I am pleased to state that the views of your Government coincide with those held by the Government of the Kingdom of the Nether lands in respect to these matters. Some questions of interpretation have arisen with respect to the language of my note to you dated April 30, 1945, setting forth the understanding of the Government of the Kingdom of the Netherlands of the principles and procedures applicable to the provision of aid by the Government of the Kingdom of the Netherlands to the armed forces of the United States. I am, therefore, giving you the interpre tation placed by my Government on those questions, and I would appreciate an expression from you whether or not you agree to these interpretations: 1. The Government of the Kingdom of the Netherlands, taking into consideration its own potentialities and responsibilities, retais the final decision as to the scope, extent and duration of its provision of aid to the armed forces of the United States. 2. As regards services and supplies procured by the armed forces of the United States either by direct requisition or by use of the funds or credits made available under the terms of Section 4 of my note, the Government of the Kingdom of the Netherlands retains the right of deciding whether or not they can be provided as reverse lend-lease. Finally, I want to state that although the Government of the Kingdom of the Netherlands is fully prepared to give reciprocal aid up to the limits of its possibilities, the extent of reciprocal aid will necessarily depend on the economic situation of the Kingdom of the Netherlands after its liberation from enemy occupation, on the flow of imported supplies and on the development of its foreign exchange position. In reply to your letter of today's date outlining your Government's nterpretation of two questions arising in respect to your note on reciprocal aid also of today's date, I am pleased to state that your Government's interpretation is concurred in by the Government of the United States. You will recall that on June 14, 1943, Dean Acheson, Assistant Secretary of State, addressed a letter to the Ambassador of the Kingdom of the Netherlands with respect to the receipt by this Government as reciprocal aid of articles previously purchased abroad and mported into territories of the Kingdom of the Netherlands. In this etter Mr. Acheson stated that this Government does not expect the Government of the Kingdom of the Netherlands or the authorities in Its territories to furnish such articles to American forces as reciprocal aid and that, if such articles were furnished as reciprocal aid in emergency situations, this Government would be entirely agreeable to the principle that they should be replaced from the United States as soon as possible. Mr. Acheson further stated that American forces would not request or accept as reciprocal aid any such articles. replacement of which was regarded by the Government of the K dom of the Netherlands as desirable, without specific authorization each case from the War Department. The exigencies of war has made strict compliance with this proced impractical, and your Government has furnished such articles to Government and its armed forces without compliance with this p cedure. The quantity and value of the articles so furnished are yet known and it is anticipated that considerable time may be requir before mutual agreement can be reached as to the exact value of articles to be replaced under the terms of Mr. Acheson's letter. At the time of Mr. Acheson's letter no non-military supplies we being provided by my Government to your Government as straigh lend-lcase. Now, however, our two Governments have concluded agreement under Section 3 (c) of the Lend-Lease Act, under which th Government will furnish non-military supplies as straight lend-les aid to your Government to the extent provided therein. I should therefore like to propose that the obligation in Mr. Ada son's letter to replace articles provided as reciprocal aid which har previously been purchased abroad and imported into territories of th Kingdom of the Netherlands should not apply to articles hereafte made available to this Government as reciprocal aid. With respect to such articles transferred as reciprocal aid by th Government of the Kingdom of the Netherlands to the United State or its armed forces prior to the date of the signing of the Agreem under Section 3 (c) of the Lend-Lease Act, I should like to propes that final action with respect to replacement be deferred until 2: final determination of the terms and conditions upon which mutua aid has been provided and received by the two Governments in ac cordance with the terms of the Agreement of July 8, 1942, with respect to the principles applying to mutual aid. At the time such a firs determination is reached, and the full extent of the aid furnished by th: United States and the reciprocal aid furnished by the Government of the Kingdom of the Netherlands becomes known, the United State will make such replacement in accordance with the principles ex pressed in Mr. Acheson's letter to any extent then mutually agreed upon between the two Governments as just and equitable. Sincerely yours, The Honorable Baron W. VAN BOETZELAER, Minister of the Netherlands. JOSEPH C. Grew Acting Secretary The Netherlands Minister to the Acting Secretary of State NETHERLANDS EMBASSY MY DEAR MR. SECRETARY: WASHINGTON, April 30th, 1945. I have your letter of today with reference to the letter of June 14, 943 from Dean Acheson, Assistant Secretary of State, to the Ambassador of the Kingdom of the Netherlands with respect to the receipt oy your Government as reciprocal aid of articles previously purchased broad and imported into territories of the Kingdom of the Netherands. In your letter you make certain proposals in relation to the obligation assumed by your Government in Mr. Acheson's letter. I have the honor to advise you that your proposals are satisfactory to my Government. Sincerely yours, The Honorable W. v. BOETZELAER. Minister of the Netherlands. JOSEPH C. GREW, Acting Secretary of State, Washington, D. C. O |