The Good Neighbour Policy and Neutrality Acts 1933-1941

Question 1

The Good Neighbour Policy 1933

Answer 1

Encouraged economic and diplomatic co-operation, which continued Hoover’s economic pressure to exert influence on Latin America

Question 2

Examples of the Good Neighbour Policy 1933 in Latin America

• Economically

Answer 2

By 1938, the policy had led to ten treaties with Latin America countries, resulting in huge trade increases for the USA.

Question 3

Examples of the Good Neighbour Policy 1933 in Latin America

• Military

Answer 3

In accordance with the policy, US troops left Haiti, the Dominican Republic and Nicaragua.

Question 4

Relations with the Latin America

• The Reciprocal Trade Agreement Act 1934

Answer 4

This repealed several of the 1920s isolationist trade policies so the USA could compete better in foreign trade.
The Act symbolised a greater global engagement

Question 5

Why did the USA follow a policy on neutrality in the 1930s?

Answer 5

1) Europe was drifting towards further conflict as a result of the growth of totalitarianism
2) The USA had unnecessarily lost men and military equipment

Question 6

The first Neutrality Act 1935

Answer 6

Gave the president the power to prohibit US ships from carrying US-made munitions to countries at war.

Question 7

The second Neutrality Act 1936

Answer 7

1) Set no limits on trade in materials useful for war so that US companies such as Standard Oil were thus able to sell items on credit in the Spanish Civil War.

Banned loans or credits to countries at war

Question 8

The third Neutrality Act 1937

Answer 8

1) Permitted nations involved in a war to buy goods other than munitions from the USA, provided they paid cash and used their own ship
2) Forbade the export of munitions for use by either of the opposing forces in Spain.