740.00112 European War 1939/6213: Telegram

The Chargé at Tangier (Childs) to the Secretary of State

321. When Department’s telegram 132, July 27, noon, was received, Walter Smith of the Embassy in Madrid was here and conversations were in progress with Orgazi concerning a petroleum program for Spanish North Africa.

We had seen Orgaz on July 27 when Smith outlined the conditions prerequisite to such a program. Orgaz said he would communicate at once with Madrid and would fix another appointment with us before Smith’s scheduled departure August 1st.

Meanwhile, it seemed preferable not to pursue the question of an economic accord until it was known whether Orgaz would call for us again to discuss the petroleum problem which he did yesterday.

[Page 475]

Upon being received by Orgaz late today, he said he had been informed by Madrid the conditions relating to a petroleum program would have to be confirmed by Madrid but at Smith’s suggestion the memorandum embodying them was signed without any question by him. Both Smith and I are very pleased with the arrangements and Smith is confident he will encounter no difficulty in obtaining approval of them by the Madrid authorities.

After the foregoing had been concluded I presented Orgaz with an aide-mémoire embodying the substance of paragraphs a to i inclusive omitting of course second paragraphs of a and c as well as second and fourth paragraphs of i of Department’s telegram under reference and adding the following.

“Mr. Childs referred to the conversation he and Mr. Smith had had with General Orgaz on July 27 with reference to the undertaking by the United States of a petroleum program for Spanish North Africa and Tangier. Mr. Childs recalled it had been stated in that conversation that it was to be expected that program would be integrated in the larger economic program which had been the subject of discussion with General Orgaz since April. In particular Mr. Childs observed his Government would expect that the authorities of Spanish North Africa and Tangier would grant to the Attaché of the American Legation who might be appointed for the purpose of overseeing the execution of the petroleum program for Spanish North Africa and Tangier all necessary facilities for the accomplishment of his mission.”

Upon the conclusion of the reading of the aide-mémoire the High Commissioner remarked with unconcealed satisfaction, “That is fine, that is very good”. He added he would have to communicate the terms to Madrid but would let me know as soon as he had a reply.

It is quite probable that part of Orgaz’ apparently great gratification with the proposals springs from relief from the uneasiness which he has recently suffered over the possibility of an Anglo-American landing in Morocco and his conclusion that these proposals are an assurance on our side of our peaceful intentions in respect of Spanish Morocco.

Sent to Madrid.

Childs