Evening star., 1941-04-17
Aid Seen
Topic Of Talks Here
By Mackenzie King
Cunudiun Prime Minister
Expects to Confer With
President Again
BACKGROUND


From meeting last August OF
President Roosevelt and Canadi-
an Prime Minister Mackenzie
King developed Joint Defense
Board formally linking. United
States and Canada in common
defense program. Soon after
,Uard, too, came the historic de-
stroyer-baSe trade by t0hich
United States transferred so de-
stroyerS to Great Britain and
received defense base sites in
eight British possessions in West
ern Hemisphere. SeUen of de-
StroyerS 1Uent into Canadian SerU-
ice, mainly for conpoy purposes.
B> the Associated Press.
The advisability of supplying war
materials to Canada on a lease
lend basis in view of her dwindling
dollar resources was believed in
usually we'll Informed quarters to-
day to be primary topic in dis
cuSSionS between Prime Minister
Mackenzie King and President
Roosevelt and other American Of
flcials.
Other matters which were expect
ed to figure in the conferences in
cluded proposed development of the
ST. Lawrence waterway and the work
of the joint United States Canadian
Defense Board, established after the
Prime Minister'S last previous meet
ing with the President last year.
The Canadian government leader,
who came here after his annual
physical checkup at Johns Hopkins
Hospital in Baltimore, called at the
White House late yesterday.
The Prime Minister conferred for
As minutes today with Secretary of
State Hull, but declined any COM
ment on the discussion He also
had appointments today with Sec
retary of the Treasury Morgenthau
and Lord Halifax, the British AM
bassador.
He said he planned to rest over
the week end. probably at Virginia
Beach, and expected to see President
Roosevelt again next week, either
here or at Warm Springs, if Mr..
Roosevelt should go to Warm
Springs.
With regard to the possibility of
lease lend aid for Canada, it was
recalled that the Dominion, next
to Great Britain, has been the big
gest buyer of war supplies in this
country and thus far has made her
purchases here on cash-snd-carry
basis.
Financial authorities indicated
however, that the Dominion now
was running out of United States
dollars and would be forced sooner
or later to ask some form of finan-
cial aid.
Would Prefer Loan.
Word has circulated that Canada
would prefer to obtain loan. But
Government policy. as established in
the case of Great Britain, is to lend
the war materials rather than money
with which to buy them, and Of
ficials indicated a money loan re-
quest would be discouraged Besides
it was explained, money loan could
not be made without amending the
Neutrality Act prohibition against
loans to belligerents.
In = any case, officials suggested
that Canada would be required, as
Great Britain was, to liquidate at
least a large part of her $1,000
100000 worth of investments in the
United States so that she might be
able to continue paying for war ma
terials as long as possible.
Products of Canadian gold and
silver mines, customarily sold to the
United States Treasury, also might
be used to delay the day of assist
ance.
Shipments Stopped.
Recently, Secretary of the Treas
ury Morgenthau reported assurances
from the Canadian Finance Ministry
that the dominion could go through
1941 on a cash basis. However, it
was learned that Canada then was
counting on heavy shipments of gold
from the rest of the British Empire
and planned to sell the gold to the
United States for cash. But Britain
has stopped sending gold and certain
securities to Canada.
Canada currently is buying over
$50, ,000, 900 worth of merchandise a
month in this country. Some of the
purchases are of peacetime varieties.
The total is offset by Canadian sales
to this country amounting to about
$35, ,000, 900 month.
Formerly, Canada was able to
make up part of any difference in its
trade balance with this country by
using United States money spent in
Canada by tourists.