740.00113 European War 1939/1050: Telegram
The Vice Consul at Algiers ( McBride )73 to the Secretary of State
[Received September 2—2:07 a.m.]
1513. For Secretary and Morgenthau from Murphy and Glasser. Department’s 1276 [1275]74 and 1289.75 Commissariat of Finance proposal for settling problem of mortgages, fines, levies, et cetera, imposed on Jews in Tunisia by enemy is as follows: The banks to make loans to organized Jewish communities who will distribute funds and will give formal acknowledgment of debt but will not pledge any property. These loans are to be of indefinite maturity and guaranteed by Tunisian Treasury. It is proposed advance will last until such time as it is possible to settle whole question of fines and levies imposed by enemy in both France and Tunisia. Tunisian Treasury to pay all charges including interest. Advances will be sufficient in amount to repay previous bank loans and reimburse fully members of Jewish communities who advanced funds to meet enemy levies.
This proposal to be submitted to Comité.76 We said conditions were great improvement over previous suggestions but we considered that [it] was important that French authorities assume obligation in first instance. French have two objections to this. First—do not want to [Page 287] commit French Treasury at this time to an unknown and possibly huge financial burden once France is free. Second—in view of delicate Arab-Jewish political problem in Tunisia, fear direct payment of Jewish fines will lead to resentment and demands for financial aid by Arabs. We have requested matter not be referred to the Comité pending your reactions. We believe by continuing to point out advantages to Economic Warfare of our position we still have a good possibility of achieving unqualified indemnification by French authorities.
Please reply urgently. [Murphy and Glasser.]