The Waterbury Democrat., 1941-09-10
ALL BRITISH AID
 FOR WAR ALONE
toontinued rom Page D

in Latin America in competition with U. s. firms.
 The memorandum from Eden transmitted by Winant to the State department follows:
 Il. All materials which we obtain under the lend-lease act are re- quired for the prosecution of the war effort. This principle governs all questions of the distribution and use of such goods and his n1ajesty's government has taken and will con- tinue to take action to secure that these goods are not in any case diverted to the furtherance of pri- vate interests.
 "2. Lend-lease materials sent to this country have not been used for export and every effort will be made in the future to insure that they are not used for export, SubV ject to the principle that where complete physical segregation of lend-lease materials is impractlca- ble domestic consumption of the material in question shal be at least equal to the amounts received under lend-lease.
 "3. His majesty's government have not applied and will not apply any materials similar to those sup- piled under lend-lease in such a way as to enabe their exporters to enter new markets or to extend their export trade at the expense of United States exporters. Owing to the need to devote all available capacity in manpower to war pro- duction, the United Kingdom ex- port trade is restricted to the ir- reducible minimum necessity to supply or obtain materials essen- tial to the war effort.
 Vital Requirements
 "4. For some time past, exports from the United Kingdom have been more and more confined to those essential (T) for the supply of vital requirements of overseas countries, particularly in the Ster- line empire; (EE) for the acquisi- tion of foreign exchange, particu- larly in the western hemisphere. His majesty's government have adopted the policy summarized below:
 "(T) No materials of type the use of which is being restricted in the United States on the grounds of short supply and of which we obtain supplies from the United States either by payment or on lend-lease terms will bS used In exports with the exception of the following special cases:
 "(A) Material which is needed overseas in connection with sup- plies essential to the war effort for ourselves and our allies, and which cannot be obtained from the United States.
 "(b) Small quantities of such rna- terials needed as minor though as essential components of exports which otherwise are composed of materials not in short supply in the United States.
 "(c) Repair parts for British ma- chinery and plant now in use, and machinery and plant needed to com. plete installations now under con- structio11, 50 long as they have al. ready been contracted for.
 Steps have been taken to prevent the export (eXcept to empire and allied territories) of such goods which do not come within the ex. captions referred to in (a) (b) Co above.
 "ID Materials similar to those being provided under lend-lease which are not in short supply in the United States will not be used for export in quantities greater than those which we ourselves produce or buy from any source.
 Distribution
 Distribution in the United King dom of lend-lease goods:
 "(V) The general principle fol- lowed in this matter is that the remuneration received by the dis. tributors, whatever the method of distribution, is controlled and will be no more than Q fair return for the services rendered in the work of dis. trihution. The arrangements rigor. ously exclude any opportunity for a speculative profit by private inter- ests from dealing in lend-lease goods. Tn most cases lend-lease sup- plies will be distributed through or. ganizations acting as agents of his majeSty's government in the strict sense of the term and not as prin. cipalS. Where for strong practical reasons this can not be done full explanation will be supplied to the United States administration and their concurrence sought before hand in any alternative arrange ments proposed. The Justification for retaining existing channels of distribution operating under strict government control, is that the cre- atton of elaborate new organizat tions in their place would inevitably re- suit in loss of efficiency and the wasteful use of manpower, and re- tard the war effort In the distribu- ton of lend-lease goods there will be no discrimination against United States firms.
 Food Is Special
 "(VD Food is a special case. Only some 5 or 6 per cent of tonnage of the total British food supply is coming from the United States and without great practical complica- tionS it would be impossible to have a separate system for the distribu- ton of lend-lease food. Food dis tribution is carried out in the Unit- ed Kingdom by wholesalers to whom the government sells food as prin- cipals. Tn fact, the ministry of food has established a close control over all distributive margins 80 that neither the wholesalers nor the rec taiiers receive any greater remuner. ation than is adequate to cover the cost of the services performed. No food obtained on iend-iease terms Is or will be sold at uncontrolled prices, Thus the general arrange