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Return to Frequently
Asked Questions page. AN ACT
Further to promote the defense of the United States, and for other
purposes.
Be it enacted by the Senate add 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 agricultural, industrial or 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 bead of any other department or agency of
the Government -
(1) To manufacture in arsenals, factories, and shipyards under
their jurisdiction, or otherwise procure, to the extent to which
funds are made available therefor, or contracts are authorized
from time to time by the Congress, or both, 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 title to, exchange, lease, lend, or otherwise
dispose of, to any such government any defense article, but no
defense article not manufactured or procured under paragraph (1)
shall in any way be disposed of under this paragraph, except after
consultation with the Chief of Staff of the Army or the Chief
of Naval Operations of the Navy, or both. The value of defense
articles disposed of in any way under authority of this paragraph,
and procured from funds heretofore appropriated, shall not exceed
$1,300,000,000. The value of such defense articles shall be determined
by the head of the department or agency concerned or such other
department, agency or officer as shall be designated in the manner
provided in the rules and regulations issued hereunder. Defense
articles procured from funds hereafter appropriated to any department
or agency of the Government, other than from funds authorized
to he appropriated under this Act. shall not be disposed of in
any way under authority of this paragraph except to the extent
hereafter authorized by the Congress in the Acts appropriating
such funds or otherwise.
(3) To test, inspect, prove, repair, outfit, recondition, or otherwise
to place in good working order, to the extent to which funds are
made available therefor, or contracts are authorized from time
to time by the Congress, or both, any defense article for any
such government, or to procure any or all such services by private
contract.
(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 disposed of in any
way under this subsection 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 he payment or repayment in kind or property,
or any other direct or indirect benefit which the President deems
satisfactory.
(c) After June 30, 1943, or after the passage of a concurrent
resolution by the two Houses before June 30, 1943, which declares
that the powers conferred by or pursuant to subsection (a) are
no longer necessary to promote the defense of the United States,
neither the President nor the head of any department or agency
shall exercise any of the powers conferred by or pursuant to subsection
(a) except that until July 1, 1946, any of such powers may be
exercised to the extent necessary to carry out a contract or agreement
with such a foreign government made before July 1,1943, or before
the passage of such concurrent resolution, whichever is the earlier.
(d) Nothing in this Act shall be construed to authorize or to
permit the authorization of convoying vessels by naval vessels
of the United States.
(e) Nothing in this Act shall be construed to authorize or to
permit the authorization of the entry of any American vessel into
a combat area in violation of section 3 of the neutrality Act
of 1939.
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. (a) 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.
(b) The President from time to time, but not less frequently than
once every ninety days, shall transmit to the Congress a report
of operations under this Act except such information as he deems
incompatible with the public interest to disclose. Reports provided
for under this subsection shall be transmitted to the Secretary
of the Senate or the Clerk of the House of representatives, as
the case may be, if the Senate or the House of Representatives,
as the case may be, is not in session.
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; but in no event shall any funds so received be available
for expenditure after June 30, 1946.
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 he 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 be shall direct.
SEC. 10. Nothing in this Act shall be construed to change existing
law relating to the use of the land and naval forces of the United
States, except insofar as such use relates to the manufacture,
procurement, and repair of defense articles, the communication
of information and other noncombatant purposes enumerated in this
Act.
SEC 11. If any provision of this Act or the application of such
provision to any circumstance shall be held invalid, the validity
of the remainder of the Act and the applicability of such provision
to other circumstances shall not be affected thereby.
Approved, March 11, 1941.
Source: Public Laws. Part 1 of United States
Statutes at Large Containing the Laws and Concurrent Resolutions
Enacted During the First Session of the Seventy-Seventh Congress
of the United States of America, 1941-1942, and Treaties, International
Agreements Other than Treaties, and Proclamations. Vol. 55
(Washington: Government Printing Office, 1942): 31-33.
19 October 1999