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Western European community, requires steps toward democratic government which offers the best hope for the growth of basic human rights and fundamental freedoms in Spain. It requires cooperation on the part of all parties and, as must be evident, it is not fundamentally a matter which can be successfully brought about by American action. The decision as to what steps can and should be taken is obviously one for Spaniards alone. At the same time, it is difficult to envisage Spain as a full member of the free Western community without substantial advances in such directions as increased civil liberties and as religious freedom and the freedom to exercise the elementary rights of organized labor. It is significant that one of the first acts of the new International Confederation of Free Trade Unions was to pass a resolution condemning the present government of Spain, and opposing any assistance to Spain "until such time as democratic and full trade-union rights have been restored and the workers are once more able to make their contribution to the country's recovery.

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United States economic policy toward Spain is directed to the development of mutually beneficial economic relations. This policy is based on purely economic, as distinct from political, grounds. We believe that private business and banking arrangements and trade activities with Spain should be conducted on a free and normal basis. The Department interposes no political objections and restrictions on such activities.

So far as economic assistance from this Government is concerned, Spain is free to apply to and consult with the Export-Import Bank for credits for specific projects on the same basis as any other country. While the United States Government definitely does not favor the extension of a general balance of payments loan to the Spanish Government to use as it sees fit, it is quite prepared to acquiesce in the extension of credits to Spain covering specific and economically justifiable projects. It has been made clear to all Spaniards, both private and official, that Spanish applications for such projects will be considered on the same basis as those from any other country and the final decision will be made, in accordance with the Bank's regular policy, not only on the basis of the need for the credit and the suitability of the particular purpose to be served, but also on whether there is a reasonable prospect of repayment.

The successful development of mutually beneficial economic relations between the United States and Spain is entirely dependent upon the equal cooperation of both parties. Unfortunately, however, little progress has been made. The United States sincerely desires to facilitate normal business and trade with Spain but ultimate success depends on the cooperation of the Spanish Government in taking constructive steps to promote its trade and to attract foreign investment. In order to assist in the development of these activities, the negotiation of a new Treaty of Friendship, Commerce, and Navigation was offered by the United States. To date, the Spanish Government has indicated no interest in such arrangements. Efforts have also been made to encourage the Spanish Government to simplify its export and import controls and its foreign exchange system, which is based upon a multiplicity of rates, in order to establish an exchange rate which would permit Spanish goods to compete, particularly in the dollar market. Furthermore, efforts have been made to encourage the Spanish Government to lift the restriction of 25 percent on the partici

pation of foreign investors in any Spanish enterprise and to accord better treatment to existing foreign investments, both of which are today distinct hindrances to the flow of investment to Spain. We have, in connection with these problems, pointed out to interested Spaniards and to the Spanish Government that the present critical situation in the Spanish dollar balance of payments seems to derive from difficulties many of which it is believed could be substantially rectified by action of the Spanish Government. To date, however, that Government has taken little action along these lines. In the Department's opinion the next steps to be taken in furthering mutually beneficial economic relations between Spain and the United States are up to the Spanish Government.

Sincerely yours,

(Signed) DEAN ACHESON.

TANGIER

185. REESTABLISHMENT OF THE INTERNATIONAL REGIME

IN TANGIER1

(a) Final Act of the Conference Concerning the Reestablishment of the International Regime in Tangier, Between the United States, the United Kingdom, France and the Union of Soviet Socialist Republics, August 31, 1945

The Conference met at the invitation of the French Government at the Ministry of Foreign Affairs in Paris on the 10th of August, 1945, and completed its work on 31st of August, 1945.

The following were present at the Conference as members of the Delegations:

For the Government of the United States of America:

Mr. H. S. VILLARD, Head of the African Division in the State
Department

Mr. J. RIVES CHILDS, Consul General of the United States at
Tangier

Mr. WILLIAM PERRY GEORGE, Counsellor of Embassy

Mr. E. J. DEMPSTER of the American Legation at Tangier

For the Government of the United Kingdom of Great Britain and Northern Ireland:

Mr. C. B. P. PEAKE, Consul-General at Tangier

Mr. W. E. BECKETT, Legal Adviser to the Foreign Office

Mr. W. S. EDMONDS, retired Consul-General

Mr. I. P. GARRAN, First Secretary at the Foreign Office

For the Provisional Government of the French Republic:

Monsieur MEYRIER, Minister Plenipotentiary, Director General at the Ministry of Foreign Affairs

Monsieur DE BEAUVERGER, Minister Plenipotentiary in charge of
the French Consulate-General at Tangier

Monsieur CHANCEL, Consul-General, Adviser to the Sherifian
Government

1 Department of State Bulletin of October 21, 1945, pp. 613-618.

Monsieur BARADUC, Counsellor of Embassy at the Ministry of
Foreign Affairs

Monsieur GUIRAMAND, attached to the Minister of Foreign Affairs For the Government of the Union of Soviet Socialist Republics:

Monsieur S. P. KOZYREV, Minister Plenipotentiary, head of the
First European Department at the People's Commissariat of
Foreign Affairs of the U. S. S. R.

Monsieur V. N. DOURDENEVSKI, Professor of international law
Monsieur F. I. VIDIASSOV, First Secretary of the Embassy of the
U.S. S. R. at Paris

Commander BONDARENKо, expert

Monsieur Meyrier, Head of the French Delegation, accepted the chairmanship of the conference on the invitation of the other delegations.

The Conference decided to recommend to the governments the adoption of the following resolutions:

Resolution No. 1

1. The Powers parties to the Act of Algeciras as set out in Article 2 of the annexed Agreement should be informed immediately by the French Government that a Conference of those Powers will be convened to meet at Paris not later than six months from the day on which the provisional regime, based on the Statute of 1923, shall have been established in the Tangier Zone, for the purpose of considering the amendments to the Conventions in force which may be proposed by any of these Powers.

2. The above mentioned Powers should be informed at the same time that any of them who wish to propose amendments to these Conventions should communicate within the two following months to the President of the Committee of Control at Tangier a memorandum explaining where necessary the reasons why any change in the existing régime is considered desirable, the principles on which any proposed amendments are based and of what precisely the proposed amendments consist. These provisions shall not however be deemed to prevent the Powers from presenting other proposals at a later date or at the Conference.

3. The Committee of Control should proceed to the study of the memoranda received and of all the provisions on which the present régime in the Zone is based. Before the end of the period of six months referred to in paragraph 1, the Committee should formulate an opinion on the questions which have been raised and, if their appears to be any need for it, draw up the text of a draft general convention for use at the Conference of the Algeciras Powers. All questions on which the Committee of Control has not been able to reach agreement should be reserved for the Conference.

Resolution No. 2

1. The Agreement, of which the text is annexed to the Final Act after having been discussed and approved at the Conference, should be signed immediately on behalf of the Governments of the United Kingdom and France and submitted without delay to the Governments of Belgium, Spain, the Netherlands, Portugal and Sweden with an invitation to these Governments to accede thereto.

2. The Conference desires to place on record that:

(a) in connexion with the text of Article 7 (b) of the Agreement annexed to the present Final Act it was only possible to reach agreement on this text because the whole question of the competence, composition and the methods of the election of the Assembly will be examined at the Conference provided for in Resolution 1; and

(b) after discussing the question of the surveillance of the coast of the Tangier Zone which is dealt with in Article 4 of the Tangier Statute of 1923 as modified in 1928, it considered the stationing of war vessels in the Tangier Zone impracticable for the purpose in question during the period of the provisional régime, and decided to leave this question for the Conference referred to in Resolution No. 1. Resolution No. 3

In view of the expression by the United Kingdom and French Delegations of the desire of their Governments that the Governments of the United States of America and of the Union of Soviet Socialist Republics should collaborate in the provisional régime, the invitation should be transmitted to these Governments by the French Government and the subsequent procedure should be in accordance with the provisions of Article 3 of the Agreement annexed to the Final Act. Resolution No. 4

Under the final Statute of the Tangier Zone the Governments of the United States of America and the Union of Soviet Socialist Republics should each be entitled, if the present judicial organisation is maintained, to be represented on the Mixed Tribunal by a titular judge in the same manner as the Governments of France and the United Kingdom.

Resolution No. 5

The approach to the Spanish Government for the purpose of securing the withdrawal of the Spanish administration from the Tangier Zone and the putting into force of the Agreement annexed to the Final Act should be made immediately by the United Kingdom and French Governments.

Resolution No. 6

The Committee of Control should remove from the service of the Administration of Tangier all persons who are considered undesirable on account of political activity, or participation in associations or parties whose aims are contrary to the principles set forth in the Charter of the United Nations referred to in the Declaration of the Conference at Potsdam. The Governments of the United States of America, the United Kingdom of Great Britain and Northern Ireland, France and the Union of Soviet Socialist Republics should give appropriate instructions to this effect to their respective representatives in the Committee of Control.

Resolution No. 7

1. The Governments of the United States of America, France, the United Kingdom of Great Britain and Northern Ireland and the Union of Soviet Socialist Republics should examine, if necessary, at the request of the Committee of Control, the measures to be taken to ensure the repayment of advances made by the State Bank of Morocco to the provisional administration of the Tangier Zone, in accordance with Article 5 of the Agreement annexed to this Final Áct.

2. The Governments of the United States of America, France, the United Kingdom of Great Britain and Northern Ireland and the Union of Soviet Socialist Republics should, if necessary, lend the Committee of Control all assistance required to assure the provisioning of the Zone.

Resolution No. 8

The Governments of Belgium, the Netherlands, Portugal and Sweden should be requested at the time of the transmission to them of the Final Act, to transmit to the President of the Committee of Control at Tangier most immediately and in any case within two weeks of today's date the names of persons who are their nationals and are considered suitable and are willing to occupy the following posts in the Tangier Zone during the provisional régime, namely (1) Administrator of the Zone,

(2) Assistant Administrator for Finance, and

(3) Commandant and 10 officers for the Tangier Zone Police Force.

Resolution No. 9

Monsieur le Fur should be engaged as technical adviser of the Committee of Control in order to re-establish the administration of the zone. He should act as Administrator until the titular administrator has been appointed and has taken up his post.

The Conference took note of the following declaration made by the Soviet delegation:

"In signing this Final Act the Soviet delegation adheres to the view which it expressed previously to the effect that, although the Spanish people is incontestably interested in the administration of the international zone of Tangier and although Spain must finally be called to participate in the appropriate international organisms, this participation of Spain in the administrative organisms of the Zone of Tangier cannot be allowed until General Franco's régime in Spain, which was established with the support of the Axis Powers and which in no measure represents the Spanish people, shall be replaced by a democratic régime."

The Conference also took note of the following declaration made by the American, British and French delegations:

1. The American, British and French delegations consider that the participation of Spain in the provisional administration of Tangier does not imply in any sense a departure from the Potsdam declaration of 2nd August, 1945 but represents in the present circumstances the sole practicable means of taking into account the interests of the Spanish nation and people in the settlement of the Tangier question. 2. While considering that the Conference of the Powers signatory to the Act of Algeciras should not be held without Spain, the three delegations do not think it desirable that Spain should be invited to the Conference as long as the present Government in Spain continues in power; they suggest that at the appropriate moment the French Government should consult on the question of the Conference with the United States, British and Soviet Governments.

In witness whereof the undersigned have signed the present Final Act.

Done at Paris in quadruplicate this 31st day of August, 1945 in English, French and Russian, all three texts being equally authentic.

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