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APPROPRIATION BILL, 1941

HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
U.S. Congres

COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

SEVENTY-SEVENTH CONGRESS

FIRST SESSION

ON THE

DEFENSE AID SUPPLEMENTAL

APPROPRIATION BILL, 1941

MAKING APPROPRIATIONS TO CARRY OUT AN ACT
TO PROMOTE THE DEFENSE OF THE UNITED
STATES (H. R. 1776—PUBLIC LAW NO. 11),

APPROVED MARCH 11, 1941

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1941

300706

COMMITTEE ON APPROPRIATIONS

EDWARD T. TAYLOR, Colorado, Chairman CLARENCE CANNON, Missouri

JOHN TABER, New York CLIFTON A. WOODRUM, Virginia

RICHARD B. WIGGLESWORTH, Massachusetts LOUIS LUDLOW, Indiana

WILLIAM P. LAMBERTSON, Kansas MALCOLM C. TARVER, Georgia

D. LANE POWERS, New Jersey JED JOHNSON, Oklahoma

J. WILLIAM DITTER, Pennsylvania J. BUELL SNYDER, Pennsylvania

ALBERT E. CARTER, California EMMET O'NEAL, Kentucky

ROBERT F. RICH, Pennsylvania GEORGE W.JOHNSON, West Virginia CHARLES A. PLUMLEY, Vermont JAMES G. SCRUGHAM,

EVERETT M. DIRKSEN, Illinois JAMES M. FITZPATRICK, New York

ALBERT J. ENGEL, Michigan LOUIS C. RABAUT, Michigan

KARL STEFAN, Nebraska DAVID D. TERRY, Arkansas

FRANCIS H. CASE, South Dakota JOHN M. HOUSTON, Kansas

FRANK B. KEEFE, Wisconsin JOE STARNES, Alabama

NOBLE J. JOHNSON, Indiana
ROSS A. COLLINS, Mississippi

ROBERT F. JONES, Ohio
CHARLES H. LEAVY, Washington
JOSEPH E. CASEY, Massachusetts
JOHN H. KERR, North Carolina
GEORGE H. MAHON, Texas
HARRY R. SHEPPARD, California
BUTLER B. HARE, South Carolina
HARRY P. BEAM, Illinois
ALBERT THOMAS, Texas
VINCENT F. HARRINGTON, Iowa

MARCELLUS C. SHEILD, Clerk

SUBCOMMITTEE ON DEFICIENCIES

EDWARD T. TAYLOR, Colorado, Chairman CLIFTON A. WOODRUM, Virginia

JOHN TABER, New York CLARENCE CANNON, Missouri

RICHARD B. WIGGLESWORTH, Massachusetts LOUIS LUDLOW, Indiana

WILLIAM P. LAMBERTSON, Kansas
J. BUELL SNYDER, Pennsylvania

J. WILLIAM DITTER, Pennsylvania
EMMET O'NEAL, Kentucky
GEORGE W. JOHNSON, West Virginia
LOUIS C. RABAUT, Michigan

Also participating: Messrs. SCRUGHAM and POWERS

II

UNITED STATES OF AMERICA

U

MAR 31 '41

24

A 6/ DEFENSE AID SUPPLEMENTAL APPROPRIATION BILL,

1941

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HEARINGS CONDUCTED BY THE SUBCOMMITTEE OF THE

COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTA-
TIVES, IN CHARGE OF DEFICIENCY APPROPRIATIONS, MESSRS.
EDWARD T. TAYLOR (CHAIRMAN), CLIFTON A. WOODRUM,
CLARENCE CANNON, LOUIS LUDLOW, J. BUELL SNYDER, EMMET
O'NEAL, GEORGE W. JOHNSON, LOUIS C. RABAUT, JOHN TABER,
RICHARD B. WIGGLESWORTH, WILLIAM P. LAMBERTSON, AND
J. WILLIAM DITTER; ALSO PARTICIPATING, MESSRS. SCRUGHAM
AND POWERS; ON THE DAYS FOLLOWING, NAMELY:

THURSDAY, MARCH 13, 1941.
STATEMENTS OF HON. CORDELL HULL, SECRETARY OF STATE;

HON. HENRY L. STIMSON, SECRETARY OF WAR; HON. FRANK
KNOX, SECRETARY OF THE NAVY; GEN. GEORGE C. MARSHALL,
CHIEF OF STAFF, UNITED STATES ARMY; REAR ADMIRAL
R. E. INGERSOLL, ASSISTANT CHIEF OF NAVAL OPERATIONS;
AND HAROLD D. SMITH, DIRECTOR OF THE BUDGET

BUDGET ESTIMATE

Mr. WOODRUM. This is a hearing before the Deficiency Subcommittee on House Document 139 an estimate, in the amount of $7,000,000,000, to carry out provisions of an act to promote the defense of the United States, approved March 11, 1941, as follows:

THE WHITE HOUSE,

Washington, March 12, 1941.
Hon. Sam RAYBURN,
Speaker, House of Representatives,

Washington, D. C.
MY DEAR MR. SPEAKER: This Nation has felt that it was imperative to the
security of America that we encourage the democracies' heroic resistance to
aggressions, by not only maintaining but also increasing the flow of material
assistance from this country. Therefore, the Congress has enacted and I have
signed H. R. 1776.

Through this legislation our country has determined to do its full part in creating an adequate arsenal of democracy. This great arsenal will be here in this country. It will be a bulwark of our own defense. It will be the source of the tools of defense for all democracies who are fighting to preserve themselves against aggression.

While the defense equipment produced under H. R. 1776 remains under the control of the United States until it is ready for disposition, it is the fixed policy of this Government to make for democracies every gun, plane, and munition of war that we possibly can.

To accomplish these objectives I am transmitting an estimate in the amount of $7,000,000,000, the details of which are set forth in the accompanying letter from the Director of the Bureau of the Budget, I strongly urge the immediate enactment of this appropriation. Respectfully,

FRANKLIN D. ROOSEVELT.

1

SPECIAL DEFENSE FUND

To enable the President, through such departments or agencies of the Government as he may designate, to carry out the provisions of the act entitled “An act to promote the defense of the United States,” approved March 11, 1941, and for each and every purpose incident to or necessary therefor there is hereby appropriated out of any money in the Treasury not otherwise appropriated: (a) For the procurement, by manufacture or otherwise, of

defense articles for the government of any country
whose defense the President deems vital to the de-
fense of the United States, including services and
expenses in connection therewith, as follows:
Ordnance and ordnance stores, supplies, spare

parts, and materials, including armor and
ammunition and components thereof

$1, 343, 000, 000
Aircraft and aeronautical material, including en-
gines, spare parts, and accessories

2, 054, 000, 000 Tanks, armored cars, automobiles, trucks, and

other automotive vehicles, spare parts, and
accessories.

362, 000, 000 Vessels, ships, boats, and other watercraft, and

equipage, supplies, materials, spare parts, and
accessories

629,000,000
Miscellaneous military equipment, supplies, and
materials.--

260, 000, 000 Facilities and equipment for the manufacture or

production of defense articles, including the con-
struction, acquisition, maintenance and opera-
tion thereof, and the acquisition of land.

752, 000, 000
Agricultural, industrial, and other commodities and
articles

1, 350, 000, 000 (b) For testing, inspecting, proving, repairing, outfitting,

reconditioning, or otherwise placing in good working
order any defense articles for the government of any
country whose defense the President deems vital to
the defense of the United States.

200, 000, 000
Provided, That not to exceed 20 percent of any of
the foregoing appropriations may be transferred
by the President to any other such appropriation,
but no appropriation shall be increased more than
30 percent thereby: And provided further, That any
defense articles procured under the foregoing ap-
propriations may be allocated by the President to
any department or agency of this Government for

the use of such department or agency.
(c) For necessary services and expenses for carrying out

the purposes of said act not specified or included in
the foregoing ..

40, 000, 000 (d) For administrative expenses.

10, 000, 000 In all, $7,000,000,000, to remain available until June 30, 1943: Provided, That the President may transfer from the foregoing appropriations to appropriate current appropriations of any department or agency amounts equivalent to the value of defense articles disposed of by such department or agency to the government of any country whose defense the President deems vital to the defense of the United States, not exceeding in total $1,300,000,000.

STATEMENT OF HON. CORDELL HULL, SECRETARY OF STATE

Mr. Secretary Hull, the committee is very happy to have you here today, sir, and we will be very glad to have you make such statement as you feel appropriate to be made upon this occasion.

GENERAL STATEMENT

Secretary Hull. Mr. Chairman and members of the committee: It always gives me satisfaction and stimulation to revisit these scenes of so many years of association and of what I thought were very important activities on my part.

When I appeared before the Committee on Foreign Affairs on January 15 last, I said that the proposed lend-lease bill was designed to promote the defense of the United States. I also stated in substance that that measure would set up machinery which would enable us to make the most effective use of our resources for our own needs and for the needs of those nations whom, in our own self-defense, we are determined to aid; that the measure would make it possible for us to allocate our resources in ways best calculated to provide for the security of this Nation and of this continent in the complex and many-sided conditions of danger with which we are and are likely to be confronted; that above all, it would enable us to do all these things in the speediest possible manner; and that, overwhelmingly, speed is our greatest need today.

During the 2 months that have elapsed, other areas have been added to those overrun by the brutal forces of conquest and destruction. Several more are on the list for immediate seizure and subjugation. Upon the seas the menace of death and disaster has grown. This country by now should have no longer any illusions as to the nature or magnitude of the dangers which confront us.

The United States has desired and has overwhelmingly approved a foreign policy based on the safety, integrity, and the free institutions of the country. It has no association with European political disputes. But it has recognized and must recognize that a force has

. arisen transcending the disputes which were formerly the subject of European wars. It has seen a combination of forces come into being which, step by step, has challenged the right of every nation, including our own, to exist save at the dictation of alien masters. In every case, the nation whose turn had not come up was told that there was no danger; that it needed to do nothing but sit still and all would be well. And, with deadly certainty, the governments which have swallowed this bait have been, in their turn, destroyed. Only those which devoted every ounce of their energy toward immediate defense, and which were ready to cooperate with others, have escaped destruction.

But these other nations which endeavored to avoid danger by inaction had an excuse which we do not have. They could at least indulge the hope that the conqueror might respect their lawful integrity. They perhaps were entitled to hope that the rules of international law might somehow save them. They perhaps could plead surprise. We can do none of these things.

Our immediate business is to see to it that the would-be conquerors of the world shall not be in a position in which they can command the seas, attack any country in this hemisphere and, when they are able, attempt to deal with us as they have been dealing with Europe and with Asia.

In the clear light of the repeatedly avowed purposes of conquest without limit and of the striking harmony of their acts and their words on the part of the rulers of the lawless nations, the fact is wellnigh inescapable that, if they succeed in securing control of the high seas along with that of the other continents, they will without material delay move to secure domination of some of the rich undeveloped foodstuffs, raw materials, and other natural resources of this Western Hemisphere, in those parts least prepared for self-defense. I must, in

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