- The Editors of Encyclopaedia Britannica
Lend-lease, system by which the United States aided its World War II allies with war materials, such as ammunition, tanks, airplanes, and trucks, and with food and other raw materials. President Franklin D. Roosevelt had committed the United States in June 1940 to materially aiding the opponents of fascism , but, under existing U.S. law, Great Britain had to pay for its growing arms purchases from the United States with cash, popularly known as cash-and-carry. By the summer of 1940, the new British prime minister , Winston Churchill , was warning that his country could not pay cash for war materials much longer.
On June 10, 1940, when Italy entered the war on the German side and when the fall of France was imminent, U.S. president Franklin D. Roosevelt declared that the United States would “extend to the opponents of force the material resources of this nation.”…
In order to remedy this situation, Roosevelt on December 8, 1940, proposed the concept of lend-lease, and the U.S. Congress passed his Lend-Lease Act in March 1941. This legislation gave the president the authority to aid any nation whose defense he believed vital to the United States and to accept repayment “in kind or property, or any other direct or indirect benefit which the President deems satisfactory.” Though lend-lease had been authorized primarily in an effort to aid Great Britain, it was extended to China in April and to the Soviet Union in September. The principal recipients of aid were the British Commonwealth countries (about 63 percent) and the Soviet Union (about 22 percent), though by the end of the war more than 40 nations had received lend-lease help. Much of the aid, valued at $49,100,000,000, amounted to outright gifts. Some of the cost of the lend-lease program was offset by so-called reverse lend-lease, under which Allied nations gave U.S. troops stationed abroad about $8,000,000,000 worth of aid.
Learn More in these related Britannica articles:
- World War II: The beginning of lend-leaseOn June 10, 1940, when Italy entered the war on the German side and when the fall of France was imminent, U.S. president Franklin D. Roosevelt declared that the United States would “extend to the opponents of force the material resources of this nation.”…
- history of Europe: Planning the peace…the war ended, so did lend-lease—to be replaced by huge stopgap loans on ordinary terms. Britain received $3.75 billion, but only on condition that it make sterling freely convertible. As soon as it did, there was a run on the pound. The entire loan, it was reckoned, would have melted…
- United States: The road to warHis Lend-Lease Act, passed in March 1941 after vehement debate, committed the United States to supply the Allies on credit. When Germany, on March 25, extended its war zone to include Iceland and the Denmark Strait, Roosevelt retaliated in April by extending the American Neutrality Patrol…
- United Kingdom: Labour and the welfare state (1945–51)…to do by law, ended lend-lease, upon which Britain had depended for its necessities as well as its arms. John Maynard Keynes, as his last service to Great Britain, had to negotiate a $3.75 billion loan from the United States and a smaller one from Canada. In international terms, Britain…
- 20th-century international relations: From neutrality to active aidRoosevelt responded with lend-lease, a plan to “eliminate the dollar sign” by lending, not selling, arms. If your neighbour’s house is on fire, he argued, you do not sell him a hose, you lend it to him until the fire is out. “If Great Britain goes down,” he…
More About Lend-lease
8 references found in Britannica articles
- major reference
- In World War II: The beginning of lend-lease
- establishment by Roosevelt and Congress
- In Franklin D. Roosevelt: The third and fourth terms
- In Pearl Harbor and the “Back Door to War” Theory: The revisionist case: From neutrality to war
- United States presidential election of 1940
- In United States presidential election of 1940: The general election
- In United Kingdom: Labour and the welfare state (1945–51)
- In history of Europe: Planning the peace
- World War II
- In 20th-century international relations: From neutrality to active aid
- In United States: The road to war
- New Zealand Electronic Text Centre – Lend-Lease
- United States Holocaust Memorial Museum – Holocaust Encyclopedia – Lend-Lease
- United States History – Lend-Lease
- Canadahistory.com – 1941 US Lend Lease Act
- Spartacus Educational – Lend-Lease
- lend-lease – Student Encyclopedia (Ages 11 and up)
Contact our editors with your feedback.
- key people
- Franklin D. Roosevelt
- John J. McCloy
- related topics
- Foreign aid
- Reverse lend-lease
- Franklin D. Roosevelt
- Foreign aid
- Economic development
- John J. McCloy
- Political system
- Economic growth
- Technical assistance
- Intermediate technology
We welcome suggested improvements to any of our articles. You can make it easier for us to review and, hopefully, publish your contribution by keeping a few points in mind.
- Encyclopædia Britannica articles are written in a neutral objective tone for a general audience.
- You may find it helpful to search within the site to see how similar or related subjects are covered.
- Any text you add should be original, not copied from other sources.
- At the bottom of the article, feel free to list any sources that support your changes, so that we can fully understand their context. (Internet URLs are the best.)
Your contribution may be further edited by our staff, and its publication is subject to our final approval. Unfortunately, our editorial approach may not be able to accommodate all contributions.
Our editors will review what you’ve submitted, and if it meets our criteria, we’ll add it to the article.
Please note that our editors may make some formatting changes or correct spelling or grammatical errors, and may also contact you if any clarifications are needed.
There was a problem with your submission. Please try again later.
Keep Exploring Britannica
- On This Day
Our editors will review what you’ve submitted and determine whether to revise the article.
Join Britannica’s Publishing Partner Program and our community of experts to gain a global audience for your work!
Install for Chrome Now