Office of the Historian

800.24/8–1645: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

London, August 16, 1945—2 p.m.
[Received 4:20 p.m.]

8287. For the Secretary, Crowley, Thorp and LP74 from Clayton. At our conversation Tuesday75 we found the British extremely concerned about the immediate effects of V–J on lend-lease programs. Keynes states that they had hoped before V–J to discuss dates and types of program cut off and that they now hope no hasty decisions will be taken. They indicated that military deliveries could be cut off very quickly except for spare parts, certain transportation services, rations, et cetera, regarding which the British expect no great difference of opinion with our War and Navy Depts. With respect to the non-munitions program which consists principally of food, POL (Petroleum, Oil, Lubricants), and shipping services the British raised 2 points: (1) the financial effect and (2) physical procurement and supply. Lord Keynes asked whether it was possible for Mr. Crowley to order a continuation of the supply and procurement mechanism without prejudice to financial decisions. The British contemplate a change-over in the financial situation but hope that this can be postponed briefly pending discussions. They would propose to continue reverse aid of services.

The British hope that more formal talks can take place in Washington early in September and I am sending a separate telegram to the Secretary on this whole subject.76

I did not make any statements or commitments with respect to the lend-lease issues. My own opinions remain the same as those I cabled to you on Sunday (my 8169).77 I should like more information regarding the possibility of continuing the physical supply and procurement mechanism. With respect to the financial aspect of the matter I would recommend that the British be notified that requisitions will be received for processing and eventual delivery on straight lend-lease terms only up to a specific date a few weeks hence; that such requisitions plus the existing pipeline will be delivered until the end of the year; and that the amounts involved will be the subject of general settlement along with any stocks existing in the UK.

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As I have stated earlier I believe the general settlement must be such as to impose no requirement of exchange transfer on the British with respect to food, raw materials, et cetera. There may be certain categories of fixed installations regarding which further study is necessary, but I feel that we must at an early date make a complete settlement that will leave no loose ends dangling. This must include not only questions of possible financial settlements but also White Paper78 questions, problems affecting “similar” goods, exports, et cetera.

I have made no undertaking to discuss the matter further with the British in London but should appreciate any background information as to your views and proposed actions. [Clayton.]

Winant
  1. Division of Lend-Lease and Surplus War Property Affairs.↩
  2. August 14.↩
  3. See telegram 8312, August 17, 5 p.m., from London, p. 97.↩
  4. Telegram 8169, August 12, 2 p.m., from London, not printed. This telegram contained Mr. Clayton’s tentative “first views” on the subject of lend-lease after V–J Day (800.24/8–1245).↩
  5. See footnote 27, p. 11.↩