855.24/9–2245: Telegram
The Acting Secretary of State to the Ambassador in the United Kingdom ( Winant )
8342. Secdel 102. For the Secretary.41
US Proposes Using Surplus Property in Lend Lease Settlement with Belgians. At the second session of the Financial and Trade discussions [Page 108] with the Belgians held Friday morning42 tentative figures, still subject to minor changes when accounting is completed, were submitted as follows: Straight Lend Lease to Belgium as of September 2, $53 million; Freight charges for 60-day period after V–J Day, $5 million; Defense aid to Belgium and Congo under Master Agreement, $5 million; Plan A deliveries for July and August from US sources absorbed by Lend Lease, $25 million; Total, $88 million. To be tranferred to Belgium under 3–C terms,43 $41 million; reverse Lend Lease from Belgium, $177 million, of which $82 million accrued between V–E and V–J days.
The Belgians are making no specific claim that straight Lend Lease and reverse Lend Lease accounts should be balanced, but they hope that some equitable adjustment may be possible by increasing the Lend Lease account or decreasing reverse Lend Lease. On the latter point, they suggest payment by the military for that portion of the $82 million above mentioned which went for army-of-occupation purposes. They also raised again a point which was reserved by them at the time of the 3–C agreement that reverse Lend Lease items that could only be replaced by importation should be replaced in kind or paid for in cash. This is estimated at about $5 million. The Belgians indicate that they may have further suggestions regarding the treatment of 3–C items.
The US side proposed that, pending further discussion of adjustment, the possibility of utilizing surplus property in any settlement which may be agreed upon should be considered. The Belgians did not oppose this in principle. A subcommittee is meeting this afternoon on this matter with McCabe.44
When the Belgians asked for transfer of additional Plan A supplies to Lend Lease, it was explained that termination of Lend Lease left no funds which could be committed for this purpose.
A meeting on reimbursement for advances for Army pay will take place Monday.45 A meeting between Treasury officials and the Governor of the Bank of Belgium, who has now arrived, on unfreezing Belgian blocked assets will take place next week. General conversations will be resumed Tuesday afternoon.
- The Secretary of State was in London for the First Session of the Council of Foreign Ministers.↩
- September 21.↩
- See agreement between the United States and Belgium relating to supplies and services under Section 3(c) of the Lend-Lease Act signed at Washington, April 17, 1945; Department of State Executive Agreement Series No. 481 or 59 Stat. (pt. 2) 1642.↩
- Thomas B. McCabe, Army-Navy Liquidation Commissioner. He was appointed Special Assistant to the Secretary of State and Foreign Liquidation Commissioner in October 1945.↩
- September 24.↩