In the Public Records Office here I have found a file on the disposal of Lend-Lease arms. There is frequent reference to a 1950 agreement about the sale of lend-lease and/or cash-and-carry arms, requiring consent of U.S. Govt before sales can take place. L-L equipment must first be offered to other NATO nations as a free issue before sale will be consented to. There is, however, no copy of the agreement itself.
My notes say:
"Signs that the ‘weeders’ have been at work. File jacket, presumably showing circulation list, has been removed and replaced by a new one. One document [green photocopy provided] has been removed, copy is presumably redacted. Reference in it to ‘the friends’ suggests MI5 involved.
Mr Leo Lippe, Hercules Armament Corporation, with Robert Churchill running the British end of it, is authorised to purchase surplus British rifles, revolvers and Sten guns from the Ministry of Supply for ‘secret and special’ purposes. Merrit Kirk Ruddock, Counsellor at U.S. Embassy, says blanket approval by U.S.Government for these purchases to continue, which is eventually withdrawn. ‘We have heard nothing more from Mr Lippe for some time. Perhaps he has retired to live on his profits’ comments one civil servant.
Merrit Kirk Ruddock, First Secretary at the US Embassy (OSS employee during the war and internet gossip says CIA officer) passes on complaints from U.S. Congressmen on behalf of New England gun manufacturers that surplus US arms are being re-imported via Canada. .455 S&W revolvers particularly singled out. Admits that arms purchased under cash-and-carry arrangements cannot be objected to, but principle that Lend-Lease funded arms should not resold for profit is sought to be maintained by U.S.G. Foreign Office will seek to restrict reimportation of arms of ‘standard’ U.S. calibre (defined as including .455, somewhat bizarrely). US revolvers loaned to West Germany for police use. 10000 .45 automatics supplied to Control Commission Germany personnel for self-defence. "