Rearmament Neutrality Act of European democracies can buy American war materials, but only on a “cash and carry” basis. September 6, Congress passes first peacetime conscription law. 1.2 million troops and 800,000 reserves to be trained each year.

Helping Britain Destroyer Deal (1940)- Britain receives 50 World War I destroyers in return for eight naval bases. Lend-Lease (March 1941)- Lending or leasing American arms to European democracies and they will be returned after the war. Sent about $50 billion worth of material by Viewed by Hitler as an unofficial declaration of war.

Atlantic Charter After Hitler invades the Soviet Union, Lend-Lease is extended to the Soviets. August Churchill and FDR meet off the coast of Newfoundland. –Opposed imperialistic annexations. –Self-determination –Declared for disarmament and a peace of security pending a new League of Nations.

Panay Incident Japanese pilots sink an American gunboat, the Panay, off the coast of China The government in Tokyo apologized and paid the United States for the incident, but the relationship continued to deteriorate as treatment of American civilians in China worsened

Japanese-American Relations In July 1941, the Japanese begin to take French military bases in Indochina. In response, the U.S. cuts off trade with Japan, including an embargo on OIL. Without oil, Japan could not fuel its war machine. At this point, from Japan’s perspective, war is inevitable.