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[[Image:Lendleasemap.jpg|thumb|400px|right|Lend-lease routes]]

[[Image:Lendleasemap.jpg|thumb|400px|right|Lend-lease routes]]

The '''Lend-Lease Act''' was the system by which the U.S. gave  its allies $50 billion in military aid in 1941-45 to help win [[World War II]].<ref> The U.S. GDP was about $200 billion a year.</ref>. There was no repayment required.  $31 billion went to Britain, $11 billion to the Soviet Union, $3 billion to France, and $1.6 billion to China. In addition, Canada operated a similar program of aid to Britain, and Britain had its own program of aid to others, especially the Societs.

The '''Lend-Lease Act''' was the system by which the U.S. gave  its allies $50 billion in military aid in 1941-45 to help win [[World War II]].<ref> The U.S. GDP was about $200 billion a year.</ref>. There was no repayment required.  $31 billion went to Britain, $11 billion to the Soviet Union, $3 billion to France, and $1.6 billion to China. In addition, Canada operated a similar program of aid to Britain, and Britain had its own program of aid to others, especially the Soviets.

It was a system of mutual and reciprocal aid which gave the U.S. about billions of services in return (especially rental of military bases on Allied soil). More broadly it meant the pooling of the resources, the man power, and the inventive genius of every Allied power. Though the United States initiated the action through the Lend-Lease Act passed by Congress in March 1941, and though it furnished by far the largest contribution measured by monetary standards, lend-lease was a two-way affair, each nation giving to the common cause according to its resources.  President [[Franklin D. Roosevelt]] was the chief promoter, convincing Congress Congress to pass this act so that the Allies could more effectively fight  Nazi Germany and Japan.  Presidential confidant [[Harry Hopkins]] had general oversight on Roosevelt's behalf.  

It was a system of mutual and reciprocal aid which gave the U.S. about billions of services in return (especially rental of military bases on Allied soil). More broadly it meant the pooling of the resources, the man power, and the inventive genius of every Allied power. Though the United States initiated the action through the Lend-Lease Act passed by Congress in March 1941 (8 months before Pearl Harbor), and though it furnished by far the largest contribution measured by monetary standards, lend-lease was a two-way affair, each nation giving to the common cause according to its resources.  President [[Franklin D. Roosevelt]] was the chief promoter, convincing Congress Congress to pass this act so that the Allies could more effectively fight  Nazi Germany and Japan.  Presidential confidant [[Harry Hopkins]] had general oversight on Roosevelt's behalf.  

[[Image:Lendlease2.jpg|thumb|400px|Women workers in british factories using Lend Lease machinery to make munitions; Britain received 60% of the Lend Lease aid]]

[[Image:Lendlease2.jpg|thumb|400px|Women workers in British factories using Lend Lease machinery to make munitions; Britain received 60% of the Lend Lease aid]]

==The Arsenal of Democracy==

==The Arsenal of Democracy==

The United States, by adopting lend-lease became what FDR called, "The Arsenal of Democracy." The U.S. dedicated its economic resources to the smashing of Nazi Germany. Lend-lease was the logical outgrowth of the cash purchases which the Allies, and Britain in particular, had made in the United States since the beginning of the war. President Roosevelt had referred to the United States in this role as the "arsenal of democracy." With their dollar balances in 1940 approaching zero, the British could not continue purchasing vital war materials in America. The Lend-Lease Act, passed by Congress seven months after the destroyer transfer, authorized the President to procure from government facilities or elsewhere "any defense article for the government of any country whose defense the President deems vital to the defense of the United States." The term "defense article" included nearly everything directly or indirectly used for war purposes. The President was also given broad power not only to sell, transfer, exchange, or lease any such article, including "defense information," but also to prescribe any kind of payment he deemed satisfactory. These flexible and general provisions, allowing the bill to be adjusted to the changing circumstances of war, were later found to be highly important to Allied strategy. [[Winston Churchill]] called it "the most unsordid act."

The United States, by adopting lend-lease became what FDR called, "The Arsenal of Democracy." The U.S. dedicated its economic resources to the smashing of Nazi Germany. Lend-lease was the logical outgrowth of the cash purchases which the Allies, and Britain in particular, had made in the United States since the beginning of the war. President Roosevelt had referred to the United States in this role as the "arsenal of democracy." With their dollar balances in 1940 approaching zero, the British could not continue purchasing vital war materials in America. The Lend-Lease Act, passed by Congress seven months after the destroyer transfer, authorized the President to procure from government facilities or elsewhere "any defense article for the government of any country whose defense the President deems vital to the defense of the United States." The term "defense article" included nearly everything directly or indirectly used for war purposes. The President was also given broad power not only to sell, transfer, exchange, or lease any such article, including "defense information," but also to prescribe any kind of payment he deemed satisfactory. These flexible and general provisions, allowing the bill to be adjusted to the changing circumstances of war, were later found to be highly important to Allied strategy. [[Winston Churchill]] called it "the most unsordid act."

===USSR===

===USSR===

The [[Soviet Union]], locked in a struggle with the invading German [[Wehrmacht]] greatly benefited from the US war materials; they were delivered via Arctic seaports of Archangel and Murmansk, over land acroos Persia (Iran), and via Vladivlastock. While Soviets historians downp[layed the importance of the aid, recent scholarlship has discovered how essential it was to the Soviet war effort.

The [[Soviet Union]], locked in a struggle with the invading German [[Wehrmacht]] greatly benefited from the US war materials; they were delivered via Arctic seaports of Archangel and Murmansk, over land across Persia (Iran), and via Vladivostok. While Soviets historians downplayed the importance of the aid, recent scholarship has discovered how essential it was to the Soviet war effort.

===China===

===China===

Shortly before [[Pearl Harbor]], Hopkins took on President [[Franklin Delano Roosevelt]]'s adviser [[Lauchlin Currie]] as deputy for Lend-Lease aid to the  Chinese [[KMT]]. The hope was that Lend-Lease aid would enable the Chinese to tie down large Japanese armies.  

Shortly before [[Pearl Harbor]], Hopkins took on President [[Franklin Delano Roosevelt]]'s adviser [[Lauchlin Currie]] as deputy for Lend-Lease aid to the  Chinese [[KMT]]. The hope was that Lend-Lease aid would enable the Chinese to tie down large Japanese armies.  

==Termination==

==Termination==

As a war measure, Lend-Lease was terminated by President [[Harry S. Truman]] in September 1945. Termination was hasty and unexpected and severely upset the Soviet Union and Britain; however the U.S. had also started up an entirely separate program of powstwar relief and loans. Thus the U.S. loaned France $500 million in 1945 and Britain $3.75 billion at 2% interest, three years before the [[Marshall Plan]] aid started.  Truman ignored Stalin's request for a $6 billion loan.

As a war measure, Lend-Lease was terminated by President [[Harry S. Truman]] in September 1945. Termination was hasty and unexpected and severely upset the Soviet Union and Britain; however the U.S. had also started up an entirely separate program of postwar relief and loans. Thus the U.S. loaned France $500 million in 1945 and Britain $3.75 billion at 2% interest, three years before the [[Marshall Plan]] aid started.  Truman ignored Stalin's request for a $6 billion loan.

The United States delivered material valued at more than $50 billion and had received in reverse lend-lease material valued at less than $8 billion.  Reverse lend-lease from the UK included worldwide shipping services amounting to £163,944,000, and inland transport of £48,496,000; capital installations in the United Kingdom came to £222,800,000, of which £117,341,000 was spent on air fields for the U.S. Air Force. (The rate of exchange was £1 to $4).  

The United States delivered material valued at more than $50 billion and had received in reverse lend-lease material valued at less than $8 billion.  Reverse lend-lease from the UK included worldwide shipping services amounting to £163,944,000, and inland transport of £48,496,000; capital installations in the United Kingdom came to £222,800,000, of which £117,341,000 was spent on air fields for the U.S. Air Force. (The rate of exchange was £1 to $4).  

No repayment was required of aid given during the war. Originally ships were to be returned to the U.S., but in practice the U.S. had a huge surplus of ships and did not ask for them to be returned. Supplies that were en-route when the program ended were sold to the Allies on favorable terms at low prices and long-term loans.

No repayment was required of aid given during the war. Originally ships were to be returned to the U.S., but in practice the U.S. had a huge surplus of ships and did not ask for them to be returned. Supplies that were en-route when the program ended were sold to the Allies on favorable terms at low prices and long-term loans.

==Historiography==

==Historiography==

Gaddis Smith, A. J. P Taylor, Warren Kimball, and David Reynolds have speculated at length on Roosevelt's motives in the lend-lease matter. British historian Taylor implies that the U.S. intended from the first to use Britain's predicament to drain it of gold and dollars, weaken its overseas financial position, and undermine its capacity to compete with the United States in the  

Gaddis Smith, A. J. P Taylor, Warren Kimball, and David Reynolds have speculated at length on Roosevelt's motives in the lend-lease matter. British historian Taylor implies that the U.S. intended from the first to use Britain's predicament to drain it of gold and dollars, weaken its overseas financial position, and undermine its capacity to compete with the United States in the  

markets of the world. Others argue that, while Britain's replacement by the United States as the dominant economic power in the world was a result of lend-lease, it was not a cause. The president concluded that the European members of the Axis alliance were bent on world domination and that, after the fall of France, Hitler posed a direct threat to the Western Hemisphere. Quite aside from a natural sympathy for Britain and a desire to see it survive, Roosevelt, Secretary of State [[Cordell Hull]], Secretray of the Treasury [[Henry Morgenthau]], Secretary of War [[Henry Stimson]], and FDR advisor [[Harry Hoopkins]] company saw Britain in early 1941 as America's first line of defense. These historians admit that Morgenthau forced the sale of American Viscose Corporation, a subsidiary of the British textile combine, Courtalds, at approximately half its  

markets of the world. Others argue that, while Britain's replacement by the United States as the dominant economic power in the world was a result of lend-lease, it was not a cause. The president concluded that the European members of the Axis alliance were bent on world domination and that, after the fall of France, Hitler posed a direct threat to the Western Hemisphere. Quite aside from a natural sympathy for Britain and a desire to see it survive, Roosevelt, Secretary of State [[Cordell Hull]], Secretary of the Treasury [[Henry Morgenthau]], Secretary of War [[Henry Stimson]], and FDR advisor [[Harry Hopkins]] company saw Britain in early 1941 as America's first line of defense. These historians admit that Morgenthau forced the sale of American Viscose Corporation, a subsidiary of the British textile combine, Courtalds, at approximately half its  

market value of $56 million, but point out that this was trivial compared to the reduction of British holdings the U.S. could have demanded. Morgenthau believed that Congress would never agree to the unprecedented subsidy that lend-lease involved unless the administration could neutralize widely held notions of British opulence by demonstrating that the Exchequer was out of dollars and gold. These latter scholars tend to neglect an important point, however.<ref> Woods (1990) pp 9-10.</ref>

market value of $56 million, but point out that this was trivial compared to the reduction of British holdings the U.S. could have demanded. Morgenthau believed that Congress would never agree to the unprecedented subsidy that lend-lease involved unless the administration could neutralize widely held notions of British opulence by demonstrating that the Exchequer was out of dollars and gold. These latter scholars tend to neglect an important point, however.<ref> Woods (1990) pp 9-10.</ref>