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Answer: The cash and carry policy allowed sale of material to belligerents, as long as the recipients arranged for the transport using their own ships and paid immediately in cash. The purpose was to hold neutrality between the United States and European countries, while still giving material aid to Britain.
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The purpose of this policy was to allow the Allied nations at war with Germany to purchase war materials while maintaining a semblance of neutrality for the United States. ... Cash and carry ended this prohibition, while still attempting to keep U.S. interests out of the conflict.