Foreign Relations of the United States: Diplomatic Papers, 1945, General: Political and Economic Matters, Volume II

840.50/2–1245

The British Embassy to the Department of State ²⁰

His Britannic Majesty’s Embassy refers to its Aide-Mémoire of June 8 and to the State Department’s Aide-Mémoire in reply of the same date²¹ regarding the sharing of the burden of the cost of provision of civilian supplies on a combined basis to liberated and conquered areas in Europe outside their own territories, in so far as the burden does not fall on the United Nations Relief and Rehabilitation Administration. His Britannic Majesty’s Embassy also refers to the Memorandum of the Canadian Embassy²² on the same subject, a copy of which was furnished to this Embassy.

2. In the light of the proposals which have since been considered by the United States Government, the Canadian Government and His Majesty’s Government in the United Kingdom, it is recommended that the ultimate burden of the cost of provision of such supplies should be borne in the following manner:

(i) That the United States, United Kingdom and Canadian Governments shall agree on the provision of the supplies required up to a value not exceeding $1 billion;

(ii) That, unless other arrangements are mutually agreed upon, payment in full shall be requested of all governments or authorities of liberated or conquered areas to which such supplies are furnished;

(iii) That such amounts as prove to be irrecoverable from such governments or authorities shall be borne by the supplying governments in the following proportions:

• by the United States —67% of such irrecoverable amount
• by the United Kingdom—25% of such irrecoverable amount
• by Canada —8% of such irrecoverable amount

(iv) That receipts collected from the recipient governments or authorities shall be divided as may be necessary in order that the ultimate deficit be shared in the proportion set out in (iii) above;

(v) That the three Governments shall consult together from time to time in order to decide whether a claim shall be maintained against any government or authority which at any time indicates its inability to meet any request for payment;

(vi) That if at any time it shall appear that the total irrecoverable deficit amounts or is likely to amount to 400 million dollars, the three Governments concerned shall consult together in order to consider whether civilian supplies can continue to be provided under this arrangement.

Washington, 12 February, 1945.

20. This memorandum was also given to the Canadian Government.
21. Foreign Relations, 1944, vol. ii, pp. 312 and 313, respectively.
22. Dated June 2, 1944, not printed.