Evening star., 1945-06-05
lease-lend Boost
OF f$4,375,000,000
Asked by Truman

President Truman today added a
$4,375 ,000, 900 lease-lend request to
the developing program for victory
in the Pacific and postwar economic
collaboration with the Allies.
To finance lease-lend, he asked
Congress to appropriate $1,975 ,OOO,-
900 in new funds and permit the use
OF 2,400, ,000,0 in unexpended bal
ances from the current fiscal year
ending June 80.
This compares with estimated OBJ
legations of $5,l28 900 900 in the cur
rent year, but would be exclusive of
aid authorized to be transferred by
the War and Navy Departments and
the Maritime Commission.
In a letter to Speaker Rayburn
late yesterday, the President also
said he soon would ask for legisla-
ton to permit the Export-Import
Bank to finance equipment and sup
plies for France. Belgium and the
Netherlands, where the lease-lend
agreements recently negotiated can
not be carried out entirely under
lease-lend because of the war usage
limitation on such supplies.
Russia's Status Uncertain.
There was no specific mention of
Russias status under the new pro-
gram.
OF the future, the President said:
The war against Japan, like the
war against Germany, is a co-opera-
tive Allied effort. Through lease
lend and reverse lease-lend we shall
continue to pool our resources with
those of our Allies so that the crush
ing weight of our combined might
may be thrown against our remain
ing enemy.
Where lend funds will make
the efforts of our Allies more effec-
tive, we shall use them. Where the
redeloyment of our troops from Eu-
rope or our control over enemy areas
require aid from other nations,
lease-lend will be available to enable
their maximum participation. Sim
ilarly, through reverse lease-lend
we can expect our Allies to give us
all the assistance possible"
A letter to the President from
Budget Director Harold D. Smith
said the contemplated program "as-
sumes" both that Congress will ex-
pand the authority of the Export
Import Bank and set aside the
johnson Act, which prohibits loans
to governments in default of their
World War obligations to this coun-
try.
Recommendations Offered.
In addition to using the proposed
enlargement of Export Import Bank
authority to aid France, Holland
and Belgium, it is intended that it
likewise be employed in the work
Of reconstruction in other war
ravaged countries.
Mr.. Smith told the President that
the lease-lend program reflects the
following recommendations
Lease-lend should continue to be
an indispensable weapon for waging
fully effective war against Japan in
close collaboration with our Allies.
In furtherance of this objective,
such funds should be of limited but
valuable assistance in expediting the
maximum redeployment of our
armed forces for full use against
Japan.
Lease-lend funds should be limited
to purposes of the war and national
defense and should be reduced as
fast as possible consistent with
those objectives.
Raw materials should be provided
under lease-lend arrangements only
where they are needed to increase or
maintain the industrial contribution
of the lend country to the war
effort.
Petroleum products for United
States military use should hence
forth be financed from War and
Navy appropriations.