Evening star., 1941-09-10
British Promise
Not 10 Misuse
AmericanGoods
Pledge to Restrict
Exports Announced
In White Paper Z :
b. TIE Associated Press.

LONDON, Sept. 10-Britain,
gravely concerned over charges that
materials obtained from the United
States under the Lease-Lend Act
were being used in direct competi-
ton with American industry in ex-
port markets, promised today to
prevent such misuse and to restrict
British exports.
The British government was con-
cerned. among other things, over
what it's leaders called the ''pfopa-
ganda value to Germany" of these
charges that American industry,
after sacrificing to send raw ma
terials to Britain under the Lease
Lend Act. was being hit in foreign
markets by competition with goods
made from these materials.
The agreement with the United
States was announced in white
paper end was said by a reliable
source to be one of a series of steps
planned Ito prevent Germany from
using lease-lend grumbling as the
thin edge of a wedge to pry Britain
and the United States apart and
hamper the Allied war effort"
Propaganda Campaign Cited.
Britain. this informant said, ex-
poets such a German propaganda
campaign to come to a head soon
and wants to be able to meet it.
He asserted the campaign now is
under way in Britain as well as IN
the United States; that by word of
mouth seeds of dissension were be-
ing sown in British pubs" and
factories.
The charge is heard here, the
source said, that the United States
is trying to use the lease-lend pro-
gram to bar Britain from exporting
anything so that the United States
can steal all British foreign markets.
thus throwing British labor out OF
Jobs after the war.
On the other hand, in the United
States. it was said, charges are made
that Britain was accepting lease
lend goods and then sending British
goods to South America to steal
United States trade.
Actually" the source said, "our
exports to South America have fallen
off considerably, but the service de-
partments won't let us give figures
because they might give too much
information to German sea raiders
Example Pointed Out.
"One example of the kind of thing
being used to strike at Anglo Amer
lean friendship" the source said, "is
good will advertisements British
airplane concern published in a mag
azine with circulation abroad.
Actually, this concern did not
have any planes to export. but ad-
vertised to keep itself from being
forgotten when the war ends and it
can export planes"
In some cases, it was said, Britain
was exporting goods made from ma
terials of the cash-and-carry days
and contracted for then, but deliv-
cred during the time of lease-lend.
This provided source for some of
the charges, it was said.
The white paper consisted of cor
respondence between Foreign Sec
retary Eden and United States Am
bassador Winant regarding the
Iease-lend agreement, and a memo
randum in general terms stating the
reasons and background of the
agreement.
Text of Memorandum.
The text of the memorandum fol-
lows:
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 majesty's gov
eminent have taken and will con-
tinue to take action to secure that
these goods are not in any case di-
verted to the furtherance of private
interests.
Export Policy.
%. 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, subject to the
principle that where complete ply
sical segregation of lend-lease ma
terials is impracticable, domestic
consumption of the material in
question shall be at least equal to
the amounts received under lend
lease.
49, His majesty's government have
not applied and will not apply any
materials similar to those supplied
under lend-lease in such way as
to enable their exporters to enter
new markets or to extend their ex-
port trade at the expense of the
United States exporters. Owing to
the need to devote all available Ca
pacity and man power to war pro-
duction, the United Kingdom ex-
port trade is restricted to the ire
ducible minimum necessary to sup
(See LEASE-LEND. Page A-2.)