681.003/81: Telegram
The Diplomatic Agent and Consul General at Tangier (Blake) to the Secretary of State
[Received November 11—5:25 p.m.]
13. Referring to Department’s telegram No. 9, November 6, 6 p.m., Mr. Ponsot’s confidential agent on his way to Paris and London called yesterday to make arrangements for my visit to Mr. Ponsot, and from preliminary conversations with him it is apparent that there is a desire to ease the situation if a formula can be found with regard to our own economic position in Morocco. Protectorate government in order to provide resources desires to change customs tariffs and Ponsot contends Great Britain, Spain and and France are only powers entitled to enjoy an express tariff clause, under their treaties, and that United States or other powers under the Act of Algeciras only retains benefit of most favored nation clause which secures them the advantage of the tariff granted to these three powers at any time.
Ponsot inquires whether this argument could be admitted by the American Government.
My view is that it is incompatible with article 123 of Act of Algeciras. Department’s instructions are requested to attitude I am to take in this connection.
[Page 857]Ponsot’s agent first stated that the Protectorate government intended to modify the customs régime on January 1st next but after some argument and in response to my direct inquiry as to whether the Protectorate authorities would attempt to put their program into effect without consultation with the other interested powers he admitted that they would prefer to receive American acquiescence prior to its actual enforcement.
However, in view of the obvious determination on the part of the French authorities to take some action of this kind, a proposal such as the following might deter precipitate action and lead to a basis for a satisfactory solution providing it could be made to conform with Mr. Hull’s policies and would not complicate situation vis-à-vis Japan. Taking into consideration the Department’s request for suggestions as to economic measures which it might be in our interest to accept, may I, with the Department’s approval, in my coming interview with Ponsot, now fixed for Saturday 17th instant, bring up for discussion this tentative proposal, informally and without commitment.
Mean average of principal imports of a number of specified articles during period 1928 to 1933 might be accepted as a basis for the fixation of quotas during a determinate period. Both fixation of period and of quota articles to be subject to unanimous consent of the signatories of the Act of Algeciras. This quota system, if accepted, to be operated under the effective control of the powers signatory of the Act of Algeciras. No changes or extension of the list of quota articles as initially approved would be made without a unanimous decision of these powers, and further, after the expiration of the quota period a reversion would be automatically made to the status quo ante unless there is unanimous consent of the powers for a continuance of the quota system as above defined. Reply urgently requested with instructions.
Bilateral agreements as to reciprocal trade balance to be rejected.