611.8131/60
Memorandum of Telephone Conversation, by Mr. J. Rives Childs of the Division of Near Eastern Affairs
Mr. Helm of the British Embassy telephoned and stated he had a further telegram from London on the subject of Moroccan trade. The telegram expressed the hope that, inasmuch as the United Kingdom clearing agreement involved the exchange of green tea and sugar [Page 607] for Moroccan phosphates, any clearing agreement we might conclude would not envisage the export of green tea and sugar. Mr. Helm explained that these were “politically important” commodities which would be exported by the United Kingdom to French Morocco in order to keep the native population quiet and that arrangements were being made for exports of these same commodities to Spanish Morocco. I told Mr. Helm that the subject of a clearing arrangement for trade between this country and French Morocco was still under discussion in the Department. I added that Mr. Reed, Manager of the Socony-Vacuum Oil Company in Morocco, had called at the Department last week concerning the possibility of such trade involving the importation into French Morocco of small quantities of gasoline and that I understood he had been in communication with Mr. Marris of the Embassy on the subject. Mr. Helm stated he had seen Mr. Marris’ minute of his conversation with Mr. Reed but he felt that London would not consent to permitting any imports into Morocco of gasoline which was an “enemy deficiency”.
I informed Mr. Helm that I would pass on to the interested officers of the Department the information he had conveyed and that I would let him know as soon as anything had been definitely determined on the subject of the clearing agreement he had proposed.