Export Control Act facts for kids

The Export Control Act of 1940 was a law passed by the US government. It was first supported by President Franklin D. Roosevelt. This law had two main goals:

• To make sure the United States had enough important supplies before World War II started.
• To limit what could be sent to Imperial Japan, especially war materials.

The act began as a special order from President Roosevelt. It stopped the export of aircraft parts, chemicals, and minerals without a special permit. The idea was to make Japan stop its military actions in Indochina.

The law said that if the President thought it was "necessary for national defense," he could stop or limit the export of military equipment, weapons, tools, and materials.

At first, the controls were only for weapons and similar items needed for defense in 1940. But after the United States joined World War II in 1942, the law covered all goods and more countries. The act was kept going with some changes until 1948. People thought the controls would end soon after it was renewed in 1949.

However, some goods were hard to find worldwide. So, the controls had to continue to stop too many goods from leaving the US. This also helped prevent prices from going up. After the Korean War started, national security and foreign policy became new reasons to keep the law. The Export Control Act of 1949 was passed and extended until at least 1958. This law had rules for things happening inside the US and rules for things outside the country, used as part of American foreign policy.

For example, the law limited the export of certain important military items to the Soviet bloc (a group of communist countries) or other nations. The US government felt that sending these items would harm its foreign policy during the Cold War.

The foreign policy reason became so strong that new laws were made. These laws told the president to ask other countries to also control trade with the Soviet bloc, just like the United States did. Countries that did not cooperate could lose benefits from US economic and military aid programs, as seen in the Mutual Defense Assistance Control Act of 1951.

Why the Act Was Created

The "Moral Embargo"

The Export Control Act was like a "moral embargo." This means it showed strong disapproval of Japan's actions. In the late 1930s, Japan was bombing civilians in China. In June 1938, US Secretary of State, Cordell Hull, spoke out against this violence. A month later, the US government told aircraft makers that it was "strongly opposed" to selling planes and related materials to countries that bombed civilians.

In 1939, this unofficial ban was expanded. It included materials needed to make airplanes and information for producing high-quality aviation gasoline. These actions stopped the export of aircraft and related equipment to Japan. Since Japan bought very few other items from the US, this "moral embargo" effectively stopped all arms exports to Japan.

Ending Trade Agreements

American lives, rights, and businesses in China were in danger. After diplomatic efforts failed, the US thought about taking trade action against Japan. The American government felt that its 1911 trade treaty with Japan was not protecting US trade enough in areas controlled by Japan. Also, under this treaty, Japan was a "most favored nation." This meant the US could not legally take special trade actions against Japan. So, in July 1939, the United States announced it would withdraw from the treaty in six months. This removed the main legal barrier to an embargo.

What Happened Because of the Act

The embargo stopped shipments of items like airplanes, parts, machine tools, and aviation gasoline. This was meant to be an unfriendly act towards Japan. However, the US specifically avoided adding oil to the embargo. Japan relied on US oil, and it was thought that stopping oil exports would be too aggressive.

In September 1940, the act was expanded to include iron and steel scrap. The Japanese Ambassador, Kensuke Horinouchi, warned US Secretary Hull on October 8, 1940, that this might be seen as an "unfriendly act."

Controls were first allowed in 1940 for weapons and materials needed for defense. They were expanded in 1942 to cover all goods. The 1940 act was always meant to be temporary. But it was successfully extended in 1944, 1945, 1946, and 1947.

After World War II

After World War II, the Export Control Act was used for new reasons. It aimed to stop advanced technology from going to the Soviet bloc and China. In later years, it was also used to try and change how foreign countries behaved. Some goods were still scarce worldwide. So, controls were needed to prevent too many goods from leaving the US, which could cause prices to rise.

People thought the remaining controls would disappear when the act was renewed in 1949. But national security and foreign policy, especially after the Korean War began, became strong reasons to keep the Export Control Act of 1949 going. It was extended in 1951, 1953, 1956, and again in 1958.

The Export Control Act of 1949 is an example of a law that affects everyone, no matter where they are. It controls the export of scarce materials for two main reasons:

• Economic reason: To prevent prices from rising due to high foreign demand for limited supplies.
• Security reason: To ensure the US has enough strategic resources it cannot easily get elsewhere.

These are both domestic policies, meaning they are mainly about conditions within the United States. But the controls also affect conditions outside the country as a tool of US foreign policy. For example, there were limits on exporting certain important military items to the Soviet bloc or other countries. The US felt that allowing these exports would harm its foreign policy. This foreign policy goal became so important that new laws were made. These laws told the president to get other nations to cooperate in controlling trade with the Soviet bloc, just like the United States did. Countries that did not cooperate could lose benefits from US economic and military aid programs.