681.003/194

The Ambassador in France ( Straus ) to the Secretary of State

No. 2000

Sir: With reference to my despatch No. 1964 of June 21, 1935, 1 have the honor to report that while the French Government has not for a considerable time approached the Embassy with regard to acceptance of the French project for economic reforms in Morocco, the British, [Page 990] who are evidently the only third party to feel a keen interest in the matter, have informally so approached this Chancery.

On June 27 Sir Robert Cahill, Commercial Counselor of the British Embassy, called at the American Embassy, accompanied by Mr. E. Raymond Streat and Mr. W. E. Clucas of the Manchester Chamber of Commerce. They expressed much disappointment that the United States has opposed the economic reforms in Morocco. It is obvious that their interest in the institution of the reforms in question is in large measure based upon the desire to secure quota protection for British textiles against Japanese competition in that field. They argued at length in behalf of the adoption by the Government of the United States of a more liberal viewpoint concerning the economic project, repeatedly emphasizing the menace of Japanese competition in Morocco. They expressed the opinion that in such countries the white nations must cooperate and take special measures to protect themselves against competition from the Oriental races which with their low standards of living are enabled to undersell and ruin long established business. They believe that if the United States has not yet felt the pinch of Japanese salesmanship, it will soon do so, in support of which statement they cited the progress made by the Japanese in manufacturing cheap automobiles and the manner in which that nation’s goods had threatened European trade throughout West Africa.

The Embassy replied that the American Government is inalterably opposed to the adoption of any measures in Morocco in conflict with the “open door” and that in the present instance it is as well opposed to the inauguration of the iniquitous quota system and to an economic program which is a retrograde step from the program now enunciated by the Government of the United States directed towards the breaking down of trade barriers. While the British representatives appreciated what they termed the “high-mindedness” of this position, they believed that if certain angles of the situation in Morocco were taken into consideration the American Government might be inclined to view the French proposal from a realistic point of view rather than the present idealistic and legal basis. They said that with the Embassy’s permission they would put their arguments into writing and that they would urge their Government to cause the British diplomatic authorities in the United States informally to discuss the whole matter with the Department of State in order to determine whether there is not some compromise formula which would be acceptable to the American Government.

Respectfully yours,

For the Ambassador:
Theodore Marriner

Counselor of Embassy