pointed out that such a meeting could be arranged unobtrusively and without publicity, and in a manner permitting the initiative to be shared on a 50-50 basis between him and the President. The Ambassador said he might call on the President the next time; that he would hope to continue these conversations. On two or three occasions I inquired of him whether it was still agreeable to pursue the President's suggestion of talking over and discussing the past relations between our two Governments and the questions that have arisen which call for settlement by mutual agreement. He indicated his favorable disposition in regard to the matter, but not in any specific way as to time or as to officials with whom he might talk.

I referred on one or two occasions to the statement reported to have been made to Mr. Churchill by the Japanese Ambassador in London some days ago to the effect that his Government would not attack Singapore or the Netherlands East Indies, and inquired pointblank what the Ambassador's idea as to this was. In reply to the first inquiry, he was not exceedingly strong in his statement but he did make it fairly definite that he did not believe there would be an attack but added, as heretofore indicated, that if our American embargoes continued to press his Government and the military group in control, they may feel forced to proceed further in a naval or military way. I again said to him that this latter question would not with any consistency or reason arise, in my judgment, because, as already stated to him, the whole responsibility and initiative with respect to military conquest and the departure from laws and treaties and other basic rules of friendly relationship by the Japanese Government rests entirely on that Government.

I again inquired of the Ambassador if he had any further ideas or suggestions which would constitute any plans or purposes for peaceful readjustment additional to that which he had already mentioned in relation to China. The Ambassador did not offer any comment on this except to attempt to convey the impression that later he would give consideration to these further phases.

At an appropriate stage in the conversation I said that the conquest of the world by his country and Germany with the methods of government which were being applied to conquered peoples, all bankrupt, would mean to set not only the world but these very conquering countries back to impossible levels of existence; that the conquering countries themselves would be the losers to an unthinkable extent.

In the course of the conversation I had occasion to remind the Ambassador that few nations were ever on more mutually profitable and genuine friendly relations than our two countries for two generations

lasting until about the time of the Coolidge and Hoover Administrations. I said that, speaking in great confidence, when I came to the State Department, one of my greatest ambitions was to work out a mutually satisfactory arrangement with respect to the Quota Limitation Act of 1924, enacted by our Congress, so as to place the whole matter of immigration on an equal or reciprocal basis, which, of course, would have meant that the number of immigrants both ways would be limited, but this basis of equality would settle the feeling that has existed since 1924. He expressed his gratification at this.

I then added that we would get nowhere if the military group should say that they were not expanding in a military way, as they have often said in China, and at the same time go forward with their expansion plans and activities.

The Ambassador also brought up the question about how the doors of trade had been closed against Japan by other countries, including Indochina, and hence the necessity for some steps looking to the comfortable existence of her people. To this I replied by reminding the Ambassador of what I had said at the outset to the effect that during the twenty years of the post-war period under the reign of extreme nationalism in every country alike, all nations had shut their doors to a large extent against each other, that most nations shut their doors against my country as a part of this universal movement of trade and commercial suicide; that, therefore, Japan is not an exception. I then added that it would be an amazing thing to abandon the whole program of economic rehabilitation on peaceful lines and under the principle of equality, to which I have been referring, and turn away to military force and conquest as a substitute.

I inquired whether Matsuoka was going to Berlin and the Ambassador said he did not believe he would go, that he had been invited there at the time of the signing of the Tripartite Pact.

I proceeded to comment on Japan's line of activities and utterances by saying that this country and most other countries only proclaim and practice policies of peaceful international relationships, political, economic, social and cultural. Sometimes the policy to promote these mutually beneficial relationships is proclaimed, such as our good neighbor policy with special reference to Pan America. And yet all of our acts and programs and policies adopted by the twenty-one American nations in their conferences from time to time are made universal in their application, so that Japan and all other nations receive the same equal opportunities for trade and commerce generally throughout the Americas that each of the American nations receives itself. In striking contrast the new order in greater Eastern

Asia is unequivocally believed to be purely a program of military aggression and conquest with entirely arbitrary policies of political, economic and military domination. The Ambassador made no definite promise as to what his Government would do in respect to halting its aggression for purpose of discussions. He did not intimate that it could not and would not do this, no more than he intimated or indicated just what its attitude would be towards the Tripartite Agreement in the future when I definitely brought that phase to his attention in connection with the present and prospective course of the Japanese Government.

During our conversation, I emphasized to the Ambassador that it is the opinion of the President and others of the Administration that the British will beyond any reasonable doubt be able successfully to resist Hitler.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "An Act to Promote the Defense of the United States". SEC. 2. As used in this Act

(a) The term "defense article" means—

(1) Any weapon, munition, aircraft, vessel, or boat;

(2) Any machinery, facility, tool, material, or supply necessary for the manufacture, production, processing, repair, servicing, or operation of any article described in this subsection;

(3) Any component material or part of or equipment for any article described in this subsection;

(4) Any agricultural, industrial or other commodity or article for defense.

Such term "defense article" includes any article described in this subsection: Manufactured or procured pursuant to section 3, or to which the United States or any foreign government has or hereafter acquires title, possession, or control.

(b) The term "defense information" means any plan, specification, design, prototype, or information pertaining to any defense article.

SEC. 3. (a) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of

national defense, authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government

(1) To manufacture in arsenals, factories, and shipyards under their jurisdiction, or otherwise procure, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for the government of any country whose defense the President deems vital to the defense of the United States.

(2) To sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government any defense article, but no defense article not manufactured or procured under paragraph (1) shall in any way be disposed of under this paragraph, except after consultation with the Chief of Staff of the Army or the Chief of Naval Operations of the Navy, or both. The value of defense articles disposed of in any way under authority of this paragraph, and procured from funds heretofore appropriated, shall not exceed $1,300,000,000. The value of such defense articles shall be determined by the head of the department or agency concerned or such other department, agency or officer as shall be designated in the manner provided in the rules and regulations issued hereunder. Defense articles procured from funds hereafter appropriated to any department or agency of the Government, other than from funds authorized to be appropriated under this Act, shall not be disposed of in any way under authority of this paragraph except to the extent hereafter authorized by the Congress in the Acts appropriating such funds or otherwise.

(3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order, to the extent to which funds are made available therefor, or contracts are authorized from time to time by the Congress, or both, any defense article for any such government, or to procure any or all such services by private

contract.

(4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this subsection.

(5) To release for export any defense article disposed of in any way under this subsection to any such government.

(b) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (a) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory.

(c) After June 30, 1943, or after the passage of a concurrent resolution by the two Houses before June 30, 1943, which declares that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote the defense of the United States, neither

the President nor the head of any department or agency shall exercise any of the powers conferred by or pursuant to subsection (a); except that until July 1, 1946, any of such powers may be exercised to the extent necessary to carry out a contract or agreement with such a foreign government made before July 1, 1943, or before the passage of such concurrent resolution, whichever is the earlier.

(d) Nothing in this Act shall be construed to authorize or to permit the authorization of convoying vessels by naval vessels of the United States.

(e) Nothing in this Act shall be construed to authorize or to permit the authorization of the entry of any American vessel into a combat area in violation of section 3 of the Neutrality Act of 1939.

SEC. 4. All contracts or agreements made for the disposition of any defense article or defense information pursuant to section 3 shall contain a clause by which the foreign government undertakes that it will not, without the consent of the President, transfer title to or possession of such defense article or defense information by gift, sale, or otherwise, or permit its use by anyone not an officer, employee, or agent of such foreign government.

SEC. 5. (a) The Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government involved shall, when any such defense article or defense information is exported, immediately inform the department or agency designated by the President to administer section 6 of the Act of July 2, 1940 (54 Stat. 714), of the quantities, character, value, terms of disposition, and destination of the article and information so exported.

(b) The President from time to time, but not less frequently than once every ninety days, shall transmit to the Congress a report of operations under this Act except such information as he deems incompatible with the public interest to disclose. Reports provided for under this subsection shall be transmited to the Secretary of the Senate or the Clerk of the House of Representatives, as the case may be, if the Senate or the House of Representatives, as the case may be, is not in session.

SEC. 6. (a) There is hereby authorized to be appropriated from time to time, out of any money in the Treasury not otherwise appropriated, such amounts as may be necessary to carry out the provisions and accomplish the purposes of this Act.

(b) All money and all property which is converted into money received under section 3 from any government shall, with the approval of the Director of the Budget, revert to the respective appropriation or appropriations out of which funds were expended with respect to