(1) Please see Dominions Office despatch No. 90 of 30th November,
1942 [1], referring to Article V of the Mutual Aid Agreement.

(2) We have noted the steps the United Kingdom Government is
taking to enable them to fulfil the undertaking given in Article
V. Somewhat similar procedures have been in operation here from
the inception of Lend Lease arrangements.

(3) We have also been giving some thought to the implications of
Article V. Our position at the end of the war will be that a large
number of factories will be equipped wholly or partly with Lend
Lease plant and machinery-our internal transport system will be
functioning largely on Lend Lease motor vehicles and some Lend
Lease railway equipment-our food production will be organised on a
mechanised basis with Lend Lease agricultural, food processing and
canning machinery-and we are likely to be holding considerable
stocks of industrial raw materials supplied to us as Lend Lease
aid.

(4) The withdrawal at the end of the war of all or part of this
vital equipment would be exceedingly embarrassing to us and the
present uncertainty of the position will add to our difficulties
in the formulation of post-war reconstruction plans. We would like
to feel that when the time comes we would be in a position to
retain selected equipment, if necessary by making cash payment.

(5) From our point of view some clarification of the intention of
the United States Administration regarding Article V would be of
great assistance, but we are fully conscious of the difficulties
of making a special approach on the matter to the United States,
particularly at this stage. We feel it would be useful, however,
if you were to discuss the matter informally with the appropriate
United Kingdom authorities, stress its importance from our point
of view and ascertain what their views are.