611.8131/80
Memorandum of Conversation, by Mr. Henry S. Villard of the Division of Near Eastern Affairs
| Participants: | Mr. A. K. Helm, First Secretary of the British Embassy |
| Mr. A. D. Marris, First Secretary of the British Embassy | |
| Mr. Berle | |
| Mr. Murray | |
| Mr. Ailing | |
| Mr. Villard |
Mr. Berle, opened the discussion by stating that we had been endeavoring to study the economic needs of French Morocco and the [Page 633] question of our trade with that territory, but that our consideration of the question was hampered by the lack of any definite knowledge as to the British policy on letting products leave Morocco and supplies enter from the outside. The time had come, therefore, when it appeared necessary to inquire of the British Government what its attitude was in respect to these matters in order that we might fully understand what action was going to be possible and proper in the circumstances.
As an example of the uncertainty and ambiguity as to the British policy, Mr. Berle cited the reports which we had received to the effect that a triangular agreement had been reached between Great Britain, Spain and Morocco for an exchange of products between the two latter countries. Under this arrangement Morocco was to supply Spain with a quantity of phosphates, 40 percent of the payment for which would be effected by Spain in Spanish products and the remainder in sugar and tea, apparently supplied by Great Britain. It was pointed out that while it thus appeared that Great Britain was undertaking to supply sugar to French Morocco, navicerts were being refused for the shipment of American sugar to the same territory. We considered that this matter required explanation, particularly in view of the importance of our sugar industry and our responsibility toward Cuba in this respect.
Mr. Berle went on to say that the supplying of commodities to French Morocco by British interests appeared to be wholly inconsistent with the British blockade of that country. One could not have a barter agreement and a blockade at the same time, and we would, therefore, like to know exactly what the British position was on the subject of trade with Morocco. Mr. Murray inquired whether it was not desirable from the British point of view to prevent Moroccan economy from collapsing with inevitable repercussions in the Moslem world as well as resulting in an invitation to German occupation, and if so how the blockade could be reconciled with this presumably worthwhile objective.
The reply of Mr. Helm and Mr. Marris to the foregoing observations was, in effect, that they had no information on the subject. The British Embassy had not been informed as to the sugar and phosphate deal and no outline of policy had been received from London as regards French Morocco, except that the blockade was considered to exist. Mr. Marris said that while he personally believed it to be highly desirable to preserve the Moroccan economy and to keep trade alive with appropriate safeguards, he wished he could say that it was the settled policy of his Government. Mr. Helm admitted that the authorities [Page 634] in London had refused to permit a shipment of coal from the United States for the French Morocco Railways which had been sought here by Mr. Paul Guerin. The question was raised of olive oil shipments from Morocco which importers in this country desperately needed, and Mr. Helm was asked how this could harm British interests. Mr. Helm replied that the British feared a building up of exchange balances by French interests through such exports to the United States. In reply it was pointed out that the interests concerned had volunteered to leave all such exchange blocked in the United States for as long a period as was necessary or desired. In the same way it was mentioned that adequate safeguards had been offered for importations into Morocco from the United States, with a view to assuring that they did not reach the Axis powers. Mr. Helm had no special comment to make on this except to say that his Government was endeavoring by every means within its power to prevent any advantage accruing to the Axis through French Moroccan trade.
Mr. Marris said that representatives of British interests were now meeting in Lisbon with French Moroccan representatives to discuss such matters as shipments of cobalt to Canada. It was possible these discussions might be extended to other commodities. Mr. Berle said that inasmuch as we have tentatively and informally broached to the French Moroccan authorities the question of a limited two way trade with the United States, we would like to know the precise intent of British policy. Both Mr. Helm and Mr. Marris said that the British Embassy would be glad to cable to London at once with a view to obtaining a clarification of this policy, and that the Embassy would inform the Department as soon as it had obtained the desired information.
The subject of the British blockade of Syria and the Persian Gulf area was also brought up, our information being that the British intended to “asphyxiate” Syrian trade and incidentally Syrian trade with the United States. Mr. Helm said he would be glad to endeavor to obtain information on this subject also. Mr. Berle said that we would like to have as much clarification as possible, since it might be necessary for us to consider taking an independent line if British policy remained obscure, and we desired to cooperate.
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Inquiry was made of Mr. Helm whether the British authorities would permit passage of quinine to Dakar in view of the essential need for this product. Mr. Helm said that in his opinion there would be no difficulty whatever about obtaining permission for quinine to pass through the blockade.