LEND-LEASE SETTLED WITH UNITED STATES

Chronicle (Levin), 11 July 1946, Page 6

LEND-LEASE SETTLED WITH UNITED STATES

-Press Assoeiation

And Way Opened For Further Collaboration

By Telegraph-

A11 announcement that an agi tlie United States and New Zealt Leud-Lease and Teeipi'ocal aid and United States Surpius property Prime Minister. The agreement behalf of the United States Gover: State, Mr. Dean Acheson, and 011 W. Nasli. "The agreemont provides that, in recognition of the benelits mutually received by tlie two Govemments from the interchange of Lehd-Leas'e and reciprocal aid goods used in the achievement of th,e com'mon victory, 110 payment will be required of oitlier country," said the Minister of Bupply, Ilon. D. G. *8ullivan, in an explanatory comment. "There is to be a mutual cancellation of lend-lease and reciprocal aid. " Pollowiug is the sunimary of the main provisions of the agreement: — Eirstly, neither Governmetn will be required to make any payment to the other for lend-lease and reciprocal aid. Secondly, except for lend-lease articles held by the New Zealand Armed Eorces, full title is acquired b\ the New Zealand Government to all lend-lease niaterial held in stock in New Zealand 011 2/9/45 as well as to goods in transit and ready for ship ment from United Gtates ports on that date. No payment is to be made for United Btates goods supplied to New Zealand forces in the Paciiic up to 41/12/45. Thirdly, siniilarly the "United States Governmeut acquires title to all reciprocal aid goods lield in store on VJ l)a} and supplies made availablo to thc United States Armed Eorces to 61/12/45 will not be charged for by thc New Zealand Government. Eourthly, lend-lease goods held bi the New Zealand Armed Eorces may bt used or divertcd for any purpose excep. that equipment such as arnis, ammuui tions and weapons are not to be traus terred to any other country without th( prior eonsent of the United State.-. Government. Thexe is a corresponding provision regarding reciprocal aio material in thc possession of the Uniteu States Armed Eorces at 2/9/45. Pifthly, each "Government rcserves tlie right to rccapture material supplieo to the other country 's armed forces although the agreement states cxpressfy there is 110 iutention to exercise that right generally. It is further provided that rccapture would apply ouly after reasonablu uotice aud would be liniitod to equixiuiout still iu the possession of the recipient Government wlien (lie request for rccapture was made. Mr. Sullivan said the total LendUcase aid received by New Zealand was recorded at £104,576,000 and the corresponding value of reciprocal aid provided by New Zealand was £73,250,000. L'ho value 6f LCnd-Ltllst1 ' hihi enlll" fiWd' 111 store and subsequently shipped to N ew- Zealand after \'J Day, to wliicli New Zealand acquires t'ull title, was approxiniutely £5,000,000. This excludes the value of Lend-Leasc equipment and material held by tlie- New Zealand Armed Eorces. Ueciprocal Aid goods to wliicli the United States Gov ernniont acquires title and excluiiiug material lield by the United States Armed Eorces, was vttlued at approxlmately £1,600,000. . "The relative sacrifice caiinot be incasured in monetary terms alone but this is t satisfactory enditig to an inreresting, just and successful experiment in wartitne international iinancc and is a further illustration . of thc wholehearted cooperation between thc two countries which was maiiifested

WELLINGTON, July 10. ■eement liad been signed between md l'or the overall 'settlement1 of . providing for the sale of ccrtain was made late tonight by the u-as signed at Washington 011 nment by the aeting-Secretary of behalf of New Zealand by H011. duriug the war period, " said the Minister. I11 addition to the discussions notv completed eoncerning the mutual caucellation of lend-lease and reciprocal aid, negotiations had been in progress dur- • ing l'eeent months 011 the separate question of the purcliase by the New Zealand Government of quantities of United States surpius war material situated both in New Zealand and in the Paciiic. . This included earthmoving machinery, steel huts, hangars, civilian type aircraft, radio and navigational equipment and also a large quantity of miscellaneous, stores all in very short supply aud unobtainable elsewhere. Satisfactory arrangements had been made to pafy for this material without the uecessity for the immediate iirovision of doilar funds, by setting off the purcliase -price against the contemplated expenditure by United States authorities within New Zealand. I11 connection with this surpius war property bought by the New Zealand Government, the agreement provides that it is to be paid for by the establishment of a fund in New Zealand curreucy. This fund is to be used as agreed between the two Governments, for, lirstiy, the purcliase of property and accoimnoda- ! tion for United States institutious in : New Zealand; secondly, exiieiiditure for carrying out educational and culturalj programmes; thirdly, iirovision for such! other property or services to the United j States Government as may be determin-i ed by agreement between th two Gov- 1 eniments; fourthly, if, after three" years, the fund lias not been fully expended 011 these objects, any rosiuue ; will be paid to the United States -Gov-, ernment in United States dollars. Mr. Sullivan said negotiations for tlie purchase of some of this equipment had not been completed but it was estimated the inaximum commitment would not exceed 5,500,000 dollars wliicli, couvertcd into New Zealand curreucy at" the'agreed excliaiige rate of 6.2442 dollars! to the New Zealand pound, was equivaient to approximately £.17,000,000. This stiiii would be paid into thc spccial fund to be held by tlie New Zealand Govern-' ment 011 behalf of the United States authorities. With the exception of certain minor! and special claims, all other linancial claims between the two countries uris-1 ing from lend-lease and reciprocal aid, or incideutal to thc eonduct of the rccent war, were to be waived. The spccial claims referred to, cover the pro-l turetrtaHpof qiartfeular types of supplies • by each country from the other, and. also outstanding claims arising from, acts or omissioiis of members of United States forces in New Zealand reluting mainly to property damaged. Alr. Sullivan said the mai 11 fact was tliat the agreement provided for the complete cancellation of obligation^ arising from lend-lease and reciprocal aid transactions between tlie New Zea-i land aiul United States Governments. I11 rcspect of surpius United States war property purchased by tlie New Zealand Government, payment is to be made in New Zealand pounds which will be expended by the United States Government in agreement with tlie New Zealand Government, upon specilied' loeal objects from which mutual bene--lit will be derived by both countries. j