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Subject: Re: D.W. Ferrie August 1959
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Here is some more background for those interested in gun-running:
Sorry it's in two parts.......jko

THE NEUTRALITY ACT OF 1937,
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