Foreign Relations of the United States, 1958–1960, Arab-Israeli Dispute; United Arab Republic; North Africa, Volume XIII

344. Telegram From the Department of State to the Embassy in Morocco²

Washington, January 16, 1958—1:12 p.m.

672. Subject: Base Negotiations and Economic Aid. To respond GOM request $50 million made by Bouabid in Washington,³ US availabilities FY 58 comprise: a) $20 million Defense Support assistance for continuation Morocco’s economic development program; b) up to $600,000 technical cooperation funds as suitable projects developed; c) PL 480⁴ Title I program of $19.5 million consisting of 150,000 tons wheat, 100,000 tons barley and 10,000 tons edible oil; d) consider applications for Development Loan Fund; e) consider expansion emergency relief program under PL 480 Title II if necessary and continue assistance to Voluntary Relief Agency programs under Title III PL 480; and f) an additional $10 million Defense Support has now been approved from the Contingency Reserve.

Negotiation Defense Support amendment (Deptel 669)⁵ will inevitably lead to discussion FY 58 aid level. Department believes that in light our past negotiating experience on bases, US should not offer full amount FY 1958 available funds without some indication from GOM that satisfactory arrangement covering bases will be achieved. You therefore authorized approach GOM during Defense Support amendment negotiations with offer encompassing only a), b), c), d) and e) above.

US also prepared consider additional GOM aid requirements up to $10 million mentioned f) above, provided satisfactory progress made toward provisional base agreement. We would not, of course, overtly connect aid level with base negotiations. Essential avoid accusations similar those leveled against French of offering aid with strings attached. At outset we should merely indicate US prepared consider additional requirements. Close liaison between groups engaged in base and aid negotiations would, we hope, provide basis for judging extent to which we should go in meeting Moroccan aid request mentioned first paragraph.

In seeking method indicating relationship between two sets of negotiations, Department suggests you may wish in first instance to approach Balafrej with Bouabid present if that can be arranged, and make general statement that US now prepared to move forward with separate negotiations on two principal topics of discussion during King’s visit to Washington,⁶ i.e., a provisional base agreement and economic aid. You could add that we believe satisfactory arrangements in both fields can be made and with respect to economic aid you are in position to state we prepared meet Moroccan needs with program of general magnitude put forth by Bouabid during his talks in Washington. Department hopes that preliminary approach along these general lines will serve to make Moroccans aware that US accommodation of their economic need as cited by Bouabid makes generous response desirable on their side with respect to unresolved base matters. However Department wishes leave specific line of approach your discretion, realizing that you can judge best what will fit existing circumstances and atmosphere at Rabat.

If obvious Moroccan reaction unfavorable to offer encompassing a) through e) above, you are authorized to make clear US prepared to consider additional requirements without indicating at this juncture the figure mentioned under f) above.

After Moroccan reaction obtained Paris will be instructed what to tell French.⁷

Dulles

2. Source: Department of State, Central Files, 771.5–MSP/1–1658. Secret; Priority. Drafted by Porter and Dolgin; cleared with Palmer and in substance with Barnes, Belcher, WE, E, and DOD; and signed for Dulles by Porter. Repeated to Paris.
3. Abderrahim Bouabid, Moroccan Minister of National Economy, requested the funds during a November 29, 1957, meeting with Dennis FitzGerald. See telegram 527 to Rabat, December 2, 1957, Foreign Relations, 1955–1957, vol. XVIII, p. 600.
4. For text of P.L. 480, see 68 Stat. 454.
5. Telegram 669, January 15, authorized the Embassy to negotiate a note rendering Morocco eligible for defense support and transmitted the text of a draft note. (Department of State, Central Files, 771.5–MSP/1–1558)
6. For documentation on the King’s November 25–27, 1957, visit to Washington see Foreign Relations, 1955–1957, vol. XVIII, pp. 588 ff.
7. Telegram 731 from Rabat, January 22, recommended presenting the entire aid package to the Moroccan Government. (Department of State, Central Files, 771.5–MSP/1–2258) The Department of State approved the suggestion on January 24. (Telegram 716 to Rabat; ibid.) On January 27, however, Cannon reported he had used the approach the Department originally recommended, and that Balafrej had seemed pleased by the presentation. (Telegram 750 from Rabat; ibid., 771.5–MSP/1–2758)