You will see that the sections headed I, VI, and VII have reference to
the matters dealt with in the three pending resolutions introduced by
Senators Nye and Clark and that the other sections deal with matters
that are not, so far as I know, covered by any pending proposals.
You will, of course, understand, as stated yesterday, that this
Department is not seeking to thrust its views on Congress, but is simply
endeavoring to be of help in the treatment of an important subject in
response to your request.
After talking with the Committee’s Secretary, Mr. Lamb, I have thought
best to transmit to you a sufficient number of copies of what has been
drafted here to enable him to furnish a copy to each member of the
sub-committee and to Senator Nye and to Senator Clark.
[Enclosure]
Memorandum on Suggested Neutrality
Legislation
I. Embargo on Arms, Ammunition and Implements
of War
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That upon the outbreak of
or during the progress of war between or among two or more foreign
states, or whenever the President finds that conditions existing in
any part of the world are such that the shipment of arms, ammunition
and implements of war from the United States may involve the United
States in international complications or contribute to armed
conflict, and when in either such case the President finds that the
imposition of restrictions on the export of such war material from
the United States will serve to maintain peace between the United
States and foreign nations or to protect the commercial interests of
the United States and its citizens or to promote the security of the
United States and shall so proclaim, then thereafter the Secretary
of State shall issue no licenses for the export of arms, ammunition
and implements of war from any place in the United States to such
countries as the President may designate.* When in the judgment of the
President the conditions which have caused him to issue such
proclamation have ceased to exist he shall revoke the same and the
provisions hereof shall thereupon cease to apply; Provided, That the
President shall notify Congress of his action which shall remain
effective unless or until revoked or modified by a Proclamation of
the President or by an Act of Congress.
II. American Vessels Prohibited from Carrying
Arms, Ammunition, and Implements of War
Whenever, during any war in which the United States is neutral, the
President shall find that the imposition of restrictions on the
carrying of arms, ammunition, and implements of war by American
vessels to, or for the use of, countries engaged in such war, will
serve to maintain peace between the United States and foreign
nations, or to protect the commercial interests of the United States
and its citizens, or to promote the security of the United States,
he shall so proclaim, and it shall be unlawful for any vessel of the
United States to carry any arms, ammunition, or implements of war to
any port of a belligerent country, or to any neutral port for
transshipment to, or [Page 347] for
the use of, a belligerent country. Whenever there is reasonable
cause to believe that any American vessel is about to carry arms,
munitions or implements of war out of a port of the United States,
or of one of its possessions, in violation of this Section, the
Collector of Customs for the district in which such vessel is
located shall withhold clearance from such vessel, if it is required
by law to secure clearance before departing from port or from the
jurisdiction of the United States, or by formal notice served upon
the owner, master, or person in command or charge of any vessel for
which clearance is not required by law, forbid the departure of the
vessel from port or from the jurisdiction of the United States.
Whoever, in violation of the provisions of this Section shall take,
attempt to take, or shall authorize, hire, or solicit another to
take any such vessel carrying such cargo out of port or from the
jurisdiction of the United States, shall be fined not more than
$10,000, or imprisoned not more than five years, or both; and, in
addition, such vessel, her tackle, apparel, furniture, equipment,
and the arms, ammunition, and implements of war on board shall be
forfeited to the United States.
When, in the President’s judgment, the conditions which have caused
him to issue his proclamation have ceased to exist, he may revoke
his proclamation and the provisions of this Section shall thereupon
cease to apply.
III. Use of American Ports as Bases of
Supplies
Whenever, during any war in which the United States is neutral, the
President, or any person thereunto authorized by him, shall have
cause to believe that any vessel, domestic or foreign, whether
requiring clearance or not, is about to carry out of a port of the
United States, or its possessions, men or fuel, arms, ammunition,
implements of war or other supplies, to any warship, tender or
supply ship of a foreign belligerent nation, but the evidence is not
deemed sufficient to justify forbidding the departure of the vessel
as provided for by Section 1, Title V, Chapter 30 of the Act
approved June 15, 1917, 40 Stat, 221 (Title 18, Section 31, U. S.
C), and if, in the President’s judgment, such action will serve to
maintain peace between the United States and foreign nations, or to
protect the commercial interests of the United States and its
citizens, or to promote the security of the United States, he shall
have the power and it shall be his duty to require the owner,
master, or person in command thereof, before departing from a port
of the United States, or any of its possessions, for a foreign port,
to give a bond to the United States, with sufficient sureties, in
such amount as he shall deem proper, conditioned that the vessel
will not deliver [Page 348] the men,
or the cargo, or any part thereof, to any warship, tender or supply
ship of a belligerent nation; and, if the President, or any person
thereunto authorized by him, shall find that a vessel, domestic or
foreign, in a port of the United States, or one of its possessions,
has previously cleared from such a port during such war and
delivered its cargo or any part thereof to a warship, tender or
supply ship of a belligerent nation, he may prohibit the departure
of such vessel during the duration of the war.
IV. Use of American Flag on
Vessels of Belligerent Nations
Whenever, during any war in which the United States is neutral, the
President shall find that vessels of a belligerent nation, whether
with or without the permission of the Government of such belligerent
nation, are using or have used, contrary to the public interest, the
flag of the United States, or any artifice or device, designed to
indicate that such vessels are American vessels, and shall make
proclamation thereof, it shall be unlawful for any vessel of such
nation to enter a port of the United States, or any of its
possessions, after the effective date of the proclamation, and it
shall be the duty of the several Collectors of Customs to refuse
clearance to any such vessel entering a port of the United States,
or any of its possessions, after the date specified in the
proclamation as the effective date thereof. If at any time after the
issue of his proclamation, the President shall receive satisfactory
assurance from the government of such nation that use on its vessels
of the flag of the United States, or other artifice or device herein
referred to, has been discontinued and will thereafter be
prohibited, he may revoke his proclamation, and the provisions of
this Section shall thereupon cease to apply.
V. Submarines Prohibited From
Entering American Waters
Whenever, during any war in which the United States is neutral, the
President shall find that special restrictions placed on the use of
the ports and territorial waters of the United States, or of its
possessions, by the submarines of a foreign nation will serve to
maintain peace between the United States and foreign nations, or to
protect the commercial interests of the United States and its
citizens, or to promote the security of the United States, and shall
make proclamation thereof, it shall thereafter be unlawful for any
such submarine to enter a port or the territorial waters of the
United States or of any of its possessions, or to depart therefrom,
except under such conditions and subject to such limitations as the
President may prescribe. When, in his judgment, the conditions which
have caused him to issue his proclamation have ceased to exist, he
may revoke his proclamation and the provisions of this Section shall
thereupon cease to apply.
[Page 349]
VI. Financial Transactions With
Foreign Belligerent Governments
Whenever, during any war in which the United States is neutral, the
President shall find that the public interest requires that special
restrictions be placed on the furnishing of financial assistance to
the countries engaged therein, and shall make proclamation thereof,
it shall thereafter during the period of such war or armed conflict,
or until otherwise ordered by the President, be unlawful for any
person, corporation, partnership, organization or association within
the United States or any place subject to the jurisdiction thereof,
to purchase or sell bonds, securities or other obligations of any
such foreign government, or political subdivision thereof, or any
organization or association acting for or on behalf of such foreign
government or political subdivision, issued after the date of such
proclamation, or to make any loan to such foreign government or
political subdivision, organization or association. The provisions
of this Act shall not apply to a renewal or adjustment of
indebtedness existing on the date of such proclamation.
Whoever shall violate the provisions of this Act shall, upon
conviction thereof, be fined not more than $10,000, or imprisoned
for not more than five years, or both.
When, in his judgment, the conditions which have caused him to issue
his proclamation have ceased to exist, he may revoke his
proclamation and the provisions of this Section shall thereupon
cease to apply.
VII. Travel by American Citizens
on Belligerent Vessels
Whenever, during any war in which the United States is neutral, the
President shall find that the maintenance of peace between the
United States and foreign nations, or the protection of the lives of
citizens of the United States, or the protection of the commercial
interests of the United States and its citizens, or the security of
the United States, requires that American citizens should refrain
from traveling as passengers on the vessels of any belligerent
nation, he shall so proclaim, and thereafter no citizen of the
United States shall travel on any vessel of any belligerent nation
except at his own risk; Provided, however, that the provisions of
this Section shall not apply to a citizen traveling on the vessel of
a belligerent whose voyage was begun in advance of the date of the
President’s proclamation, and who had no opportunity to discontinue
his voyage after that date, and provided further that they shall not
apply until ninety days after the date of the President’s
proclamation to a citizen returning from a foreign country to the
United States or to any of its possessions. When, in the President’s
judgment, the conditions which have caused [Page 350] him to issue his proclamation have
ceased to exist, he may revoke his proclamation and the provisions
of this Section shall thereupon cease to apply.
VIII. Enforcement of Sections
1 to 7, Inclusive
The President may employ such part of the land or naval forces of the
United States as he may deem necessary to carry out the purposes of
Sections 1 to 7, inclusive,†
