Evening star., 1945-08-28
Action on Leose-Lend
Called Bad Diplomacy
Britain Should Have Had Time
for Transition, Writer Believes
By David Laurence

BY Dapid Laurence
Bad manners and bad diplomacy Is
about all that can be said Of the inepti-
tude with which the United States Gov
ernment abruptly terminated the lease
lend agreements With Great Britain and
other countries
Technically, of course, every foreign
government knew that lease-lend was
to come to an end when the war ended,
but the statute runs till next May, and
as for the wars "end," it has not been
formally or officially proclaimed and
will not be for long while yet.
As matter of fact, when the action
was taken terminating lease lend the
Allied forces had not yet set foot on
Japan and the terms Of the surrender
had not been finally signed.
There was no necessity for precipitate
action in terminating ease-lend. While
the surrender of Japan was hoped for.
1T wasn't considered to be so near. Prior
to August 6, when the atomic bomb
was dropped, there was, a month ago,
not the slightest evidence, so far as
activities and plans of the bureaus and
departments inside our own Govern
ment are concerned, that the end Of
the war would come SO soon.
Just how Great Britain, for example,
was to know on August %, when lease
lend was terminated, how to handle the
enormous problems resulting from the
winding up Of the financial aid she was
getting is mystery, for even our Gov
ernment could not have prepared it
self for such shock in short time.
Question of Spirit.
The British, to be sure. knew the
lease-lend arrangement would end next
May, when the statute ran out, but they
also assumed that they would have a
few weeks to sit down with the Ameri-
can Government officials and work out
transition plan after Japan's surren-
der was actually consummated.
1t isn't wholly a question of money.
but of the spirit of fraternity In the
world, which apparently can be so
quickly upset by a single-handed act OF
our own thoughtless officials. Much
preachment is heard about the removal
Of causes Of international friction and
of the Importance of economic collabo-
ration after the war; but when it comes
to fulfilling that objective something in
the nature of a violent change is sud-
denly offered as substitute for CO.
operative planning.
Thus the Congress was high -pressured
into passing the Breton Woods agree
ments on the ground that financial aid
was needed soon for Europe. That
principle Is as valid now when lease
lend is ended as 1t was last spring when
the agreements were rushed through
Congress
Clearly Great Britain cannot lean
indefinitely on the United States for
economic support and the time was FORE
seen when she would have to readjust
her economy to the new state of affairs.
But Britain's possible financial and eco
nomic collapse are of the utmost inn
portance to world peace and world sta
bility. The United States cannot afford
to force on the British people Com
munism and a wholesale reputation of
debt.
Britain owes abroad. outside of lease
lend, about $4,000, ,000, 900. She has been
spending outside her own boundaries
about So .000. 900 900 a year. Her income
has been about $4,000, 900 900 and the
United States has been making up the
5000, 900 900 deficit by lease-lend aid.
About $4,000 !000, 900 of that sum is for
food and raw materials purchased by
the American Government from its own
farmers and producers. If Britain was
to lose that help now, the repercussions
on American agriculture eventually will
be severe and in the end America will
be faced with problem of gluts and
surpluses.
Farm Subsidies Likely.
Then Congress doubtless will spend
much more money for big subsidies to
farmers, just IS there will be subsidies
for the unemployed. 1t would be much
better to taper of lease-lend gradually
to foreign countries and give them as
we'll as our own producers a chance to
adjust.
1t should not be forgotten that the
British are paying out sizable sums to
maintain military and naval forces in
Asia, and this will not come out OF
lease-lend any longer, though the
spirit OF the whole arrangement was
that wartime requirements or those re-
lated to military unity would be taken
care of out of lease-lend. The offer Of
new 30-year loans at 23s per cent does
not solve the problem, as Britain thinks
she is not able to pay of such loans.
She is in serious financial straits.
1t appears on its face that the adj
ministration here has been impetuous
about the whole matter and has begun
to develop for the United States un-
necessary i'll will in world in which
Britain and the United States at least
must work together. 1t may be conf
IDENTIFY assumed that the administra-
tion's policy will undergo some change
and that Congress will be urged soon to
approve modified form of lease-lend.
1t Is unfortunate that the termination
should have come without giving the
British at least 80 days to work out
new program.
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