by it for supply to the Union, but would not be liable for any goods which the United Kingdom Government may supply for the temporary or intermittent use of the Union Forces under United Kingdom operational control outside the boundaries of the Union of South Africa in compliance with the terms of the financial arrangements in existence between the two governments.

(4) The Union Government would be grateful to learn whether the application of the proposed cash basis along the lines indicated above is acceptable to the Government of the United States.

Accept etc.

16. Received in the Department from the South African Legation on October 8, 1944.