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Q: Lend-Lease (WW2): A Rough Accounting ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Lend-Lease (WW2): A Rough Accounting
Category: Relationships and Society > Government
Asked by: probonopublico-ga
List Price: $15.00
Posted: 11 Jul 2004 00:26 PDT
Expires: 10 Aug 2004 00:26 PDT
Question ID: 372591
I have seen various figures but I'd like a G-Genius to give me a Grand
Total and, if possible, the top three beneficiaries.

Also, how much did Great Britain repay? 

And what happened to the balance?

As a Brit, am I suddenly going to be landed with a bill from our
colony across the pond?

Many thanks!
Answer  
Subject: Re: Lend-Lease (WW2): A Rough Accounting
Answered By: juggler-ga on 11 Jul 2004 02:54 PDT
Rated:5 out of 5 stars
 
Greetings Bryan,

Interesting question, as usual!


Here are the top Lend-Lease beneficiaries:

" Lend-Lease
Great Britain............$31 billion
Soviet Union.............$11 billion
France...................$ 3 billion
China...................$1.5 billion
Other European..........$500 million
South America...........$400 million
The amount totaled: $48,601,365,000."

source: History Central
http://www.multied.com/ww2/events/lendlease.html


"Total lend-lease aid exceeded $50 billion, of which the British
Commonwealth received some $31 billion and the USSR received over $11
billion. Within 15 years after the termination of lend-lease,
settlements were made with most of the countries that had received
aid, although a settlement with the USSR was not reached until 1972."
source: infoplease.com
http://www.infoplease.com/ce6/history/A0829381.html


--------

Although the British Commonwealth received $31 billion in Lend-Lease
aid, it appears that there was a postwar settlement agreement that
Britain would owe around $5.2 billion plus interest.    A New York
Times article from 1955 details how the British had made a $155
million payment, but still owed $4.58 billion on a debt that, at its
height, was $5.2 billion.
see:
BRITAIN REDUCES DEBTS $137,845,431; Payment to U. S. Is Made on
Post-World War II Account -- Billions Still Owed
New York Times: Jan 1, 1955. p. 3
http://pqasb.pqarchiver.com/nytimes/results.html?st=advanced&QryTxt=&x=0&y=0&By=&Title=BRITAIN+REDUCES+DEBTS&datetype=6&frommonth=01&fromday=01&fromyear=1955&tomonth=12&today=31&toyear=1955&restrict=articles&sortby=REVERSE_CHRON


All indications suggest that the British government has been making
fairly regular payments on that $5.2 billion debt (plus 2 percent
annual interest) for the last five decades.
 
A 1966 article in the New York Times indicates that Britain had
resumed its regularly scheduled postwar payments after missing them
for three years.
See: 
BRITAIN TO MAKE 2 LOAN PAYMENTS
 The New York Times.  Dec 17, 1966.  pg. 45, 
http://pqasb.pqarchiver.com/nytimes/results.html?st=advanced&QryTxt=&x=0&y=0&By=&Title=Britain+Makes+Payment&datetype=6&frommonth=01&fromday=01&fromyear=1966&tomonth=12&today=31&toyear=1966&restrict=articles&sortby=REVERSE_CHRON

A New York Times article from 1970 mentions that the British had made
a $188.4 million payment.  The article also says that the original
loan was at 2 percent interest and was due to be repaid in 2005.
see:
Britain Makes Payment To U.S. on Postwar Loan
New York Times: Jan 1, 1970. p. 35
http://pqasb.pqarchiver.com/nytimes/results.html?st=advanced&QryTxt=&x=0&y=0&By=&Title=Britain+Makes+Payment&datetype=6&frommonth=01&fromday=01&fromyear=1970&tomonth=12&today=31&toyear=1970&restrict=articles&sortby=REVERSE_CHRON


That's consistent with this internet messageboard item:

"(1) Lend lease payments from the Brits were rescheduled in 1946; in
the April 2003 UK Govt budget you will see a line item that
$160million remains outstanding and will be repaid in full with
interest by June 30, 2005."
http://www.strategypage.com/messageboards/messages/12-1956.asp

I direct your attention to:
DEBT & RESERVES MANAGEMENT REPORT 2003-04
http://www.hm-treasury.gov.uk/media/52848/DebtManageRpt03to04PartOne(756kb).pdf

Notice on page 15, under the heading "Bank of England," there are
"loans" of 0.4 billion.
Footnote #11 indicates those loans are "Composed of Canadian and US war debt."

--------------

The U.S. hasn't done quite so well with its other big Lend-Lease
client, the Soviet Union.

According to a New York Times article, the U.S. asked the Soviet Union
in 1947 to repay $1.3 billion of its Lend-Lease debt.  The Soviet
Union offered $170 million.  The issue was basically dormant until the
Soviets agreed in 1972 to partially settle the debt by buying $750
million in grain from the U.S.
See:
MOSCOW AGREES TO BUY U.S. GRAIN FOR $750-MILLION; CREDITS PLANNED
WarNew York Times: Jul 9, 1972. p. 1
http://pqasb.pqarchiver.com/nytimes/results.html?st=advanced&QryTxt=&x=0&y=0&By=&Title=MOSCOW+AGREES+TO+BUY+U.S.+GRAIN&datetype=0&frommonth=09&fromday=01&fromyear=1851&tomonth=12&today=31&toyear=1995&restrict=articles&sortby=REVERSE_CHRON

The Russian Federation inherited the debt from the Soviet, and it was
still on the books to the tune of $600 million as of a few years ago.
See: Russia's Paris Club Debt, Table 3
http://www.ncseonline.org/nle/crsreports/economics/econ-72.cfm?&CFID=14786900&CFTOKEN=2020905

------------

search strategy:
"lend lease" billion britain "soviet union"
new york times archive: "lend-lease", repaid

I hope this helps. Thanks!

Clarification of Answer by juggler-ga on 11 Jul 2004 02:58 PDT
Bryan,

I notice that the URL for that  DEBT & RESERVES MANAGEMENT REPORT
didn't parse correctly due to its inclusion of parentheses.

Use this Google search instead:
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&c2coff=1&q=%22DEBT+%26+RESERVES+MANAGEMENT+REPORT+2003%22&btnG=Search

I notice now that there's actually a more recent 2004-05 report
showing that the war debt had been reduced to 0.3 billion.
probonopublico-ga rated this answer:5 out of 5 stars and gave an additional tip of: $10.00
Hi, Juggler, & Very Many Thanks

You've deserve 50 Stars but I am afraid that, as yet, I haven't quite
got the hang of this system.

All the Very Best

Bryan

Comments  
Subject: Re: Lend-Lease (WW2): A Rough Accounting
From: juggler-ga on 11 Jul 2004 10:39 PDT
 
Bryan,
Thank you for the tip and kind words.
Best regards,
-juggler

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