Lend-Lease, formally the Lend-Lease Act and introduced as An Act to Promote the Defense of the United States (Pub. L. 77–11, H.R. 1776, 55 Stat. 31, enacted March 11, 1941), was a policy under which the United States supplied the United Kingdom, the Soviet Union, France, the Republic of China, and other Allied nations of the Second World War with food, oil, and materiel between 1941 and 1945. The aid was given free of charge on the basis that such help was essential for the defense of the United States.
The Lend-Lease Act was signed into law on March 11, 1941, and ended on September 20, 1945. A total of $50.1 billion (equivalent to $690 billion in 2024 when accounting for inflation) worth of supplies was shipped, or 17 per cent of the total war expenditures of the US. In all, $31.4 billion went to the United Kingdom, $11.3 billion to the Soviet Union, $3.2 billion to France, $1.6 billion to China, and the remaining $2.6 billion to other Allies. Roosevelt's top foreign policy advisor Harry Hopkins had effective control over Lend-Lease, ensuring it was in alignment with Roosevelt's foreign policy goals.
Materiel delivered under the act was supplied at no cost, to be used until returned or destroyed. In practice, most equipment was destroyed, although some hardware (such as ships) was returned after the war. Supplies that arrived after the termination date were sold to the United Kingdom at a large discount for £1.075 billion, using long-term loans from the United States, which were finally repaid in 2006. Similarly, the Soviet Union repaid $722 million in 1971, with the remainder of the debt written off.
Reverse Lend-Lease to the United States totalled $7.8 billion. Of this, $6.8 billion came from the British and the Commonwealth. Canada also aided the United Kingdom and other Allies with the Billion Dollar Gift and Mutual Aid totalling $3.4 billion in supplies and services (equivalent to $61 billion in 2020).
Lend-Lease ended the United States' neutrality which had been enshrined in the Neutrality Acts of the 1930s. It was a decisive step away from non-interventionist policy and toward open support for the Allies. Lend-Lease's precise significance to Allied victory in World War II is debated.
Non-interventionism and neutrality
The 1930s began with one of the world's greatest economic depressions, and the later recession of 1937–1938 (although minor relative to the Great Depression) was otherwise also one of the worst of the 20th century. In 1934, following the Nye Committee hearings, as well as the publication of influential books such as Merchants of Death, the United States Congress adopted several Neutrality Acts in the 1930s, motivated by non-interventionism—following the aftermath of its costly involvement in World War I (the war debts were still not paid off), and seeking to ensure that the country would not become entangled in foreign conflicts again. The Neutrality Acts of 1935, 1936, and 1937 intended to keep the United States out of war by making it illegal for Americans to sell or transport arms or other war materials to warring nations, be they aggressors or defenders.
In 1939, however—as Germany, Japan, and Italy pursued aggressive, militaristic policies—President Roosevelt wanted more flexibility to help contain Axis aggression. He suggested amending the act to allow warring nations to purchase military goods, arms and munitions if they paid cash and bore the risks of transporting the goods on non-American ships, a policy that would favor Britain and France. Initially, this proposal failed, but after Germany and the Soviet Union invaded Poland in September, Congress passed the Neutrality Act of 1939 ending the munitions embargo on a "cash and carry" basis. The passage of the 1939 amendment to the previous Neutrality Acts marked the beginning of a congressional shift away from isolationism, making a first step toward interventionism.
After the Fall of France during June 1940, the British Commonwealth and Empire were the only forces engaged in war against Germany and Italy, until the Italian invasion of Greece. Britain had been paying for its materiel with gold as part of the "cash and carry" program, as required by the U.S. Neutrality Acts of the 1930s, but by 1941 it had liquidated a large part of its overseas holdings and its gold reserves were becoming depleted in paying for materiel from the United States.
During this same period, the U.S. government began to mobilize for total war, instituting the first-ever peacetime draft and a fivefold increase in the defense budget (from $2 billion to $10 billion). The Two-Ocean Navy Act of July 1940 set in motion a rapid expansion of the United States Navy. In the meantime, Great Britain was running out of liquid currency and asked not to be forced to sell off British assets. Hampered by public opinion and the Neutrality Acts, which forbade arms sales on credit or the lending of money to belligerent nations, Roosevelt eventually came up with the idea of "lend–lease". As one Roosevelt biographer has characterized it: "If there was no practical alternative, there was certainly no moral one either. Britain and the Commonwealth were carrying the battle for all civilization, and the overwhelming majority of Americans, led in the late election by their president, wished to help them." As the President himself put it, "There can be no reasoning with incendiary bombs."
In September 1940, during the Battle of Britain the British government sent the Tizard Mission to the United States. The aim of the British Technical and Scientific Mission was to obtain the industrial resources to exploit the military potential of the research and development work completed by the UK up to the beginning of World War II, but that Britain itself could not exploit due to the immediate requirements of war-related production. The British shared technology included the cavity magnetron (key technology at the time for highly effective radar; the American historian James Phinney Baxter III later called "the most valuable cargo ever brought to our shores"), the design for the VT fuze, details of Frank Whittle's jet engine and the Frisch–Peierls memorandum describing the feasibility of an atomic bomb. Though these may be considered the most significant, many other items were also transported, including designs for rockets, superchargers, gyroscopic gunsights, submarine detection devices, self-sealing fuel tanks and plastic explosives.
On December 7, 1940, British Prime Minister Winston Churchill pressed Roosevelt in a 15-page letter for American help. In his December 29, 1940 Fireside Chat radio broadcast, President Roosevelt proclaimed the United States would be the "Arsenal of Democracy" and proposed selling munitions to Britain and Canada. Isolationists were strongly opposed, warning it would result in American involvement with what was considered by most Americans as an essentially European conflict. In time, opinion shifted as increasing numbers of Americans began to consider the advantage of funding the British war against Germany, while staying free of the hostilities themselves. Propaganda showing the devastation of British cities during The Blitz, as well as popular depictions of Germans as savage also rallied public opinion to the Allies, especially after Germany conquered France.
After a decade of neutrality, Roosevelt knew that the change to Allied support had to be gradual, given the support for isolationism in the country. Originally, the American policy was to help the British but not join the war. During early February 1941, a Gallup poll revealed that 54% of Americans were in favor of giving aid to the British without qualifications of Lend-Lease. A further 15% were in favor of qualifications such as: "If it doesn't get us into war", or "If the British can give us some security for what we give them". Only 22% were unequivocally against the President's proposal. When poll participants were asked their party affiliation, the poll revealed a political divide: 69% of Democrats were unequivocally in favor of Lend-Lease, whereas only 38% of Republicans favored the bill without qualification. At least one poll spokesperson also noted that "approximately twice as many Republicans" gave "qualified answers as ... Democrats".