681.003/205
The Department of State to the British Embassy
Aide-Mémoire
In its Aide-Mémoire of September 18, 1935,13 the British Embassy requested the views of the Government of the United States with respect to proposed changes in the commercial régime now in operation in the French Zone of Morocco. These changes would involve the imposition of quantitative restrictions on the importation into Morocco of certain commodities and the increase of certain customs rates.
The Government of the United States has been steadfast in its position that the doors of Morocco should be kept open on a basis of commercial equality for all nations, including France, the Protectorate Power. The proposal to institute a system of quotas runs counter not only to that position, but also to the trade program in which the [Page 418] United States is actively engaged. As His Majesty’s Government is aware, this program is designed to restore international trade by a lowering of the barriers that hamper its natural flow and by its liberation, insofar as possible, from the many extraordinary restrictions and handicaps which have been placed upon it in recent years.
The Government of the United States holds steadfastly, in the development of its commercial policy, to the rule of equality of treatment. It believes that this rule, by enabling the international exchange of goods to follow lines of economic benefit and by avoiding the many retaliatory acts to which discrimination gives rise, is essential for the rebuilding of international trade. Its judgment in this matter has been supported by much disinterested opinion in which the authoritative expression is to be found in a report of the League of Nations inquiry into clearing agreements.14 The pursuit of this rule requires that nations give equal opportunity in their markets to all countries which follow the same policy, and accordingly refrain from creating preferences. Furthermore, it is not susceptible of producing its full benefit, in which the trade of all will share, unless countries are willing to refrain from seeking a preferred position in the markets of other countries; for discriminations thereby are inevitably created which tend to produce retaliatory restrictions.
The Government of the United States has at all times in the exercise of its treaty rights in Morocco endeavored to cooperate in every feasible way in the commercial and economic development of Morocco. Therefore, if Moorish economy now finds need for increased revenue from customs sources, the Government of the United States is prepared, and has previously so stated, to acquiesce in reasonable increases in existing customs rates of duties on commodities imported into Morocco. It should be understood, however, that the Government of the United States is not unmindful of the fact that through the means afforded by Article 96 of the Act of Algeciras the actual customs rates are frequently well in excess of the 12½ percent ad valorem, by reason of an arbitrary fixation of value of merchandise. On the other hand, the Government of the United States is not convinced that the imposition of quantitative restrictions upon the importation of certain items of merchandise into Morocco would serve to increase the revenues of the Shereefian Government. Nor is it clear that the proposed quota system would necessarily contribute to the best economic interests of the Moroccan people.
From the foregoing, His Britannic Majesty’s Government will appreciate the manifest difficulties, apparently insuperable, which prevent [Page 419] the Government of the United States from acquiescing in the proposed establishment of a quota system in Morocco. As is shown, however, by its disposition towards a possible modification of the Moroccan tariff rates, the Government of the United States is by no means uncompromisingly opposed to any change, nor does it wish to assume a legalistic attitude towards the Moroccan problem. Nevertheless, the present régime in Morocco is squarely based upon legal provisions incorporated in international agreements, and the United States believes that these provisions of law ought not to be changed except by due process of law. Therefore, and as evidence of its sincere desire to cooperate with His Britannic Majesty’s Government and with the Protectorate Government of Morocco, the Government of the United States is prepared to agree to participate in a frank discussion, between representatives of all the interested powers, of the various problems involved.
- Foreign Relations, 1935, vol. i, p. 994.↩
- League of Nations, Economic and Financial Committees, Joint Committee for the Study of Clearing Agreements, Enquiry into Clearing Agreements [Geneva, 1935], (Official No.: C.153.M.83.1935.II.B.).↩