Ch. 25 Outline I. Peacetime DilemmasA. Roosevelt and Reluctant Isolation1. Although Franklin Roosevelt agreed with most Americans that the nation’s highest priority was to attack the domestic causes and consequences of the depression, he had long advocated an active rolefor the United States in international affairs.2. The depression forced Roosevelt to retreat from his previous internationalism.3. Roosevelt’s pursuit of international amity was constrained by economic circumstances and American popular opinion. He established formal diplomatic relations with the Soviet Union in 1933, but did not act when Japan and Germany withdrew from the League of Nations.B. The Good Neighbor Policy1. In his 1933 inaugural address, Roosevelt announced that the United States would pursue “the policy of the good neighbor” in international relations, reversing the old policy of intervention in Latin America.2. The commitment to military nonintervention did not indicate a U.S. retreat from empire in Latin America; the United States would continue to exert its economic influence in Latin America but would not depend on military force in the region.C. The Price of Noninvolvement1. In Europe, fascist governments in Italy and Germany threatened military aggression and in Japan, a stridently militaristic government planned to follow the invasion of Manchuria in 1931 with conquests extending throughout Southeast Asia.2. In the United States, hostilities in Asia and Europe only further reinforced isolationist sentiments.3. International tensions and the Nye committee report, which concluded that greedy “merchants of death” had dragged the United States into World War I, prompted Congress to pass a series of neutrality acts between 1935 and 1937.4. The Neutrality Act of 1937 established the “cash-and-carry” policy, which sought to allow trade but prevent foreign entanglements by requiring warring nations to pay cash for nonmilitary goods and transport them in their own ships.5. The desire for peace in France, Britain, and the United States led Germany, Italy, and Japan to launch offensives on the assumption that the Western democracies lacked the will to oppose them.6. In Spain, a bitter civil war broke out in July 1936 when fascist rebels led by General Francisco Franco and supported by Germany and Italy attacked the democratically elected Republican government.7. Hostilities in Europe, Africa, and Asia alarmed Roosevelt and other Americans. Roosevelt sought to persuade Americans to moderate their isolationism and find a way to support the victims of fascist aggression. Roosevelt proposed that the United States support victims of aggressor nations, igniting a storm of protests from isolationists.8. The strength of isolationist sentiment convinced Roosevelt that he needed to maneuver carefully if the United States were to help prevent fascist aggressors from conquering Europe and Asia, leaving the United States an isolated and imperiled island of democracy.