In my telegram under reference I reviewed the ensuing conversation as
well as sketched the salient portions of the French proposal
regarding economic changes in Morocco. The Embassy representatives
were handed a memorandum embodying the project of negotiation, a
copy and translation of which are furnished herewith. The following
[Page 958]
morning M. Coursier of
the Ministry for Foreign Affairs called at the Embassy and delivered
an appendix to the French memorandum which treats in further detail
the contemplated tariff changes. A copy and translation of this
appendix are likewise enclosed. The Foreign Office representatives
remarked in this connection that while it is not obligatory to
consult the powers regarding the tariff changes they wished as a
matter of courtesy to acquaint the American Government with the
plan. They expressed the belief that the tariff alterations on the
whole would be found advantageous to American trade.
. . . . . . . . . . . . . .
[Enclosure—Translation]
The French Ministry for
Foreign Affairs to the American
Embassy
Memorandum
Moroccan trade with the United States is very favorable to the
latter.
In 1933, the value of products imported from the United States
into Morocco was Fes. 70,612,000, while the value of Moroccan
products imported into the United States was only Fes.
7,933,000, or only a little more than one-tenth.
The Government of the Protectorate intends to establish in
Morocco a quota system for merchandise in order to struggle
against the abnormal development of importations from certain
countries which have appeared of late in the Moroccan market
(since last year Japan has moved up to second place on the list
of countries importing into Morocco, following France closely
and considerably ahead of countries which, like England, had for
many years important commercial interests in Morocco).
It is for the purpose of reestablishing on normal bases the
import trade of Morocco that a system of quotas, calculated in
the same manner for all countries (in order to respect the rule
of economic equality), has been devised following exchanges of
views with the British Government during the course of the
negotiations concerning the last Franco-British commercial
treaty.
The products for the importation of which the quota system is
proposed are the following:
- Cotton fabric,
- Natural silk fabric,
- Artificial silk fabric (rayon),
- Iron and steel, articles made of iron and steel,
machinery,
- Automobiles and spare parts for same,
- Inner tubes and casings,
- Refined sugar,
- Cement.
The establishment and the allotment of the quotas would follow
the ensuing lines:
A global quota, for each of the products enumerated in list A,
would be fixed each semester by adopting as a basis the imports
of the last corresponding period as ascertained from published
statistics. Thus in 1935, the global quota for the first
semester would be established in accordance with the statistics
for the first semester of 1933, and that for the second semester
in accordance with the statistics for the second semester of
1934. (Embassy’s note: The Foreign Office explains that the
statistics for the first semester of 1934 not being published as
yet, it is necessary to have recourse to the figures for
1933.)
Within the limitations of the theoretical global quotas thus
fixed, and which may be increased or reduced according to
economic necessity, each exporting country would receive a
quantitative share proportional to its imports of the product
(into Morocco) based on the period from 1928 to 1933,
inclusive.
Should a certain quota not be exhausted during the six-months’
period for which it was established, the Government of the
Protectorate would have the power to carry over the unused
balance into the following semester, when requests were made of
it so to do.
The allocation of quotas would be effected under the care of the
Government of the Protectorate in collaboration with the trades
organizations designated by the government of each of the
exporting countries.
Concerning the collection of ad valorem duties, the regulations
in force presenting certain defects which are detrimental to the
Treasury, it has been decided to complete the present rules with
provisions designed:
- 1)
- for the establishment of official price lists upon
which the ad valorem duty would be calculated (these
price lists would be drawn up each semester in the
French zone within the limitations of the table giving
maximum and minimum values established twice a year at
Tangier by the representatives of the three zones of
Morocco);
- 2)
- and for the creation of a committee of appeals charged
with deciding, in last resort, conflicts between the
customs administration and the importers (concerning
especially the taxation of merchandise not included in
the official price lists). This committee would be
presided over by the president of the District Court
(Tribunal du liessort) or any other magistrate
designated by him and would include the Chief of the
Commercial and Industrial Service or an official of
[Page 960]
that
administration designated by him, and a member
designated by the importer.
This committee’s deliberations would be valid with a quorum of
two members present.
The Chief of the Customs’ Service would have a consultative voice
and would act as Secretary of the Committee of Appeals.
The balance of trade between Morocco and the United States being
constantly in favor of the United States, the French Government
would be pleased if, by analogy with the reciprocity clause
adopted by the Council of the League of Nations in September
1930, concerning the A and B mandates, the Government of the
United States should be disposed, as the British Government has
done, to assure the French Government of its willingness
favorably to consider any requests which may be presented to it
with a view to granting, in commercial matters, to persons under
the Moroccan jurisdiction or to merchandise originating in
Morocco, advantages corresponding to those enjoyed in Morocco by
American citizens and merchandise from the United States.
Concerning modifications of a similar nature to be introduced in
the Tangier zone, the French Government is disposed to make
proposals relative thereto while taking into account the
economic conditions of the Tangier zone and in accordance with
the procedure required by the status of that zone.
As a general observation, it is recalled that no measure
concerning the Moroccan customs tariff may be put into force
unless the French Government shall have consulted on the subject
with the Spanish Government.
[Appendix—Translation]
Tariff
The articles enumerated in the annexed list will be subject to a
tariff of 25% ad valorem (including the 2½% ad valorem
instituted by the Act of Algéciras) subject to the observations
mentioned as a foot-note to the list.
The products necessary to agriculture, such as agricultural
machinery, etc. as well as the primary materials necessary to
industry, such as coal containing more than 10% of volatile
products, etc. will be subject to reduced duties:
As concerns coal, the duties will be 10% ad valorem (including
the tax of 2½% ad valorem instituted by the Act of
Algéciras).
The other products, with the exception of those which will
benefit from the customs free list (ships, paper for newspapers,
various publications, etc.), will be the object of a normal
tariff of 15% ad valorem (including the tax of 2½% ad valorem
instituted by the Act of Algéciras).
[Page 961]
The Administration of the French Zone will modify the vizirial
decision of July 31, 1933, in such manner that the port taxes
applicable to the products enumerated below shall be the same as
those applicable to similar local products:
yarn and fabrics of pure or mixed cotton and all articles
manufactured in yarn or fabrics of pure or mixed
cotton;
yarn and fabrics of flax, hemp or artificial silk and all
articles manufactured in yarn or fabrics of flax, hemp
or artificial silk, pure or mixed;
yarn and fabrics of pure or mixed wool and all articles
manufactured in yarn or fabrics of pure or mixed
wool.
Products Subject on Importation to an Ad Valorem Duty of 25%
- Cement
- Food pastes
- Seed oils*
- Automobiles and spare parts†
