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                            -2-                             
 
                                                            
 
 
the war production and war resources of both nations should 
      be used by the armed forces off each, and of the other United 
      Nations, in ways which most effectively utilize available materials, 
       manpower, productive facilities and shipping space.  
 
                                                            
 
 
2. Where appropriate, decisions as to the most effective use 
      of resources shall be made in common, pursuant to common plans 
                       for winning the war.                 
 
                                                            
 
 
3. As to financing the provision of such aid, within the fields 
      mentioned below, it is my understanding that the general principle 
      to be applied is that as large a potion as possible of the articles 
      and services to be provided by each Government to the other shall 
      be in the form of reciprocal aid so that the need of each Government 
      for the currency of the other may be reduced to a minimum. It 
      is accordingly my understanding that the United States Government 
      will provide, in accordance with the provisions of, and to the 
      extent authorized under, the Act of March 11, 1941, the share 
      of its war production made available 
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