810.24/45a

The Secretary of State to Diplomatic Officers in the American Republics Except Mexico

Sirs: I refer to the circular telegram of June 27, 1939, in regard to the Joint Resolution now pending in Congress, “To authorize the [Page 6] Secretaries of War and of the Navy to assist the governments of American republics to increase their military and naval establishments, and for other purposes.”

The text of the Joint Resolution is set forth below for your information:

“Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the President may, in his discretion, authorize the Secretary of War to manufacture coast defense and antiaircraft artillery, and ammunition for such artillery on behalf of the government of any American republic in factories and arsenals under his jurisdiction; to sell such arms and ammunition to any such government; to test or prove such arms and ammunition prior to sale or delivery to any such government; to repair such arms on behalf of any such government; and to communicate to any such government plans, specifications, or other information relating to such arms and ammunition as may be sold to any such government. (b) The President may, in his discretion, authorize the Secretary of the Navy to construct vessels of war on behalf of the government of any American republic in shipyards under his jurisdiction; to manufacture armament and equipment for such vessels on behalf of any such government in arsenals under his jurisdiction; to sell armament and equipment for such vessels to any such government; to manufacture antiaircraft artillery and ammunition therefor, on behalf of any such government in factories and arsenals under his jurisdiction; to sell antiaircraft artillery and ammunition therefor to any such government; to test or prove such vessels, armament, artillery, ammunition, or equipment prior to sale or delivery to any such government; to repair such vessels, armament, artillery, or equipment on behalf of any such government; and to communicate to any such government plans, specifications, and other information relating to such vessels of war and their armament and equipment or antiaircraft artillery and ammunition therefor, as may be sold to any such government or relating to any vessels of war which any such government may propose to construct or manufacture within its own jurisdiction: Provided, That nothing contained herein shall be construed as authorizing the violation of any of the provisions of any treaty to which the United States is or may become a party: And provided further, That no transaction authorized herein shall result in expense to the United States.

“Sec. 2. In carrying out transactions authorized by section 1, the Secretary of War and the Secretary of the Navy are authorized to communicate or transmit to the Government of any American republic, or to any duly authorized person for the use of such government, restricted, confidential, or secret plans, specifications, or information pertaining to the arms, ammunition, or implements of war sold under the terms of that section, or to any vessels of war constructed within the jurisdiction of any such government, and to export, for the use of any such government, coast and antiaircraft artillery and ammunition therefor, and vessels of war and their armament and equipment involving restricted, confidential, or secret information: Provided, That any restricted, confidential, or secret [Page 7] plans, specifications, or information thus communicated or transmitted or involved in any such arms, ammunition, implements of war, or equipment, when exported, shall cease to be considered restricted, confidential, or secret after one year from the date that such communication or transmission has been authorized or such exportation made.

“Sec. 3. All contracts or agreements made by the Secretary of War or the Secretary of the Navy for the sale to the government of any American republic of any of the arms, ammunition, or implements of war, the sale of which is authorized by this joint resolution, shall contain a clause by which the purchaser undertakes not to dispose of such arms, ammunition, or implements of war by gift, sale, or any mode of transfer in such a manner that such arms, ammunition, or implements of war may become a part of the armament of any state other than an American republic.

“Sec. 4. The Secretary of War or the Secretary of the Navy, as the case may be, shall, when any arms, ammunition, implements of war, or equipment are exported pursuant to the provisions of this joint resolution, immediately inform the Secretary of State, Chairman of the National Munitions Control Board, of the quantities, character, value, and destination of the arms, ammunition, implements of war, or equipment so exported. Such information shall be included in the annual report of the Board.

“Sec. 5. (a) There is hereby authorized to be appropriated from time to time, out of any moneys in the Treasury not otherwise appropriated, such amounts as may be necessary to carry out the provisions and accomplish the purposes of this joint resolution.

“(b) All moneys which may be received from the government of any American republic, in payment for any article delivered or service rendered in compliance with the provisions of this joint resolution, shall revert to the respective appropriation or appropriations out of which funds were expended in carrying out the transaction for which money is received, and such moneys shall be available for expenditure for the purpose for which such expended funds were appropriated by law.

“Sec. 6. The Secretaries of War and of the Navy are hereby authorized to purchase arms, ammunition, and implements of war produced within the jurisdiction of any American republic if such arms, ammunition, or implements of war cannot be produced in the United States.”

Very truly yours,

For the Secretary of State:
Sumner Welles