Evening star., 1941-11-08
Leuse-Lend Aid to Russia

The American Governments grant
! of ST 10000 900 loan to Soviet Rus
sia under the Lease-Lend Act is strik-
| ing evidence of the extent to which
| the administration is determined to
support the Soviet Union. The ad-
ministration view is that the wording
of the act. authorizing aid to coun-
tries resisting Axis aggression, gives
| the President the right to bring the
| Soviet Union under the laws provl-
sions. When the bill was under con-
sideration in Congress, strong efforts
were made specifically to exclude
Soviet Russia from it's scope. Those
efforts failed, though the measure as
finally passed did not specifically
include the Soviet Union as entitled
to its benefits.
At the time, however, the impress
sion was widespread that Russia
would be aided by other methods.
When the Russo German war began
last June, the Soviet government
possessed sizable bank balances in
America and financed early ship
mentS of goods and war materials by
cash payments. When Soviet credits
here ran low. the Treasury made two
advances totaling S40000,000 to re-
lieve the stringency. These advances
were made against future Russian
gold shipments. Furthermore, the
Reconstruction Finance Corporation
made a S1OO,OOO,OOO loan commit
ment, to be repaid IN Russian raw
materials.
The revelation of Russian needs
disclosed at the Moscow conference
between Soviet officials and the
British and American missions made
it obvious that such measures would
be insufficient to supply Russian re-
quirementS for war materials esti-
mated to cost almost $4,000, 900. 900.
The placing of the Soviet Union as
a lease-lend eligible by executive
action indicates determination to
provide the financial basis for Rus
sian needs, vast though they may be.
The official announcement of the
step undoubtedly was timed as an
encouraging gesture at a psyche
logically important moment. This
was the tWenty-fourth anniversary
of the November revolution which
overthreW the moderate Socialist
Kerensky government and placed the
bOlShevikS in absolute control.
Joseph Stain was able to capitalize
effectively on the promise of virtually
unlimited American aid in his dra-
matte radio addresses to the Russian
people at this crucial hour in the
national destiny. 1t should thus be
viewed as one phase of an elaborate
political-propaga gandist maneuver, in
cluding such seemingly disconnected
aspects as diplomatic pressure On
Finland by our State Department
and a further warning to the belli-
cose Tojo government of Japan.
From a material point of view, this
huge loan does not markedly change
the situation. No matter how much
money is earmarked for Russia, the
actual war materials have to be pro-
duced in our factories and then
physically transported to the Russo
German battle fronts That latter
factor is the real problem-one
which is very difficult of solution
and which soon may become much
more difficult.
As matters now stand, Archangel
is the only port in European Russia
where materials from America and
Britain can reach the vital fronts.
The Murmansk railroad has been cut,
even though the port itself still is
in Russian hands. The route through
Iran and the Caucasus soon may be
closed if the Germans take Rostov-
on-Don and later close the Volga to
navigation by capturing Astrakhan.
The long haul across Siberia from
Vladivostok soon may become uncer-
tain by japanese action. Russia is
painfully isolated from its friends
and must meet the present military
crisis virtually unaided. Loans can
not change that stubborn fact.