Memorandum from George Elsey to President Harry S. Truman, with Attachment

THE WHITE HOUSE WASHINGTON October 24, 1950 MEMORANDUM FOR THE PRESIDENT : SUBJECT: U. S. Treaty Rights in Morocco. The current appropriation act for the European Recovery Program provides that after November 1, 1950, none of the funds for ECA may be used for aid "to any nation of which a dependent area fails, in the opinion of the President, to comply with any treaty to which the United States and such dependent area are parties. " The purpose of this provision (inserted by the Congress) was to force France to comply with certain treaty rights which a group of American businessmen, who have been operating in French Morocco since World War II, claim have been violated. In response to this rider, France has now filed an applica- tion with the International Court of Justice at the Hague for adjudica-- tion of U. S. treaty rights in Morocco. It is anticipated that the same business groups which were responsible for the insertion of the anti-French provision will bring pressure to bear for the President to block ECA aid to France on the grounds that France is not living up to the Moroccan treaty. It is the combined recommendation of the Department of State and all other interested agencies that, because the matter is now before the International Court, the President make no finding, and take no action under the terms of the new provision until after the matter has been ad- judicated by the International Court. A proposed State Department press release on this subject is attached for your information Respectfully, r.m. E. GEORGE M. ELSEY