The Assistant Secretary of State (Clayton) to the Deputy Foreign Economic Administrator (Cox)

Dear Oscar: I have your letter of April 20, 194514 in which you raise again a question of the amounts due by the other American republics for transfers made to them under the Lend-Lease Agreements.

The Department has, I believe, made some progress in collections since we wrote you on November 21 [25?], 194414 on the same subject.

Total payments as of April 4, 1945 amounted to $44,996,000.00 as the following table shows:

Country Total Payments as of 4–1–45
Bolivia –0–
Brazil $35,000,000.00
Chile 2,500,000.00
Colombia 1,922,000.00
Costa Rica –0–
Cuba –0–
Dominican Republic 442,000.00
Ecuador –0–
El Salvador 120,000.00
Guatemala –0–
Haiti 30,000.00
Honduras 30,000.00
Mexico –0–
Nicaragua –0–
Paraguay –0–
Peru –0–
Uruguay 3,900,000.00
Venezuela 1,052,000.00

Moreover, another payment of $2,500,000.00 from Chile has been promised for April. President Grau of Cuba has indicated that action will be taken by his Cabinet after adjournment of Congress on May 20, 1945, [Page 241] and Peru reports that 26,000,000 soles (United States $4,000,000.00) is on deposit in the Central Reserve Bank of Lima awaiting acquisition of sufficient dollar exchange. LL–3 statements and supporting schedules were sent out to the other American republics in March and April, together with a note from the Secretary of State to the respective Embassies in Washington. Each note, when addressed to any country in arrears, stated that “the Government of the United States will continue to maintain the policy of requiring reimbursements in payment for matériel transferred under the respective Lend-Lease Agreements which it has signed with the various other American republics”.15 In the near future, LL–4 statements and supporting schedules will be sent out and the Department will again bring the matter of arrears to the attention of the appropriate Embassies in Washington.

I hope that these developments will indicate that the State Department is active in requesting payment from the other American republics which are in arrears in their payments on account of lend-lease transfers.

Sincerely yours,

Wm. L. Clayton
  1. Not printed.
  2. Not printed.
  3. For recommendations of a different policy, voiced by the Ambassador in Mexico, Messersmith, see pp. 11161118 and 11191125.