Billion Dollar Gift and Mutual Aid

The Billion Dollar Gift and Mutual Aid were financial incentives instituted by the Canadian minister C. D. Howe during World War II.

[1][2] 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.

[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.