(d) When in the judgment of the President the conditions which have caused him to issue his proclamation have ceased to exist, he shall revoke the same and the provisions of this section shall thereupon cease to apply.

PENALTIES FOR VIOLATION OF SECTION 3, 4, OR 7

SEC. 8. (a) Whoever, in violation of any of the provisions of section 3, 4, or 7 of this Act, shall export, or attempt to export, or cause to be exported, or sell for export, arms, ammunition, implements of war, or other articles or materials enumerated in a proclamation by the President, or shall take, attempt to take, or shall authorize, hire, or solicit another to take any vessel or vehicle carrying such cargo out of a 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 or vehicle, her tackle, apparel, furniture, equipment, and such part of the property or cargo as is covered by the proclamation shall be subject to the provisions of sections 1 to 8, inclusive, title 6, chapter 30, of the Act approved June 15, 1917 (40 Stat. 223–225; U. S. C., title 22, secs. 238-245).

(b) In the case of the forfeiture of any arms, ammunition, or implements of war, by reason of a violation of this Act, no public or private sale shall be required, but such arms, ammunition, or implements of war shall be delivered to the Secretary of War for such use or disposal thereof as shall be approved by the President.

TRANSACTIONS WITH BELLIGERENTS

SEC. 9. 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 commercial interests of the United States and its nationals, or the security or neutrality of the United States would be promoted by requiring nationals of the United States to assume the risk of commercial transactions with the governments or nationals of belligerent countries, or persons residing therein, and shall so proclaim, thereafter American nationals who engage in such transactions shall do so at their own risk: Provided, That the United States reserves and reaffirms all rights under international law as it existed prior to August 1, 1914.

TRAVEL BY AMERICAN NATIONALS ON BELLIGERENT VESSELS

SEC. 10. (a) Whenever the President shall have issued his proclamation as provided for in section 3 of this Act, thereafter no national of the United States shall travel on any vessel of any belligerent nation, and no passport issued by the Secretary of State or anyone acting under his authority shall be valid for use by any person for travel from the United States on any such vessel.

(b) The provisions of this section shall not apply to a national whose voyage on a vessel of a belligerent was begun in advance of the date on the President's proclamation, and who had no opportunity to discontinue the voyage after that date; nor shall they apply under ninety days after the date of the President's proclamation to a national returning from a foreign country to the United States.

(c) When the President shall have revoked his proclamation as provided for in section 3 of this Act the provisions of this section and of any regulations issued by the President hereunder shall thereupon cease to apply.

USE OF AMERICAN PORTS AS BASE OF SUPPLY

SEC. 11. (a) 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 fuel, arms, ammunition, men, supplies, dispatches, or information to any warship, tender, or supply ship of a 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. 217, 221; U. S. C., title 18, sec. 31), 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 interest of the United States and its nationals, or to promote the security or neutrality 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, 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 the men, dispatches, information, or any part of the cargo, to any warship, tender, or supply ship of a belligerent nation.

(b) 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, has previously cleared from a port of the United States 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.

SUBMARINES PROHIBITED FROM ENTERING AMERICAN WATERS

SEC. 12. (a) Whenever, during any war in which the United States is neutral, the President shall find that the placing of special restrictions on the use of the ports and territorial waters of the United States by submarines of belligerent nations will serve to maintain peace between the United States and foreign nations, or to protect the commercial interests of the United States and its nationals, or to promote the security or neutrality of the United States, and shall so proclaim, it shall thereafter be unlawful for any such submarine to enter a port of the territorial waters of the United States, or to depart therefrom, except under such conditions and subject to such limitations as the President may prescribe.

(b) When, in the judgment of the President, the conditions which have caused him to issue his proclamation have ceased to exist, he shall revoke the same and the provisions of this section shall thereupon cease to apply.

REGULATIONS BY THE PRESIDENT

SEC. 13. The President may, from time to time, promulgate such rules and regulations, not inconsistent with law, as may be necessary and proper to carry out any of the provisions of this Act; and he may exercise any power or authority conferred on him by this Act through such officer or officers, or agency or agencies, as he shall direct.

APPLICATION OF PROVISIONS OF THIS ACT

SEC. 14. If any of the provisions of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

MODIFICATION OR TERMINATION OF TREATIES

SEC. 15. If the President shall find that any of the provisions of this Act, if applied, would contravene treaty provisions in force between the United States and any foreign country before such provisions shall become applicable as to such foreign country or countries, he shall enter into negotiations with the government of such country for the purpose of effecting such modification of the treaty provisions as may be necessary, and if he shall be unable to bring about the necessary modifications he may, in his discretion, but before such provisions shall become applicable as to such foreign country or countries he shall give notice of termination and terminate the treaty in accordance with the terms thereof.

AUTHORIZATION FOR APPROPRIATIONS

SEC. 16. 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.

Mrs. ROGERS. Is the Secretary of State coming?

The CHAIRMAN. I don't know whether he is or not. Not unless it is absolutely necessary. However, he is willing to come, but these gentlemen were over before the Senate last Saturday and they are authorized to speak for the State Department.

Mr. BLOOM. I do not see the use of having hearings on neutrality as we have been over this subject so often.

The CHAIRMAN. I merely introduced the resolution to get some consideration of the subject and we will likely want to amend it. When we finally write a resolution we want, I will reintroduce it and we can report it without amendments.

This resolution, House Joint Resolution 147, the first part of this resolution is the enactment clause followed by the statement that this act may be cited as the Neutrality Act of 1937.

Section 2 is merely a description of the various terms.

This resolution, I will say, with some two or three amendments, is the resolution this committee reported out the Seventy-fourth Congress-H. J. Res. 422. It was not the resolution passed. You remember we had a compromise resolution later and passed it, but this is the resolution, with some exceptions, that was brought out in that hearing and with the same descriptions.

Now, under section 3, export of arms, you will remember it was absolutely mandatory upon the President to put a mandatory prohibition on the export of arms and munitions under section 3, and also under the next section there is a reference to credits, which has the same provision and which is the law at this time.

Now, I undertook to write into section 3, subsection (b), provisions to cover civil warfare. Mr. Hackworth and myself have been going over that and there is one point that does not appeal to me so much and that is "each such section, party, or faction shall be considered as a separate belligerent country or nation." I do not like that language, but yet, I was trying to prevent the necessity for going into a lot of writing as to what shall constitute "a separate belligerent country or nation." So, Mr. Hackworth and I have been going over the provisions under subsection (b), and he thinks that can be amended or left out of subsection (b) and adding under section 3 "or that there exists a state of civil strife in any foreign state." What we are trying to cover is civil warfare and that is what we are trying to get in there without writing a long section undertaking to define that.

Mr. KLOEB. You do not wish to bring it in as a mandatory feature?

The CHAIRMAN. The civil-warfare provision?

Mr. KLOEB. Yes.

The CHAIRMAN. That is when a proclamation is issued.

Mr. KLOEB. I think the way it reads now is "as a consequence of such state of war, the peace and neutrality of the United States or the commerce or lives of its nationals is or may be threatened”, and so forth.

The CHAIRMAN. That is what I put in.

I want to eliminate, however, "separate belligerent country or nation", at the bottom. But, that is a matter we can work on at the proper time. I think all the members of the committee will agree civil strife, not every civil strife, but such as we have in Spain is one where we would want the same provisions as to belligerent countries as to the banning and nonshipment to apply, isn't that right? Mr. BLOOM. Throughout the world?

The CHAIRMAN. Any country having the right of a belligerent nation.

Mr. BLOOM. Is there any difference between South American countries and European countries?

Mr. SHANLEY. Mr. Chairman, do you think it is necessary for Mr. Hackworth to explain the difference between civil warfare and civil strife? Personally, I think that is very important.

The CHAIRMAN. Yes, sir; that is very important. We would be glad to hear from Mr. Hackworth.

STATEMENT OF GREEN H. HACKWORTH, LEGAL ADVISER, DEPARTMENT OF STATE

Mr. HACKWORTH. That is an important matter. It is probably not desirable to require the President to proclaim that a state of belligerency exists wherever civil strife exists because the President may not want to pass on the question whether there is a state of war. The question of belligerency is a delicate question, because when you recognize that insurgents are belligerents, then they are entitled to all the benefits of rules of warfare. They have the right to seize ships on the high seas and they have various other rights which insurgents prior to their recognition as belligerents would not have. Moreover, to recognize a state of belligerency on the part of insurgents might be offensive to the recognized government.

We had such a situation, as you will recall, during our Civil War. Great Britain and some of the other countries recognized that a state of belligerency existed in the Southern States and the Federal Government was very much displeased about that. The Federal Government said, "These people are rebels and must be treated as such." But the other powers said, "No; they are entitled to be considered as belligerents", consequently, the rules of war became applicable.

It is therefore important to give the Federal Government discretion as to whether or not a state of belligerency shall be recognized. The purpose of this proposed legislation can be attained by leaving it to the President to determine when the shipment of arms or any other commodities to a country engaged in civil strife should be prevented in the interest of the peace and neutrality of the United States.

Mr. SHANLEY. Using that term "civil strife.”

Mr. HACKWORTH. It has no special connotation in international law. It does not necessarily connote belligerency.

Mr. JOHNSON of Texas. Civil strife is more comprehensive than civil war.

Mr. HACKWORTH. It is more comprehensive. It includes many situations.

Mr. BLOOM. According to your statement, if we should consider the present act

Mr. HACKWORTH. The present act does not cover civil strife. The present act covers only war between two or more foreign nations, so you are not able to reach the Spanish situation under the resolution of 1935 as amended. For that very reason it was necessary, as you will recall, to pass, a short time ago, a separate resolution in regard to the Spanish situation.

Mr. JOHNSON of Texas. Mr. Hackworth, what is our law with reference to an insurrection in American countries, the present law?

Mr. HACKWORTH. The present law gives the President complete discretion as to whether he shall place an embargo or restraint on the shipment of munitions to such a country.

Mr. JOHNSON of Texas. In American countries it doesn't have to be a war between countries. It can be an insurrection of two factions in a country. He has that right under a separate act.

Mr. HACKWORTH. Yes; the resolution of 1922 applies to civil strife only in Latin American countries and countries in which we exercise extraterritorial rights.

Mr. JOHNSON of Texas. In what countries do we exercise extraterritorial rights?

Mr. HACKWORTH. In China, Morocco, Egypt, and two or three other countries.

Mr. JOHNSON of Texas. The existing law does not apply to Canada?

Mr. HACKWORTH. No; the existing law does not apply to any European country.

The CHAIRMAN. Suppose we do this, if such is the will of the committee, and I am sure the committee wants to include such civil strife or warfare existing which might affect our neutrality, and so forth, where the President sees fit to do that, we can include the same provisions we have in this resolution as to belligerent countries, but we do not want to recognize them as such, because belligerent countries have more rights.

Mr. EATON. You don't want to leave out any opportunity to get into more trouble.

The CHAIRMAN. And suppose we have Mr. Hackworth go over this resolution and try to draw an amendment and submit it to us later. Mr. JOHNSON of Texas. This resolution we are considering is simply dealing with countries beyond the western hemisphere. We have a law with reference to that, so we are setting up our law as this bill proposes dealing with countries outside the realm of the western hemisphere. Isn't that true?

Mr. HACKWORTH. Well, as I understand the provision with respect to civil strife it would apply in general to any country wherein civil strife exists.

The CHAIRMAN. The same provision as that relating to a belligerent country?

Mr. HACKWORTH. Yes.

The CHAIRMAN. What I want to do is to draw a bill without having to keep all these definitions in it, to draw an amendment that would cover civil strife and put these embargoes on. We didn't have that up for discussion last time because it had not arisen.

Mr. JOHNSON of Texas. Nobody realized a thing of that kind would assume the proportions that it has.

The CHAIRMAN. They have vessels and can do us harm.

That is the same law we have with reference to embargo on arms and ammunition. The next is section 4. That is in reference to arms and materials of war.

This provision makes it possible wherever the President, in order to protect our neutrality and so forth, has the right to issue a proclamation and it shall hereafter be unlawful to export, or attempt to export, or cause to be exported, or sell for export such articles or materials from any place in the United States to any belligerent