840.51 Frozen Credits/654
The Diplomatic Agent and Consul General at
Tangier (White) to the Secretary of State
No. 35
Tangier, September 23,
1940.
[Received October 3.]
Sir: I have the honor to enclose herewith,
copy in the French text and in English translation, of a
communication dated September 19, 1940, which I have received from
the French Resident General at Rabat, concerning the difficulties
attending the Protectorate Government’s disposal of its credits held
in the United States.
General Noguès appeals to me to obtain from the competent authorities
in the United States: (a) the quasi-automatic
renewal of a monthly license (as granted in the month of June last)
for the liberation of
[Page 588]
25%
of the blocked credits in America of the State Bank of Morocco; (b) the crediting to free account of all
remittances and transfers to that Bank, particularly of an amount of
$918,344 paid into its account by the Federal Reserve Bank; (c) liberation of the transfer to the Moroccan
State from the Shereefian Phosphate Office of the latter’s funds
(about $2,000,000), which are, in effect, on deposit with the
Franco-American Banking Corporation of New York; (d) the unblocking in general of the dollar credits in the
United States of other Moroccan individuals and institutions.
Not being familiar with the intricacies of the banking connections in
the United States of the Moroccan and French Governments’
appendages, I hesitate to express an opinion on the details of this
request.
In general, for the present, I favor letting this country have as
many facilities for supplying itself with needed goods as possible.
Should French Morocco become, to quote the Resident General, “enemy
occupied territory,” it should not be difficult to re-impose the
restrictions which such a situation might call for.
I would, however, suggest that, if it is not deemed feasible to
accede to the Moroccan Government’s various requests, the Department
may find it possible to transmit an explanation of the reasons which
account for the apparent inconsistencies in the treatment, by the
United States Treasury Authorities, of Moroccan transactions, and
thus assist in removing from the minds of the Protectorate
Authorities the perplexities of which General Noguès complains in
this connection.
Respectfully yours,
[Enclosure—Translation]
The Resident General in the French Zone of
Morocco (Noguès) to the
American Diplomatic Agent and Consul General at Tangier
(White)
No. 2581 S.G.P.
Rabat, September 19,
1940.
Mr. Minister: I take the liberty to
draw your attention to a certain number of difficulties
connected with the disposal of Moroccan credits in the United
States.
Notwithstanding the blocking of French credits and, by extension,
of Moroccan credits in the United States, a special measure was
taken by the Department of State in favor of the State Bank of
Morocco. The latter obtained from the American Authorities in
the month of June the liberation of 25% of the amount of its
credits in America, namely, 129,295 dollars out of a total of
517,180 dollars. It further obtained the transfer to free
account of the credits which would derive from exportations or
from free transfers.
[Page 589]
This measure has given rise in practice to various difficulties.
In the first place, it is valid only for one month. The renewal
of the license requires each time the adoption of procedure
which attains results only after a somewhat long delay. For
example, the license, granted in the first instance in respect
of the period June 28–July 28, was not renewed until August 5.
At the date of September 11th, we were still unaware whether the
licence which expired on September 5 had been renewed for a new
period. If the 345,000 dollars in cheques issued by the State
Bank of Morocco on August 20 in payment of American credits are
presented for payment in New York before such renewal, they
cannot be met.
In the second place, the transfers ordered in favor of the bank
encounter a variety of treatments, the diversity of which we are
at a loss to explain.
The Bank of France assigns to the State Bank of Morocco in the
Federal Reserve Bank, for the payment of our importations of
agricultural tractors, industrial chassis, fuel oil and gas oil,
round irons (fers ronds) . . . . . . . .
. . . . . . . . $313,600; this amount is credited to the Bank of
Morocco in free account.
The Bank of France assigns to the State Bank of Morocco in the
same Bank, for the payment of our importations of mineral oils
and greases, gasoline, industrial chassis . . . . . . . . . . .
. $218,334; the Bank of Morocco is credited with this amount in
a blocked account.
A further transfer of . . . . . . . . . . . . . . . . . . . . .
$700,000 effected by the Federal Reserve Bank upon the order of
the Bank of France has likewise been credited to a blocked
account.
The Shereefian Phosphate Office remits to the State Bank of
Morocco cheques in dollars, the proceeds of its sales; the Bank
of Morocco obtains credit for this remittance in a free
account.
An American importer of casings makes a deposit for the account
of his Moroccan supplier; credit is given for this deposit in a
blocked account.
The Shereefian Phosphate Office, an official organization
entrusted with the working of mines which are State property,
possesses more than 2 million dollars, which it desires to
retrocede to the Moroccan State. These dollars are on deposit
with the bankers of the Phosphate Office, the “Crédit Foncier
d’Algérie et de Tunisie,” and the latter have been instructed to
pay in to the State Bank of Morocco, and to be placed at the
disposal of the Shereefian Government, the following sums:
- $515,160.95
- $374,676.36
- $600,000
- $500,000
[Page 590]
The “Crédit Foncier d’Algérie et de Tunisie” has these sums in
account with the French American Banking Corporation of New
York, which has been instructed to transfer these amounts to the
account of the State Bank of Morocco in order that the latter
may dispose of them for the needs of the Protectorate. Transfer
licences have not been forthcoming on the pretext that these
amounts are blocked.
The reasons commonly given for the blocking of French credits in
the United States should not be applicable to Moroccan credits.
Morocco is not, and has not at any time, been occupied by enemy
powers. Moreover the entire amount of American credits on
Morocco, as known and declared up to date, have been
settled.
Morocco has a pressing need of sugar and of tea, for the feeding
of the natives, who are large consumers of these commodities,
and gasoline for the activity of the country. In view of
international political conditions an important part of such
goods must be paid for in dollars.
In conclusion, I therefore request you, Mr. Minister, to mediate
with the American Government to the end that a quasi automatic
renewal be assured of the licence granted in the month of June
liberating 25% of the blocked credits; that the Bank of Morocco
may obtain credit in free account of all remittances and
transfers in its favor, and particularly of $918,334 deposited
for its account by the Federal Reserve Bank; that the 2 million
dollars may be retroceded by the Shereefian Phosphate Office to
the credit of the Moroccan State; and in order that the question
of the unblocking of the dollar credits held in the United
States for other Moroccan persons and institutions may receive
favorable consideration.
Please accept [etc.]
