�This Page Declassified lAW EO12958 A?r Force Leol?l?tio? of wind tunnels; second, to establish a new research slatran, the Ames Aeronautical Station at Moffett Field, California, and a third station at Cleveland, Ohio, for funda- mental research on aircraft engine prob- lelns. ?3 The appropriations which Congress made in 1939 [or the activit/es of the NACA were as follows: $2,180,000 cash by the act of l?arch 16, 1939; $2,363,980 cash by the act of May 2, 1939; and $2,000,000 m cash and $8,109,020 in contract authorizations by the act of August 9, 1939--a total in cash and contract authorizations of $14,653,000. NACA appropriations rose to $17,600,000 in 1940, and to $27,4?3,400 in 1941. ?4 The tendency was for the s?ze of the appropria- tions to increase as the war situation in Europe became more acute and the threat of Getsnan air power more ewdent. Appropriations made d?rectly to the A?r Corps for research and development showed an even greater rate of increase. In 1939 Congress appropriated $9,C00,000 to be used by the Air Corps for such purposes; In 19?0 ?pprepriations for research and develop. ment purposes amounted to $31,700,000; and in 1941 they rose to $??,$13?00. ? It appears that Congress was not at first as w?ng to grant comparatively small funds for research and development as it was to make much larger sums avafiable for pro- curement. However, when Congress became fully aware of the vital significance of re- .?earch and development, it quickly made available the funds requested by the ex* peris. ?c In addition to the legislation enacted to provide funds œor the vast procurement pro- sram of the Air Corps, and to speed up the program by expediting pro- ductton and facilitating the process of pro- curement, Congress also passed laws which enabled friendly ?oreign powers to secure in the United States a?rcraft and other mili- tary matoriel with which to resist Na?.i ag- gression. This legislatmn had the effect of stimulating American production of air- craft and aircraft mater?el and thereby con- tnbuted to the A?r Corps expansion pro. gram; on the other hand ?t ?ometnmes impeded the attainment of ?he immediate goals set up under that program, LEGISLATION TO FACILITATE PROCUREMENT BY FOREIGN POWERS The question of foreign procurement of military matoriel was brought be/ore Con- gross soon after the beginning of hostilities in Europe. Under the old Neutrality Act of 1936 the President was reqmred, f011OWLUg the outbreak of ?Vorld War II on 1 Septem- ber 1939, to proclaim the neutrality of the United States and to place an embargo on all arms shipments to the belligerent powers. President Roosevelt cordonned w?th the law, but on 13 September 1939 he called Congress into special session to re- consider the arms embargo. To continue to enforce it would be contrary to our inter- ests, he said, for the embargo would in ef- fect a?d the Nazis by depriving the British and French of the means of resisting aõ- gresslon. A?ter long debate Congress passed the Neutrality Act of 1939 (known as the "Cash and Carry" Act) which became law on 4 November 1939. Sections 2 and ? of this act permitted belligerent nations to purchase various war materzals in this country and to transport them abroad in their own vessels. Payment for such mate- rials was to be accepted only in cash, all loans and credit action in such purchases being forbidden ? The great industrial system of the United States now became available to the Allies as a source of war materials, although it would be some time before American arms production could be built up to the point where it could meet the demands placed upon it by foreign purchasers and our own armed serwces. Such ? situation would in? ewtably create serious procurement prob- lems for the Air Corps which had now em- barked on its great expansion program. The Air Corps had long favored the sale of its own tactical modeIs to foreign powers, feeling that the sale abroad of these planes would promote expansion of the air- craft industry without expense to the gov- ernment and would help defray the cost of the research and development involvcd in the production of new models. Little mili- THIS PAGE Declassflied IA TM EO12958
