Aircraft Purchases: Anglo-French 860/ /^__/4Q—
BRITISH RMBASSY,
WASHINGTON,  D. C.,
April 4thf 1940
No. 318
Uy Lord,
Ab I had the honour to report in my telegram
No. 392 of i-oarcn SOth there were signs some ten days
or bo ago that Congress might take an embarrassing
interest in the Allied purchases of aircraft in this
country.   The trouble was apparently originally due to
differences of opinion within the War Department where
the Under Secretary, Mr. Louis Johnson, is not on the
best of terms with iir. Woodrlng, the secretary of War,
while friction between Mr. Woodring and «r. Morgenthau
may have been another contributing cause.   However that
may be, articles began to appear in the papers
insinuating that the Allied purchases would interfere
with the Administration's own rearmament programme, that
various secret devices and newly developed aircraft
were being made prematurely available to the Allies,
and that the interests of the United states were being
thereby prejudiced.   Naturally the isolationist elements
in Congress seized on this opportunity to maice trouble
and the matter was raised in both Houses.   As a result
of this agitation the House Military Affairs Committee
decided to investigate the whole question, Senator La
Pollette tabled a resolution calling on the Senate
Military Committee to hold a similar enquiry and there
was for a time quite a possibility that a political
storm would be created similar to that which was
aroused/
The Right Honourable
The ViBCount Halifax, K.O.,
n
etc.,      etc., etc.

3
-2-
aroused in connexion with the French aircraft purchases
last year.
2. In the event however the agitation came to
nothing.   The Administration, headed by the President,
lost no time in letting it be known that they were
determined to facilitate the Allied purchases as far as
they could and that they had no fear cf any possible
unfavourable repercussions on their own rearmament
programme.    It was announced after a meeting between
the President and the various officials concerned on
March 22nd that it had been decided to allow the Allies
to purchase aircraft from American manufacturers which
were already on order for the American armed forces, and
to slow down the fulfilment of the American rearmament
programme.
3. The Administration's policy was formally
defended before the House Military Affairs Committee on
March 27th, when Mr. Woodring, Under Secretary Louis
Johnson and General Marshall, the Chief of Staff, all
gave evidence in support of it.    All three spokesmen
declared that far from prejudicing the position of
America, the Administration's policy was calculated
to serve the best interests of this country.    Owing to
the expansion of plant resulting from the Allied orders,
it would no longer be necessary for the aircraft
required for the American forces to be supplied so soon,
while by postponing their own orders the American
authorities would be able to profit by the experiences
of the present types of aircraft gained in the meantime.
Nor was there any question of any vital secrets being
given away.
4. The Committee were impressed by this evidence
and/
and particularly by thai of General Marshall, who
went so far as to declare that he regarded the adoption
of the Administration's policy as a matter "of vital
importance for national defense*.    In consequence the
Committee seem to have expressed their approval of the
Government's plan and to have dropped any idea of
investigating the matter further,   simultaneously on
March 28th the Senate military Affairs Committee after
hearing Mr. Woodring and Mr. Johnson decided there was no
call for any investigation and rejected Senator La
Pollette's motion by 6 votes to 4.
!• This satisfactory outcome of what at one
time threatened to be a rather embarrassing situation
has been generally welcomed by the press who have
applauded the Administration*8 decision as sensible and
as calculated to serve American interests as well ss to
assist the Allies.
6. As a result of the decisions of the
Administration it has been possible for the Anglo-
French -purchasing Board to make good progress with its
arrangements for the purchasing of aircraft. Full
details have already been communicated to U. Monnet
and Mr. Purvis.
I have the honour to be,
with the highest respect,
My Lord,
Your Lordship's most obedient
humble servant,
( G!>)    LOTH JAW