signs the Lend-Lease bill to give aid to Britain and China (1941)]]

Lend-Lease (Public Law 77-11) was the name of the program under which the United States of America supplied the United Kingdom, the Soviet Union, China, France, and other Allied nations with war materiel between 1941 and 1945. It was signed into law on March 11, 1941, a year and a half after the outbreak of the European war in September 1939, but nine months before the U.S. entrance into the war in December 1941. It was called An Act to Further Promote the Defense of the United States. Although it did not formally establish the United States as a combatant in the war, this act ended the pretense of its neutrality. Adolf Hitler recognized this and in response ordered German submarines to attack US vessels such as the SS Robin Moor, an unarmed merchant steamship sunk on May 21, 1941 outside of the war zone.

A total of $50.1 billion (equivalent to $759 billion at 2008 prices) worth of supplies were shipped: $31.4 billion to Britain, $11.3 billion to the Soviet Union, $3.2 billion to France and $1.6 billion to China. Reverse Lend Lease comprised services (like rent on air bases) that went to the U.S. totaled $7.8 billion, of which $6.8 billion came from the British and the Commonwealth. The terms of the agreement provided that the material was to be used until time for their return or destruction. (Supplies after the termination date were sold to Britain at a discount, for £1.075 billion, using long-term loans from the U.S.) Canada operated a similar program that sent $4.7 billion in supplies to Britain and the Soviet Union.

This program was a decisive step away from American non-interventionism since the end of World War I and towards international involvement. There was no debt; the U.S. did not charge for aid supplied under this legislation.

Historical background

Following the fall of France, Great Britain became the only European nation actively engaged in war against Nazi Germany. Britain had been paying for its materiel in gold under "cash and carry", as required by the Neutrality Acts of the 1930s but by 1941 it had liquidated so many assets that it was running short of cash.

During this same period, the U.S. government began to mobilize for a possible war, instituting the first-ever peacetime draft and a fivefold increase in the defense budget (from $2 billion to $10 billion). In the meantime, as the British began running short of money, arms and other supplies, Prime Minister Winston Churchill pressured President Franklin D. Roosevelt for American help. Sympathetic to the British plight but hampered by the Neutrality Acts, which forbade arms sales on credit or the loaning of money to belligerent nations, Roosevelt eventually came up with the idea of "Lend-Lease". As one Roosevelt biographer has characterized it: "If there was no practical alternative, there was certainly no moral one either. Britain and the Commonwealth were carrying the battle for all civilization, and the overwhelming majority of Americans, led in the late election by their president, wished to help them." As the President himself put it, “There can be no reasoning with incendiary bombs.”

In December 1940 President Roosevelt proclaimed the U.S. would be the "Arsenal of Democracy" and proposed selling munitions to Britain and Canada.

The American position was to help the British but not enter the war. In early February 1941 a Gallup poll revealed that 54 percent of Americans were unqualifiedly in favor of Lend-Lease. A further 15 percent were in favor with qualifications such as: "If it doesn't get us into war," or "If the British can give us some security for what we give them." Only 22 percent were unqualifiedly against the President's proposal. When poll participants were asked their party affiliation, the poll revealed a sharp political divide: 69 percent of Democrats were unqualifiedly in favor of Lend-Lease, whereas only 38 percent of Republicans favored the bill without qualification. A poll spokesperson also noted that, "approximately twice as many Republicans" gave "qualified answers as...Democrats."

Opposition to the Lend-Lease bill was strongest among isolationist Republicans in Congress, who feared that the measure would be "the longest single step this nation has yet taken toward direct involvement in the war abroad." When the House of Representatives finally took a roll call vote on 9 February 1941, the 260 to 165 vote fell largely along party lines. Democrats voted 238 to 25 in favor and Republicans 24 in favor and 135 against.

The vote in the Senate, which took place a month later, revealed a similar partisan divide. 49 Democrats (79 percent) voted "aye" with only 13 Democrats (21 percent) voting "nay." In contrast, 17 Republicans (63 percent) voted "nay." Only 10 Senate Republicans (37 percent) sided with the Democrats to pass the bill.

President Roosevelt signed the Lend-Lease bill into law on 11 March 1941. It permitted him to "sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government [whose defense the President deems vital to the defense of the United States] any defense article". In April, this policy was extended to China as well. Roosevelt approved US $1 billion in Lend-Lease aid to Britain at the end of October 1941.

There was an entirely different program in 1940, the Destroyers for Bases Agreement whereby 50 USN destroyers were transferred to the Royal Navy and the Royal Canadian Navy in exchange for basing rights in the Caribbean. Churchill also granted the US base rights in Bermuda and Newfoundland gratis.

Administration

Franklin D. Roosevelt set up the Office of Lend-Lease Administration in 1941, appointing steel executive Edward R. Stettinius as head. In September 1943 he was promoted to Undersecretary of State, and Federal Deposit Insurance Corporation director Leo Crowley became head of the Foreign Economic Administration which absorbed responsibility for Lend-Lease.

Lend-Lease aid to the Soviet Union was nominally managed by Stettinius. Roosevelt's Soviet Protocol Committee, dominated by Harry Hopkins and General John York, who were totally sympathetic to the provision of "unconditional aid." Until 1943, few Americans objected to Soviet aid.

Significance

between Allied and Axis powers, 1938–1945. See Military production during World War II.]] Lend-Lease was a critical factor in the eventual success of the Allies in World War II. In 1943–1944, about a quarter of all British munitions came through Lend-Lease. Aircraft (in particular transport aircraft) comprised about a quarter of the shipments to Britain, followed by food, land vehicles and ships.

Even after the United States forces in Europe and the Pacific began to reach full-strength in 1943–1944, Lend-Lease continued. Most remaining allies were largely self-sufficient in front line equipment (such as tanks and fighter aircraft) by this stage, but Lend-Lease provided a useful supplement in this category even so, and Lend-Lease logistical supplies (including motor vehicles and railroad equipment) were of enormous assistance.

Much of the aid can be better understood when considering the economic distortions caused by the war. Most belligerent powers cut back severely on production of non-essentials, concentrating on producing weapons. This inevitably produced shortages of related products needed by the military or as part of the military-industrial complex.

The USSR was highly dependent on rail transportation, but the war practically shut down rail equipment production: only about 92 locomotives were produced. 2,000 locomotives and 11,000 railcars were supplied under Lend-Lease. Likewise, the Soviet air force received 18,700 aircraft, which amounted to about 14% of Soviet aircraft production (19% for military aircraft).

Although most Red Army tank units were equipped with Soviet-built tanks, their logistical support was provided by hundreds of thousands of U.S.-made trucks. Indeed by 1945 nearly two-thirds of the truck strength of the Red Army was U.S.-built. Trucks such as the Dodge 3/4 ton and Studebaker 2½ ton, were easily the best trucks available in their class on either side on the Eastern Front. American shipments of telephone cable, aluminium, canned rations, and clothing were also critical.

Quotations

Franklin D. Roosevelt, eager to ensure public consent for this controversial plan, explained to the public and the press that his plan was comparable to one neighbor's lending another a garden hose to put out a fire in his home. "What do I do in such a crisis?" the president asked at a press conference. "I don't say... 'Neighbor, my garden hose cost me $15; you have to pay me $15 for it' …I don't want $15 — I want my garden hose back after the fire is over."

Joseph Stalin, during the Tehran Conference in 1943, acknowledged publicly the importance of American efforts during a dinner at the conference: "Without American production the United Nations could never have won the war."

US deliveries to USSR

used by Polish First Army as part of US Lend-Lease program.]] , Alaska commemorates the shipment of U.S. aircraft to the Soviet Union along the Northwest Staging Route.]]

American deliveries to the Soviet Union can be divided into the following phases:

"pre Lend-lease" 22 June 1941 to 30 September 1941 (paid for in gold)

first protocol period from 1 October 1941 to 30 June 1942 (signed 1 October 1941)

second protocol period from 1 July 1942 to 30 June 1943 (signed 6 October 1942)

third protocol period from 1 July 1943 to 30 June 1944 (signed 19 October 1943)

fourth protocol period from 1 July 1944, (signed 17 April 1945), formally ended 12 May 1945 but deliveries continued for the duration of the war with Japan (which the Soviet Union entered on the 8 August 1945) under the "Milepost" agreement until 2 September 1945 when Japan capitulated. On 20 September 1945 all Lend-Lease to the Soviet Union was terminated.

Delivery was via the Arctic Convoys, the Persian Corridor, and the Pacific Route. The Pacific Route was used for about half of Lend-Lease aid: by convoy from the US west coast to the Soviet Far East, via Vladivostok and the Trans-Siberian railway. After America’s entry in the war, only Soviet (or Soviet-flagged) ships were used, and there was some interference by Japan with them. The operations of the Pacific Route were organized by Leonid Belakhov, Deputy Commissar and Chief Political Officer of the Soviet Merchant Fleet (MorFlot). The Alaska-Siberia Air Route, known as Alsib, was used for delivery of nearly 8,000 aircraft, air cargo and passengers from 7 October 1942.

Reverse Lend-lease

Reverse Lend-lease or Reciprocal Aid was the supply of equipment and services to the United States, e.g. the British Austin K2 military ambulance. From Canada the Fairmile launches for anti-submarine use and Mosquito photo-reconnaissance aircraft. New Zealand supplied food to United States forces in the South Pacific, and constructed airports in Nadi, Fiji.

In 1945–46 the value of Reciprocal Aid from New Zealand exceeded that of Lend-lease, though in 1942–43 the value of Lend-lease to New Zealand was much more than that of Reciprocal aid. The UK also supplied extensive material assistance to US forces stationed in Europe, for example the USAAF was supplied with hundreds of Spitfire Mk V and Mk VIII fighter aircraft.

:"The cooperation that was built up with Canada during the war was an amalgam compounded of diverse elements of which the air and land routes to Alaska, the Canol project, and the CRYSTAL and CRIMSON activities were the most costly in point of effort and funds expended.

:[...] The total of defense materials and services that Canada received through lend-lease channels amounted in value to approximately $419,500,000.

:[...] Some idea of the scope of economic collaboration can be had from the fact that from the beginning of 1942 through 1945 Canada, on her part, furnished the United States with $1,000,000,000 to $1,250,000,000 in defense materials and services.

:[...] Although most of the actual construction of joint defense facilities, except the Alaska Highway and the Canol project, had been carried out by Canada, most of the original cost was borne by the United States. The agreement was that all temporary construction for the use of American forces and all permanent construction required by the United States forces beyond Canadian requirements would be paid for by the United States, and that the cost of all other construction of permanent value would be met by Canada. Although it was not entirely reasonable that Canada should pay for any construction that the Canadian Government considered unnecessary or that did not conform to Canadian requirements, nevertheless considerations of self-respect and national sovereignty led the Canadian Government to suggest a new financial agreement.

:[...] The total amount that Canada agreed to pay under the new arrangement came to about $76,800,000, which was some $13,870,000 less than the United States had spent on the facilities."

British aid from Canada

Britain's lend-lease arrangements with its dominions and colonies is one of the lesser known parts of World War II history.

Canada did not use a term like "lend lease" but it did give Britain gifts totaling $3.5 billion during the war; Britain used the money to buy Canadian food and war supplies. Canada also loaned $1.2 billion on a long-term basis to Britain immediately after the war; these loans were fully repaid in late 2006.

The Gander Air Base (RCAF Station Gander) now known as Gander International Airport built in 1936 in Newfoundland was leased by Britain to Canada for 99 years because of its urgent need for the movement of fighter and bomber aircraft to Britain.

Most American Lend-Lease aid comprised supplies purchased in the U.S., but Roosevelt allowed Lend-Lease to purchase supplies from Canada, for shipment to Britain, China and Russia.

Repayment

There was no charge for the Lend Lease aid delivered during the war, but the Americans did expect the return of some durable goods such as ships. Congress had not authorized the gift of supplies after the war, so the administration charged for them, usually at a 90% discount. Large quantities of undelivered goods were in Britain or in transit when Lend-Lease terminated on 2 September 1945. Britain wished to retain some of this equipment in the immediate post war period. In 1946, the post-war Anglo-American loan further indebted Britain to the U.S. Lend-lease items retained were sold to Britain at 10% of nominal value, giving an initial loan value of £1.075 billion for the Lend Lease portion of the post-war loans. Payment was to be stretched out over 50 annual payments, starting in 1951 and with five years of deferred payments, at 2% interest. The final payment of $83.3 million (£42.5 million), due on 31 December 2006 (repayment having been deferred in the allowed five years), was made on 29 December 2006 (the last working day of the year). After this final payment Britain's Economic Secretary to the Treasury, Ed Balls, formally thanked the U.S. for its wartime support.

See also

Arctic convoys of World War II

Arms Export Control Act

Atlantic Charter

Battle of the Atlantic (1939–1945)

Cash and carry (World War II)

Lend-Lease Sherman tanks

Marshall Plan

Military production during World War II

Northwest Staging Route

Operation Cedar

Persian Corridor

Keynes World War II loan

References

Notes

;Notes

Citations

Bibliography

Allen, H.C. Britain and the United States. New York: St. Martin's Press, 1955.

Allen, R.G.D. "Mutual Aid between the US and the British Empire, 1941—5". Journal of the Royal Statistical Society no. 109 #3, 1946, pp. 243–277, online in JSTOR.

Black, Conrad. Franklin Delano Roosevelt, Champion of Freedom. New York: Public Affairs, 2003. ISBN 1-58648-184-3.

Buchanan, Patrick. Churchill, Hitler and the Unnecessary War. New York: Crown, 2008. ISBN 978-0307405159.

Campbell, Thomas M. and George C. Herring, eds. The Diaries of Edward R. Stettinius, Jr., 1943–1946. New York: Franklin Watts, Inc., 1975. ISBN 0-53105-570-1.

Clarke, Sir Richard. Anglo-American Economic Collaboration in War and Peace, 1942–1949. Oxford, UK: Oxford University Press, 1982. ISBN 0-19-828439-X.

Crowley, Leo T. "Lend Lease" in Walter Yust, ed. 10 Eventful Years (1947) 2: pp. 858–860.

Dawson, Raymond H. The Decision to Aid Russia, 1941: Foreign Policy and Domestic Politics (1959)

Dobson, Alan P. U.S. Wartime Aid to Britain, 1940–1946. London: Croom Helm, 1986. ISBN 0-7099-0893-8.

Granatstein, J. L. Canada's War: The Politics of the McKenzie King Government, 1939-1945. Toronton: Firefly Books, 1990. ISBN 0-88619-356-7.

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Kimball, Warren F. The Most Unsordid Act: Lend-Lease, 1939–1941. Baltimore, MD: Johns Hopkins University, 1969. ISBN 0-8018-1017-5.

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Twenty-first Report to Congress on Lend-Lease Operations, p. 25.

Weeks, Albert L. Russia's Life-Saver: Lend-Lease Aid to the U.S.S.R. in World War II. Lanham, MD: Lexington Books, 2004. ISBN 978-0739107362.

Weiss, Stuart L. The President's Man: Leo Crowley and Franklin Roosevelt in Peace and War. Carbondale: Southern Illinois University Press, 1996. ISBN 0-8093-1996-9.

Woods, Randall Bennett. A Changing of the Guard: Anglo-American Relations, 1941–1946. Chapel Hill, North Carolina: University of North Carolina Press, 1990. ISBN 0-8078-1877-1.

External links

Official British history of Lend-Lease

Lend-Lease Shipments, World War II (Washington: War Department, 1946)

Lend-Lease to the Soviet Union

The Voice of Russia on the Allies and Lend-Lease Museum, Moscow

Official New Zealand war history of Lend-lease, from War Economy

Official New Zealand war history; termination of Mutual Aid from 21 December 1945, from War Economy

Allies and Lend-Lease Museum'', Moscow

Category:1939 in the United States Category:Economic aid during World War II Category:History of the United States (1918–1945) Category:Military history of the United States during World War II Category:Presidency of Franklin D. Roosevelt Category:Soviet Union – United States relations Category:United Kingdom – United States relations Category:United States federal commerce legislation Category:United States foreign relations legislation Category:1939 in international relations

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