Your telegram 203.¹ Informed by Frank Lee that Southard,² of United States Treasury, indicated Americans felt that we needed grant but they found it difficult politically take no further action grant to ex-neutrals. As way to overcome this, mentioned possibility of merging amount of aid allotted to us with Great Britain on same ratio as first quarter allotment, i.e., three parts grant one part loan, but sees our political difficulties in agreeing to such arrangement. Lee said he could [see] apart from political objection on our part British would not like such an arrangement. As it might complicate matters for themselves by setting precedent for grant and loan ratio as they have not yet decided whether they will take up all of loan offer.