CANADA HISTORY - DOCUMENTS UNITED STATES

1937 The Neutrality Act

Analysis of the Document - (The Document follows below the Analysis)

The Neutrality Act of 1937 was an important piece of legislation in U.S. history that had significant implications for both American foreign policy and its relations with neighboring countries, including Canada. Enacted as part of a broader series of neutrality laws passed during the 1930s, the act sought to ensure that the United States would not be drawn into the growing conflicts in Europe and Asia that would soon culminate in World War II. For Canada, a close ally and neighbor, the ramifications of this legislation were profound, both in terms of economic and military cooperation and in the shaping of its foreign policy.

The Neutrality Act restricted the sale of arms and munitions to belligerent nations, enforced a policy of non-involvement, and reflected the strong isolationist sentiments that dominated U.S. politics in the interwar period. This had a significant impact on Canada, which, under the leadership of Prime Minister William Lyon Mackenzie King, was closely monitoring the rising tensions in Europe. Canada’s foreign policy during this period was also evolving, particularly in light of its status as a dominion with increasing autonomy within the British Empire.

One of the most immediate implications of the Neutrality Act was the effect it had on trade. Canada, though still officially neutral, was bound by its historical ties to Britain and would soon find itself involved in the defense of the British Empire. The restrictions imposed by the Neutrality Act on arms sales and other wartime goods made it difficult for Canadian industries to engage in full-scale economic collaboration with the United States. This placed pressure on Canada to develop a more independent economic and military policy, further distancing it from U.S. neutrality.

Politically, the act created a rift in North American relations. Canada, preparing for war, saw its southern neighbor’s stance as a barrier to much-needed cooperation. As the war clouds gathered, Canada’s leaders understood that they would inevitably be drawn into the conflict due to their ties to Britain. However, the United States remained intent on avoiding entanglement in the affairs of Europe, further complicating Canada’s strategic and economic decisions.

The most significant long-term impact of the Neutrality Act on Canada was its contribution to the development of Canadian sovereignty and autonomy in foreign policy. As the global situation worsened, Mackenzie King and his government recognized that Canada could not rely on the U.S. for support in its prewar preparations. This spurred greater efforts to build up Canada’s own military resources, negotiate defense agreements with Britain, and lay the groundwork for a more assertive role in international diplomacy.

As the war progressed and the United States eventually abandoned its neutrality after the attack on Pearl Harbor in 1941, the relationship between Canada and the U.S. shifted dramatically. The cooperation that followed during World War II, including the integration of military resources and planning through agreements like the Ogdensburg Agreement of 1940, was built on the understanding that Canada had to stand ready for conflict, even when its closest ally remained on the sidelines.

In conclusion, while the Neutrality Act of 1937 was designed to keep the United States out of foreign conflicts, its effects on Canada were significant. It forced Canada to reconsider its strategic and economic options, and contributed to the strengthening of Canadian sovereignty. Moreover, the legacy of the Neutrality Act underscored the diverging foreign policy paths of the two North American neighbors, with Canada positioning itself more clearly as a participant in the defense of the British Empire and Western democracies. The act, therefore, played an indirect but crucial role in shaping Canada’s role in the global order leading up to World War II.

May 1, 1937

JOINT RESOLUTION

To amend the joint resolution, approved August 31, 1935, as amended.

Resolved...

EXPORT OF ARMS, AMMUNITION, AND IMPLEMENTS OF WAR

Section 1. (a) Whenever the President shall find that there exists a state of war between, or among, two or more foreign states, the President shall proclaim such fact, and it shall thereafter be unlawful to export, or attempt to export, or cause to be exported, arms, ammunition, or implements of war from any place in the United States to any belligerent state named in such proclamation, or to any neutral state for transshipment to, or for the use of, any such belligerent state. (b) The President shall, from time to time, by proclamation, extend such embargo upon the export of arms, ammunition, or implements of war to other states as and when they may become involved in such war. (c) Whenever the President shall find that such a state of civil strife exists in a foreign state and that such civil strife is of a magnitude or is being conducted under such conditions that the export of arms, ammunition, or implements of war from the United States to such foreign state would threaten or endanger the peace of the United States, the President shall proclaim such fact, and it shall thereafter be unlawful to export, or attempt to export, or cause to be exported, arms, ammunition, or implements of war from any place in the United States to such foreign state, or to any neutral state for transshipment to, or for use of, such foreign state. (d) The President shall, from time to time by proclamation, definitely enumerate the arms, ammunition, and implements of war, the export of which is prohibited by this section. The arms, ammunition, and implements of war so enumerated shall include those enumerated in the President's proclamation Numbered 2163, of April 10, 1936, but shall not include raw materials or any other articles or materials not of the same general character as those enumerated in the said proclamation, and in the Convention for the Supervision for the International Trade in Arms and Ammunition and in Implements of War, signed at Geneva June, 17, 1925. (e) Whoever, in violation of any of the provisions of this Act, shall export, or attempt to export, or cause to be exported, arms, ammunition, or implements of war from the United States shall be fined not more than $10,000, or imprisoned not more than five years, or both... (f) In the case of the forfeiture of any arms, ammunition, or implements of war by reason of a violation of this Act, ... 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 of the United States. (g) Whenever, in the judgment of the President, the conditions which have caused him to issue any proclamation under the authority of this section have ceased to exist, he shall revoke the same, and the provisions of this section shall thereupon cease to apply with respect to the state or states named in such proclamation, except with respect to offenses committed, or forfeiture incurred, prior to such revocation.

EXPORT OF OTHER ARTICLES AND MATERIALS

Section 2. (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act and he shall thereafter find that the placing of restrictions on the shipment of certain articles or materials in addition to arms, ammunition, and implements of war from the United States to belligerent states, or to a state wherein civil strife exists, is necessary to promote the security or preserve the peace of the United States or to protect the lives of citizens of the United States, he shall so proclaim, and it shall thereafter be unlawful, for any American vessel to carry such articles or materials to any belligerent state, or to any state wherein civil strife exists, named in such proclamation issued under the authority of section 1 of this Act, or to any neutral state for transshipment to, or for the use of, any such belligerent states or any such state wherein civil strife exists. The President shall by proclamation from time to time definitely enumerate the articles and materials which is shall be unlawful for American vessels to so transport... (c) The President shall from time to time by proclamation extend such restrictions as are imposed under the authority of this section to other states as and when they may be declared to become belligerent states under the authority of section 1 of this Act. (d) The President may from time to time change, modify, or revoke in whole or in part any proclamations issued by him under the authority of this section. (e) Except with respect to offenses committed, or forfeitures incurred, prior to May 1, 1939, this section and all proclamations issued thereunder shall not be effective after May 1, 1939.

FINANCIAL TRANSACTIONS

Section 3. (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act, it shall thereafter be unlawful for any person within the United States to purchase, sell, or exchange bonds, securities, or other obligations of the government of any belligerent state or of any state wherein civil strife exists, named in such proclamation, or of any political subdivision of any such state, or of any person acting for or on behalf of the government of any such state, or of any faction or asserted government within any such state wherein civil strife exists, or of any person acting for or on behalf of any faction or asserted government within any such state wherein civil strife exists, issued after the date of such proclamation, or to make any load or extend any credit to any such government, political subdivision, faction, asserted government, or person, or to solicit or receive any contribution for any such government, political subdivision, faction, asserted government, or person: PROVIDED, That if the President shall find that such action will serve to protect the commercial or other interest of the United States or its citizens, he may, in his discretion, and to such extent and under such regulations as he may prescribe, except from the operation of this section ordinary commercial credits and short-time obligations in aid of legal transactions and of a character customarily used in normal peacetime commercial transactions. Nothing in this subsection shall be construed to prohibit the solicitation or collection of funds to be used for medical aid and assistance, or for food and clothing to relieve human suffering, when such solicitation or collection of funds is made on behalf of and for use by any person or organization which is not acting for or on behalf of any such government, political subdivision, faction, or asserted government, but all such solicitations and collections of funds shall be subject to the approval of the President and shall be made under such rules and regulations as he shall prescribe.... (c) Whoever shall violate the provisions of this section or of any regulations issued hereunder shall, upon conviction thereof, be fined not more than $50,000 or imprisoned for not more than five years, or both. Should the violation be by a corporation, organization, or association, each officer or agent thereof participating in the violation may be liable to the penalty herein prescribed....

EXCEPTIONS - AMERICAN REPUBLICS

Section 4. This Act shall not apply to an American republic or republics engaged in war against a non-American state or states, provide the American republic is no cooperating with an non-American state or states in such a war

NATIONAL MUNITIONS CONTROL BOARD

Section 5. (a) There is hereby established a National Munitions Control Board (herein after referred to as the 'Board') to carry out the provisions of this Act. The board shall consist of the Secretary of State, who shall be chairman and executive officer of the Board, the Secretary of the Treasury, the Secretary of War, the Secretary of the Navy, and the Secretary of Commerce. Except as otherwise provided in this Act, or by other law,. the administration of this Act is vested in the Department of State. The Secretary of State shall promulgate such rules and regulations with regard to the enforcement of this section as he may deem necessary to carry out its provisions. The Board shall be convened by the chairman and shall hold at least one meeting a year. (b) Every person who engages in the business of manufacturing, exporting, or importing any of the arms, ammunition, or implements of war referred to in this Act, whether as an exporter, importer, manufacturer, or dealer, shall register with the Secretary of States his name, place of business, and places of business in the United States, and a list of the arms, ammunition, and implements of war which he manufactures, imports, or exports. (c) Every person required to register under this section shall notify the Secretary of State of any change in the arms, ammunition, or implements of war which he exports, imports, or manufactures;... (d) It shall be unlawful for any person to export, or attempt to export, from the United States to any other state, any of the arms, ammunition, or implements of war referred to in this Act, or to import, or attempt to import, to the United States from any other state, any of the arms, ammunition, or implements of war referred to in this Act, without first having obtained a license therefor. ... (k) The President is hereby authorized to proclaim upon recommendation of the Board from time to time a list of articles which shall be considered arms, ammunition, and implements of war for the purposes of this section.

AMERICAN VESSELS PROHIBITED FROM CARRYING ARMS TO BELLIGERENT STATES

Section 6. (a) Whenever the President shall have issued a proclamation under the authority of section 1 of this Act, it shall thereafter be unlawful, until such proclamation is revoked, for any American vessel to carry any arms, ammunition, or implements of war to any belligerent state, or to any state wherein civil strife exists, named in such proclamation, or to any neutral state for transshipment to, or for the use of, any such belligerent state or any such state wherein civil strife exists. (b) Whoever, in violation of the provisions of this section, shall take, or attempt to take, or shall authorize, hire, or solicit another to take, any American vessel carrying such cargo out of 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, and her tackle, apparel, furniture, and equipment, and the arms, ammunition, and implements of war on board, shall be forfeited to the United States.

USE OF AMERICAN PORTS AS BASE OF SUPPLY

Section 7. (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 nay vessel, domestic or foreign, whether requiring clearance or not, is about to carry out of a port of the Untied States, fuel, men, arms, ammunition, implements of war, or other supplies to any warship, tender, or supply ship of a belligerent state, 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, and if, in the President's judgment, such action will serve to maintain peace between the United States and foreign states, or to protect the commercial interests of the United States and its citizens, 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, or any part of the cargo, to any warship, tender, or supply ship of the belligerent state. (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 state, he may prohibit the departure of such vessel during the duration of the war.

SUBMARINES AND ARMED MERCHANT VESSELS

Section 8. Whenever, during any war in which the United States is neutral, the President shall find that special restrictions placed on the use of the ports and territorial waters of the United States by the submarines or armed merchant vessels of a foreign state, will serve to maintain peace between the United States and foreign states, or to protect the commercial interests of the United States and its citizens, or to promote the security of the United States, and shall make proclamation therefore, it shall thereafter be unlawful for any such submarine or armed merchant vessel to enter a port or 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. Whenever, in his judgment, the conditions which have caused him to issue his proclamation have ceased to exist, he shall revoke his proclamation and the provisions of this section shall thereupon cease to apply.

TRAVEL ON VESSELS OF BELLIGERENT STATES

Section 9. Whenever the President shall have issued a proclamation under the authority of section 1 of this Act it shall thereafter be unlawful for any citizen of the United States to travel on any vessel of the state or states named in such proclamation, except in accordance with such rules and regulations as the President shall prescribe:...

ARMING OF AMERICAN MERCHANT VESSELS PROHIBITED

Section 10. Whenever the President shall have issued a proclamation under the authority of section 1, it shall thereafter be unlawful, until such proclamation is revoked, for any American vessel engaged in commerce with any belligerent state, or any state wherein civil strife exists, named in such proclamation, to be armed or to carry any armament, arms, ammunition, or implements of war, except small arms and ammunition therefor which the President may deem necessary and shall publicly designate for the preservation of discipline aboard such vessels.

REGULATIONS

Section 11. 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...