COMMITTEE ON FOREIGN AFFAIRS SOL BLOOM, New York, Chairman LUTHER A. JOHNSON, Texas LAURENCE F. ARNOLD, Illinois WIRT COURTNEY, Tennessee HERMAN P. EBERHARTER, Pennsylvania THAD F. WASIELEWSKI, Wisconsin HAMILTON FISH, New York FOSTER STEARNS, New Hampshire II BOYD CRAWFORD, Clerk LOUISE DREISONSTOK, Assistant Clerk F714 l Dennis, William C., president of Earlham College, Richmond, Ind. - Dewey, Hon. Charles S., Representative in Congress from the State of Emeny, Dr. Brooks, Cleveland, Ohio.. 465 Gibson, Hon. Ernest W. Jr., chairman, Committee to Defend America 677 Harriman, Hon. Mrs. J. Borden, United States Minister to Norway. Knox, Hon. Frank, Secretary of the Navy, Washington, D. C... 155 189 Lindbergh, Col. Charles A., Lloyd Neck, N. Y.. 371 Marsh, Mr. Benjamin C., executive secretary, Peoples Lobby, Wash- 550 MacNider, Col. Hanford, Mason City, Iowa.. 351 Morgenthau, Hon. Henry Jr., Secretary of the Treasury, Washington, 51 Pinchot, Hon. Amos, American Defense Society, New York City... Smith, Hon. Frederick C., Representative in Congress from the State Smith, Rev. Gerald L. K., national chairman, Committee of One 537 Stimson, Hon. Henry L., Secretary of War, Washington, D. C.. 85, 107 317 644 Waldman, Mr. Louis, national chairman, Čouncil of Social Democracy, 675 III LEND-LEASE BILL WEDNESDAY, JANUARY 15, 1941 HOUSE OF REPRESENTATIVES, COMMITTEE ON FOREIGN AFFAIRS, The committee met at 10 a. m., Hon. Sol Bloom (chairman) presiding. The CHAIRMAN. The committee will kindly come to order. The Foreign Affairs Committee of the House of Representatives has under consideration H. R. 1776, a bill "Further to promote the defense of the United States, and for other purposes." A copy of the bill will be made a part of the record at this point. [H. R. 1776, 77th Cong., 1st sess.] A BILL Further to promote the defense of the United States, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "An Act to Promote the Defense of the United States". SEC. 2. As used in this Act (a) The term "defense article" means (1) Any weapon, munition, aircraft, vessel, or boat; (2) Any machinery, facility, tool, material, or supply necessary for the manufacture, production, processing, repair, servicing, or operation of any article described in this subsection; (3) Any component material or part of or equipment for any article described in this subsection; (4) Any other commodity or article for defense. Such term "defense article" includes any article described in this subsection: Manufactured or procured pursuant to section 3, or to which the United States or any foreign government has or hereafter acquires title, possession, or control. (b) The term "defense information" means any plan, specification, design, prototype, or information pertaining to any defense article. SEC. 3. (a) Notwithstanding the provisions of any other law, the President may, from time to time, when he deems it in the interest of national defense, authorize the Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government (1) To manufacture in arsenals, factories, and shipyards under their jurisdiction, or otherwise procure, any defense article for the government of any country whose defense the President deems vital to the defense of the United States. (2) To sell, transfer, exchange, lease, lend, or otherwise dispose of, to any such government any defense article. (3) To test, inspect, prove, repair, outfit, recondition, or otherwise to place in good working order any defense article for any such government. (4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government under paragraph (2) of this subsection. (5) To release for export any defense article to any such government. (b) The terms and conditions upon which any such foreign government receives any aid authorized under subsection (a) shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repay 1 ment in kind or property, or any other direct or indirect benefit which the President deems satisfactory. SEC. 4. All contracts or agreements made for the disposition of any defense article or defense information pursuant to section 3 shall contain a clause by which the foreign government undertakes that it will not, without the consent of the President, transfer title to or possession of such defense article or defense information by gift, sale, or otherwise, or permit its use by anyone not an officer, employee, or agent of such foreign government. SEC. 5. The Secretary of War, the Secretary of the Navy, or the head of any other department or agency of the Government involved shall, when any such defense article or defense information is exported immediately inform the department or agency designated by the President to administer section 6 of the Act of July 2, 1940 (54 Stat. 714), of the quantities, character, value, terms of disposition, and destination of the article and information so exported. SEC. 6. (a) 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. (b) All money and all property which is converted into money received under section 3 from any government shall, with the approval of the Director of the Budget, revert to the respective appropriation or appropriations out of which funds were expended with respect to the defense article or defense information for which such consideration is received, and shall be available for expenditure for the purpose for which such expended funds were appropriated by law, during the fiscal year in which such funds are received and the ensuing fiscal year. SEC. 7. The Secretary of War, the Secretary of the Navy, and the head of the department or agency shall in all contracts or agreements for the disposition of any defense article or defense information fully protect the rights of all citizens of the United States who have patent rights in and to any such article or information which is hereby authorized to be disposed of and the payments collected for royalties on such patents shall be paid to the owners and holders of such patents. SEC. 8. The Secretaries of War and of the Navy are hereby authorized to purchase or otherwise acquire arms, ammunition, and implements of war produced within the jurisdiction of any country to which section 3 is applicable, whenever the President deems such purchase or acquisition to be necessary in the interests of the defense of the United States. SEC. 9. The President may, from time to time, promulgate such rules and regulations 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 department, agency, or officer as he shall direct. The CHAIRMAN. We are honored to have as our first witness this morning the Secretary of State, Hon. Cordell Hull. Mr. Secretary, we shall be very pleased to hear you at this time. STATEMENT OF HON. CORDELL HULL, THE SECRETARY OF STATE Secretary HULL. Mr. Chairman, members of the Committee on Foreign Affairs, we are here to consider a bill designed to promote the defense of the United States. I shall not discuss the technical details of the proposed measure, since that will be done by other departments of the Government more directly concerned with these matters. I shall place before you briefly the controlling facts relating to the manner in which the dangers that now confront this hemisphere and, therefore, this Nation, have arisen, and the circumstances which render imperative all possible speed in our preparation for meeting these dangers. During the past 8 years, our Government has striven, by every peaceful means at its disposal, to secure the establishment in the world of conditions under which there would be a reasonable hope for enduring peace. We have proceeded in the firm belief that only if such conditions come to exist will there be a certainty that our country |