781.003/275
Memorandum by the Chief of the Division of Near Eastern Affairs (Murray) to the Under Secretary of State (Welles)
As you are aware, we expect to resume negotiations with a French representative in Washington about October 1, looking to the conclusion, [Page 666] on a new basis, of a treaty of general relations with France concerning French Morocco.
This treaty will differ considerably from the ordinary commercial treaty in that there will be annexed to it a schedule of items of particular interest to American trade on which bindings will be granted in respect of customs duties. In addition to the establishment of the rates of duty on some forty to sixty items, there are certain highly technical problems to be considered, including the transformation of ad valorem to specific rates and the determination of the basis of valuation for those items which may be maintained on an ad valorem basis.
In this connection it is pertinent to note that the basis of the assessment of ad valorem rates of duty in the Franco-British Treaty of July 18, 1938 has resulted in a great deal of criticism of the British negotiators by British commercial interests in Morocco. This Division is exceedingly anxious to avoid the adoption of any formula which would result in similar criticism by American commercial interests. With that purpose in view, we have engaged in very extensive technical studies in cooperation with other Departments of the Government and an informal committee has been appointed to take under particular examination this unusual and extremely technical problem.
As we propose to conclude a treaty for the duration of at least thirty years, I am of the opinion we should leave no stone unturned to satisfy ourselves regarding its provisions. The studies of the committee have indicated that certain of the technical information, which is essential to reach any definite conclusions on the problem under review, is only obtainable in Morocco. We would ordinarily resort to our consular offices in Morocco for such information. However, in view of the ramifications of the treaty, which possesses so unusual a character, and the difficult technical questions involved, it appears highly desirable to send to Morocco, to complete the study there, Mr. Childs of this Division, who has had the treaty negotiations in hand, under my direction, since their inception in 1937.
Mr. Childs’ mission would be to establish:
- (a)
- The conversion of the present ad valorem basis to a specific basis for the assessment of customs duty upon forty to sixty items of which the United States is a substantial supplier of Moroccan imports.
- (b)
- The determination of the tare allowances on as many of such specific duties as possible.
- (c)
- Determination of the maximum internal taxes to be imposed upon all items of interest to the United States, whether dutiable upon an ad valorem or specific basis.
- (d)
- Since automobiles constitute the most important American export to Morocco, and since it is contemplated that automobiles will continue to be dutiable upon an ad valorem basis, it is of prime importance that that basis be defined in the most complete and satisfactory [Page 667] manner. There are certain variable items, such as packing, freight and insurance, in the determination of the value of automobiles which require consultation with importers in Morocco before any satisfactory formula can be arrived at. All efforts to obtain this information in this country have so far proved unavailing.
- (e)
- As we shall admit preferential tariff treatment for French goods, except for the items included in the schedule annexed to the treaty, it is believed most important that the competitive relationship between French products, and those American products which may not be included in the schedule, should be carefully examined in Morocco.
If you approve of the detail of Mr. Childs to Morocco for the investigation contemplated, it would be necessary for him to proceed by the United States Lines on August 23 and to return by a vessel of those same lines arriving in New York about October 1, depending upon the time which may be found necessary to complete the investigation.
It is estimated that the cost of the journey would be approximately eight to nine hundred dollars and the expenses thus entailed would, I feel sure, be balanced by the reduced necessity for telegraphic charges either before or during the course of the negotiations.
I should appreciate an early indication of your wishes in the matter in order that we may plan accordingly.