-2-                             
 
                                                            
 
 
In applying these principles the United Kingdom will furnish 
      United States forces with all military equipment, munitions, 
      military and naval stores, supplies, materials, facilities, and 
      services for which the United Kingdom or the British colonial 
          empire is the most effective source of supply.    
 
                                                            
 
 
   The proponed arrangement with Australia is identical.    
 
                                                            
 
 
These drafts have been approved in substance by the War and 
      Navy Departments, the Office of Lend-Lease Administration, the 
      Treasury and the Board of Economic Warfare as a basis for negotiation 
      with the British and Australians. If you approve them for this 
      purpose, negotiations will be undertaken immediately. 
 
                                                            
 
 
You have recently approved the conclusion off lend-lease agreements 
      with a number of the other United Nations substantially identical 
      to that with the United Kingdom. It is anticipated that such 
      an agreement or arrangement identical in substance will be concluded 
      with Australia before the proposed exchange of notes is carried 
                               out.                         
 
                                                            
 
 
                     Faithfully yours,                      
 
                           Enclosures:                      
 
                                                            
 
 
                       Four drafts,                         
 
      as stated.