Foreign Relations of the United States Diplomatic Papers, 1941, Europe, Volume II

740.00112 European War 1939/2161½

Memorandum of Conversation, by the Acting Chief of the Division of European Affairs (Atherton)

[Washington,] January 27, 1941.

Participants:	Mr. Knox Helm, First Secretary, British Embassy
	Mr. Ray Atherton, Acting Chief, Division of European Affairs
	Mr. John Hickerson, Assistant Chief, Division of European Affairs

At the suggestion of Mr. Welles, Mr. Helm, First Secretary of the British Embassy in charge of economic warfare work, was invited to call at the Department this afternoon, and Mr. Atherton and Mr. Hickerson discussed with him the question of the attitude of the American Government toward French possessions in northern Africa, in particular Morocco.

Mr. Atherton referred to a conversation several weeks ago between Mr. Helm and Mr. Berle on this subject, and he opened his comments by stating that things had moved a considerable distance in the United States in respect to this matter since that conversation. He stated that there had been a considerable amount of discussion of Morocco in the Department of State and in the American Government, and that he thought we should tell Mr. Helm that there was evolving an American policy toward Morocco which would involve a resumption in some considerable degree of trade between the United States and Morocco.

It was pointed out to Mr. Helm that in view of the policy of the United States Government of assisting Great Britain in every practicable way in measures short of war, it of course was not our intention to reestablish trade with Morocco on such lines that it would adversely affect the blockade which Great Britain is maintaining against metropolitan France and other parts of Europe. Our feeling is that it is desirable, from the standpoint of the interests of the United States Government, and we would hope not adverse to the interests of the British Government, to endeavor to prevent a disintegration of the situation in Morocco. To that end we feel that it is necessary that some sort of arrangements be made for Morocco to receive from the outside world such imported commodities as will enable the people to carry on their work and lives in as nearly a normal manner as possible. We referred to the fact that Great Britain has herself recognized this and has, according to information furnished us previously by Mr. Helm, arranged to send into Morocco certain quantities of sugar and tea. For our part we have not in mind any large trade in commodities other than the necessities of life. Mention was made of the urgent demand for petroleum products for use in the tractors for plowing at the end of next month. Mention was also made of our feeling that it should be possible to arrange suitable guarantees against the reexportation of any imported commodities either to metropolitan France or to third countries.

Mr. Atherton pointed out that in general our approach to this matter took into account three considerations:

(1) That the resumption of trade along these lines is desirable in itself and that a failure to arrange for it might lead to a disintegration of the internal political situation;

(2) There is always the possibility, given the uncertain situation in metropolitan France, that a French Government may move from unoccupied France to Morocco, and a trade policy along the lines which have been mentioned above would not close the door to such a move should it later prove to be advantageous to France;

(3) There have been recurring rumors in the last few days of the possibility of the Germans launching an effort to occupy Tunis. From what we have learned from General Weygand, the attitude of French Northern Africa, at the minimum would be “uncooperative” toward such a move on Germany’s part, with a strong probability that active resistance might be forthcoming. In our view it is important to make it possible for General Weygand to maintain his position along these lines in northern Africa.

Mr. Atherton stated that with the arrival of Lord Halifax⁶⁷ it was thought Mr. Helm might wish to acquaint him with this situation in general, and in particular with the developments in American policy which had been outlined in the present conversation. Mr. Atherton intimated that after that had been done it was quite possible that there might be an occasion for the Ambassador to be supplied with any further information which he might desire from Mr. Welles or the Secretary.

Mr. Helm stated, apropos of the three considerations mentioned above, that the last two were somewhat outside his own particular jurisdiction, but that of course he could perceive considerable logic in them; as regards the first he said that it was his hope that it would be fairly easy to reconcile the views of our two Governments. He said that in theory the British Government was maintaining a tight blockade against French Northern Africa, but that in actual practice they were not enforcing this blockade fully. He said that he did not think there should be any great opposition in London to the shipment of normal quantities of ordinary commodities to French Northern Africa for local consumption in exchange for phosphate and other exports from Northern Africa; he said that there might be some question in regard to certain “key products”. As regards exports from Northern Africa he said that the British Government would probably oppose a larger volume than is necessary to pay for absolutely necessary imports; he intimated that the British Government would fear that any excess exports might indirectly redound to the benefit of Germany.

Mr. Helm said that it would be difficult for the British Government to consider the question of trade with Morocco separately from the development of the Marseilles-Casablanca-Martinique entreport trade. He said that the British Government was seriously alarmed over the growing volume of this trade. He referred to the arrival last week in New York of sizable quantities (including 1,000 cases of champagne) of French goods which had traveled over this route. Mr. Hickerson commented that of course Mr. Helm would understand that there is a geographic connection but no other connection between the two problems. He recalled that he and Mr. Helm had discussed this matter on several occasions in the past, and inquired about a suggestion which he had made that if the British Government desires to see this trade stopped they endeavor to intercept the vessels off Casablanca. Mr. Helm said that this could not be done because of a lack of ships. Mr. Hickerson then inquired about shipments passing freely through Gibraltar. Mr. Helm said that actually the ships which were now passing through Gibraltar are heavily convoyed and that the British Government “is not in a position” to stop them. He elaborated this by saying that the British Government could not risk another naval incident with France, but he clearly implied that the British feel that they have not enough ships at Gibraltar forcibly to stop these convoys.

R[ay] A[therton]

67. New British Ambassador.