LEND-LEASE PLAN

Grey River Argus, 4 June 1943, Page 2

LEND-LEASE PLAN

U.S. GIVES OVER £26,000,000

N.Z. RETURNS £7,000,000.

WELLINGTON. June 3

In presenting the Financial Statement to the House of Representatives last evening the Minister ot. Finance (Hon. W. Nash) discussed the operation of the lend-lease plan between the United States and New Zealand. He sard: — “Reverse lend-lease is the counterpart of the assistance we receive lend-lease from the United States ot America. The supplies and services which we provided for the United States forces included capital works such .as temporary camps, hospitals, and ships to the total value of £3,250,000, food valued at £2,000,000, anc. transportation, repairs, rentals, other services to the extent of £1,750,000. These supplies and services for the past year, as already indicated, are shown in the War Expenses Account at £7,000,000, as against corresoonding assistance which we received amounting to a total of £26,800,000, comprising motor vehicles, ammunition, .aeroplanes, ordnance stores, oil and petrol, and supplies for other essential purposes. In considering these results, however, account must be taken of the fact that reverse lend-lease was in operation for only part of the financial year, whereas lend-lease, while .appearing for the first time in the year’s accounts, covered a period of more than a year. Activities under reverse lend-lease are increasing rapidly, and the cost for this year will show a substantial increase. Although values are quoted in the accounts, I would like to emphasize that lend-lease is granted not in terms of money, but in terms of the quantity of particular kinds of goods required for the war effort. The goods and services provided under reciprocal aid to the United States Forces are paid for by us and are consequently brought into our accounts at the actual cost. Lendlease, on the other hand, is included in the accounts to complete the picture of our resources for war.” Later in his statement, Mr Nash said: “Reciprocal ,aid to the United States is estimated this year at a total of £20,000,000. The largest item will be foodstuffs, estimated at £9,000,000. In addition, building projects are estimated as follows: Buildings (mainly hospitals) £2,000,000, camps £2,000,000, warehouses £1,500,000, and miscellaneous £1,000.000, together with a shipbuilding programme estimated at £2,000,000 for the South Pacific and South-west. Pacific areas. Also an amount of £2,500,000 is estimated to be required to, meet payment of rentals, provision" of services (including wharf labour), and purchase of miscellaneous goods to ■ meet United States Forces’ requirements. The full cost of buildings is met in the first place by the War Expenses Adcourtt, but the actual charge against reverse lend-lease depends upon whether such buildings will be of use to New Zealand for post-war purposes. If such a use is anticipated, then only a rental charge is made; but if the buildings will be of no practical use, then the full cost is charged against reverse lend-lease. Of the foodstuffs to be provided by New Zealand the largest it«ms in pound weight are meat and vegetable ration 4,200,000. potatoes 48,300,000; apples 21,800,000, service biscuits. .3,200,000, butter 14,200,000, pork 15,400,000, mutton 14,000,000, ham 7,800,000, beef 46,800,000. bacon 15,400,000, beef (corned) 8,100,000. The value of these items in New Zealand currency is £6,500,000. The additional £2,500,000 comprises such items as cereals, vegetables (fresh and canned), fresh fruit, cheese, jams, sauces and pickles.