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      It is estimated that whereas our Army and Navy appraisals for 
      the eight properties totaled $5,500,000, the local prices paid 
      or awards approved would approximate $7,500,000 to $8,000,000. 
      These discrepancies are due to a variety of causes. In some cases 
             they are honest differences of opinion.        
                                                            
 
                                                            
 
 
                                                            
In others the local awards 
      include bonuses to compensate landowners for temporary loss of 
      earning power mid extra expense of moving and resettlement. In 
      Newfoundland, for instance, we urged the Newfoundland Government 
      strongly to require the local residents to vacate properties 
      urgently needed for base construction. To induce the owners to 
      move in a hurry and in the middle of a severe winter, the Newfoundland 
      Government agreed to pay each owner a special bonus of twenty 
      per cent of the value of his property. Under United States practice, 
      we do not pay such bonuses and our appraisers could not, therefore, 
      include these amounts. In practically all cases the local authorities 
      have allowed their people to include modest sums for legal fees. 
      Our appraisals cannot include such fees. Taking everything into 
      account, the discrepancies between our appraisal sand the local 
      awards are understandable and probably not in excess of what 
                       was to be expected.                  
                                                            
 
                                                            
 
 
                                                            
We can of course continue 
      our discussions of these discrepancies with the British authorities, 
      and doubtless in the course of the next few years we could reach 
      a reasonably satisfactory solution in respect to them. The procedure 
      in such matters is, as you know, slow and tedious. Upon reaching 
      an agreement as to amounts, we should then have to pay these 
      sums to the British Government. Presumably appropriations from 
      Congress will have to be sought for the purpose -- possibly some 
      of them after the war is over. In the meantime, the people in 
  the Colonies will grow restive at not receiving  %their mo
                                                            
 
                                                            
 
 
                                                            
In all these circumstances 
      it is recommended that an informal suggestion be made to Mr. 
      Eden on his forthcoming visit to this country that the British 
      Government consider whether it would not care to propose officially 
      to us that the British Government undertake the payment of these 
      private property claims under Reverse Lend-lease. Officers of 
      both the War Department and the Navy Department have informally 
      at various times suggested this procedure to officers of the 
      Department of State, and the Secretaries of War and the Navy 
                   have approved this proposal.