781.003/214: Telegram
The Ambassador in France (Bullitt) to the Secretary of State
[Received May 16—4:39 p.m.]
951. Leon Marchal Foreign Office expert detailed to the staff of the French Resident General in Morocco informed us this morning that it is now planned that he shall sail for the United States on the steamer Champlain June 3 to aid the French Ambassador in concluding the Moroccan agreements envisaged by the Department’s note to the Ambassador of January 21, 1939. Marchal stated that it would be difficult, if not impossible, for him to remain in Washington for more than 2 weeks. He said that Saint-Quentin will be in a position to supply the Department with the formal French counterproposals about the time he, Marchal, sails.
Marchal who has probably had more to do with the formulation of these counterproposals than any other one person outlined in some detail the French reaction to our drafts. His statement was preliminary [Page 655] to a conversation which we are to have on the subject with Lagarde28 tomorrow.
Briefly summarized, Marchal’s statement of the French position was as follows:
The French object to some of the drafting in the proposed convention for the renunciation of extraterritorial rights but profess to be prepared to give us in fact what we want. They are most anxious to avoid any language which would appear to reaffirm at this time capitulatory procedures set up by previous treaties. They consider the nationality and military obligations agreement to be of little practical importance to either party but express a desire to meet our wishes insofar as possible without, however, committing themselves to a principle with respect to military service which the French military authorities could reasonably object to.
They consider the establishment provisions of the draft treaty of establishment, commerce and navigation as unnecessary and undesirable in view of the similar provisions which might be extended in the draft convention for the renunciation of extraterritorial rights. The French authorities are prepared to provide in a treaty of commerce and navigation for complete equality of treatment for American goods and American enterprise with French goods and French enterprise. Similar equality would obtain with respect to taxation and consolidation of the Moroccan tariff but in this connection France is unwilling to tie its hands to the point where it could not meet the need for larger revenues.
In this latter connection it is maintained that the real value of Moroccan tariff revenues at the present time is only about 50% of what it was before “monetary manipulation” had become general. American shipping would be accorded equality of treatment with French shipping as has been done with respect to British shipping. The principles enumerated in the annex to the draft treaty of commerce and navigation appear acceptable but agreement does not as yet exist with respect to some of the minor items listed on the commodity schedule. Agreement on the annex would also be contingent upon reciprocity in some form with respect to Moroccan palm fiber.
Any further information that our meeting with Lagarde tomorrow may develop will be telegraphed briefly.29 Full reports on the conversations will be sent by mail.30
Copy by mail to Tangier.