109. Action Memorandum From the Deputy Assistant Secretary of State for African Affairs (Tasca) to the Under Secretary of State (Ball)1
SUBJECT
- Morocco: Measures to Improve Moroccan Economic and Financial Position
Background:
On October 16 you suggested to Ambassador Bengelloun that we send representatives of the Department and of AID to Rabat to discuss with the GOM the financial and economic problems that had prompted the GOM’s request for increased US financial aid. You noted to the Ambassador our understanding that the GOM already had substantial credits which were available for utilization, including $68 million of credits from the US. The Ambassador and subsequently the GOM indicated that the latter would be pleased to discuss the problem with two representatives from the Department and AID.
The talks were held in Rabat during October 23–28. As a result, the GOM is apparently convinced that it does not need increased financial help but must, instead, practice greater austerity, improve its operating procedures, and explore ways in which it may expedite utilization of the credits already available to it. For our part, we have promised to take certain steps to facilitate expenditure of over $30 million of Supporting Assistance funds in the US.
The attached telegram informs the Embassy and the AID Mission of our understanding of the steps which the GOM will now take and of these which we have told the GOM we will take. We are forwarding the attached telegram for your signature to indicate the success of your suggestion and to obtain your endorsement of the need for prompt and effective follow-up.
Recommendation:
That you sign the attached cable.2
- Source: Department of State, Central Files, AID (US) MOR. Secret. Drafted by Blake.↩
- Attached but not printed. Telegram 231 to Rabat, November 8, stated that in view of the political importance the United States attached to Morocco, it was highly desirable that the momentum generated by the Rabat discussions be strengthened by joint U.S.-Moroccan efforts. (Ibid.)↩