The Archive · 1937

Cash and Carry" Plan

Several, architectural designs for neutrality's halfway house have been submitted, The two most important are the "cash and carry" plan and the. "normal exports" plan, The normal exports plan is, the favourite of the Secretary of State, Mr. Cordell Hull. He embodied it in the Administration neutrality act which Congress rejected last session. The President in that draft act was given authority to restrict the export fof "articles or materials used in the manufacture of arms ammunition or Implements of war or in the conduct of war." He could decide whether to Impose such restrictions and also decide on what articles the restric-tons were to be imposed.

Thereupon the direct or indirect! export of, such articles to any bel-gerent "In excess of a, normal amount in quantity and kind" should be probibited—"sueh normal amount to constitute the average of shipments during a previous period of years to [be determined by the President."

Experts of the State Depariment who have been studying the plan, however, object to it strongly on the Srounds that it would be far too com~ plicated and dim cult to enforce. It would require for example the allocation of. production quotas and the freezing of industrial production. Therefore the Secretary {s now looking with more favour on the alternative "cash and carry" plan.

Text read from the printed page and cleaned; old type leaves the occasional error.

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