Reverse Lend-Lease and the Program’s Impact on the US Military in World War II

             Between 1941 and 1945, the U.S. spent $296 billion on expenditures related to World War II, which is approximately $5.2 trillion in 2024 money.[i] This represented 35.8 percent of the country’s gross domestic product (GDP), a dramatic increase from the 1.4 percent of the GDP spent on defense in 1940 or the 2.7 percent (projected) spent in 2024.[ii] But not all of this money was used by the 16,000,000 Americans who served in uniform; about $50 billion, or 17 percent, was sent to allies and partners through the lend-lease program.[iii] One of the major U.S. contributions to friendly countries in the Grand Alliance was America’s industrial base. Even before the U.S.’s entrance into the war, the Cash and Carry program, followed by the Lend-Lease program, allowed the U.S. to provide assistance. The Lend-Lease Act, passed on March 11, 1941, formalized the system for the U.S. government to lend or lease materiel and/or supplies to its allies. This included vehicles, equipment, food, and medicine, which allied countries needed to continue to fight against the Axis Powers.[iv] More than forty countries received lend-lease aid.

As a part of the Lend-Lease Act, nations receiving aid could repay the U.S. through a program called reverse lend-lease. About $8 billion, or 16 percent, of lend-lease support was repaid through reverse lend-lease.[v] Reverse lend-lease repayment schemes included allowing U.S. military personnel to use a nation’s military bases, airfields, and ports; providing natural resources, like rubber or oil, to the U.S.; or feeding and providing uniforms to forward-deployed U.S. troops.

Even with efforts to inform the public about these programs, then, as now, there is little secondary information written about reverse lend-lease and even less about the impact of reverse lend-lease programs on the U.S. military beyond financial statistics. The U.S. military benefitted from reverse lend-lease in many ways, including building multinational partnerships and gaining access to bases that facilitated U.S. combat operations around the world. These activities supported U.S. military operations for years after the war. This dissertation will explore the range of reverse lend-lease activities, including the countries and types of programs, and will consider the lasting effects of these activities on U.S. diplomatic relationships and military activities.

The research plan is twofold. The first part includes researching and reviewing available online resources to find primary and secondary sources. The second part comprises identifying collections and records in their holdings that are unavailable electronically. Since there are few secondary sources available specifically about reverse lend-lease, the weight of effort for this dissertation will be primary sources. Considering the research already conducted, the best U.S. sources of primary information are U.S. government documents and contemporary newspaper articles. The National Archives and Records Administration (NARA), Library of Congress (LOC), Franklin Roosevelt and Harry Truman presidential libraries, Department of State Office of the Historian, and the American Presidency Project have significant electronic holdings related to the executive branch, especially concerning the diplomatic negotiations between the U.S. and other countries to come to an agreement over lend-lease/reverse lend-lease support. Each branch of the U.S. military has its own historical primary and secondary holdings. The best non-U.S. sources of primary information are the national archives of the countries that repaid the U.S. using reverse lend-lease. For example, the U.K., Australia, and India, were three of the most significant countries related to reverse lend-lease; few of the related documents are available online. This might drive international travel to support research efforts.

I chose a World War II topic because I have studied this complex global conflict for years. After I read all the World War II books in my junior high library, I had my older sister check out books for me from the high school library. I set a goal to start a PhD in history after I retired from military service, going all the way back to when I was an undergraduate student. Even then, I knew I wanted to specialize in World War II.

As for how this evolved into focusing on reverse lend-lease, I took a World War II class this spring where I disagreed with the professor about the significance of the lend-lease program on coalition warfare during World War II in one of the class’s major papers. This drove me to do more research on lend-lease, and where I formally learned about reverse lend-lease. When I took an economic history class this summer, I wrote a reverse lend-lease paper, focusing on the diplomatic and military aspects of the program. For my job, I am an assistant professor at an Army school; I teach master’s level classes on related topics including joint and multinational operations and strategy. This professor suggested that I write my dissertation on reverse lend-lease, in part because there is little information focused on this interesting and impactful program.

 

INITIAL BIBLIOGRAPHY

Primary Sources

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“Agreement Between the Governments of the United States of America and of Liberia Relating to Defence Areas Within the Republic of Liberia.” No. 137, March 31, 1942. World Legal Information Institute. http://www.worldlii.org/int/other/treaties/UNTSer/1949/8.

“Agreement Between the Government of the United States of America and The Government of The Republic of Ghana on Defense Cooperation, The Status of United States Forces, And Access to And Use of Agreed Facilities and Areas in The Republic of Ghana.” 18-531. Department of State. May 9, 2018. https://www.state.gov/wp-content/uploads/2019/02/18-531-Ghana-Defense-Status-of-Forces.pdf.

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“Agreement Between the United States of America and Mexico Respecting the Transit of Military Aircraft.” April 1, 1941. Office of the Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1941v07/ch35.

Biddle, A. J. Drexel.The Ambassador to the Belgian Government in Exile (Biddle) to the Secretary of State.” 855A.24/93. July 14, 1942. Office of the Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1942v02/d14.

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Hull, Cordell. “Destroyers for Bases Agreement, 2 September 1940.” Letter to the British Ambassador. Naval History and Heritage Command. https://www.history.navy.mil/research/library/online-reading-room/title-list-alphabetically/d/destroyers-for-bases-agreement-1941.html.

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Roosevelt, Franklin D. “Message to Congress on Exchanging Destroyers for British Naval and Air Bases.” American Presidency Project, September 3, 1940. https://www.presidency.ucsb.edu/documents/message-congress-exchanging-destroyers-for-british-naval-and-air-bases.

Roosevelt, Franklin D. “President Roosevelt to the Chairman of the Council of People’s Commissars of the Soviet Union (Stalin).” October 30, 1941. Office of Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1941v01/d799.

Roosevelt, Franklin D. “Report to Congress on Reverse Lend-Lease.” American Presidency Project. November 11, 1943. https://www.presidency.ucsb.edu/documents/report-congress-reverse-lend-lease.

Roosevelt, Franklin D. “Seventeenth Report to Congress on Lend-lease Operations: Reverse Lend-Lease Aid from the British Commonwealth of Nations.” Transmitting the Seventeenth Report to Congress on Lend-lease Operations. November 24, 1944. Hathi Trust. https://www.presidency.ucsb.edu/documents/report-congress-reverse-lend-lease.

“The Acting Secretary of State to Mr. William Phillips, Personal Representative of President Roosevelt in India.” 845.24/373a, March 3, 1943. Office of Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1943v04/d293.

“The Australian Minister for External Affairs (Evatt) to the American Minister in Australia (Johnson).” 847.24/775, January 28, 1944. Office of Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1944v03/d137.

“The Department of State to the Indian Agency General.” 811.20/1211a, October 6, 1943. Office of Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1943v04/d314.

“The Officer in Charge at New Delhi (Merrell) to the Secretary of State.” 845.24/303, January 2, 1943. Office of Historian, US Department of State. https://history.state.gov/historicaldocuments/frus1943v04/d282.

“Ukraine Democracy Defense Lend-Lease Act of 2022. Public Law No: 117-118.” May 9, 2022. Congress.gov. Accessed 30 June 2024. https://www.congress.gov/bill/117th-congress/senate-bill/3522.

 

Secondary Books

Atkinson, Rick. An Army at Dawn: The War in North Africa, 1942-1943. New York: Henry Holt, 2002.

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Byfield, Judith A., and others, editors. Africa and World War II. Cambridge University Press; 2015. https://www.cambridge.org/core/books/africa-and-world-war-ii/85E6161614C18AA08EDBD5E6D031FA52.

Conn, Stetson, and others. Guarding the United States and its Outposts. Washington, DC: Center of Military History, 2000. https://history.army.mil/html/books/004/4-2/CMH_Pub_4-2.pdf.

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Secondary Articles

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Allen, R. G. D. “Mutual Aid Between the U.S. and The British Empire, 1941-45.” Journal of the Royal Statistical Society 109, no. 3 (1946): 243-277. https://www.jstor.org/stable/2981369.

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Clayton, Mark. “Cutting the Gordian Knot: Reassessing Australia’s Lend-Lease Settlement.” Australian Journal of Politics and History, 2023. https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajph.12894.

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Egorov, Boris. “How Lend-Lease Helped the Red Army Win in World War II.” Russia Beyond, October 7, 2022. https://www.rbth.com/history/335471-how-lend-lease-helped-ussr.

Fishback, Price. “World War II in America: Spending, Deficits, Multipliers, and Sacrifice.” Centre for Economic Policy Research. November 12, 2019. https://cepr.org/voxeu/columns/world-war-ii-america-spending-deficits-multipliers-and-sacrifice#:~:text=Markets%20Economic%20history-,World%20War%20II%20in%20America,%2C%20deficits%2C%20multipliers%2C%20and%20sacrifice&text=The%20US%20became%20the%20'arsenal,spending%20are%20less%20than%20one.

Giron, Victoria. “Good Neighbors: Stories from Latin America in World War II.” Library of Congress Blogs, August 28, 2018. https://blogs.loc.gov/headlinesandheroes/2018/08/good-neighbors-stories-from-latin-america-in-world-war-ii/#:~:text=%E2%80%9CRutas%20Vitales%20Para%20Los%20Aliados,and%20the%20other%20Axis%20powers.

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ENDNOTES

[i] Stephen Daggett, “Costs of Major U.S. Wars,” Federation of American Scientists, June 29, 2010, 2, https://sgp.fas.org/crs/natsec/RS22926.pdf; “Inflation Calculator,” Federal Reserve Bank of Minneapolis, accessed August 21, 2024, https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator; Department of Defense, “Defense Spending as a % of Gross Domestic Product (GDP),” Defense.gov, accessed August 31, 2024, https://www.defense.gov/Multimedia/Photos/igphoto/2002099941/.

[ii] Price Fishback, “World War II in America: Spending, Deficits, Multipliers, and Sacrifice,” Centre for Economic Policy Research, November 12, 2019, https://cepr.org/voxeu/columns/world-war-ii-america-spending-deficits-multipliers-and-sacrifice#:~:text=Markets%20Economic%20history-,World%20War%20II%20in%20America,%2C%20deficits%2C%20multipliers%2C%20and%20sacrifice&text=The%20US%20became%20the%20'arsenal,spending%20are%20less%20than%20one.

[iii] “Lend-Lease and Military Aid to the Allies in the Early Years of World War II,” Office of the Historian, Department of State, accessed June 25, 2024, https://history.state.gov/milestones/1937-1945/lend-lease.

[iv] “America Sent Gear to the USSR to Help Win World War II,” U.S. Embassy and Consulates in Italy, May 2, 2023, accessed August 19, 2024, https://it.usembassy.gov/america-sent-gear-to-the-ussr-to-help-win-world-war-ii/#:~:text=At%20a%20dinner%20toast%20with.

[v] Bureau of Foreign and Domestic Commerce. Foreign Aid by the United States Government, 1940-1951, US Department of Commerce (Washington, DC: U.S. Government Printing Office, 1951): 34, https://pdf.usaid.gov/pdf_docs/PCAAA605.pdf.

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