840.51 Frozen Credits/1216: Telegram

The Secretary of State to the Ambassador in France ( Leahy )

118, Your 104, January 25, 10 a.m. The French Embassy has today been informed that funds sufficient to permit the purchase of a tanker load of petroleum products for Morocco will be released immediately. It was explained that the release of these funds was contingent upon the understanding that the petroleum products were destined solely for use in Morocco according to the assurances received from the Foreign Office. It was explained that the further supply of petroleum would be discussed in due course.

The Embassy was also informed that while this Government did not object to the purchase of Mexican oil there were, nevertheless, reasons [Page 219] why, from the point of view of other American considerations, it would be preferable that this petroleum be obtained from other sources in the Western Hemisphere. There is no objection on the part of the American authorities to the use of a French tanker for the transportation. It was pointed out to the French Embassy that the prompt return of this tanker to American waters might facilitate further shipments.

The British Embassy has been informed of the American Government’s interest in this shipment and its arrival at its destination in North Africa. No mention of the necessity of obtaining a navicert arose in the course of conversation with the British.

You should inform Foreign Office accordingly.

Hull