Changes

When war broke out in Europe in September 1939, President Franklin D. Roosevelt declared that while the United States would remain neutral in law, he could “not ask that every American remain neutral in thought as well.” Roosevelt himself made significant efforts to help nations engaged in the struggle against Nazi Germany and wanted to extend a helping hand to those countries that lacked the supplies necessary to fight against the Germans. The United Kingdom, in particular, desperately needed help, as it was short of hard currency to pay for the military goods, food, and raw materials it needed from the United States.

Though President Roosevelt wanted to provide assistance to the British, both American law and public fears that the United States would be drawn into the conflict blocked his plans. The Neutrality Act of 1939 allowed belligerents to purchase war materiel from the United States, but only on a “cash and carry” basis. The Johnson Act of 1934 also prohibited the extension of credit to countries that had not repaid U.S. loans made to them during World War I—which included Great Britain. The American military opposed the diversion of military supplies to the United Kingdom. The Army’s Chief of Staff, General George C. Marshall, anticipated that Britain would surrender following the collapse of France, and thus American supplies sent to the British would fall into German hands.

Lend-Lease was designed to serve America’s interest in defeating Nazi Hitler's Germany without entering the war until the American military and public was were prepared to fight. At a time when the majority of Americans opposed direct participation in the war, Lend-Lease represented a vital U.S. contribution to the fight against Nazi Germany. Moreover, the joint action called for under Article VII of the Lend-Lease agreements signed by the United States and the recipient nations laid the foundation for the creation of a new international economic order in the postwar world.