740.00112 European War 1939/7582

Memorandum of Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Villard)

I told Mr. de Panafieu that the appropriate authorities of this Government had now approved a restricted program of petroleum shipments to French North Africa on the following quarterly basis:

A. Kerosene 15,000 Tons
B. Low grade gasoline 10,000 Tons
C. Gas oil and diesel oil 10,000 Tons
D. Heavy Fuels  5,000 Tons
Total 40,000 Tons

I said it was stipulated that items C. and D. must definitely be of the lower grades, and that any given quota would be subject to change. I added that fuel oil for the Coastwise Service between Casablanca and Algiers would have to come out of the amounts mentioned above.

Mr. de Panafieu expressed himself as very greatly pleased with this development. He said that news of the proposed petroleum program would have a most favorable effect in French North Africa and that it would assist materially in producing a friendly attitude on the part of the officials of that territory towards the objectives of the American supply program.

I also told Mr. de Panafieu that in connection with this petroleum program we would desire to station at the Consulate General at Casablanca an officer who would be charged with the supervision and control of the supplies. We had selected for this position Mr. Arthur G. Reed, former representative of the Socony-Vacuum Company at Casablanca, who was thoroughly familiar with the French North African territory and well known to the officials in that area. It would be desirable to have Mr. Reed leave at an early date in order to make preliminary arrangements for the arrival of the supplies. I asked Mr. de Panafieu if a visa could be obtained for him. Mr. de Panafieu stated that he would be very pleased to telegraph immediately for Mr. Reed’s visa and that he anticipated no difficulty in this matter. I said that we would like to give him some such [Page 402] title as Special Assistant or Petroleum Adviser to the Consulate General, and that he would thus operate separately from the Vice Consuls who were serving as control officers. Mr. de Panafieu said he thought there would be no objection whatever to this arrangement.

Before talking with Mr. de Panafieu I read to Commander Freseman, aide to Admiral Leahy, the contents of the letter of October 20, 1942 from the Secretary of the Navy1 setting forth the joint views of the War and Navy Departments in the matter of petroleum. Commander Freseman stated that the proposed program was “perfectly satisfactory” to Admiral Leahy. I then informed Mr. Cass Canfield of the Board of Economic Warfare, who expressed his concurrence.

  1. Not printed.