Foreign Relations of the United States: Diplomatic Papers, 1945, The British Commonwealth, The Far East, Volume VI

811.24/8–1545

The Acting Secretary of State to the Under Secretary of War (Patterson)

Washington, September 25, 1945.

My Dear Mr. Patterson: In your letter of August 15⁵⁸ you outline the negotiations which have been going on since June 3, 1941, for the acquisition by the United States of seven industrial facilities owned by the British in this country. On November 18, 1943, Mr. Byrnes as Director of the Office of War Mobilization and Reconversion, gave the War Department the authority to proceed with this acquisition, provided the State Department and the Foreign Economic Administration had no objection to purchase for cash.⁵⁹

In the opinion of the State Department, a commitment exists to purchase the seven facilities for cash or its equivalent. It is possible, however, that this commitment might properly be met by considering the sum due as an offset to dollar obligations of the British to the United States. Mr. Clayton has indicated to you in a recent telephone conversation that he will keep in mind this commitment during the current fiscal conferences with the British.⁶⁰

Sincerely yours,

Dean Acheson

58. Not printed.
59. Letter from Mr. Byrnes to Mr. Patterson, November 18, 1943, not printed. For previous correspondence on this subject, see Foreign Relations, 1944, vol. iii, pp. 31 and 40.
60. On December 4, Assistant Secretary of State Clayton wrote a letter to Secretary of War Patterson advising of subsequent developments relating to the acquisition of the British-owned industrial facilities. The final paragraph is as follows: “The Department [of State] advises that tentative arrangements have been agreed upon whereby the cost of these facilities will be considered as an off-set to the Lend-Lease balances. You may therefore immediately take title to these facilities to protect the interest of the United States Government.” (811.24/8–1545)