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Mr. KENNEDY. I said that they have performed a great many unneutral acts.

Mr. EBERHARTER. Would you care to tell us what, in your opinion, are a few of those unneutral acts performed by the United States! Mr. KENNEDY. Well, I would think that the turning over of the 50 destroyers would be considered an unneutral act by Germany. I would consider that all the efforts that you are making now would be considered unneutral efforts.

Mr. EBERHARTER. Do you think they are violations of international law?

Mr. KENNEDY. I do not think there is any more international law. Mr. EBERHARTER. Well, under international law, say, before the present war started, or up to within 2 or 3 years ago, do you think they would have been violations of international law?

Mr. KENNEDY. I refuse to consider them, but I have referred to them as unneutral acts, and that is my opinion.

Mr. EBERHARTER. But do you not want to go so far as to say that they are violations of international law?

Mr. KENNEDY. No; I have not made any such statement. I said I would consider them as unneutral acts.

Mr. EBERHARTER. I just want it clear so that there will not be any misunderstanding.

Mr. KENNEDY. That is right.

Mr. EBERHARTER. I think you did say, Mr. Ambassador, too, that one of the reasons England was still not effectively prepared is the fact that it is a democracy?

Mr. KENNEDY. That is right.

Mr. EBERHARTER. I think you also said that it would be impractical to bring before the Congress any bill or contemplated bill for specific instructions or directions or authority insofar as the furnishing of munitions and the making of a trade was concerned?

Mr. KENNEDY. Yes, sir.

Mr. EBERHARTER. Because its democratic way is not as efficient and speedy as the other way?

Mr. KENNEDY. That is right, sir.

Mr. EBERHARTER. Will you speak up, Mr. Ambassador, please? Mr. KENNEDY. Yes, sir.

Mr. EBERHARTER. But your complaint against this bill, Mr. Ambassador, as I see it, is that that we are giving up some of the powers of Congress; is that correct?

Mr. KENNEDY. Yes. I think that there can be a balance there. That is all I am asking for. I do not believe that the situation yet warrants the assumption of all powers. After all, England did not do it for 5 months after the war.

Mr. EBERHARTER. And that is one of the reasons for her sorry position today?

Mr. KENNEDY. It is, indeed.

Mr. EBERHARTER. What you want to do is to strike up a balance? Mr. KENNEDY. Yes, sir; if we can.

Mr. EBERHARTER. The President, under the Constitution, is charged with the responsibility of carrying on the foreign policies of the country?

Mr. KENNEDY. That is right.

Mr. EBERHARTER. You have confidence in his judgment in that respect. Mr. Ambassador?

Mr. KENNEDY. Complete.

Mr. EBERHARTER. And your experience in the past has led you to believe that he is about as competent as anybody we have in the country today?

Mr. KENNEDY. That is right.

Mr. EBERHARTER. Do you care to say anything as to your opinion of him, as to his ability when it comes to the making of a bargain, particularly a bargain that might be made in the transfer of munitions in exchange for some benefits vital to the defense of this country? What do you think of his ability along those lines, in making a trade?

Mr. KENNEDY. You mean as a trader?

Mr. EBERHARTER. Yes.

Mr. KENNEDY. Excellent.

Mr. EBERHARTER. He could probably make a better deal than the Congress.

Mr. KENNEDY. You have me here.

Mr. EBERHARTER. One of the members of the committee was speaking. Mr. Ambassador, about the tremendous power that the passage of this bill would put into the hands of the President. In fact, it may even put in his hands deciding power with respect to the conduct of the war, in certain instances. As it is now that power over these munitions that England is getting from us is in the hands of England. All of the factories, or, perhaps, at least 60 percent of them are producing for England. Do you not think it is better for this Government to have this power over the production and distribution of these munitions rather than share that power with another country?

Mr. KENNEDY. On the face of the question, yes: I do, of course, anything to expedite the movement, I am in favor of, Mr. Con

gressman.

Mr. EBERHARTER. Taking into consideration that always the first thing is the defense of this country?

Mr. KENNEDY. That is right.

Mr. EBERHARTER. So that it would be better to have this power in the hands of this Government than to share it as it is being shared now?

Mr. KENNEDY. There is no question about that.

Mr. EBERHARTER. Thank you; that is all.

The CHAIRMAN. Mr. Gregory.

Mr. GREGORY. I have no questions, Mr. Chairman.

The CHAIRMAN. Mr. Wasielewski.

Mr. WASIELEWSKI. Mr. Ambassador, I believe we are all in accord with regard to the preservation of peace in our country and also to assure our security from attack. Do you feel that the passage of this bill would be a step toward involving us in war?

Mr. KENNEDY. Well, I am not prepared to say that.

Mr. WASIELEWSKI. The members of the President's Cabinet who have appeared before this committee to date have all stated that they expected some crisis to arise within the next 60 or 90 days. It is now more than 3 months since you have returned to this country, Mr.

Ambassador. Is it possible that they have some better information or newer information at hand that might lead them to that conclusion?

Mr. KENNEDY. It is quite possible, sir.

Mr. WASIELEWSKI. Thank you.

The CHAIRMAN. Mr. Sikes.

Mr. SIKES. Mr. Kennedy, is it not true that any aid we give to Britain, and which is denied to the Axis Powers, may be a step to war?

Mr. KENNEDY. Any aid that is given to Britain and denied to the Axis Powers?

Mr. SIKES. May be a step toward war?

You

Mr. KENNEDY. I should not think that was so. It may be, but I do not think it is likely. The Axis Powers cannot get aid. mean a declaration of war by whom?

Mr. SIKES. It is possible that the Axis Powers may declare war against us as soon as their circumstances permit.

Mr. KENNEDY. As soon as it is to their advantage?

Mr. SIKES. Yes.

Mr. KENNEDY. I do not think they would have to wait for any thing further. I think they could find fault with us any day. Mr. SIKES. Because we have helped England, is that the reason! Mr. KENNEDY. Yes, sir.

Mr. SIKES. That is all, Mr. Kennedy.

The CHAIRMAN. Mr. Fish.

Mr. FISH. Mr. Ambassador, do you find anything in this bill that would in any way curb or prevent this alleged 60- or 90-day crisis? Mr. KENNEDY. I do not know, but I would have to know what the crisis is.

Mr. FISH. Let us assume that there is a crisis. Do you find anything in the bill that would deliver any goods to England within the next 6 months or year?

Mr. Kennedy. I think that is a question on which you could get a much better answer from Mr. Knudsen. He is the production man. I would not attempt to do that.

Mr. FISH. As I understand it, what you are desirous of doing. and I think the whole committee is desirous of doing that also. is to expedite certain war goods to Great Britain.

Mr. KENNEDY. Yes, sir.

Mr. FISH. Namely, munitions, planes, and merchant ships? Mr. KENNEDY. Anything we have for them that does not make war inevitable.

Mr. FISH. Anything that does not make war inevitable?
Mr. KENNEDY. Yes.

Mr. FISH. Could not that be done, Mr. Ambassador, without giving away these great_constitutional powers by Congress, by merely authorizing some lending agency of the Government to either lend or lease, or actually grant now $2,000,000,000 for war supplies to England, getting the best possible securities we could as collateral, and when they are exhausted give the balance of the money to them? Would not that provide them as soon as possible and in the simplest way with all of the goods they want, war goods, such as ships, planes, and munitions?

Mr. KENNEDY. It seems to me that the problem there is as to what is necessary to get done, in order to arrive at the point that you are to have them ready to give. I do not think there is any trouble in delivering, having them done, and getting them over there, and making arrangements, and I should think we could handle that very easily, but the problem is as to what is necessary in this bill in order to do what the President evidently wants to get done-that is, to expedite armament.

Mr. FISH. My question is simply this, because it follows almost from everything you said from the beginning: You want immediate action? Mr. KENNEDY. Yes, sir.

Mr. FISH. You want national unity?

Mr. KENNEDY. Yes, sir.

Mr. FISH. To do away with all of this bitterness and controversy? Mr. KENNEDY. Yes, sir.

Mr. FISH. And to expedite war goods to Great Britain?

Mr. KENNEDY. That is right.

Mr. FISH. The most needed, as I say, are planes and munitions and nerchant ships to carry them over?

Mr. KENNEDY. Yes, sir.

Mr. FISH. Could not that be very well done by merely having Congress authorize some lending agency of the Government-Mr. Jesse fones, in his capacity as head of the R. F. C., and the Federal lending agency-to loan this money, getting the best securities and the best collateral available, and when the English money is exhausted, give hese supplies to them? Would not that answer the whole thing?

Mr. KENNEDY. It sounds very nice, and I would rather take a chance on you gentlemen straightening that out rather than asking my opinion.

Mr. FISH. I do not mind telling you now that I propose tomorrow o put that in as a substitute for this bill.

The CHAIRMAN. Mr. Ambassador, is there any further statement you wish to make?

Mr. KENNEDY. No, sir, Mr. Chairman; except to express my appreciation of the kind way in which you have treated me.

The CHAIRMAN. You mean the committee by that?

Mr. KENNEDY. Yes, sir.

The CHAIRMAN. The committee is very grateful to you for being here today and for giving us a great deal of your time. We thank you very, very much, and I know Mr. Fish joins me in that, Mr. Kennedy.

Mr. FISH. I would like to join with you and say that I know of no man in the country who is doing more to keep America out of war than you are, Mr. Ambassador. [Long and sustained applause.]

The CHAIRMAN. Thank you very much, ladies and gentlemen, on behalf of Mr. Kennedy.

Tomorrow we will have as the first witness Mr. Norman Thomas at 10 o'clock. The meeting stands at recess until 10 o'clock tomorrow morning.

On Wednesday morning we will hear Mr. Hanford MacNider.

(Thereupon, at 4:30 p. m., the committee adjourned until tomorrow, Wednesday, January 22, 1941, at 10 a. m.)

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