Due to its expenditure on war materiel, Britain lacked gold reserves and U.S. dollars[3] to pay for existing and future orders with Canadian industry. At the same time, following expansion, Canadian industry was dependent on British contracts and before the war had had a positive balance of trade with the UK, but with the establishment of Lend-Lease, the UK secured future orders with the US. The Billion Dollar Gift was given to the UK in January 1942, coupled with a C$700 million non-interest bearing loan, both anticipated to last just over a year. It did not last until the end of 1942. It was replaced in May 1943 with the "War Appropriation (United Nations Mutual Aid) Act, 1943", which provided aid to the UK and the other Allies and lasted until the end of the war. The magnitude of these contributions made them one of Canada's greatest contributions to the war. The two grants totaled over C$3 billion.
Moreover, the Billion Dollar Gift triggered a strong negative reaction amongst Canadians, particularly in Quebec.[4] The rate at which the money was used was a key reason for the backlash, as was the lack of funding that was provided to the other nations in the Commonwealth.[5] The aftermath of the Gift led Canada's future funding to assist the Allies with an alternative approach - one that focused on loaning material goods instead of money.[4] A further consequence led to a change in the British Commonwealth Air Training Plan and this enabled another Canadian loan of just over $1 billion for Britain, Canada, Australia and New Zealand to share.[5]
^ abMackenzie, Hector (2012-05-02). "Transatlantic Generosity: Canada's 'Billion Dollar Gift' to the United Kingdom in the Second World War". The International History Review. 34 (2): 294–297. doi:10.1080/07075332.2011.626578. S2CID 154505663.
^ abBryce, Robert Broughton (2005). Bellamy, Matthew J. (ed.). Canada and the Cost of World War II: The International Operations of Canada's Department of Finance 1939-1947. McGill Queen's University Press. p. 84.
^ abMilner, Marc. North Atlantic Run: The Royal Canadian Navy And the Battle for the Convoys. (Annapolis, Maryland. : Naval Institute Press, 1985)
^ abZimmerman, David. The Great Naval Battle of Ottawa (Toronto: University of Toronto Press, 1989.
^Roberts, Leslie. C.D.: The Life and Times of Clarence Decatur Howe. (Toronto: Clarke, Irwin, and Company Limited, 1957). p 119-120
^"Britain makes final WW2 lend-lease payment." 2013-03-09 at the Wayback MachineInthenews.co.uk. Retrieved: 8 December 2010.
Further readingedit
Bryce. Robert B., & Bellamy, Matthew J. Canada And The Cost Of World War II: The International Operations Of Canada's Department Of Finance, 1939-1947. McGill-Queen's Press, 2005. ch 7
Granatstein, J.L. Canada's War: The Politics of the Mackenzie King Government, 1939-1945 (1990) pp 311–16
Mackenzie, Hector. "Transatlantic Generosity: Canada's 'Billion Dollar Gift'to the United Kingdom in the Second World War." International History Review 34.2 (2012): 293-314. online
Mackenzie, Hector. "Sinews of War and Peace: The Politics of Economic Aid to Britain, 1939-1945," International Journal (1999) 54#4 pp. 648–670 in JSTOR
Mackenzie, Hector M. "The Path to Temptation: The Negotiation of Canada's Reconstruction Loan to Britain In 1946," Historical Papers (1982), pp 196–220 online
External linksedit
Military Relations Between the United States and Canada, 1939-1945 Chapter X Cooperation in Other Fields
billion, dollar, gift, mutual, were, financial, incentives, instituted, canadian, minister, howe, during, world, first, dominion, locomotives, built, montreal, plant, shipment, india, contents, background, also, references, further, reading, external, linksbac. The Billion Dollar Gift and Mutual Aid were financial incentives instituted by the Canadian minister C D Howe during World War II 1 2 The first of 145 X Dominion 2 8 2 locomotives built at a Montreal plant for shipment to India Contents 1 Background 2 See also 3 References 4 Further reading 5 External linksBackground editDue to its expenditure on war materiel Britain lacked gold reserves and U S dollars 3 to pay for existing and future orders with Canadian industry At the same time following expansion Canadian industry was dependent on British contracts and before the war had had a positive balance of trade with the UK but with the establishment of Lend Lease the UK secured future orders with the US The Billion Dollar Gift was given to the UK in January 1942 coupled with a C 700 million non interest bearing loan both anticipated to last just over a year It did not last until the end of 1942 It was replaced in May 1943 with the War Appropriation United Nations Mutual Aid Act 1943 which provided aid to the UK and the other Allies and lasted until the end of the war The magnitude of these contributions made them one of Canada s greatest contributions to the war The two grants totaled over C 3 billion Moreover the Billion Dollar Gift triggered a strong negative reaction amongst Canadians particularly in Quebec 4 The rate at which the money was used was a key reason for the backlash as was the lack of funding that was provided to the other nations in the Commonwealth 5 The aftermath of the Gift led Canada s future funding to assist the Allies with an alternative approach one that focused on loaning material goods instead of money 4 A further consequence led to a change in the British Commonwealth Air Training Plan and this enabled another Canadian loan of just over 1 billion for Britain Canada Australia and New Zealand to share 5 In addition Canada provided materiel and services including food ammunition and raw materials as well as corvettes Park ships and radar sets 6 7 page needed most of which went to the Commonwealth some like radars also went to the U S 6 7 page needed In 1943 Canada had the fourth highest industrial production among the Allies led by the United States the Soviet Union and the United Kingdom 8 Canada also loaned 1 2 billion on a long term basis to Britain immediately after the war these loans were fully repaid in late 2006 9 See also editBritish Commonwealth Air Training Plan Lend Lease Valentine tank Military history of Canada during World War IIReferences edit Mackenzie Hector M Billion Dollar Gift The Canadian Encyclopedia Archived from the original on March 26 2012 Retrieved 2012 08 20 Hector M Mackenzie Mutual Aid The Canadian Encyclopedia Archived from the original on 2012 10 17 Retrieved 2012 08 20 Canadian Encyclopedia online retrieved 20 December 2012 a b Mackenzie Hector 2012 05 02 Transatlantic Generosity Canada s Billion Dollar Gift to the United Kingdom in the Second World War The International History Review 34 2 294 297 doi 10 1080 07075332 2011 626578 S2CID 154505663 a b Bryce Robert Broughton 2005 Bellamy Matthew J ed Canada and the Cost of World War II The International Operations of Canada s Department of Finance 1939 1947 McGill Queen s University Press p 84 a b Milner Marc North Atlantic Run The Royal Canadian Navy And the Battle for the Convoys Annapolis Maryland Naval Institute Press 1985 a b Zimmerman David The Great Naval Battle of Ottawa Toronto University of Toronto Press 1989 Roberts Leslie C D The Life and Times of Clarence Decatur Howe Toronto Clarke Irwin and Company Limited 1957 p 119 120 Britain makes final WW2 lend lease payment Archived 2013 03 09 at the Wayback Machine Inthenews co uk Retrieved 8 December 2010 Further reading editBryce Robert B amp Bellamy Matthew J Canada And The Cost Of World War II The International Operations Of Canada s Department Of Finance 1939 1947 McGill Queen s Press 2005 ch 7 Granatstein J L Canada s War The Politics of the Mackenzie King Government 1939 1945 1990 pp 311 16 Mackenzie Hector Transatlantic Generosity Canada s Billion Dollar Gift to the United Kingdom in the Second World War International History Review 34 2 2012 293 314 online Mackenzie Hector Sinews of War and Peace The Politics of Economic Aid to Britain 1939 1945 International Journal 1999 54 4 pp 648 670 in JSTOR Mackenzie Hector M The Path to Temptation The Negotiation of Canada s Reconstruction Loan to Britain In 1946 Historical Papers 1982 pp 196 220 onlineExternal links editMilitary Relations Between the United States and Canada 1939 1945 Chapter X Cooperation in Other Fields 68 Australia Canada Mutual Aid Agreement 1938 1946 budget report Retrieved from https en wikipedia org w index php title Billion Dollar Gift and Mutual Aid amp oldid 1188665053, wikipedia, wiki, book, books, library,
