Anglo American relations are at best fraught and complex at the best of times, and have been since before the American rebellion, against their lawful King. And have remained so up until the present day, ranging from cordial to down right hostile, and have seen one war, 1812, and numerous occasions when the two sides had come very close to another conflict, such as the Trent affair during the American Civil War. After WWI, which according to many Americans they had won, having been dragged into it by the nefarious British. The British failed to pay their debts, and were bulling the poor Germans, and refused to allow American corporations unfettered access to their markets. The WWI American President established an international organisation to try to deal with possible conflicts, The League of Nations, which the American Congress and Senate refused to join. During the inter war period the American government particularly in the Southern states, began to enact some racist laws, which to a large extent were followed in the majority of big cities even in the north. And then came the Wall Street crash, which resulted in a depression, when in an attempt to protect American jobs, America imposed tariffs and duties on imports. And then got upset when other nations followed suit, in an attempt to protect their own citizens jobs. A particular bug bear of the American establishment was the British system of Imperial Preference, which according to them wasn’t fair, and was denying them their rightful ability to export goods and exploit British markets.
Things only got worse during the thirties, as various American nutters proposed invading Canada to liberate it, and the USN, held war games in which they planned for war against Britain and the various nations of the British Empire, War Plan, Red, Ruby, Claret, Maroon , etc. And they did all this, without thinking about what the British might make of it, and there was a constant stream of articles in the US press, condemning Britain for failing to pay off the war loans. With the rise to power of various authoritarian regimes in a number of European countries, especially Germany and Italy, not only were there large vocal supporters of them. But also a rising call for America to withdraw from international affairs and isolate itself from the rest of the world, particularly to avoid all entanglements with Britain, who was bound to drag them into a war, that they were better off staying out of. An increasing number of neutrality acts were enacted to prevent the British in particular from buying weapons or gaining credit, in the event of a war breaking out. The more extreme measures that some called for, were a ban on American companies that had facilities in foreign nations, being able to produce goods that could be used to prosecute a war. A prime example would be Ford US could face prosecution if it allowed Ford UK, to produce goods for the British war effort.
By the outbreak of the war, it was illegal for American companies to sell arms to any foreign nation, and American financial institutions couldn’t extend loans for arms purchases. The British Government who had only a limited amount of dollars or gold, basically made every effort to avoid buying things from America, which seriously upset a number of powerful American businessmen, who had expected massive orders from Britain at the outbreak of war. America was heading into another mini depression by 1938, as the new deal wasn’t the success that many thought it was, it did in some ways contribute to the very slow economic recovery in the US. American oil companies were hit with a double whammy, as the British brought their oil requirements from anywhere other than America, and by the imposition of a blockade on German, prevented them from buying oil from America. The blockade wasn’t just on German, Britain imposed quotas on all the European nations, on a vast range of goods, whether the goods came from Britain or the rest of the world. Thus Denmark, couldn’t import ten times the amount of oil or rubber that it had pre war, and sell the excess onto Germany, these restrictions applied to virtually every country in Europe, except France which as Britain’s ally got an exception.
Gradually the US relaxed the various Neutrality Acts, and enacted regulations that while on the face of it were strictly neutral and applied to all equally, basically favoured the British and the French. This was typified by the Cash and Carry Act, which while on the face of it was applied neutrality to all, favoured the French and especially the British. The basis of the act was simple, nations could buy whatever they wanted, but had to pay for it in cash and transport it away in their own ships. Now given that the Germans started the war with virtually no foreign exchange to hand, and no German ship stood a snowball’s chance in hell, of transiting the Atlantic and collecting a cargo, and then returning to Germany. While the British had the cash/gold to hand, and they were perfectly able to send a British registered ship to the US and collect their goods, and then escort them back to Britain. Britain at first was very careful only ordering goods from America that it couldn’t get elsewhere either cheaper or on credit. So Argentina beef and grain, not American, Venezuelan or Mexican oil not American, Egyptian cotton not American, though the additives to add to the petrol and improve its octane rating did come from America. If the British couldn’t source it from within the Empire or Commonwealth, they would try anywhere other than America first, as they could get credit or do a deal, and didn’t have to spend US dollars. It was only after the fall of France, and having spent virtually every last dollar they had and rapidly running out of gold, that America instituted Lend Lease, with all its onerous conditions from the British point of view.
RR.