881.50/37
The Chargé at Tangier ( Childs ) to the Secretary of State
[Received November 19.]
Sir: I have the honor to refer to my despatch no. 403 of October 19, 194134 and to report that Colonel Carvajal, Spanish District Administrator, paid me a visit on October 23, 1941 for the purpose of acquainting me with the endeavor of the local authorities, under his direction, to keep down the cost of living in Tangier. He said that a Controller of Prices had been appointed to check abusive speculation detrimental to the welfare of the community and in this connection, he added, some difficulty has been encountered by the administration when considering the activities or requiring the testimony of American ressortissants whose extraterritorial position placed them beyond the ordinary local jurisdiction. He therefore appealed to me for whatever cooperation was possible, by restraining American nationals and protected persons in Tangier from obstructing the operation of the system of regulations and control put into force by the administration for the purpose of keeping within reasonable bounds the rising cost of living in the district.
Colonel Carvajal then referred to an instance in which a stationer and American ressortissant had sold recently to the Spanish High Commissioner in Tetuán writing paper at 10 francs per hundred sheets, but on a repeat order only a week later had invoiced the same quality of paper at 10 pesetas per hundred sheets which represented, within the space of a few days, an increase in the price of over 300 per cent, the exchange on the peseta being about four to one against the franc.
Although a case of speculation in stationery articles did not appear to be the most appropriate example to illustrate the threat of a rise in the general cost of living in Tangier, it seemed obvious to me that the instance was quoted by Colonel Carvajal only to point to a case in which an American ressortissant had actually been detected in charging exorbitant prices, and out of an apprehension on his part that other American ressortissants dealing perhaps in articles of prime necessity, might avail themselves of their extraterritorial privileges to defy the measures taken by the local authorities for the protection of the community at large.
Colonel Carvajal stated that dealers had abusively availed them selves of recent violent exchange fluctuations to raise their prices extravagantly but that, with a return to stabilization of the local exchange market, merchants had been warned, by a decree of October 21, 1941, that they must readjust their prices accordingly if they desired [Page 572] to avoid the infliction of penalties. A translation of the decree is enclosed.35
A further measure taken by the administration with a view to eliminating the factor of exchange as a pretext for the increase of prices, has been the requirement that goods of Spanish origin or those purchased in pesetas must obligatorily be sold in Spanish currency.
Finally, Colonel Carvajal referred to a further decree issued on October 21, 1941 reviving the application of a law of November 2, 1939 passed by the Tangier Legislative Assembly under the international regime, which regulated the exportation of products, materials and articles of prime necessity, and required the constitution of security stocks.
Colonel Carvajal then reiterated his request for my assistance in causing American ressortissants to conform with all these regulations. He explained that he had given instructions to his administrative officers that if, in the course of their investigations, they found themselves confronted with American ressortissants, their action was to be suspended and the matter reported to him personally. He would himself then bring the matter to my attention.
I explained to Colonel Carvajal that the American consular courts have no power to enforce upon American ressortissants Moroccan decrees or regulations, unless these are brought into the corpus juris of those courts through previous validation of the said decrees or regulations by the American Government. The latter would have difficulty in giving its approval to such measures as those referred to by Colonel Carvajal which were at variance with fundamental treaty principles concerning the liberty of commerce in Morocco. I added, however, that that did not imply the American Government’s indifference to difficulties which might arise from temporary special conditions and, as an illustration of the Department’s attitude in such circumstances, I outlined to Colonel Carvajal the Department’s directions to the Legation as contained in instruction no. 1063 of March 4, 1940 (file no. 681.006/73)36 in regard to the law of November 2, 1939 of the Tangier International Administration which, as the Colonel himself had just said, he had brought into force by decree of October 21, 1941. I explained to him that in reply to the Moroccan Government’s request for the American Government’s validation of that law, the Department had stated that while it was unable to give its approval to the application to its ressortissants of legislation in derogation of American treaty rights, it had however directed the Legation to examine with the Moroccan authorities concerned, and to report to the Department, suggestions designed to avoid special difficulties prejudicial to [Page 573] the interests of the Tangier community which might result from the failure of the American Government to give its approval to legislation enacted as the result of the present exceptional circumstances. I told Colonel Carvajal that I was prepared to extend to him a similar regime of cooperation. I added that I considered that American ressortissants as members of the Tangier community should cooperate to the fullest possible extent in the welfare of that community and, moreover, I did not anticipate any difficulty in persuading them voluntarily to do so.
In conclusion, the Department will share my gratification at the manifestation, renewed on this occasion by Colonel Carvajal, of the intention of the Spanish authorities to respect our extraterritorial position in Tangier.
Respectfully yours,
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- Foreign Relations, 1940, vol. iii, p. 780.↩