740.00112 European War 1939/6485: Telegram
The Chargé at Tangier (Childs) to the Secretary of State
[Received August 25—6:58 p.m.]
354. Repeated to Madrid. Madrid’s 1149, August 20 and 1159, August 21. I saw General Orgaz yesterday to explain the delay in the arrival of petroleum products which had been promised him by September 1st by Smith. He asked me to lunch with him today in Tetuán with a few members of his immediate staff.
In an atmosphere of extreme cordiality I asked him for news of our economic accord. He said he had found it necessary to refer to Madrid only two of the questions raised in my memo of July 31 (see my 937, August 1)53 namely, transport and the means of compensation as these were the only matters which directly concern the central [Page 480] Government. As for the question of control and other matters treated of, these concerned only himself he emphasized. As he made no reference whatsoever to the final paragraph of my memo I thought it best not to open that subject myself the more particularly as I gathered he had either not referred it to Madrid (the most probable inference) or if he had he did not consider it constituted any obstacle to the negotiations.
I asked him twice in the course of our extended very informal discussion whether he anticipated the Madrid Government had any objections in principle to our treating directly between us the subject of an economic accord concerning Spanish North Africa. He replied in the most positive manner stating “absolutely not”.
I emphasized that in advocating with my Government a separate economic accord the advantages had been pointed out of treating with him directly for the reason that we understood better the economic problems of Spanish North Africa and we were in a more advantageous position to determine the needs and to find ways and means of satisfying these needs than the Embassy in Madrid and the central Government authorities who were obviously more preoccupied with the economic problems of the peninsula. He expressed himself in entire agreement.
He stated that he had spoken since he had seen me yesterday by telephone with the Minister of Commerce and Industry in Madrid who had referred to a conversation the latter had had 2 or 3 days previously with Ambassador Hayes and he inferred that the subject of our economic accord had been discussed between them but he was not entirely clear on this point. His whole conversation evidenced his strong continued interest in an accord, his belief that there are no important difficulties in the way of its realization and his expectation that he would be in a position to discuss the details in the not distant future.
Smith is returning here on the 3rd. Orgaz has accepted an invitation to dine with me on the 5th at which time I shall [have?] a most favorable opportunity to pursue with him further any questions of particular interest to the Department or to Ambassador Hayes.
Repeated to Madrid.
- Not printed.↩