611.8131/78
The First Secretary of the British Embassy (Helm) to the Assistant Secretary of State (Berle)
Dear Mr. Berle: You will recall that at our talk on December 18th10 with regard to the question of trade with Morocco, I expressed some surprise when I thought you indicated that under your existing regulations the proceeds of exports from Morocco to the United States would have to be paid into a blocked account. I wasn’t too certain, as that point is not my immediate concern, so I made enquiries and find that our information as to the present position is that a monthly license was granted about June 28th to the French American Banking Corporation in New York, under which 25% of the amount standing to the account of the Bank of Morocco with the French American Banking Corporation and all sums paid into that account after the 28th June were released from the operation of the Executive Order No. 8389 (as amended).11 It seems therefore that it is only necessary for the proceeds of any exports from Morocco to this country to be paid into this account for them to be at the disposal of the French authorities in Morocco. I understand that similar facilities have been given to all the accounts with New York banks of the Bank of Syria and the Bank of Indo-China.
In London all Moroccan funds are blocked under the Trading with the Enemy Act and the Ministry of Economic Warfare there and our people here who deal with such questions have never been very happy over the difference in the treatment accorded by our two countries to these funds.
I realise of course that in the particular case which we were discussing with you the treatment of the proceeds would be part of the [Page 636] whole question to be examined when we have had the statement of policy from London. This we immediately asked for and we shall naturally let you know as soon as we receive London’s reply.
All best wishes for Christmas and the New Year.
Yours sincerely,