840.51 Frozen Credits/1216: Telegram
The Ambassador in France (Leahy) to the Secretary of State
[Received January 26—9:45 a.m.]
104. The Foreign Office states that a telegram has been sent to Ambassador Henry-Haye to approach the Department in an endeavor to obtain the unblocking of French funds to permit the purchase of a tanker load of petroleum products in Mexico. It was explained to the Embassy this afternoon that this petroleum was needed most urgently in Morocco and was destined solely for Morocco. Supplies of kerosene for lamps of the natives and gas oil for tractors will be exhausted in a month’s time. This was one of the problems which the Foreign Office had hoped to settle with the British in [apparent omission] at Madrid. However with the departure of Eccles from Madrid and from other indications (Embassy’s telegram 88, January 21, 9 p.m.)33 it appears that at best these negotiations will be subject to delay and long drawn out. Since the French, therefore, cannot obtain navicerts, says the Director of Commercial Relations at the Foreign Office (Arnal), and since the problem is of such urgency for Morocco the French desire to send a tanker now at Martinique to Mexico to load there with oil purchased with these unblocked funds and sail for Casablanca.
Arnal stated that he is fully aware of our policy of complete cooperation with the British on blockade matters but that he hopes, [Page 216] since this isolated shipment is of such urgency since it is destined solely for consumption in Morocco and since it would seem likewise to be in the British interests, that it can be carried out.
Whether it would be “preferable” for us to inform the British and obtain their acquiescence or whether it would seem more practical merely to close our eyes to the operation was a question, he said, which the Department could determine better than the French in view of their lack of direct contact with the British and their uncertainty as to British policy. But the Foreign Office hopes, however, for our cooperation in unblocking the necessary dollars. (Since some ships are freely permitted to pass Gibraltar where others with the same destination and cargoes are being stopped and held, the French are completely in the dark as to British intentions. In fact, French Admiralty circles would appreciate guidance from the British in order to restrict their sailings accordingly.)
Arnal said that instructions have been sent to Admiral Robert at Martinique to discuss with our representative in Martinique both the question of the tanker’s departure for Mexico and the shipment of gold to New York in an amount equivalent to the dollars unblocked.
Since it would seem obviously in line with our policy to strengthen Morocco at this time, I hope that the Department will find it possible to assist the French in this instance.
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