Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

855.24/9–1445

The Belgian Embassy to the Department of State

No. 6142

Memorandum

As a consequence of President Truman’s decision to put an end to the Lend-Lease System,³⁵ the Belgian Government is faced with several problems, the prompt solution of which presents, in their opinion, the utmost interest. The main questions arising from these problems are listed below. In this connection, it seems expedient to:

1. Determine, in agreement with the United States Government, the goods and services to be delivered to Belgium by virtue of the Agreement of April 17, 1945, and the conditions of their delivery.

2. Determine the regime applicable after V–J Day³⁶ to the reciprocal aid furnished by Belgium up to this date under “reverse lend-lease”.

If the American Government so desires, the Belgian Government is ready to continue such aid so far as it is requested and in accordance with its possibilities. Conditions of payment will be determined by mutual agreement.

3. The extension of reciprocal aid by Belgium since the liberation of its territory until V–J Day had unexpected results. Such aid to the United States is approximately 120 million dollars higher than lend-lease aid supplied to Belgium by the United States. This discrepancy is due in part to the fact that Belgium has lived up to its commitments in full conformity with the political aim of the agreement and without regard to the amount of reciprocal aid received during the same period.

This situation entails considerable dangers for Belgium notably in the monetary and budgetary fields. Immediately after its liberation, Belgium has followed a drastic monetary policy with a view to resorbing war inflation and avoiding devaluation of its currency. Yet, the financing of “mutual aid” to the United States and Great-Britain has resulted, to a certain extent, in an unavoidable inflation. In the course of one year, Belgium has spent 370 million dollars for “mutual aid” expenses and has lent more than 350 million dollars to the American and British Governments for the pay of their troops. Considering the economic conditions prevailing in Belgium, which were seriously shattered by the war and four years of occupation, such amounts are not negligible. Belgium’s financial effort exceeds the limits of a sound policy and its only justification is the will of the country to share fully in the war effort of its allies. It seems equitable to take this situation into account.

4. Examine how to maintain the flow of American exports to Belgium and the conditions of their financing.

5. Release the Belgian blocked assets in the United States.

6. Expedite the reimbursement of advances used for the pay of American troops.

7. Study the frame of the economic and financial relations of Belgium and the United States.

The Belgian Delegation presently in Washington,³⁷ wishes to discuss with the American Government the various aforementioned points—which, in its view, are to be considered as a whole—and is ready to start negotiations beginning next week.

Washington , September 14, 1945.

35. See documents of August 18, 19, and 20 printed in vol. vi , first section under United Kingdom.
36. Victory in Japan Day.
37. Belgian delegation, headed by Foreign Minister Spaak, opened their discussions with the representatives of the United States Government on September 19. For text of press release regarding composition and purpose of delegation, see Department of State Bulletin, September 23, 1945, p. 446.