Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume I

740.00119 (Potsdam)/5–2446

No. 538
Briefing Book Paper

top secret

Lend-Lease During the Second Year op Phase II

It is possible that Mr. Churchill may seek a commitment, at least in principle, as to the amount of lend-lease to be furnished to the United Kingdom and the British Commonwealth during the second year of Phase II (the existing agreement covering the first year of Phase II is being applied to the calendar year 1945).

At the Quebec Conference in 1944 Mr. Churchill sought and obtained President Roosevelt’s agreement in principle to the provision of $6.5 billion of lend-lease during the first year of Phase II, although the United States Joint Chiefs of Staff did not consider that the strategic requirements of the Pacific war called for anything approaching that amount.¹ No corresponding benefit to the United States was requested in return. In subsequent discussions in Washington agreement was reached to furnish a total of 5.5 billion dollars ($2.7 billions for munitions and $2.8 billions for non-munitions) in the first year of Phase II.

If Mr. Churchill makes any proposal concerning lend-lease during the second year of Phase II it is suggested that the President make no commitment whatsoever, that he suggest that the subject be discussed in Washington by representatives of the armed services and appropriate civilian departments of the two Governments, and that he further suggest that this Government’s willingness to extend lend-lease aid during the second year of Phase II in excess of the strategic requirements of the Pacific war will be determined largely by the steps undertaken in the next few months by the British Government to adopt a more liberal post-war commercial policy along the lines contemplated in Article VII.²

[ Washington ,] July 6, 1945.

1. The Department of Defense has supplied the information that no evidence has been found in the files of the Joint Chiefs of Staff to substantiate this statement.
2. Of the Master Lend-Lease Agreement with the United Kingdom, signed at Washington, February 23, 1942 (Executive Agreement Series No. 241; 56 Stat. (2) 1433).