851T.48/14
Memorandum of Conversation, by Mr. Robert D. Murphy
The Under Secretary today received Messrs. Atherton, Murray and Murphy. Mr. Welles informed Mr. Murphy that it had been [Page 306] decided to go forward with the plan of economic cooperation with French North Africa. Mr. Murphy would be instructed to return there shortly for the purposes of (1) Maintaining contact with the competent French authorities and especially General Weygand; (2) supervision and direction of the American control organization which will be established under the plan for the control of exports and imports from French North Africa; (3) supervision of the activities of American consular establishments in French Africa; (4) reporting to the Department all matters of political, economic and military interest and making such recommendations as may occur to him. Mr. Murphy would travel to such points in French Africa and metropolitan France as he may in his discretion consider necessary.
Mr. Welles said that of course Mr. Murphy’s activity would be under the general supervision of Ambassador Leahy but that the former would act somewhat as a High Commissioner for French Africa.
There was a discussion of the gravity of the military and political situation in the Mediterranean area and the possibilities of the immediate future. The Under Secretary recognized that it was late in the political day to essay bolstering the French administration in the hope of enabling it temporarily, at least, to resist Axis penetration and possible invasion. However, he felt that the United States took little or no risk in such an undertaking. On the other hand, there are definite advantages to be gained.
Mr. Welles understood that the French funds in this country necessary for the purchases of commodities urgently needed in French North Africa were being released by the Treasury.
The Under Secretary also said that the question had been discussed of sending Mr. Murphy to Casablanca as Consul General. After discussion and consideration of the various phases of the matter, it was decided that there should be no change of title and that the officer would return as Counselor of the Embassy at Vichy authorized to inspect and supervise the consular establishments in French Africa and conduct the work relating to the operation of the economic plan above.
At this point Mr. Welles also received Mr. David Eccles, Counselor of the British Embassies at Madrid and Lisbon and special representative of the Ministry of Economic Warfare who, it is understood, has been designated by the British Government to carry on discussions here regarding French African matters.
Mr. Eccles told Mr. Welles that he thought his Government would now be quite willing to include French West Africa in the present plan of economic cooperation. There had been a time some months ago, he said, when any such suggestion would have been hooted down in London, but he thought that sentiment had changed in this respect. [Page 307] He saw no good reason for any present distinction between French North and West Africa. In fact, as matters stood, there seemed every argument in favor of cooperation with French West Africa especially as it would mean the introduction of American economic control officials at Dakar. Mr. Welles referred to the recent telegram from our Embassy at Vichy which transmitted the urgent request of the French Government for reconsideration of the French African question and the recommendations made by Murphy after his visit to Dakar last December. He said that the suggestion made by Mr. Eccles seemed very sensible and that if the British Government agreed, there seemed no good reason why French West Africa should not be included in the present plan of economic cooperation with French North Africa. It was understood that Mr. Murray and Mr. Atherton would act on the matter accordingly.
Mr. Eccles reviewed briefly his activity in Spain and gave Mr. Welles a picture of conditions in that country as he saw them. He said that even in the case of a German invasion of Spain fully fifty per cent of the Spanish generals would fight the Germans and that guerilla warfare on the part of a large section of the Spanish population, especially the former Republicans, could be relied upon. He felt that it was about 11:55 in respect of economic cooperation both with Spain and French Africa but he felt that straw and carrots should be held out for what they were worth. He was certain that the negotiations which he had conducted for months in Spain had resulted in the Spanish staying neutral, and that was no mean result. At any rate, we should try to gain the friendship of those in the country who could be helpful if things went badly. Mr. Eccles felt certain that the Germans would sooner or later endeavor to gain control of Casablanca and Dakar. The plan of economic cooperation is very good as far as it goes, but it, of course, does not go far enough.
Mr. Eccles mentioned that he didn’t think it well for the Spanish to depend entirely on Brazil for cotton and on the Argentine for wheat. He thought the United States would be well advised to work out a barter plan of some sort under which we would take some olive oil and cork from Spain enabling her to obtain other edibles in this country, especially some wheat. Mr. Welles referred to the consideration which has been given a possible $25,000,000 loan to Spain and Mr. Atherton pointed to the furore which occurred every time any publicity was given to such a matter. Mr. Murray doubted that there was real opposition in the country as he thought the opposition was limited to a few newspaper people and some Leftists. Mr. Welles directed that a resume of the situation be prepared and a further study made of the possibilities along this line.
[Page 308]Mr. Eccles also said that he thought we should be more firm in insisting with the French on the export to the United States of definite quantities of certain commodities such as olive oil and cork both of which are needed in this country. This would obviate any possibility of such quantities going to Germany. Mr. Welles said that he thought this was being done and it was agreed that the list of commodities to be exported from French North Africa be carefully reviewed with Mr. Eccles’ suggestion in mind. Mr. Murray said that this was now in process.