President Roosevelt Defends Lend-Lease

Introduction

• Date: December 17, 1940
• Speaker: Franklin D. Roosevelt
• Context: Press conference defending the Lend-Lease policy during World War II

Background

• Neutrality Laws (1939):
  • Congress passed a law allowing trade with warring nations on a "cash and carry" basis.
  • Retained ban on war loans, affecting Britain’s ability to purchase from the U.S.
• Lend-Lease Concept:
  • Devised by Roosevelt as Britain needed credit for munitions and materials.
  • Preceded by the "bases-for-destroyers" deal with Britain.

Key Points from Roosevelt's Press Conference

• Defense Strategy:
  • Helping Britain is crucial for U.S. defense as it contributes to the survival of democracy.
  • U.S. should assist Britain to avoid having to engage in war itself.
• Historical Example:
  • Recollection of 1914, illustrating the unexpected duration and economic implications of war.
• Economic Opinion:
  • Past views held that war continuation depended on financial resources.

Lend-Lease Policy Explanation

• Justification:
  • Orders from Britain enhance U.S. defense by boosting production facilities.
  • Providing support is essential, not just through repealing Neutrality Acts or monetary loans.
• Alternatives to Monetary Gifts or Loans:
  • Options include converting British orders to American orders.
  • Lease or sell materials to Britain based on defense needs.
• Eliminating the Dollar Sign:
  • Aim to remove emphasis on financial transactions in favor of gentleman’s obligations.

Analogy Used by Roosevelt

• Garden Hose Example:
  • Lending neighbor a hose to put out a fire; expectation is to return or replace the hose, not monetary payment.
  • Illustrates the principle of lending aid without direct financial repayment.

Conclusion

• Forward Steps:
  • Explore methods to maintain production and supply to Britain.
  • Any arrangement should prioritize American defense and mutual obligations.