Evening star., 1944-11-30
.Lease-Lend Aid
To Britain Will
BeCut in Half
Thot Country Will Pay
Cash for Materials to
Restore Her Trade
BY the Associated Press.

A drastic revision of lease
lend policy, under which Ameri-
can war supplies going to Great
Britain will be cut nearly in half
and that country will attempt to
restore its foreign trade by use
of United States raw materials
paid for in cash was announced
today here and in London.
Under the new system, United
States exports of iron and steel to
Great Britain will be cut about so
per cent, effective January /, l945.
The United Kingdom next year will
get lease-lend goods worth about
$500, 900, or half this years
value.
The new arrangement was worked
out in conferences here among Lord
Keynes, British representative, and
State and Treasury Department
officials. 1t was announced to the
British House of Commons by Prime
Minister Winston Churchill.
Will Start Restoring Economy.
The announcement stifled rumors
that the United States was preparing
to give Great Britain a grant in
aid of lease-lend materials to re-
store its foreign trade and domestic
economy The basic meaning of the
new system is that Britain will con-
tlnue to receive those supplies which
are strictly necessary to fight Ger
many and Japan to defeat, but that
they will be much smaller than here
tofore. Meanwhile, the British,
through normal commercial arrange
ments, will begin an effort to restore
their war-damaged economy.
Significantly, Harold Butler, Brit
ish Minister here, told reporters
Tuesday following publication OF the
white paper" on Britain's war losses
that while the United Kingdoms
external debt was about $13,000,-
100000, 1t was not broke" Use of
skilled manpower and plants for
production, he added, would put
Britain back on its feet.
Mr.. Churchill's announcement was
greeted with cheers in Commons.
He said the agreement had been
reached almost sentence by SEN
tence with our American colleagues"
Never" he said, has there been
a more thorough understanding of
the facts of the economic position
and the problems of Great Britain
and the United States of America
on both sides than we have now
been able to reach
Exporters Can Begin Plans.
Only radical change In the war
situation, officials said, will alter the
plan for Britain to receive lesse-
lend supplies worth about $780,
10000 in 1945.
Hammering home Britain's neces-
sity for, and intention of, rebuilding
her largely vanished export trade,
the Prime Minister told Commons
that "it is no part of the Lease-lend
Act. to provide general relief, or to
provide for postwar reconstruction
or to aid our export trade"
We shall pay cash for any addi-
tional supplies We may wish to take
from the United States for export
purposes" he declared.
He added that the removal of un-
certainties should make it possible
for exporters to lay plans now with
assurance" that they could become
effective after the war with Ger
many ends.
"Lease-lend-that very great act
has stood us and our Allies in good
stead and we have never asked nor
expected any assistance which is
not strictly within its terms and
provisions" the Prime Minister de-
clared.
Arrangements already had been
made in Washington, he said, as to