Military History - What Led to the Lend Lease Act of 1941?
In November 1940 President Roosevelt, newly elected to a third term in office, began to consider a lend- lease program to further aid the British effort in the European War. Under the United States neutrality laws of the time, it was illegal for any American, whether military or private person, to trade with anyone involved in a war. This is what the American public wanted; to be known as a peaceful nation. President Roosevelt recognized that it in order to best protect the United States he must help other nations defeat Germany.
The neutrality laws of 1936 and 1937 prohibited sales of any arms or military goods to belligerent or warring nations. In 1939 President Roosevelt recognized the increased threat to democracy by the Germans, and believed that while the United States wanted to remain neutral it was in her best interest to aid those fighting for democracy. President Roosevelt believed that the current laws gave “aid to an aggressor” while victimizing democratic nations. He therefore asked congress to change the existing neutrality law.
The resulting 1939 neutrality law allowed warring countries to purchase military goods from the United States, however these countries had to pay for the goods in cash, and carry them away themselves. The United States could not in any way transport these goods. Hence the phrase “cash and carry”.
It quickly became obvious that Britain’s financial strain was restricting their ability to purchase sufficient armament to successfully defeat Germany. It remained apparent to President Roosevelt that it was in Untied States best interest to aid Great Britain in the fight against Germany while still remaining neutral. President Roosevelt also realized it would be in the United States best interest to increase her naval bases to secure the Panama Canal and the Atlantic coast.
Therefore in July of 1940 President Roosevelt, Secretary Knox and Winston Churchill met to discuss a deal; a trade of naval bases for destroyers. On September 2, 1940 the destroyer-naval base deal was officially agreed upon. The United States gave Britain 50 destroys built during or after WW I, in exchange for sovereign rights for 99 years to naval, air and military bases in the Bahamas, Jamaica, Antigua, St. Lucia, Trinidad and British Guiana. In addition to the 50 destroyers the US gave Great Britain 10 coast guard cutters to escort convoys.
The destroyer- naval base deal did not provide sufficient power for Great Britain to defeat Germany. Feeling urgent need to protect his country, President Roosevelt developed the lend-lease plan and presented his plan to congress on December 17, 1940. According to Roosevelt’s plan the United States government would increase production and procurement of military articles, including armaments, shipyards, bases, food, etc. The President, Secretary of War, Secretary of the Navy or any other department head could sell, transfer, lend or lease any of these military articles to any country defending itself against the Axis powers when this defense was in the best interest of the United States.
Other provisions in the lend-lease act included maintenance of military articles for those countries warring the Axis, and protection of patent rights and royalties of American citizens affect by the lend-lease act. Not specifically covered in the lend lease act was repayment arrangements. Anglo-American relations after the Great War had been greatly diminished due to indebtedness. President Roosevelt saw no reason to add to this strain.
The lend-lease act was approved by congress on Mar 11, 1941. President Roosevelt believed that the decision marked “the end of compromise with tyranny and the forces of oppression.”
