Avoiding Accumulation Of Large War Debts

Manawatu Times, Volume 69, Issue 64, 18 March 1944, Page 5

Avoiding Accumulation Of Large War Debts

IMPORTANT MUTUAL AID AGREEMENT (British Official Wireless.) Received Friday, 9.20 p.m. RUGBY, March 16. The Canadian Prime Minister made it clear to-night in laying before the Canadian Commons that the test of the mutual aid agreements between Canada, the United Kingdom, U.S.S.R. and Australia was that no carry-over of war debts was contemplated. Mr. Maczenkie King gave details of these agreements which were tho outcome ol the Mutual Aid Act and also of the master agreement signed between Canada and the United Kingdom. “Since early in the war the Government has taken the position that the accumulation of large war debts was contrary to the public interest.” A similar policy had been pursued by the United States and Britain, he went on. 4 4 It has been our purpose in instituting the mutual aid procedure to leave at the end of the war no indeterminate obligations arising from the provision of war supplies by Canada which woula have to be settled by subsequent negotiations. * *. The agreements were in some respects parallel to the Lend-Lease agreements concluded by the Government of the United States with many of the Governments receiving supplies from that country under the Lend-Lease Act. “It is to be remembered, however, that the Lend-Lease Act was adopted when the United States still retained neutrality, whereas the Mutual Aid Act was passed when Canada had been at war for over three and a-half years. “The Lend-Lease Act was based on the conception that the defence of the United States would be furthered by the provision of supplies on other than a cash basis to countries at war with the Axis. The Mutual Aid Act is based on the realisation that the provision of materials to the common cause is not less vital and no less a duty that the provision of fighting men. ’ ’ The Govermnent of Canada, said Mr. Mackenzie King, would not require the recipient Government to “redeliver to the Government of Canada any war supplies delivered under this agreement except as specifically provided.” These contingencies are provided for under the separate heads of the agreements. The agreements with the United Kingdom and the Soviet Governments were signed on February 11 and the agreements with Australia on March 9. A similar agreement, it is stated, is in process ol negotiation with other Governments or authorities receiving supplies from Canada in significant volume under the Mutual Aid Act, notably China and the French Committee of National Liberation. Mr. Mackenzie King went on to describe the master agreement signea on February 11. This lays down the conditions under which Canada will deliver to the United Kingdom aircraft, lorries and other war supplies including essential foodstuffs. The main provision of this is: “The two countries reaffirm their desire to promote mutually advantageous economic relations between their countries and throughout the world. They declare that their guiding purposes include the adoption of measures designed to promote employment, production and consumption of goods and the expansion of commerce through appropriate international agreements on a commercial policy, with the object of contributing to the attainment of all the economic objectives set forth in the declaration known as the Atlantic Charter. ’ ’ The Canadian Press ‘Association points out that Canadian mutual aid differs from American Lend-Lease inasmuch as it does not require postwar settlement or payment whereas the United States Lend-Lease agreemeut provides for a settlement on such terms as the President may deem satisfactory. These terms have never been defined.