740.00112 European War 1939/7036: Telegram

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

516. Department’s 187, October 15. The last statement made to me by Orgaz on the subject of the accord was reported in my telegram 354, August 25, 7 p.m.

It is recommended to the Department that I be authorized to approach Orgaz and to refer to paragraph No. 7 of the Petroleum Accord of July 29, 1942 agreed to by him (see enclosure 2 to despatch [Page 484] 938 [937], August 1).55 At such a time I would inform Orgaz that as indicated both in the petroleum accord and in the proposals for a general economic accord (see enclosure 3 to the same despatch), my Government expected that action would be taken by the Spanish authorities looking to the granting of reciprocal economic facilities in Spanish North Africa. It would be pointed out that we have begun to furnish petroleum products to North Africa and Tangier in the absence of any specific written assurance. This measure has been taken by us out of recognition of the pressing economic needs of this area. Now that the petroleum program appears to be progressing satisfactorily, it is expected that the Spanish authorities will be prepared to grant facilities for the acquisition and export of the products mentioned in the memorandum of July 31 presented to him and with that in view an American purchasing agent is shortly expected to arrive in Tangier (the reference is to the anticipated arrival of Lambert now in Madrid).

Such an approach it is believed might expedite further consideration of the accord. We might then consider in the light of General Orgaz’ reply whether it might not be advisable to suspend the issuance of export licenses for supplies to Spanish North Africa other than petroleum products pending the conclusion of the economic accord.

Meanwhile, I favor the issuing of export licenses for Spanish North Africa on a limited basis and only on the Legation’s specific recommendation.

Childs
  1. Despatch No. 937 and its enclosures not printed.