As the European situation became more tense, the United States continued to hold to its isolationist policy. Congress, with the approval of Roosevelt and Secretary of State Cordell Hull, enacted a series of neutrality laws that legislated against the factors that supposedly had taken the United States into World War I. As Italy prepared to invade Ethiopia, Congress passed the Neutrality Act of 1935, embargoing shipment of arms to either aggressor or victim. Stronger legislation followed the outbreak of the Spanish Civil War in 1936, in effect penalizing the Spanish government, whose fascist enemies were receiving strong support from Benito Mussolini and Adolf Hitler.
In the Pacific Roosevelt continued Hoover’s policy of nonrecognition of Japan’s conquests in Asia. When Japan invaded China in 1937, however, he seemed to begin moving away from isolationism. He did not invoke the Neutrality Act, which had just been revised, and in October he warned that war was like a disease and suggested that it might be desirable for peace-loving nations to “quarantine” aggressor nations. He then quickly denied that his statement had any policy implications, and by December, when Japanese aircraft sank a U.S. gunboat in the Yangtze River, thoughts of reprisal were stifled by public apathy and by Japan’s offer of apologies and indemnities. With strong public opposition to foreign intervention, Roosevelt concentrated on regional defense, continuing to build up the navy and signing mutual security agreements with other governments in North and South America.
When Germany’s invasion of Poland in 1939 touched off World War II, Roosevelt called Congress into special session to revise the Neutrality Act to allow belligerents (in reality only Great Britain and France, both on the Allied side) to purchase munitions on a cash-and-carry basis. With the fall of France to Germany in June 1940, Roosevelt, with heavy public support, threw the resources of the United States behind the British. He ordered the War and Navy departments to resupply British divisions that had been rescued at Dunkirk minus their weaponry, and in September he agreed to exchange 50 obsolescent destroyers for 99-year leases on eight British naval and air bases in the Western Hemisphere.
Upon being returned to office, Roosevelt moved quickly to aid the Allies. His Lend-Lease Act, passed in March 1941 after vehement debate, committed the United States to supply the Allies on credit. When Germany, on March 25, extended its war zone to include Iceland and the Denmark Strait, Roosevelt retaliated in April by extending the American Neutrality Patrol to Iceland. In July the United States occupied Iceland, and U.S. naval vessels began escorting convoys of American and Icelandic ships. That summer Lend-Lease was extended to the Soviet Union after it was invaded by Germany. In August Roosevelt met with the British prime minister, Winston Churchill, off the coast of Newfoundland to issue a set of war aims known as the Atlantic Charter. It called for national self-determination, larger economic opportunities, freedom from fear and want, freedom of the seas, and disarmament.