740.00112 European War 1939/4606

Memorandum by the Chief of the Division of Near Eastern Affairs ( Murray ) to the Assistant Secretary of State ( Acheson )

Mr. Acheson: Arrangements have now been completed for the departure from this country of two French vessels under the revived plan of economic assistance for French North Africa. One is expected to sail on January 26 and another on January 31, with simultaneous departures from Casablanca of two other vessels carrying cork and other commodities for the United States. The Treasury Department has acted in this matter to permit the loading of cargoes only for the two vessels about to leave for North Africa, no steps being taken with regard to future supplies.

The French Embassy has now approached us with reference to further shipments under the economic plan, particularly in regard to cargoes for the two ships about to come to this country from North Africa and which will be ready to return to Casablanca within a comparatively short time. After detailed discussion of the matter, officials of the British Embassy and this Division have reached the conclusion that future purchases for French North Africa should be made within the framework of the quotas previously approved for the last quarter of 1941, which were suspended but never revoked during the temporary stoppage of the economic plan. As a practical matter, it would of course be impossible for the French either to purchase or to ship more than a fraction of the authorized commodities, owing to the existing situation with respect to priorities for defense materials. It is felt, however, that the list of goods so carefully set up over a period of many months’ discussion should form the basis of all future shipments as a matter of practical convenience.

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The easiest way to permit the French to resume purchases would apparently be to reinstate the Treasury license for the entire list of commodities previously authorized by the British and ourselves. This would afford much needed latitude to the French in their choice of supplies and would enable them to place orders without delay for forthcoming shipments. It is essential that sufficient time be afforded to place these orders, as the delays which would otherwise ensue in filling the ships would be construed as bad faith by the French authorities and in turn exploited by the Germans as a demonstration of the failure of the American program of supply for North Africa.

If the Treasury license were reinstated in its entirety, there would still be ample check on the commodities actually to be exported on the two small French vessels available at any one time for this trade. Export licenses would have to be obtained for each commodity and the British would have to grant navicerts not only for each item but for the ships as well. The French have, moreover, agreed to present us with a detailed list in advance of each cargo, in accordance with an outline of their new purchasing program dated January 17, 1942, a copy of a translation of which is attached.46

I may add that the French authorities are counting on the fact that the program of supply for North Africa is to be continued after the departure of the two vessels about to sail, and they have made full use of this assumption not only in their relations with the German Armistice Commission, but with respect to the serious economic situation in North Africa. The economy of that region, which is of vital importance to the United States, is steadily deteriorating according to all our recent reports. The French have built their policy with respect to the future of North Africa on a message from the President to Marshal Pétain, which was transmitted in the Department’s telegram no. 928 of December 13 to the Embassy at Vichy,47 and which stated that every possible step would be taken in order to enable this Government to assist in the alleviation of conditions in French West Africa and in North Africa.

I hope, therefore, that the Treasury Department may be authorized at the earliest possible moment to reinstate the French North African license in order that the French officials in this country may place their orders and make plans with respect to future shipments.

Wallace Murray