681.006/67
The Diplomatic Agent and Consul General at Tangier (Blake) to the Secretary of State
[Received November 3.]
Sir: I have the honor to transmit herewith copies of the Dahirs and Decrees establishing war time measures in the French Zone of Morocco, concerning control of Exchange and Imports and Exports, and other correlative regulations referred to in Mr. Goold’s telegram, Casablanca No. 4 of September 12, 1939, 11 a.m., to the Department, on behalf of Mr. Childs.
There is also enclosed copy of a Note dated September 18, 1939, which, in pursuance of the Department’s cable instruction, No. 15 of September 15, 1939, 4 p.m., I addressed to the French Resident General at Rabat, making formal reservation of American treaty rights in Morocco, in regard to the Dahirs and Decrees concerned, and protesting emphatically against provisions found therein, pretending to accord preferential treatment to French and Algerian merchandise.
The Dahirs and other Decrees annexed hereto70 are as follows:
- 1.
- Dahir of September 10, 1939, prohibiting or regulating the export of capital, exchange transactions and commerce in gold.
- 2.
- Residential Decree of September 10, 1939, establishing the conditions of application of the foregoing Dahir of September 10, 1939.
- 3.
- Residential Decree of September 10, 1939, concerning the regulation of imports and exports in time of war.
- 4.
- Decree of the Director General of Finance of September 10, 1939, defining prohibited and authorized operations.
- 5.
- Decree of the Director General of Finance of September 10, 1939, concerning intermediaries.
- 6.
- Decree of the Director General of Finance of September 10, 1939, relative to Customs Control.
- 7.
- Dahir of September 9, 1939, relative to the control of importations.
- 8.
- Residential Decree of September 9, 1939, establishing the conditions of application of the Dahir of September 9, 1939, relative to the Control of Importations.
- 9.
- Residential Decree of September 9, 1939, prohibiting the exportations from the French Zone of certain products, materials, and produce.
- 10.
- Residential Decree of September 6, 1939, relating to the requisition of the plant, material and petroleum products existing in the French Zone of Morocco.
- 11.
- Residential Decree of September 23, 1939, prohibiting the exportation of all products from the French Zone of Morocco.
- 12.
- Decree of September 23, 1939 of the Director General of Economic Services, relative to the application of the Residential Decree of September 23, 1939, prohibiting the export of all products from the French Zone of Morocco.
- 13.
- Dahir of September 13, 1939, concerning the control and limitation of petroleum products in time of war.
- 14.
- Decree of September 14, 1939, of the Director General of Transports establishing the regime of gasoline deliveries.
Application was made to the Residency General at Rabat for multiple copies of the French text of these Dahirs and Decrees, but the reply was that the edition was exhausted and would not be reprinted. By courtesy of the Director of Customs at Tangier, one copy each, of the official French Text has been obtained in respect of Nos. 1–8 only on the above list, and these French copies are attached to the original text of the present despatch.
Tenor of Decrees.
The keystone of all the legislative acts above referred to is the introduction of Foreign Exchange Control, which obviously carries with it prohibition to export capital, the regulation of imports and exports and all the other measures taken to establish official supervision of and interference with the free movement of trade, and distribution of goods and commodities.
Effect on American Interests.
In the present exceptional circumstances, the action of the Protectorate Government is understandable, and since, in effect the execution [Page 690] of the measures is imposed upon the customs authorities, banks and other financial establishments, shipping and inland transport organizations, which are outside the extraterritorial jurisdiction of the United States in Morocco, there is little that can be done, even if that were entirely desirable, to subtract American nationals and ressortissants, in the pursuit of their commercial activities, from compliance, in practice, with the regulations concerned.
Any prosecutions of American ressortissants by the Protectorate Authorities, in the American Consular Courts, in connection with the enforcement of the unapproved regulations, would of course be non-suited, but it is improbable that such prosecution will occur.
Reservations Suggested.
It is important, however, that the Protectorate Government should be made to understand that the absence of active resistance on the part of the Department to these derogations of American treaty rights in Morocco, cannot be taken to imply any degree of waiver of these rights, and that the position in principle of the United States in Morocco is also entirely reserved in regard to any eventual examination of its position in French Morocco.
Such requirements appear to be sufficiently met by the terms of my Note to the French Resident General above mentioned, drawn up on the Department’s directions.
However, this Note makes specific reference only to the decrees (Nos. 1 to 8 in the above list) published in No. 1402–bis of the Bulletin Officiel of September 10, 1939. Subsequent similar decrees are constantly being promulgated, (e. g. Nos. 9 to 14 on the list), and the question arises whether the Department may deem it necessary or desirable to instruct me to address to the Protectorate Government, a Note reiterating the principles of my Note of September 18, 1939, worded in such manner as to cover all war legislation, present or future, enacted by the Protectorate Authorities in derogation of American treaty rights in Morocco. My suggestion in this request is prompted, amongst other considerations, by the terms of the Residential Decree of September 6, 1939, relating to the requisition of the plant, material and stocks of the distributors of petroleum products in French Morocco.
Such a Note might be made to include assurances of unwillingness to raise unnecessary obstruction to the working of the organization and civil administration of the French Zone, in the present eventful period, and that the American Diplomatic Agent at Tangier and the Consul General at Casablanca would be instructed to examine with the Protectorate Authorities, and report to the Department suggestions by which any special difficulties might be overcome through measures of co-operation which did not imply prejudice to the neutrality [Page 691] declaration of the President, to the maintenance of American treaty rights, or even temporarily, in an unreasonable or unnecessary degree, to the legitimate interests or activities of American nationals and ressortissants trading in French Morocco.
Since we are withholding our validation from the legislation, it might appear inappropriate to stipulate for equality of treatment under the application of its provisions, but the same effect would seem to be obtained by protest against the pretended creation of a privileged situation for the trade or interests of the ressortissants, or territories of France, French colonies, protectorates or mandates.
Importance of Question vis-à-vis Future Treaty Negotiations:
The present legislation affords some indication of the facilities which the French Protectorate Authorities may derive from a system of Exchange Control, for the purposes of directing the movement of Moroccan trade at their will and pleasure. An observation of its operation in Morocco in the present circumstances may prove interesting as providing support for our opposition to, or requirement of safeguards against the continuance, or reintroduction of its application in Morocco, upon the termination of the war period.
Position in Tangier Zone.
The French are endeavoring to secure the application in the Tangier Zone of the legislation above discussed, but they are confronted with the opposition of the representatives of the neutral powers, Belgium, Holland, Spain, and Italy, on the grounds that the measures are incompatible with the provisions of the Moroccan treaties, and since these neutral representatives constitute a majority on the Committee of Control, it is believed that the decrees in question will not be given legal acceptance in the neutral Zone of Tangier.
The French are, however, pursuing their objective, and with some measure of success, by practical means, namely, through instructions to the predominant banks, (the State Bank of Morocco and other banking institutions conducted by nationals of belligerent countries in Tangier) and through a system of control exercised by the French administered Tangier Customs House, over the requirements and importations of the Tangier Zone, at least in respect of foodstuffs and other essential commodities, coming from French Morocco.
Position in the Spanish Zone.
As the Department is aware, the French Zone decrees in question cannot be applied in the Spanish Zone where, however, exchange and trade control exists similar to those now adopted in French Morocco. (See Mr. Doolittle’s Report “Exchange Restrictions in the Spanish Zone of Morocco,” dated August 19, 193971). Conversations are proceeding [Page 692] between Rabat and Tetúan in an endeavor to concert a resumption of interzonal trade, but the arrangements are in suspense because no agreement has yet been reached on the fixation of the exchange rate to rule between the controlled Moroccan franc and the controlled Spanish peseta.
Respectfully yours,