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TECHNICAL ASSISTANCE BBSS IS U* S. CONTRACTORS
In paragraph (a) of an aide-memoire by Lord Hankey to
Mr. Harriaan witten on the 29th of July, 1941/ * method is pro-
posed for the 0". S. to extend technical assistance to the British
war effort though sotting up organizations in the U. K. and else-
where" to"u**ertalte specific tasks for the war effort.   These tasks
include *ie construction and operation of naval bases, including
repair *dS-s> the construction and operation of airdromes, and the
assemr-v and servicing of aircraft.
The proposals for repairing, reconditioning, etc., of
QA,her naval or air equipment could clearly come under the Lend-
aase Act.   There is no legal limitation in the Act which would
prevent the repair and reconditioning being performed out side
the U. S.   Furthermore, not only the actual costs of repairing
and reconditioning could come under the Act, but also the costs
of materials entering into the repair facilities, as well as the
labor costs of installation of such facilities (including con-
ditioning of lane, etc*)    The costs of providing the beses and
facilities for repair could appropriately be deemed a cost of
the repair.
It seems equally clf.-ar that an airdrome or a naval
base could be deemed z "defense article" under the Act, which
could be provided under Section 3 (a)  (1) and (2) of the Act.
Unless, however, the materials entering into the construction
of the airdrome or th. tacts, including possibly the land, are
provided under Lend-Lease, it is doubtful under present rulings
of the U. P. Lend-Lease administration that the costs of
construction alone (labor costs, etc.) could be Lend-leased.
The exclusion from Lend-Lease of jure labor (except in case of
repairs, etc., under Section 3 (a) (3)) results from both the
wording of the basic Lend-Lease Act and the wording of the
first Appropriation Bill.    Efforts are being made in framing
the new Appropriation Bill to introduce language which will
permit Lena-Leasing of pure labor in fcasefl such as the construc-
tion of the projected airdromes and naval bases.
The proposals for obtaining under Lend-Lease the costs
of assembling anc  servicing aircraft in the U. K. and elsewhere
are again difficult to bring clearly under Lend-Lease, except
with reFoect to aircraft actually obtained under Lend-Lease.
In this :onnection, however, the U. S. Have recently accepted
under Lend-Lease the costs of aircraft technicians sent to
Africa for the j-urpose of assembling and servicing British
aircraft, without regard to origin of such aircraft. If
this ruling may be ap lied to the Hankey proposal, no
amendment to the new Appropriation Bill will be necessary
to bring such proposal under Lend-Lease.
T.v,. Childs
Washington, D.C.,
August 22nd, 1941.