Good Neighbor' Policy and Neutrality Policy (AQA A-Level History): Revision Notes

Good Neighbor' Policy and Neutrality Policy

The 'Good Neighbor' policy

When Roosevelt took office in 1933, most members of Congress held isolationist views. Roosevelt himself had no intention of involving the USA in European affairs. Instead, he wanted the USA to adopt a policy of friendship toward other countries, particularly Latin American nations. Roosevelt believed the USA could serve as a 'moral force' for good in the world, especially within the western hemisphere.

Introduction and aims of the policy

Roosevelt's primary focus was addressing the USA's economic crisis. However, he also sought to encourage economic recovery and foster diplomatic cooperation through the Good Neighbor policy, which represented a foreign policy approach aimed at mending and improving relations with Latin America.

The term hemispheric relates to the western or eastern or northern or southern part of the world; in this context, it refers to North and South America.

In his inaugural speech on 4 March 1933, Roosevelt articulated the principles underpinning this approach. He declared his dedication to "the policy of the good neighbor, the neighbor who resolutely respects himself and, because he does so, respects the rights of others – the neighbor who respects his obligations and respects the sanctity of his agreements in and with a world of neighbors."

Implementation in Latin America

The Good Neighbor policy produced concrete changes in US relations with Latin American countries. In accordance with this new approach, US troops withdrew from Haiti, the Dominican Republic and Nicaragua. In 1934, Congress signed a treaty with Cuba that nullified the Platt Amendment, which had previously authorised US occupation of Cuba. The USA retained one naval base at Guantánamo Bay. By 1938, the Good Neighbor policy had resulted in ten treaties with Latin American countries, leading to substantial trade increases for the USA.

Hull's policies of low tariffs improved the economies of Latin American countries, particularly Cuba. The tariff on Cuban sugar was reduced, and trade increased accordingly. To demonstrate continued goodwill to neighboring countries, Roosevelt passed the Reciprocal Trade Agreement Act in 1934. This Act repealed several 1920s isolationist trade policies, enabling the USA to compete more effectively in foreign trade.

The USA's policy of neutrality

The widespread belief that involvement in the First World War had been a mistake persisted throughout the 1930s in the USA. Congress passed a series of Neutrality Acts designed to keep the USA out of future wars. Many Americans felt the USA had unnecessarily lost men and military equipment, and that Europe was drifting toward further conflict as a result of the growth of totalitarianism – political regimes that suppress political opposition and control all aspects of people's lives.

The Neutrality Acts

The series of Neutrality Acts represented Congress's attempt to legislate American isolation from foreign conflicts. Each successive act refined and expanded restrictions on American involvement in foreign wars.

The Second Neutrality Act of 1936 banned loans or credits to countries at war. The Act set no limits on trade in materials useful for war, and US companies such as Texaco, Standard Oil and Ford were able to sell such items on credit to General Franco in the Spanish Civil War.

The Third Neutrality Act of 1937 forbade the export of munitions for use by either of the opposing forces in Spain. It did permit nations involved in a war to buy goods other than munitions from the USA, provided they paid cash and used their own ships. This became known as 'cash and carry'.

The Fourth Neutrality Act of the same year authorised the US president to determine what could and could not be bought, other than munitions, to be paid for on delivery, and made travel on ships of countries at war unlawful.

The USA made further amendments to the Neutrality Act in November 1939. The Fifth Neutrality Act meant that the president could authorise the 'cash and carry' export of arms and munitions to countries at war, but they had to be transported in the countries' own ships. In addition, the president could specify which areas were theatres of war in time of conflict, through which US citizens and ships were forbidden to travel.

Roosevelt and neutrality

In the 1930s, the totalitarian and militaristic states of Germany, Italy and Japan openly built up large armed forces. Roosevelt despised the spread of totalitarianism in Germany and Italy and, by 1937, began to see that the USA might need to become involved in European affairs. His views differed from those of Congress and, more importantly, the majority of the American people.

Although Roosevelt was aware of public opinion, in October 1937 he delivered a speech in Chicago, warning the people of the USA about the situation in Europe and the Far East and the dangers of war. It became known as the 'Quarantine Speech'. He had been appalled by the Nationalist bombing of civilians in Spain and the aggressive nature of Japan in declaring war on China in 1937. He had to tread a delicate path, and his speech warned the USA not only of the horrors of war but also of the problems with neutrality.

The response to Roosevelt's speech revealed divided public opinion. The Boston Herald editorial of 6 October 1937 invoked the memory of Woodrow Wilson, suggesting that Roosevelt's foundations of civilization were seriously threatened. The editorial warned, "Mr. President, Americans will not be stampeded into going 3,000 miles [5,000 km] across water to save them. Crusade, if you must, but for the sake of several millions of American mothers, confine your crusading to the continental limits of America!"

The US response to the European War, 1939–41

Roosevelt began to express his strong support for the Western democratic states. After the Munich Agreement – signed in September 1938 by Britain, France, Germany and Italy, which allowed Germany to annex part of Czechoslovakia – Hitler announced further rearmament plans. Roosevelt responded with a further $300 million granted to the defence budget.

In October 1938, Roosevelt opened secret talks with the French on how to bypass US neutrality laws and allow the French to buy US aircraft. After tortuous negotiations in 1939, the French government placed large orders with the US aircraft industry.

The USA censured Germany in March 1939 and recalled its ambassador for breaking the Munich Agreement and seizing parts of Czechoslovakia. As tensions heightened in Europe, Roosevelt called on Germany and Italy to give assurances that they would not attack any European country over a period of ten years. This diplomatic pressure demonstrated Roosevelt's growing concern about European stability, though it produced no concrete results from the Axis powers.

Year	Policy development
1936	First Neutrality Act
1937	Second Neutrality Act; Third and Fourth Neutrality Acts; Roosevelt's Quarantine Speech
1938	Munich Agreement; Roosevelt opens secret talks with France
1939	Fifth Neutrality Act; USA censures Germany over Czechoslovakia