Document Number (FOIA) /ESDN (CREST):
CIA-RDP79R00890A001100080001-6
Body:
Approved For Release) 2003/0811A - CIA-Rn279ROOSaon001100080001-6
25X1 17 August 1959
I. King Mohamed V's abrupt return to Morocco from France (de-
parted Paris 2 Aug arrived Tangier 4 Aug) without meeting De
Gaulle apparently dictated primarily by progressively worsen-
ing crisis at home.
A. Some indications that Ibrahim government opposed King's
meeting with De Gaulle so shortly before UN General
Assembly takes up Algerian issue, which is paramount
problem in Moroccan-French relations.
II. Country in throes of financial paralysis arising from Paris'
freeze imposed 1 July on Moroccan operations account. This
may have been somewhat alleviated by delivery of $15 million
installment on US economic aid loan to Morocco. France
opposed transfer of these funds at this time.
A. France seeks to force Morocco to devalue currency and
realign Moroccan with French franc (latter devalued from
420 to 494 per $1 last Deo).
B. Morocco wants to leave Franc zone; now holding conversa-
tions with Tunisia which embroiled with France on similar
issue.
C. Although recognizing economic need to devalue, Moroccan
officials fear political upheaval, which presumably would
be spearheaded by left-wing groups. These groups demand
economic independence from France as well as total eva-
cuation all foreign troops (French--25,000; Spanish-.-8,000;
and American--10,800).
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D. Soviet-Moroccan talks reported on possibility of Soviet
financial aid.
Moroccan press 17 August announced, Morocco
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seeking $37.5 million in aid from USSR.
III. Antipathy toward France heightened by reported violations of
Moroccan territory by Algeria-based French Army units and
governmental, difficulties compounded by, Algerian rebels!
kidnapping on 31 July of French and Moroccan members of mixed
commission en route to investigate incident.
IV. Moroccan labor union and irregular forces--some now' in process
of being absorbed into Royal Army--attempting to exert maximum
pressure on Government to support their programs, while
Government seeking to curb subversive potentialities of groups.
V. Ibrahim government likely eventually to be reshuff led or re-
placed. King, who is still dominant figure on Moroccan
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scene, has long desired broadly based largely non-political
government.
VI. No progress on status of American airbases.
A. Moroccans still press for formal declaration of intention
to evacuate and for specific agreement on tenure.
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B. France and Spain pressing US to make no concessions re
bases to Moroccans. French, in fact, have imposed un-
acceptable conditions to US proposed gestures which might
have beneficial effect on Moroccan Government--phaseout
of Boulhaut base and transfer of command headquarters from
Press of both Istiqlal factions demanding government seek
total evacuation; both factions now hint--in line with
Communist press demands--at possibility of resorting to
direct popular action against foreign bases and troops.
1. Harassment of rotation and supply of Spanish troops
reported continuing in spite of recent agreement to
reduce Spanish forces in Morocco from 11,000 to 8,000.
VII. Morocco has also made formal pitch--but without purchase list--
for US equipment, and has accepted offer of military survey
team.
A. Both France and Spain oppose supply of US arms, argue that
shipment would directly or indirectly aid Algerian rebels,
whom French claim are suffering shortage of ammunition.
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B. If Moroccan request unsatisfied, Government may again turn
to Soviet bloc as it did last year when Balafrej government
ordered Czech arms (confiscated on even of arrival by
French navy).
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Approved For Release 2003/08/19 : CIA-RDP79R0089OA001100080001-6
Approved For Release 2003/08/19 : CIA-RDP79R0089OA001100080001-6