851S.50/9: Telegram

The Consul General at Algiers (Cole) to the Secretary of State

27. From Murphy. Vice Admiral Fénard, Secretary General for French Africa, has just concluded visits to Tunisia and Morocco and is leaving this morning for Vichy for discussions regarding the critical economic situation in North Africa. During the course of a long conversation with him yesterday he made the gloomiest predictions regarding the economic future of this area. He asserted that the economic structure is on the verge of going to pieces like the proverbial one horse shay.

Industrial agricultural and transport equipment in his opinion due to lack of replacement over a long period of time, lack of lubricating oil and heavy usage has dangerously deteriorated. The lack of liquid fuel is having a paralyzing effect on every branch of life. Food cannot be distributed, doctors cannot reach their patients, et cetera. The lack of solid fuels for the operation of the railways, coastwise traffic, gas and electric light plants to say nothing of household requirements presents the gravest kind of problem. At Algiers he states there is only a 3 days’ coal supply. Yesterday many bakeries were without flour due to lack of transport in this important wheat-producing area. Two ships engaged in the Algiers-Marseille traffic have foundered within the last 48 hours with the loss of about 300 lives. The cargo of one from Marseille included 7,000 tons of coal for Algiers. If this had been received Algiers would have had a week’s supply of coal on hand. The loads of these ships, the Admiral states, [Page 237] is merely another example of the general deterioration of North African transport and industrial equipment.

The Admiral as is his wont repeatedly urged American action to supply liquid fuel to this area. He declared that this area is wide open to American influence and that we are failing to take advantage of it. I replied again that it is difficult for us to have confidence in the ability of the French authorities to resist German demands for the export of liquid fuels to Libya in the light of Admiral Darlan’s agreement of December 12 with the Axis authorities. Fénard states that he contemplates bluntly stating to Admiral Darlan, his close friend, the gravity of the prevailing condition and the necessity of American aid. He agreed that Admiral Darlan when faced with the necessity of making concessions to the Axis should take our Ambassador43 into his confidence before the fact rather than require us to depend on unofficial information concerning secret concessions made to the Axis. Fénard of course stoutly maintains that Darlan has no intention of making major concessions regarding the fleet and naval bases and spoke with pride of the manner in which France has procrastinated in the execution of innumerable German and Italian requirements.

For this he said France is given but little credit.

We should understand, he declared, the necessity of an occasional minor concession at least until such time “as the United States may be able to extend substantial military assistance to France”. I asked Admiral Fénard if he believed that Admiral Darlan would be willing to avail himself of such military assistance looking to the resumption of hostilities against the Axis. He said he did not know but he referred to Darlan’s statement to Admiral Leahy of August 1 (see Vichy’s No. 970, August 1, 4 p.m.44) to the effect that when the United States had 3,000 tanks, 6,000 planes and 500,000 men to send to Marseille that he would welcome them.

Repeated to Vichy. Copies to North African offices. [Murphy.]

Cole