By 1943 Britain's export volume had fallen to roughly a quarter of its prewar level as labor, materials, and shipping moved into the war effort. Ordinary commercial exports could no longer earn enough foreign exchange to cover the country's external needs. The Commons statement presents Lend-Lease and reciprocal aid as the replacement: about 80 percent of US goods and services supplied to Britain, the Soviet Union, China, and other United Nations members were on Lend-Lease terms. Food had been the largest early category of American aid, but munitions and other supplies now predominated. Canada proposed a second billion-dollar contribution and assumed the costs of Royal Canadian Air Force squadrons and personnel serving overseas.
Chapter · 21:05-23:44
Why wartime exports gave way to reciprocal aid
Britain could no longer spare the labor, materials, or shipping for normal exports, so Allied production shifted toward strategic need rather than ordinary payment.