Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

810.24/554

Statement of Policy of the State, War, and Navy Departments and the Joint Chiefs of Staff Concerning the Supplying of Lend-Lease Materials to the American Republics¹¹

June 24, 1944

(For the confidential use and guidance of United States representatives in conversations with representatives of the other American republics in regard to procurement of material in the United States. Not to be shown or quoted to representatives of the other American republics.)

1. The defensive phase of the war against the Axis has passed, and the United Nations are on the offensive throughout the world. Axis submarine operations have been substantially reduced and any large threat to the security of the Western Hemisphere has been largely removed.

2. Offensive action demands large expenditures of men, money, materials, and equipment, with the result that the United States war effort must be thrown into the offensive to the exclusion of the defense.

3. Huge quantities of materials and equipment are being constantly demanded from the war fronts to such an extent that the amount and type of equipment available under Lend-Lease credit, on Lend-Lease cash reimbursement, or direct contract for cash must of necessity be modified.

4. In view of the necessity for concentrating all productive capabilities in backing up the United Nations’ offensive, procurement under Lend-Lease credit shall in the future be approved in general only for the following purposes, and within the period ending June 30, 1945:

a. The development and preparation of such ground, naval, and air forces, with their supporting establishments and installations, as may be required for Joint operations with United Nations forces within this hemisphere.

b. The training and equipping of such American republic forces as may be employed in conjunction with forces of the United Nations in offensive operations overseas.

c. The repair and maintenance of existing equipment essential to the war effort where facilities do not exist for making repairs locally.

d. The shipment of limited amounts of certain armaments and material deemed essential to the successful carrying on of the programs in which United States military and naval missions are engaged.

5. Certain raw materials, semi-finished, and finished products, which are not procurable under the provisions set forth in paragraph four above may be furnished on a cash basis; provided that no material considered as arms, ammunition and implements of war, as enumerated by Presidential Proclamation #2549, dated 9 April 1942 (56 Stat., 1948), shall, without previous approval of the State, War and Navy Departments, be furnished to any American republic except those mutually agreed upon by the three Departments.

6. The procedure to be employed with respect to the procurement of munitions of war or material destined for the armed forces of the other American republics is as follows:

a. No such munitions of war or material shall be procured in the United States without first having been screened and approved by the appropriate agencies of the War and Navy Departments.

b. The requirements which are clearly for Navy use, although procured by the United States War Department, should be presented to the United States Navy Department, which will negotiate with the War Department as to procurement; similarly, those clearly for Army use, although procured by the United States Navy Department, should be presented to the United States War Department, which will negotiate with the Navy Department as to procurement.

c. All requests for materials which are destined for the use of the armed forces of the American republics and which are procurable by agencies other than the United States War and Navy Departments, should first be presented to the War or Navy Department, as indicated in paragraph b above, and the service having cognizance will process for procurement through the prescribed channels.

d. No American republic shall retransfer any munitions of war or material capable of use by armed forces which it has received from the United States to any other government or agency without first having obtained the approval of appropriate United States authorities.

11. Sent under cover of a circular instruction dated June 24, 1944, not printed, to the Chiefs of Mission in Chile, Colombia, Costa Rica, Cuba, Honduras, Haiti, Nicaragua, Peru, Paraguay, Uruguay, Venezuela, Guatemala, Ecuador, El Salvador, Dominican Republic, and Bolivia.