611.8131/61

Memorandum of Telephone Conversation, by Mr. J. Rives Childs of the Division of Near Eastern Affairs

Mr. Helm telephoned and read to me a telegram which he had just received from London, reading substantially as follows:

“The United States Government were informed in the first instance of the Moroccan deal in order that they might be given the opportunity, if they chose, of participating in the proposed arrangement.

“The United Kingdom scheme is not progressing as we would have liked, possibly owing to enemy influence with the Moroccan authorities.

“Under these circumstances the United States Government may wish to suspend the taking of any measures looking to the consummation of the proposed arrangement.

“The question is however still being pursued on our part, and if it should appear that there may be any prospect for the consummation of the United Kingdom arrangement we shall not fail to inform the United States Government.”

I informed Mr. Helm that in view of the latest international developments we had rather anticipated receiving a communication of this character from him and that the information he had given me would be conveyed to those interested.