Submitted a memorandum to the State Department, the Lend-Lease 
      Administration and the American Treasury on our balances and 
      on our liabilities, asking the American Government to recognize 
      that, in view of our growing external liabilities which arose 
      directly from the war, the position of our balances should, not 
      be regarded as open to criticism. This view received strong support 
      in some of the American Departments, though not in all. Mr. Stettinius 
      and the State Department are wholly convinced that, in the circumstances, 
      there should be no reduction of Lend-Lease, and that this small 
      mitigation of our growing indebtedness should be allowed to accrue 
      to us. The Lend-Lease Administration (at any rate before they 
      were merged in the new body) were of the same opinion. The U.S. 
      Treasury, on the other hand, has been taking a sticky line, for 
      reasons which have never been explained to us. They have shown 
      disinclination to discuss the matter with any of our representatives 
                     or to give any reasons.                
 
                                                            
 
 
Some elements in the Administration maintain tat Congress 
      was given to understand the Lend-Lease was only to apply to the 
      extent which the recipient countries were utterly unable to pay 
      for imports, whether of food or military equipment. In other 
      words, however great our liabilities, we are not entitled to 
      Lend-Lesse as long as we have a dollar in the till. This view 
      might have been sustainable in some quarters before Pearl Harbor. 
      But it is, of course, utterly contrary to the principle of the 
      pooling of resources between Allies, and also to the principle 
      that the most convenient supplier shall provide the materials, 
               irrespective of financial liability.         
 
                                                            
 
 
Moreover, it is a doctrine apparently to be applied to us 
      only, for no such suggestion has been made to Russia. Nor, of 
      course, do we apply it in giving reciprocal aim to the Americans 
      or to any other country.