Lend-Lease

• 1. Neutrality And Isolationism

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  The 1930s began with one of the world's greatest economic depressions. The later recession of 1937, 1938 was also one of the worst of the 20th century. In 1934, following the Nye Committee hearings, the United States Congress adopted several Neutrality Acts in the 1930s. These acts were motivated by non-interventionism and a desire to avoid entanglement in foreign conflicts again. The Neutrality Acts of 1935, 1936, and 1937 made it illegal for Americans to sell or transport arms to warring nations. This policy aimed to keep the United States out of war entirely.

  In 1939, President Roosevelt wanted more flexibility to help contain Axis aggression. He suggested amending the act to allow warring nations to purchase military goods if they paid cash and bore the risks of transporting the goods on non-American ships. This policy favored Britain and France initially. After Germany and the Soviet Union invaded Poland in September, Congress passed the Neutrality Act of 1939 ending the munitions embargo on a "cash and carry" basis. This marked the beginning of a congressional shift away from isolationism.

• 2. Arsenal Of Democracy Proposal

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  President Roosevelt proclaimed the United States would be the "Arsenal of Democracy" during his the 29th of December 1940 Fireside Chat radio broadcast. He proposed selling munitions to Britain and Canada. Isolationists strongly opposed this measure, warning it would result in American involvement in what was considered an essentially European conflict. Opinion shifted as increasing numbers of Americans began to consider the advantage of funding the British war against Germany while staying free of hostilities themselves.

  During early February 1941, a Gallup poll revealed that 54% of Americans were in favor of giving aid to the British without qualifications. A further 15% were in favor of qualifications such as: "If it doesn't get us into war" or "If the British can give us some security for what we give them." Only 22% were unequivocally against the President's proposal. When poll participants were asked their party affiliation, Democrats voted 69% in favor whereas only 38% of Republicans favored the bill without qualification. The House of Representatives took a roll call vote on the 8th of February 1941, with a 260 to 165 vote largely along party lines.

• 3. Global Distribution And Economics

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  A total of $50.1 billion worth of supplies was shipped under the Lend-Lease Act between 1941 and 1945. This amount represented 17% of the total war expenditures of the U.S. Most funds went to Britain and its empire. Specifically, $31.4 billion went to the United Kingdom, $11.3 billion to the Soviet Union, $3.2 billion to France, and $1.6 billion to China. The remaining $2.6 billion went to other Allies.

  The distribution of loans was 90% to the UK, 5% to Australia, 1% to New Zealand, and 3% to India. Canada was not a direct recipient of Lend-Lease aid. To address balance of payment issues between the US and Canada, the Hyde Park Declaration of the 20th of April 1941 made weapons and components manufactured in Canada for Britain eligible for Lend-Lease financing as if they had been manufactured in the US. Reverse Lend-Lease policies comprised services such as rent on bases used by the U.S., totaling $7.8 billion; of this, $6.8 billion came from the British and the Commonwealth.

• 4. Soviet Union Supply Routes

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  Delivery of aid to the Soviet Union occurred via three main routes: the Arctic Convoys, the Persian Corridor, and the Pacific Route. The Arctic route was the shortest and most direct but also the most dangerous as it involved sailing past German-occupied Norway. Some 3,964,000 tons of goods were shipped by the Arctic route; 7% was lost while 93% arrived safely. The Persian Corridor was the longest route and saw the passage of 4,160,000 tons of goods, representing 27% of the total.

  The Pacific Route opened in August 1941 but was affected by hostilities between Japan and the U.S. After December 1941, only Soviet ships could be used since Japan and the USSR observed strict neutrality towards each other. Nevertheless, some 8,244,000 tons of goods went by this route, accounting for 50% of the total. Roughly 17.5 million tons of military equipment, vehicles, industrial supplies, and food were shipped from the Western Hemisphere to the USSR, with 94% coming from the US.

• 5. Logistics And Material Impact

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  Lend-Lease logistical supplies including motor vehicles and railroad equipment remained of enormous assistance even after U.S. forces attained full strength during 1943, 1944. The USSR was very dependent on rail transport. Just 446 locomotives were produced domestically during the war, with only 92 built between 1942 and 1945. In total, 92.7% of the wartime procurement of railroad equipment by the USSR came from Lend-Lease, including 1,911 locomotives and 11,225 railcars.

  Trucks were also vital; by 1945, nearly a third of the trucks used by the Red Army were U.S.-built. Trucks such as the Dodge -ton and Studebaker -ton were easily the best trucks available in their class on either side on the Eastern Front. American shipments of telephone cable, aluminum, canned rations and clothing were also critical. The Soviet air force received 18,200 aircraft which amounted to about 30 percent of Soviet wartime fighter and bomber production over the course of the war.

• 6. Reciprocal Aid And Reverse Lend-Lease

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  Reverse Lend-Lease was the supply of equipment and services to the United States. Nearly $8 billion worth of war material was provided to U.S. forces by its allies, 90% of this sum coming from the British Empire. Reciprocal contributions included the Austin K2/Y military ambulance, British aviation spark plugs used in B-17 Flying Fortresses, Canadian-made Fairmile launches used in anti-submarine warfare, Mosquito photo-reconnaissance aircraft, and Indian petroleum products. Australia and New Zealand supplied the bulk of foodstuffs to United States forces in the South Pacific.

  Though diminutive in comparison, the Soviet Union supplied the United States with chrome and manganese ore, platinum, gold and wood. In a November 1943 report to Congress, President Roosevelt said of Allied participation in reverse Lend-Lease that it demonstrated the depth of cooperation among nations fighting against common enemies. Britain also supplied extensive material assistance to American forces stationed in Europe, for example the USAAF was supplied with hundreds of Spitfire Mk V and Mk VIII fighter aircraft.

• 7. Post-War Repayment And Legacy

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  Large quantities of undelivered goods were in Britain or in transit when Lend-Lease ended on the 2nd of September 1945 following the surrender of Japan. Britain wished to retain some of this equipment in the immediate post-war period. In 1946, the post-war Anglo-American loan further indebted Britain to the United States. Lend-Lease items retained were sold to Britain at 10% of nominal value, giving an initial loan value of £1.075 billion for the Lend-Lease portion of the post-war loans. Payment was stretched out over 50 annual payments starting in 1951.

  The final payment of $83.3 million (£42.5 million), due on the 31st of December 2006, was made by Britain on the 29th of December 2006. After this final payment, Ed Balls, Britain's Economic Secretary to the Treasury, formally issued thanks to the U.S. for its wartime support. While repayment of interest-free loans was required after the end of the war under the act, in practice the U.S. did not expect to be repaid by the USSR after the war. The U.S. received $2 million in reverse Lend-Lease from the USSR.