The Dominion WEDNESDAY, JANUARY 27, 1943. LEASE-LEND TRANSACTIONS

Dominion, Volume 36, Issue 104, 27 January 1943, Page 4

The Dominion WEDNESDAY, JANUARY 27, 1943. LEASE-LEND TRANSACTIONS

On more than one occasion during the past few weeks the Government has been urged in these columns to give some indication of how the Dominion stands with regard to the Financial side of the lease-lend transactions with the Government at Washington. The other day a cable message from New York quoted "authoritative British quarters as predicting that “the lease-lend scales will be evenly balanced at the end of the war in New Zealand and Australia,” due to the fact that these countries now supply the bulk of the food consumed by American forces in the south and south-west Pacific zones, these operations were termed “lend-lease in reverse.” , • • A cable message published yesterday stated that administrator of the plan in Washington had reviewed the operations in some detail. American forces in the Pacific area, he said, were receiving over 100,000.0001 b. of food from Australia and New Zealand with the result that practically no food supplies were being shipped from the United States, resulting in a great saving of shipping. The items given will account for a great part of the contras which the Dominion is buildin" up to offset the cost of munitions and supplies which it may obtain from the United States, but there appears to be no account specifically relating to the transactions. . There is however, one item in the War Expenses Account which has grown with such remarkable speed that it seems reasonalrle to conclude that it covers these extensive dealings. It is Subdivision V. Civil” of the expenditure under the War Expenses Act, 193 J. lhe following table shows the expenditure under this heading for the past three financial years, together with the figures for the first six month.-, of 1942-43:-'

The most feasible explanation of that remarkable growth—to a point where the “civil” expenditure was approximately 30 pet cent, of tl e war expenditure that came to charge during the first six months of the current financial year-would seem to be that it covers the leaselend transactions of the Dominion. What other dealings on that scale could there have been ? They are a charge to the War Expenses Account but will constitute the credit items in any lease-lend account A great deal now depends—assuming that the deduction that the "civil” items deal with this extensive business is correct—upon the extent to which the Dominion has obtained munitions, supplies or goods of anv kind from the other partner to the agreement. 4he .Financial Statement estimated that this year £ 10,000.000 would be under the lease-lend procedure” and even if that limit should be ieacl ’ there mav be a balance in favour of the Dominion at the close of t year. If our requirements have fallen short of the sum mentioned then the balance may be substantial. But there is no apparent reason why the transactions should no be shown in an account dealing solely with lease-lend operations, just L there is no reason whv the total transactions under the memorandum of security with the British Government-and ,iot outstanding—should not be disclosed. It is to be hoped that th accounts for the current year, when presented, will contain this - formation, for it is of moment to the people of the Dominion. It renresents an important aspect of the war effort and may have added importance when the time comes for post-war settlements.

Year. 19411942- (six months) 34.754 278.592 4,494,332 .. 12.262,71 (i