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 Chief of Staff of the Air Force or the Chief of Naval Operations of the Navy, or all. 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 be appropriated under sections 411-419 of this title, 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) of this section shall be those which the President deems satisfactory, and the benefit to the United States may be payment or repayment in kind or property, or any other direct or indirect benefit which the President deems satisfactory: Provided, however, That nothing in this paragraph shall be construed to authorize the President to assume or incur any obligations on the part of the United States with respect to post-war economic policy, post-war military policy or any postwar policy involving international relations except

in accordance with established constitutional cedure.

(c) After June 30, 1946, or after the passa a concurrent resolution by the two Houses b June 30, 1946, which declares that the powers ferred by or pursuant to subsection (a) of this se are no longer necessary to promote the defense United States, neither the President nor the he any department or agency shall exercise any o powers conferred by or pursuant to said subse (a); except that until July 1, 1949, any of such p may be exercised to the extent necessary to out a contract or agreement with such a fo government made before July 1, 1946, or befor passage of such concurrent resolution, whic is the earlier; Provided, however, That nothi this subsection shall be construed to authoriz President to enter into or carry out any co or agreement with a foreign government for war relief, postwar rehabilitation or postwar struction; except that a contract or agreemer tered into in accordance with sections 411-4 this title in which the United States undertal furnish to a foreign government defense an services, or information for use in the prosecut the present war and which provides for the di tion, on terms and conditions of sale prescrib the President, of any such defense articles, se or information after the President determine are no longer necessary for use by such gover in promoting the defense of the United States not be deemed to be for postwar relief, postw habilitation or postwar reconstruction.

(d) Nothing in sections 411-419 of this titl be construed to authorize or to permit the au zation of convoying vessels by naval vessels United States.

(e) Nothing in sections 411-419 of this titl be construed to authorize or to permit the au zation of the entry of any American vessel combat area in violation of section 443 of thi (Mar. 11, 1941, ch. 11, § 3, 55 Stat. 31; Mar. 11 ch. 15, 57 Stat. 20; May 17, 1944, ch. 198, §§ 1 Stat. 222, 223; Apr. 16, 1945, ch. 61, §§ 1, 2, 5 52; July 26, 1947, ch. 343, title II, §§ 205 (a), 20 (f), 61 Stat. 501, 502.)

REFERENCES IN TEXT

Section 443 of this title, referred to in the subsec. (e), was repealed by act Nov. 17, 1941, 4:3 E. S. T., ch. 473, § 1, 55 Stat. 764.

"The present war", referred to in the text of (c), refers to World War II. The state of war t isted between the United States and the Govern Germany was terminated on October 19, 1951, b Res. Oct. 19, 1951, ch. 519, 65 Stat. 451, and Proc. N Oct. 24, 1951, 16 F. R. 10915, 66 Stat. c3. The s war with Japan was terminated on April 28, 1952. coming into force on that day of the Treaty of with Japan. See House Report No. 2041, June 6, 19

CODIFICATION

The Chief of Staff of the Air Force was inserted ing Chief of Staff of the Army, and the word "al stituted for "both" following "Navy or" in paragra on authority of section 207 (a), (f) of act July 2

AMENDMENTS

1945-Subsec. (c) amended by act Apr. 16, 1945 substituted "June 30, 1946," for "June 30, 1945," v

appearing, "July 1, 1949," for "July 1, 1948," "July 1, 1946" for "July 1, 1945," and added proviso.

1944 Subsec. (b) amended by act May 17, 1944, § 2, which added the proviso.

Subsec. (c) amended by act May 17, 1944, § 1, which substituted "June 30, 1945" for "June 30, 1944" wherever appearing, "July 1, 1948" for "July 1, 1947”, and “July 1, 1945" for "July 1, 1944."

1943 Subsec. (c) amended by act Mar. 11, 1943, which substituted "June 30, 1944" for "June 30, 1943", substituted "July 1, 1947" for "July 1, 1946", and substituted "July 1, 1944" for "July 1, 1943".

CHANGE OF NAME

The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by act July 26, 1947.

ADDITIONAL DEFENSE AID TO OTHER COUNTRIES; LEASE OF CERTAIN SHIPS, BARGES, ETC.

Acts Feb. 7, 1942, ch. 46, title III, § 301, 56 Stat. 82; Oct. 26, 1942, ch. 629, title I, § 103, 56 Stat. 994; Feb. 19, 1943, ch. 1, § 4, 57 Stat. 4, June 26, 1943, ch. 147, § 118, 57 Stat. 217; June 22, 1944, ch. 269, § 121, 58 Stat. 322; May 29, 1945, ch. 130, § 119, 59 Stat. 222, provided for additional defense aid to countries deemed vital to the defense of the United States and for the lease of ships for periods not extending beyond the termination of the national

emergency.

REDUCTION IN VALUE OF DEFENSE ARTICLES

The value of defense articles stipulated in subsec. (a) (2) was reduced to $800,000,000 by act Dec. 17, 1941, ch. 591, title I, § 102, 55 Stat. 813, and as thus limited was made inapplicable "to the War Department after the date of the enactment of this Act."

.

DEFINITIONS

Act Mar. 5, 1942, ch. 141, title III, § 303, 56 Stat. 131, provided as follows: "The term 'defense article' as used in [acts Dec. 17, 1941, ch. 591, title I, § 102, 55 Stat. 813, and Feb. 7, 1942, ch. 46, title III, § 301, 56 Stat. 82, both cited in notes under this section] shall be deemed to include defense information and services, and the expenses in connection with the procurement or supplying of defense articles, information, and services."

LIMITATION ON APPROPRIATIONS

Act April 28, 1942, ch. 247, title II, § 201, 56 Stat. 233, provided in part: "That the limitation of $2,500,000,000 established in section 301 of the Act of February 7, 1942 (Public Law 441 [set out above in this note]), shall apply to all appropriations made to the Navy Department since March 11, 1941."

CROSS REFERENCES

American Republics, similar provisions regarding aid to, see sections 521 and 522 of this title.

§ 412a. Lease of merchant vessels for duration of war. No merchant vessel constructed under any contract entered into by the United States Maritime Commission pursuant to any appropriation or contract authorization specifically granted by Act of Congress (except sections 1119a, 1119b, 1125a, and 1214 of Title 46) to such Commission shall be disposed of under sections 411-419 of this title except by lease which must end not later than six months after the termination of the present war, as proclaimed by the President, or at such earlier time as the Congress by concurrent resolution or the President by proclamation may designate. (Mar. 18, 1943, ch. 17, title I, § 1, 57 Stat. 25.)

CODIFICATION

Section was not enacted as a part of the "Lease-Lend Act" which comprises sections 411-419 of this title.

TERMINATION OF THE PRESENT WAR Termination of the present war, see note under section 412 of this title.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Maritime Commission were transferred to the Chairman of the Maritime Commission by 1949 Reorg. Plan No. 6, eff. Aug. 20, 1949, 14 F. R. 5228, 63 Stat. 1069. See note set out under section 1111 of Title 46, Shipping. ABOLISHMENT OF COMMISSION AND TRANSFER OF FUNCTIONS The United States Maritime Commission was abolished by 1950 Reorg. Plan No. 21, eff. May 24, 1950, 15 F. R. 3178, 64 Stat. 1273, set out in note under section 1111 of Title 46, Shipping, which transferred part of its functions and part of the functions of its Chairman to the Federal Maritime Board and the Chairman thereof, such Board having been created by that Plan as an agency within the Department of Commerce with an independent status in some respects, and transferred the remainder of such Commission's functions and the functions of its Chairman to the Secretary of Commerce, with power vested in the Secretary to authorize their performance by the Maritime Administrator, the head of the Administration, which likewise was established by the Plan in the Department of Commerce with the provision that the chairman of said Federal Maritime Board should, ex officio, be such Administrator.

§ 413. Contract restrictions against disposal of transferred articles by transferee governments.

All contracts or agreements made for the disposition of any defense article or defense information pursuant to section 412 of this title 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, otherwise, or permit its use by anyone not an officer, employee, or agent of such foreign government. (Mar. 11, 1941, ch. 11, § 4, 55 Stat. 32.)

CROSS REFERENCES

or

American Republics, similar provisions regarding ald to, see section 523 of this title.

§ 414. Information regarding articles exported; reports to Congress.

(a) The Secretary of the Army, the Secretary of the Air Force, 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 sections 411-419 of this title 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. (Mar. 11, 1941, ch. 11, § 5, 55 Stat. 32; July 26, 1947, ch. 343, title II, §§ 205 (a), 207 (a), (f), 61 Stat. 501, 502.)

REFERENCES IN TEXT

Section 6 of the act of July 2, 1940 (54 Stat. 714), referred to in the text, was formerly classified to section 701 of Appendix to Title 50, War and National Defense, and expired by its own terms on Feb. 28, 1949.

CODIFICATION

The Secretary of the Air Force was inserted on authority of section 207 (a), (f) of act July 26, 1947.

CHANGE OF NAME

The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by act July 26, 1947. CROSS REFERENCES

American Republics, similar provisions regarding aid to, see section 524 of this title.

§ 415. Appropriations; disposition of repayments.

(a) There is 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 sections 411-419 of this title. (b) Repealed. July 25, 1947, ch. 327, § 1, 61 Stat. 449.

(Mar. 11, 1941, ch. 11, § 6, 55 Stat. 33; Mar. 11, 1943, ch. 15, 57 Stat. 20; May 17, 1944, ch. 198, § 1, 58 Stat. 222; Apr. 16, 1945, ch. 61, § 1, 59 Stat. 52; July 25, 1947, ch. 327, § 1, 61 Stat. 449.)

AMENDMENTS

1947-Subsec. (b), relating to disposition and expenditure of funds received under section 412 of this title, was amended by acts Mar. 11, 1943, May 17, 1944, and Apr. 16, 1945, and repealed by Joint Res. July 25, 1947.

CROSS REFERENCES

American Republics, similar provisions regarding aid to, see section 525 of this title.

§ 416. Protection of patent rights.

The Secretary of the Army, the Secretary of the Air Force, 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 authorized to be disposed of and the payments collected for royalties on such patents shall be paid to the owners and holders of such patents. (Mar. 11, 1941, ch. 11, § 7, 55 Stat. 33; July 26, 1947, ch. 343, title II, §§ 205 (a), 207 (a), (f), 61 Stat. 501, 502.)

CODIFICATION

The Secretary of the Air Force was inserted on authority of section 207 (a), (f) of act July 26, 1947.

CHANGE OF NAME

The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by act July 26, 1947. CROSS REFERENCES

American Republics, similar provisions regarding aid to, see section 526 of this title.

§ 417. Acquisition of war materials from foreign governments.

The Secretaries of the Army, Air Force, and of the Navy are authorized to purchase or otherwise acquire arms, ammunition, and implements of war produced within the jurisdiction of any country to

which section 412 of this title is applicable, whenever the President deems such purchase or acquisition to be necessary in the interests of the defense of the United States. (Mar. 11, 1941, ch. 11, § 8, 55 Stat. 33; July 26, 1947, ch. 343, title II, §§ 205 (a), 207 (a), (f), 61 Stat. 501, 502.)

CODIFICATION

The Secretary of the Air Force was inserted on authority of section 207 (a), (f) of act July 26, 1947.

CHANGE OF NAME

The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by act July 26, 1947. CROSS REFERENCES

American Republics, similar provisions regarding aid to, see section 527 of this title.

§ 418. Rules and regulations; delegation of powers. 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 sections 411-419 of this title; and he may exercise any power or authority conferred on him by said sections through such department, agency, or officer as he shall direct. (Mar. 11, 1941, ch. 11, § 9, 55 Stat. 33.) § 419. Effect on existing laws relating to use of land and naval forces.

Nothing in sections 411-419 of this title 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 said sections. (Mar. 11, 1941, ch. 11, § 10, 55 Stat. 33.)

§ 420. Repealed. July 25, 1947, ch. 327, § 1, 61 Stat. 449. Section, acts May 2, 1941, ch. 84, § 5, 55 Stat. 150; June 16, 1942, ch. 416, 56 Stat. 370, related to application of sections 1119a and 1119b of Title 46 to functions of the Maritime Commission under sections 411-419 of this title.

§ 421. Contracts by Government agencies for defense articles, services, etc., for foreign governments in interests of United States.

The President may, from time to time, when he deems it in the interest of national defense, authorize the head of any department or agency of the Government, to enter into contracts for the procurement of defense articles, information, or services for the government of any country whose defense the President deems vital to the defense of the United States, to the extent that such government agrees to pay the United States for such defense articles. information, or services prior to the receipt thereof and to make such payments from time to time as the President may require to protect the interests of the United States; and, upon payment of the full cost, the President may dispose of such articles, information, or services to such government: Provided, That the total amount of the outstanding contracts under this section, less the amounts which have been paid to the United States under such contracts, shall at no time exceed $600,000,000. (Oct. 28, 1941, ch. 460, title I, § 102, 55 Stat. 746.)

§ 422. Same; retention for United States defense articles procured for foreign governments.

Any defense article procured pursuant to section 421 of this title shall be retained by or transferred to and for the use of such department or agency of the United States as the President may determine, in lieu of being disposed of to a foreign government, whenever in the judgment of the President the defense of the United States will be best served thereby. (Oct. 28, 1941, ch. 460, title I, § 103, 55 Stat. 747.)

§ 423. Retention for defense of United States of certain articles, information or service procured for foreign governments.

Any defense article, information, or service procured from funds appropriated by Act June 14, 1943, ch. 122, 57 Stat. 151, or prior Acts appropriating funds to the President for the purpose of carrying out the provisions of sections 411-419 of this title, shall be retained by or transferred to and for the use of such department or agency of the United States as the President may determine, in lieu of being disposed of to a foreign government, whenever in the judgment of the President the defense of the United States will be best served thereby: Provided further, That none of the funds appropriated in said Act June 14, 1943, shall be used for the payment of any subsidy on agricultural products produced in the continental United States. (June 14, 1943, ch. 122, § 2, 57 Stat. 152.)

SUBCHAPTER II.-NEUTRALITY

§ 441. Proclamation of state of war between foreign

states.

(a) Whenever the President, or the Congress by concurrent resolution, shall find that there exists a state of war between foreign states, and that it 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, the President shall issue a proclamation naming the states involved; and he shall, from time to time, by proclamation, name other states as and when they may become involved in the war.

(b) Whenever the state of war which shall have caused the President to issue any proclamation under the authority of this section shall have ceased to exist with respect to any state named in such proclamation, he shall revoke such proclamation with respect to such state. (Nov. 4, 1939, ch. 2, 12:04 p. m., § 1, 54 Stat. 4.)

SHORT TITLE

Section 20 of Joint Res. Nov. 4, 1939, provided as follows: "This joint resolution [this subchapter] may be cited as the 'Neutrality Act of 1939'."

REPEALS

Section 19 of Joint Res. Nov. 4, 1939, provided as follows: "The joint resolution of August 31, 1935, as amended [sections 245a-2451 of this title], and the joint resolution of January 8, 1937 [ch. 1, 50 Stat. 3], are hereby repealed; but offenses committed and penalties, forfeitures, or liabilities incurred under either of such joint resolutions prior to the date of enactment of this joint resolution [this subchapter] may be prosecuted and punished, and suits and proceedings for violations of either of such joint resolutions or of any rule or regulation issued pursuant thereto may be commenced and prose

cuted, in the same manner and with the same effect as if such joint resolutions had not been repealed."

Neutrality Act of 1939 not to be deemed repealed or modified in any manner by Joint Res. May 7, 1940, ch. 185, 54 Stat. 179, according to section 3 thereof, which resolution amended section 5 (b) of the Trading With the Enemy Act, see sections 95a of Title 12, Banks and Banking, and 5 (b) of Appendix to Title 50, War and National Defense, which resolution approved and confirmed Ex. Ord. No. 8389, amending Ex. Ord. No. 6560, set out in note under section 95a of said Title 12, Banks and Banking, and regulations and general rulings issued by Secretary of Treasury under said Ex. Ord No. 8389.

SEPARABILITY OF SUBCHAPTER

Section 17 of Joint Res. Nov. 4, 1939, provided as follows: "If any of the provisions of this joint resolution [this subchapter], or the application thereof to any person or circumstance, is held invalid, the remainder of the Joint resolution, and the application of such provision to other persons or circumstances, shall not be affected thereby."

PURPOSE OF AND RIGHTS RESERVED UNDER SUBCHAPTER The purpose of Joint Res. Nov. 4, 1939, was expressed in the first three paragraphs of the act as follows:

"Whereas the United States, desiring to preserve its neutrality in wars between foreign states and desiring also to avoid involvement therein, voluntarily imposes upon its nationals by domestic legislation the restrictions set out in this joint resolution [this subchapter]; and

"Whereas by so doing the United States waives none of its own rights or privileges, or those of any of its nationals, under international law, and expressly reserves all the rights and privileges to which it and its nationals are entitled under the law of nations; and

"Whereas the United States hereby expressly reserves the right to repeal, change or modify this [this subchapter] or any other domestic legislation in the interests of the peace, security or welfare of the United States and its people."

CROSS REFERENCES

Proclamations respecting war and neutrality, see notes preceding section 1 of Appendix to Title 50, War and National Defense.

§§ 442, 443. Repealed. Nov. 17, 1941, 4:30 p. m. E. S. T., ch. 473, § 1, 55 Stat. 764.

Section 442, Joint Res. Nov. 4, 1939, 12:04 p. m., ch. 2, § 2, 54 Stat. 4, related to commerce with states engaged in armed conflict.

Section 443, Joint Res. Nov. 4, 1939, 12:04 p. m., ch. 2, § 3, 54 Stat. 7, related to combat areas.

DEFINITION OF COMBAT AREAS

Proc. No. 2376, Nov. 4, 1939, 3 p. m., 4 F. R. 4495, 54 Stat. 2673; Proc. No. 2394, Apr. 10, 1940, 5 F. R. 1400, 54 Stat. 2693; Proc. No. 2410, June 11, 1940, 5:20 p. m. E. S. T., 5 F. R. 2209, 54 Stat. 2708, as modified by Proc. No. 2474, Apr. 10, 1941, 6 F. R. 1905, 55 Stat. 1628, defined various combat areas.

§ 444. American Red Cross vessels.

(a) The provisions of section 442 (a) of this title shall not prohibit the transportation by vessels, unarmed and not under convoy, under charter or other direction and control of the American Red Cross of officers and American Red Cross personnel, medical personnel, and medical supplies, food, and clothing, for the relief of human suffering: Provided, That where permission has not been given by the blockading power, no American Red Cross vessel shall enter a port where a blockade by aircraft, surface vessel, or submarine is being attempted through the destruction of vessels, or into a port of any country where such blockade of the whole country

is being so attempted: Provided further, That such American Red Cross vessel shall be on a mission of mercy only and carrying only Red Cross materials and personnel.

(b) The provisions of sections 442 (a) and 443 of this title shall not prohibit a vessel, in ballast, unarmed, and not under convoy, and transporting refugee children, under sixteen years of age, from war zones, or combat areas, and shall not prohibit such vessel entering into such war zones or combat areas for this purpose, together with such necessary American citizen adult personnel in charge as may be approved by the Secretary of State, subject to the provisions of the immigration laws, if such vessel is proceeding under safe conduct granted by all of the States named in the proclamations issued under the authority of section 441 (a) of this title, and if such vessel has painted on a large scale prominently, distinctly, and unmistakably on each side thereof and upon the superstructure thereof plainly visible from the air an American flag and a statement to the effect that such vessel is a refugeechild rescue ship of the United States or under United States registry: Provided, That every such child so brought into the United States shall, previous to departure from the port of embarkation, have been so sponsored by some responsible American person, natural or corporate, that he will not become a public charge. (Nov. 4, 1939, 12:04 p. m., ch. 2, § 4, 54 Stat. 7; June 26, 1940, ch. 431, 54 Stat. 611; Aug. 27, 1940, ch. 695, 54 Stat. 866.)

REFERENCES IN TEXT

Sections 442 (a) and 443 of this title, referred to in text, were repealed by act Nov. 17, 1941, 4:30 p. m., E. S. T., ch. 473, § 1, 55 Stat. 764.

AMENDMENTS

1940-Subsec. (a), formerly entire section, designated "a" by act Aug. 27, 1940.

Subsec. (b) added by act Aug. 27, 1940.

§ 445. Travel on vessels of belligerent states.

(a) Whenever the President shall have issued a proclamation under the authority of section 441 (a) of this title it shall thereafter be unlawful for any citizen of the United States to travel on any vessel of any state named in such proclamation, except in accordance with such rules and regulations as may be prescribed.

(b) Whenever any proclamation issued under the authority of section 441 (a) of this title shall have been revoked with respect to any state the provisions of this section shall thereupon cease to apply with respect to such state, except as to offenses committed prior to such revocation. (Nov. 4, 1939, 12:04 p. m., ch. 2, § 5, 54 Stat. 7.)

§ 446. Repealed. Nov. 17, 1941, 4:30 p. m. E. S. T., ch. 473, § 2, 55 Stat. 764.

Section, Joint Res. Nov. 4, 1939, 12:04 p. m., ch. 2, § 6, 54 Stat. 7, prohibited the arming of American merchant vessels.

ARMING VESSELS AUTHORIZED DURING EMERGENCY Said Joint Res. Nov. 17, 1941, § 2, was repealed, effective July 1, 1948, by Joint Res. July 25, 1947, ch. 327, § 2 (a), 61 Stat. 451, which provided that it should remain in full force and effect until such date.

§ 447. Financial transactions.

(a) Whenever the President shall have issued a proclamation under the authority of section 441 (a) of this title, 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 state 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 political subdivision thereof, issued after the date of such proclamation, or to make any loan or extend any credit (other than necessary credits accruing in connection with the transmission of telegraph, cable, wireless and telephone services) to any such government, political subdivision, or person. The provisions of this subsection shall also apply to the sale by any person within the United States to any person in a state named in any such proclamation of any articles or materials listed in a proclamation referred to in or issued under the authority of section 452 (1) of this title.

(b) The provisions of this section shall not apply to a renewal or adjustment of such indebtedness as may exist on the date of such proclamation.

(c) Whoever shall knowingly violate any of the provisions of this section or of any regulations issued thereunder 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 offcer or director thereof participating in the violation shall be liable to the penalty herein prescribed.

(d) Whenever any proclamation issued under the authority of section 441 (a) of this title shall have been revoked with respect to any state the provisions of this section shall thereupon cease to apply with respect to such state, except as to offenses committed prior to such revocation.

(e) This section shall not be operative when the United States is at war. (Nov. 4, 1939, 12:04 p. m., ch. 2, 7, 54 Stat. 8; Feb. 21, 1942, ch. 104, 56 Stat. 95.)

AMENDMENTS

1942-Joint Res. Feb. 21, 1942, added par. (e).

OPERATION OF SECTION POSTPONED UNTIL APRIL 1, 1953 Section 1 (b) (7), of Joint Res. July 3, 1952, ch. 570, 66 Stat. 333, provided that this section which is normally operative in time of peace shall not be operative by reason of the termination of a state of war on Apr. 28, 1952, but rather (in addition to being inoperative, in accordance with their terms, in time of war) shall continue to be inoperative until 6 months after the termination of the national emergency proclaimed by the President on Dec. 16, 1950, 1950 Proc. 2914, 15 F. R. 9029, set out as a note preceding section 1 of Appendix to Title 50, War and National Defense, or until such earlier date or dates as the Congress may provide, but in no event beyond Apr. 1. 1953.

REPEAL OF PRIOR ACTS CONTINUING SECTION Section 6 of Joint Res. July 3, 1952, repealed Joint Res Apr. 14, 1952, ch. 204, 66 Stat. 54 as amended by Joint Res. May 28, 1952, ch. 339, 66 Stat. 96; Joint Res. June 14, 1952, ch. 437, 66 Stat. 137; Joint Res. June 30, 1952. ch. 526, 66 Stat. 296, which continued provisions until July 3, 1952. This repeal shall take effect as of June 16, 1952, by section 7 of said Joint Res. July 3, 1952.