Lend Lease Act, 11 March 1941
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 therefore, 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 therefore,
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
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