59 STAT.] BELGIUM-MUTUAL AID -- Apri 17, 19, 1945 1657 May 19, 1945 metropolitan territory, which is largely dependent on imports of raw materials and where procurement from the almost depleted stocks of locally produced goods would generally necessitate their replacement by importation of the raw materials needed in their manufacture. In order to deal with this possibility, which in our view amounts to the extension of aid not within the scope of the Reciprocal Aid Agreement between Belgium and the United States, negotiations were undertaken in Washington between the Department of State and the Belgian Embassy. On October 16th, 1944 a draft amend- ment to the letter of the Belgian Ambassador dated January 30th, 1943 was submitted by the Department of State to the Belgian Em- bassy. Paragraph III, which was tentatively agreed upon at that time, expressed in the following terms the intentions of the two inter- ested parties concerning the special situation likely to arise in Belgium. "In view of the shortages prevailing in Belgium, the Govern- ment of Belgium regrets that it will not be in a position to pro- vide as reciprocal aid under Section 1 any supplies or materials (except for component parts or component materials) which re- quire current replacement by purchases involving the use of foreign exchange from sources outside of Belgium or the Belgian Congo. The Government of Belgium, therefore, requests assur- ances that the Government of the United States will undertake at its option either to replace or to refund in dollars the cost of any such supplies or materials which have been either requisi- tioned in the manner contemplated in Section 2, or purchased with the currency made available under the terms of Section 4, wherever the quantity involved is appreciable from the point of view of the dollar exchange required for replacements." Although no formal agreement was ever concluded on this subject, the Belgian authorities in charge of Reverse Lend-Lease Administra- tion operated on the assumption that such was the understanding and furnished to the Allied Armies supplies, the replacement of which would call for imports from abroad. While accepting your proposal that final action with respect to re- placement be deferred, I wish to place the foregoing on record and to state that the Belgian Government may request that consideration be given to the matters mentioned above, in the final determination of the terms and conditions upon which mutual aid has been provided. Sincerely yours, The Belgian Ambassador, SILVERCRUYS The Honorable E. SrETTINIrs, Secretary of State, Washington, D.C . 66347-47- -PT . II ---62
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