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the extent that our commerce is not dictated by special agreements of an exclusive character, to that extent can we insure that our political independence cannot be subjugated to alien political systems operating through commercial channels.

There is also incumbent upon us the task of keeping vigorous our belief that work and production should be primarily for peaceful welfare. If by our joint effort and strength we keep this continent free from the threat of aggression, we will greatly lessen the need of subordinating our individual productive energies by making preparatory arrangements which may assist in safeguarding against this danger.

These, as I understand them, are the specific and practical measures which we are called upon to consider. They are all of them problems of vital importance to the American republics-problems of the highest and most legitimate self-interest; but we all of us recognize I am sure that however much we may desire to insulate ourselves from the effects of this present conflict, such insulation can be only relative. It cannot in any event do more than mitigate insofar as we are able the disasters which will affect all peoples, belligerent or neutral, as a result of this world calamity.

Beyond these immediate problems produced by the war crisis there are problems which are deeper and more fundamental. We have prospered by regarding our commerce and production as designed to serve, through the exercise of individual initiative, the ends of public welfare and not the ends of political strategy. We shall be faced by the fact that various powerful countries in other parts of the world have now completely converted their own system of trade and production to another basis-making it an instrument of politi cal or ideological ambition. By common determination and cooperation we can do much to avoid having our own purposes dominated by those of others or subordinated to military demands. But, since in these days it is essential to be strong (for we have seen all too often the fate of the weak), we can make every effort to see that our program of defense is of a character that reaffirms our faith in the powers of individual initiative and of free men. We can draw our strength from our liberties and from the contribution of men and women become strong and disciplined under conditions of freedom.

I believe that the time has come when the 21 American republics must state, and state clearly and in no uncertain terms, to all of the belligerents, both as a right of self-protection and as a right inherent in their position as peaceful and independent powers, constituting an entire continent remote from the causes of the hostilities which

have broken out, that they cannot agree that their security, their nationals, or their legitimate commercial rights and interests should be jeopardized by belligerent activities in close proximity to the shores of the New World. This assertion of principle, I believe, must be regarded as constituting a declaration of the inalienable right of the American republics to protect themselves, so far as conditions in this modern world make it possible, from the dangers and the repercussions of a war which has broken out thousands of miles from their shores and in which they are not involved.

But in the larger sense, every one of our nations, every one of our fellow citizens, is affected or will be affected by the growing tragedy of this new war.

War spells ruin, waste, torture, and death-not perhaps to the leaders who have wrought it, but to the countless numbers of humble men and women throughout the world who would have none of it. For there is nothing surer in the world today than that the vast mass of the common people everywhere have wanted above all else to prevent the war which has now broken out.

Far removed from the initial scene of hostilities as the peoples of the Americas are, their interests have been jeopardized by the commencement of war. In modern civilization, every country has a natural right that war shall not be loosed upon humanity. This right was subscribed to by every nation of the civilized world in the so-called Pact of Paris, and it is this right, so solemnly subscribed to, that is today being flagrantly violated.

There is no moral justification for any nation to loose war upon humanity when the resort to peaceful procedure for the solution of controversies or of inequities is available.

The only possible road for achieving peace is through cooperation; this implies the juridic equality of every nation and the acceptance of a moral order and of effective international law. It assumes that controversies will be settled by peaceful processes and that all peoples will under these pacific processes cooperate on equal terms with generosity and with justice. It assumes that economic arrangements can be made which are entirely susceptible of satisfying the reasonable needs of any nation for beneficial trade, which will provide access on equal terms to world markets, access on equal terms to raw materials, and which will satisfy the legitimate demand of all nations for those component factors which make for a peaceful life.

There is existing now and at this moment an overwhelming will on the part of the peoples everywhere for peace based on renunciation of force, on justice, and on equality, could it find expression.

It may well be that the facilitation of that means of expression will be determined by the part we play in this Western Hemisphere. We, the American republics, share in common a great heritage—the principles of democratic constitutional government, devotion to justice, respect for the pledged word, love of peace. We have created an American system, an American way of life, which is our chief contribution to world civilization. This way of life we must make every effort to protect, to safeguard, to pass on intact to future generations of our own peoples, and to maintain as an unflinching standard in a world in which each day that passes sees more standards, once believed inviolate, shattered and destroyed.

As the shadows created by the outbreak of this monstrous war darken and spread rapidly across the length and breadth of the world in which we live, the 21 free nations of the New World can still preserve for posterity those ideals and those beliefs which may well constitute the last great hope of the civilization which we have inherited.

Our influence for peace and for the reestablishment of a world order based on morality and on law must be unshaken and secure. To accomplish this we must, and we can, resolutely defend our continent from all menace of aggression, direct or indirect. To do so, we must make every effort to keep alive our liberal commercial policy in our relations with those other nations of the world who are willing to join with us. To do so, we must strengthen and fortify the solidarity of understanding and the identity of individual purpose which bind us closely together. To do so we must rely ever more resolutely upon the principles of freedom and of democracy and upon the ideals of our Christian faith, through which our nations have had their being and only through which can their future rest secure.

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54 Stat. 4; 22 U.S.C. 441-457, Supp. II, 442-452

Neutrality Act of November 4, 1939

JOINT RESOLUTION

To preserve the neutrality and the peace of the United States and to secure the safety of its citizens and their interests.

Whereas the United States, desiring to preserve its neutrality in wars between foreign states and desiring also to avoid involvement therein, voluntarily imposes upon its nationals by domestic legislation the restrictions set out in this joint resolution; and

Whereas by so doing the United States waives none of its own rights or privileges, or those of any of its nationals, under international law, and expressly reserves all the rights and privileges to which it and its nationals are entitled under the law of nations; and

Whereas the United States hereby expressly reserves the right to repeal, change or modify this joint resolution or any other domestic legislation in the interests of the peace, security or welfare of the United States and its people: Therefore be it

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

PROCLAMATION OF A STATE OF WAR BETWEEN FOREIGN STATES

SECTION 1. (a) That whenever the President, or the Congress by concurrent resolution, shall find that there exists a state of war between foreign states, and that it is necessary to promote the security or preserve the peace of the United States or to protect the lives of citizens of the United States, the President shall issue a proclamation naming the states involved; and he shall, from time to time, by proclamation, name other states as and when they may become involved in the war.

(b) Whenever the state of war which shall have caused the President to issue any proclamation under the authority of this section shall have ceased to exist with respect to any state named in such proclamation, he shall revoke such proclamation with respect to such

state.

COMMERCE WITH STATES ENGAGED IN ARMED CONFLICT

SEC. 2. (a) Whenever the President shall have issued a proclamation under the authority of section 1 (a) it shall thereafter be unlawful for any American vessel to carry any passengers or any articles or materials to any state named in such proclamation.

(b) Whoever shall violate any of the provisions of subsection (a) of this section or of any regulations issued thereunder shall, upon conviction thereof, be fined not more than $50,000 or imprisoned for not more than five years, or both. Should the violation be by a corporation, organization, or association, each officer or director thereof participating in the violation shall be liable to the penalty herein prescribed.

(c) Whenever the President shall have issued a proclamation under the authority of section 1 (a) it shall thereafter be unlawful to export or transport, or attempt to export or transport, or cause to be exported or transported, from the United States to any state named in such proclamation, any articles or materials (except copy

righted articles or materials) until all right, title, and interest therein shall have been transferred to some foreign government, agency, institution, association, partnership, corporation, or national. Issuance of a bill of lading under which title to the articles or materials to be exported or transported passes to a foreign purchaser unconditionally upon the delivery of such articles or materials to a carrier, shall constitute a transfer of all right, title, and interest therein within the meaning of this subsection. The shipper of such articles or materials shall be required to file with the collector of the port from or through which they are to be exported a declaration under oath that he has complied with the requirements of this subsection with respect to transfer of right, title, and interest in such articles or materials, and that he will comply with such rules and regulations as shall be promulgated from time to time. Any such declaration so filed shall be a conclusive estoppel against any claim of any citizen of the United States of right, title, or interest in such articles or materials, if such citizen had knowledge of the filing of such declaration; and the exportation or transportation of any articles or materials without filing the declaration required by this subsection shall be a conclusive estoppel against any claim of any citizen of the United States of right, title, or interest in such articles or materials, if such citizen had knowledge of such violation. No loss incurred by any such citizen (1) in connection with the sale or transfer of right, title, and interest in any such articles or materials or (2) in connection with the exportation or transportation of any such copyrighted articles or materials, shall be made the basis of any claim put forward by the Government of the United States.

(d) Insurance written by underwriters on articles or materials included in shipments which are subject to restrictions under the provisions of this joint resolution, and on vessels carrying such shipments shall not be deemed an American interest therein, and no insurance policy issued on such articles or materials, or vessels, and no loss incurred thereunder or by the owners of such vessels, shall be made the basis of any claim put forward by the Government of the United States.

(e) Whenever any proclamation issued under the authority of section 1 (a) shall have been revoked with respect to any state the provisions of this section shall thereupon cease to apply with respect to such state, except as to offenses committed prior to such revocation. (f) The provisions of subsection (a) of this section shall not apply to transportation by American vessels on or over lakes, rivers, and inland waters bordering on the United States, or to transporta

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