The Chargé in Italy (Kirk) to the Secretary of State

No. 798

Sir: With reference to my despatch No. 682 of August 30, 1934, concerning the possible modification of the Customs Regime in Morocco, I have the honor to inform the Department that in the course of a recent conversation with an official of the Italian Ministry of Foreign Affairs I was told that the Italian Government has now communicated officially to the French Government its views on the proposal [Page 856] submitted in Paris to the Italian Undersecretary of State for Corporations as to the establishment of quotas in connection with imports into Morocco as mentioned in my above-mentioned despatch. These views follow the statement of the probable policy of Italy in regard to this matter as already outlined in that despatch, namely, that the Italian Government considered that the establishment of import quotas affecting trade with Morocco was contrary to the provisions of the Customs Régime and could not be regarded as justified under any interpretation, however liberal, of those provisions. The Italian Government, therefore, believes that if France wishes to take measures to combat Japanese “dumping” of goods in Morocco, some method will have to be found other than a so-called interpretation of the Act of Algeciras.

My informant added that both France and Spain had been adopting measures which were regarded by Italy as in restriction of trade in Morocco and that in each instance the Italian Government had registered a protest against these measures.

Respectfully yours,

Alexander Kirk