6. With reference to the provision of the Schedule annexed to the Agreement under Section 3 (c) of the Lend Lease Act that risk of Loss shall pass in accordance with the customary practice of the United States Government with respect to transfers under the Act of Congress of March 11, 1941, it is the understanding of my Government that under the practice referred to risk of loss usually passes when the articles leave the possession of the supplier or are withdrawn from United States Government stock.

7. With reference to the provision of Section A of the Schedule annexed to the Agreement under Section 3 (c) of the Lend Lease Act that "those articles which, prior to the end of the periods authorized by law, shall have been contracted for by the United States Government and shall not have been transferred to the Government of Belgium as above set forth, shall be deemed to be transferred to the Government of Belgium upon the last day of such periods", it is the understanding of my Government that the term "periods" refers to the period as now provided for by the last clause of section 3 (c) of the Lend Lease Act, or as such period may hereafter be extended by amendment of that Act, during which the powers conferred by or pursuant to Section 3 (a) of that Act may be exercised to the extent necessary to carry out a contract or agreement made under Section 3 (c) of that Act.

I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration.

The Honorable EDWARD R. STETTINIUS, Jr.,

SILVERCRUYS

Belgian Ambassador.

In reply to your letter of today's date outlining your Government's understanding of seven questions which have arisen with respect to the language of the Agreement between our two Governments under Section 3 (c) of the Lend-Lease Act, I am pleased to state that the understanding of your Government coincides with the views held by the Government of the United States in respect to these matters.

Sincerely yours,

His Excellency

Baron ROBERT SILVERCRUYS

Belgian Ambassador.

ER STETTINIUS, Jr

The Secretary of State to the Belgian Ambassador
DEPARTMENT OF STATE

WASHINGTON

April 17, 1945

MY DEAR MR. AMBASSADOR:

In the Memorandum of Interpretation accompanying the Agree ment under Section 3 (c) of the Lend-Lease Act which was signed by our Governments today, there is set forth the understanding of my Government that some of the articles to be delivered under the Agreement will be required for use or consumption within the Grand Duchy of Luxembourg and that the Government of Belgium and the Govern ment of the Grand Duchy of Luxembourg will make the necessary arrangements to effectuate such use or consumption within the Grand Duchy of Luxembourg.

You will understand that if my Government should not be able to conclude arrangements with the Grand Duchy of Luxembourg required by the Lend-Lease Act, my Government's consent to future retransfers to the Grand Duchy of Luxembourg, as expressed in the Memorandum accompanying the 3 (c) Agreement, will have to be qualified or revoked.

With reference to the Schedule attached to the Agreement between the United States of America and Belgium, under Section 3 (c) of the Lend-Lease Act, I note that the amount of $42,000,000.00 has been set for freight charges on American ocean vessels.

After discussion of this matter with the experts of the "Mission Economique Belge", I feel that due to the fact that an important part of the supplies from United States to Belgium will be shipped on vessels that are not under American Registry, the amount of $42,000,000. seems far in excess of the freight payments which could possibly be made for transport on American ocean vessels.

Under Article IV of said Agreement, changes may be made from time to time in the items set forth in the Schedule annexed thereto.

However, in connection with the conclusion of the Agreement, I should like to state, for the record, that if in the near future the estimate of he experts of the "Mission Economique Belge" proves to be correct, I will request a transfer of part of this amount to other items of the schedule.

With respect to paragraph B of the Schedule attached to the Agreement between the United States of America and Belgium, under Section 3 (c) of the Lend-Lease Act, I wish to state that my Government has accepted the provisions concerning the determination of the price, subject to the condition that in case a different manner of determination should be set forth in a similar Agreement between the United States of America and another country, my Government would expect to obtain the benefit of the provisions relating to price determination as embodied in such an Agreement. I should be grateful if you would kindly confirm that this is also the understanding of your Government. Sincerely yours,

I acknowledge the receipt of your letter of April 19, 1945 in which you state that in respect to the price arrangements contained in paragraph B of the Schedule attached to the Lend-Lease Agreement of

April 17, 1945 between the United States and Belgium, your Goverment would expect to obtain the benefit of comparable price provisions contained in a similar Agreement between the United States and any other country.

The Government of the United States has the intention of treating each country in its individual relationship with the United States fairly and equitably in all matters pertaining to lend-lease and the general procurement of supplies in the United States. However, the United States does not consider it necessary that comparable arrange ments in similar agreements between the United States and any other country should contain identical or equally favorable provisions. It is sufficient that the individual lend-lease arrangements established be tween the United States and each country shall be reasonable. The relatively temporary character of lend-lease, the numerous and dissimilar factors involved in the lend-lease relationships of the United States and the rapidly changing war situation compel this Government to retain freedom of action in negotiating individual lend-lease agreements.

In the United Nations declaration of January 1, 1942, the contracting governments pledged themselves to employ their full resources, military and economic, against those nations with which they are at war; and in the Agreement of June 16, 1942, each contracting government undertook to provide the other with such articles, services, facilities or information useful in the prosecution of their common war undertaking as each may be in a position to supply. It is further the understanding of the Government of Belgium that the general principle to be followed in providing mutual aid as set forth in the said Agreement of June 16, 1942, is that the war production and the war resources of both Nations should be used by the armed forces of each and of the other United Nations in ways which most effectively utilize

the available materials, manpower, production facilities and shipping space.

With a view, therefore, to supplementing Article II and Article VI of the Agreement of June 16, 1942, between our two Governments for the provision of reciprocal aid, I have the honor to set forth the understanding of the Government of Belgium of the principles and procedures applicable to the provision of aid by the Government of Belgium to the armed forces of the United States and the manner in which such aid will be correlated with the maintenance of such forces by the United States Government.

1. The Government of Belgium, retaining the right of final decision in each case in the light of its own potentialities and responsibilities, will provide the United States or its armed forces with the following types of assistance as reciprocal aid when and to the extent that it is found that they can most effectively be procured in Belgium or the Belgian Congo:

(a) Military equipment, munitions and military and naval stores;

(b) Other supplies, materials, facilities, services and information for the United States forces including payment of those civil claims against the United States and its armed forces, employees and officers that shall be mutually agreed upon by the two Governments as a proper charge against the Belgian Government, but not including the pay and allowances of United forces, the wages and salaries of civilian officials of the United States Government and the administrative expenses of United States missions;

(c) Supplies, materials and services needed in the construction of military projects, tasks and similar capital works required for the common war effort in Belgium or the Belgian Congo, except for the wages and salaries of United States citizens;

(d) Supplies, materials and services needed in the construction of such military projects, tasks and capital works in territory other than Belgium or the Belgian Congo or territory of the United States to the extent that Belgium or the Belgian Congo is a more practicable source of supply than the United States or another of the United Nations;

(e) Such other supplies, materials, facilities, services and information as may be agreed upon as necessary in the prosecution of the war.

2. The practical application of the principles formulated in this note, including the procedure by which requests for aid are made and acted upon, shall be worked out as occasion may require by agreement