894.24/719
Statement Prepared by the Division of Controls
There are no statutes now in existence authorizing the placing of restrictions on the export to any country of materials other than those technically defined as arms, ammunition, and implements of war. Before the export to any country of other manufactured products, or of raw materials, such as scrap iron, could be prohibited, new legislation would be required.
The Neutrality Act of May 1, 193731a prohibits the export of arms, ammunition, and implements of war to countries between or among which the President has found a state of war to exist. Any embargo imposed under this Act must apply equally to all the belligerents. In determining not to make such a finding in regard to the situation in the Far East, the President has exercised the discretion vested in him by the Act, the primary purpose of which is to safeguard the interests of this country and those of its nationals. It is not possible under the Act to impose an embargo on exports to Japan alone as has frequently been suggested. Any embargo under the Neutrality Act must necessarily prohibit the export of arms, ammunition, and implements of war not only to Japan but to China as well. It may be of interest to note in this connection that since July 1, 1937, the Department of State has issued licenses for the export of arms, ammunition, and implements of war to China in the value of $15,531,778.68 and to Japan in the value of $11,388,484.78.
- 50 Stat. 121.↩