Algeciras Act, has not yet been formulated. On the other hand, the Makhzen has declared renunciation to the three annual million francs stipulated (in his favor); moreover, the French minister had promised that the French Government would not demand any guarantee for the military expenses; under these conditions, the Makhzen has the firm hope that the French Government, by reason of the friendly and neighborly relations, will consent to limit the pledges to be offered to the revenues indicated above in acknowledgment of the facilities granted by the Makhzen on his part. It can not be doubted that, under the circumstances, the kindly sentiments of the French Government will become evident, and also in regard to the maintenance of the customs administration in its present state, without extending in the slightest manner its present foreign control, so that the former control may be continued in its future operation. Question of protection (connected with the financial question). Since by virtue of the constitution of the guarantee indicated above the financial resources of the Makhzen will be extremely reduced, and because on the other hand, the friendly and neighborly government is not uninformed with regard to the extent of the abuses committed toward the Makhzen in the matter of persons to be protected, abuses that derive from the fact that the treaties established in this respect are no longer observed; and since continuation of such a state of things acts to the prejudice of the Makhzen, it being especially recognized that the internal public interest of the empire can not help demanding the institution of gencral taxes; under these conditions the Makhzen desires that the question of protection be restored to the proportion established by the treaties. The collection of taxes (to be established) shall be effected in the same manner as for all other existing taxes, on a basis of equality and without. any prejudice whatever. It is not to be doubted that the advantages deriving from Morocco accrue equally to the benefit of the natives and foreigners; therefore, no favor shall be shown neither to natives nor to foreigners in paying the taxes in question. This demand constitutes one of the facilities of detail promised and bearing upon the main question. May the thought of the French Government ever continue to manifest itself in behalf of all that will contribute to the success, to the prosperity, and to the hopes of the two parties. 2nd Hejja 1327 (December 15, 1909). ANNEX. Note transmitted to the Moroccan Embassy. December 21, 1909. The Government of the Republic has acquainted itself with the answer of the Moroccan Government communicated through the Shereefian Embassy, the 15th of the present month. Regarding Chaouya and Casablanca, it is agreeable to know that the Makhzen has approved the propositions formulated in the note of the French Government, dated ult. Aug. 14; these propositions corresponded by anticipation to the various observations which have just been presented through the embassy. Regarding the frontier question, the Government of the Republic considers likewise that the agreement has been reached with the Makhzen upon the terms of the French communication of August 14. It acknowledges that the powers of the frontier commission, charged with the direction to enforce the régime stipulated in prior agreements, may become the object of a new examination, but only after this régime shall have been fully realized in a manner that will meet the common interests of the two governments. Regarding the loan, the decisions reached by the Government of the Republic in respect to the liquidation of the debts of the Makhzen may be summed up as follows: 1st. Integral appropriation to this liquidation of all the guarantees indicated in the note of August 14. 2d. Conveyance to the present Service of Customs Control of necessary administrative powers to enable it to obtain the best possible results from all the revenues pledged, and in this way to assure the regular administration of the resources which shall guarantee the debt of the Makhzen; a regulation, preliminary to the discussion of the loan contract shall be established between the Shereefian Embassy and the Service of Customs Control to determine these powers, with special reference to the control of assessing and of collecting dues, and the administration of the Shereefian domains. 3d. Appropriation of the product of the revenues pledged after deduction of the 1904 loan obligations, to the placing of a new loan, 1910, of approximately 80 million francs and to the refunding of the French military expenses. After meeting the obligations of the two loans, onehalf of the remaining available amount shall be deposited as a reserve in the Moroccan State Bank, at the service of the French Government to guarantee the regular payment of the annuities due to France, while the other half will be at the disposal of the Makhzen. 4th. Frontier regional expenses shall be provided for by local resources which will be placed to a special account; an annual budget shall be established. In case tax collections should not suffice to pay the police, the deficiency would be levied on the general available resources of the Makhzen. The Shereefian embassy having informed the Government of the Republic of the interest which the Moroccan Government takes in the strict enforcement of the conventions relative to the régime of persons to be protected, the French Government declares that it is ready to lend its assistance to the Makhzen to assure the regular enforcement of the treaties as soon as its claims presented regarding damages caused to its citizens shall have been satisfied. It expects that formal instructions and sufficient power will be given to the representative of the Sultan at Tangiers to settle all these questions according to the demands of the French legation. [Translation.] His Shereefian Majesty's Ambassadors at Paris to M. Stephen Pichon, Minister of Foreign Affairs. The Shereefian Makhizen having given his adherence to the principles enunciated in the French note of ult. August 14, we declare to your excellency that we accept these principles; also, we are ready, in conjunction with the French Government to examine at once the minutia of execution, in order to reach a definitive settlement, which we shall sign ad referendum when the supplementary agreement shall have been reached. As to the financial question in regard to which we have received from the French Government a complementary note dated curr. December 25, to the principles of which we likewise give our approval, we declare that the Makhzen renounces the offer of an annual allowance of three million francs, which had been stipulated in his behalf by the project of the Minister of Finance. Regarding the ten per cent question, a matter which is not settled, we are hoping that it may be ruled as follows: although quite evident that the guarantee comprises the totality of customs revenues, the Makhzen hopes that in accordance with the loan of 1904, the French Government may be willing to reserve the ten per cent to meet the expenses of the customs administration; for, the Makhzen knows that the proposed guarantees are sufficient; and it is understood that if these guarantees were not sufficient to pay the annuities indicated below, the ten per cent should not be included in the guarantee. Regarding the new taxes which the Makhzen might establish in the harbors, their product would be deposited in the Shereefian treasury and would be included neither in the guarantees, nor in the control. Regarding the payment of the annuities, when the obligations of the 1904 loan shall have been assured, the obligations of the contemplated 1910 loan must likewise be assured; next the amount of the annuity resulting from the military expenses necessitated by the occupation of Chaouya, Casablanca, and Oudjda shall be paid; on the surplus shall be levied the amount of the expenses referring to the pay of the force that the Makhzen will organize in Chaouya, as long as these expenses are incurred. The remainder shall be at the exclusive disposal of the Shereefian Government. We express the wish that the minutia which have been the object of an understanding with M. Georges Louis, Political Director, and M. Regnault, and which refer to the questions handled by the embassy, will receive consideration in all future conversations, in conformity with the promise made to us yesterday. May you continue in prosperity and in happiness, and may the French Government continue to favor all that will contribute to the welfare and to the realization of the desires of the two countries! The first Hejja 1327, corresponding to December 25, 1909. ARRANGEMENT BETWEEN FRANCE AND MOROCCO WITH A VIEW OF ENDING THE DIFFICULTIES PENDING BETWEEN THE TWO COUNTRIES.1 Signed at Paris, March 4, 1910. Agreement entered into between his Excellency M. Pichon, Minister of Foreign Affairs, and the Ambassadors of His Shereefian Majesty their excellencies El Hadj Mohammed ben Abdesselam el Mokri, Minister of 1 Diplomatic documents, 1910. Moroccan Affairs V. Paris, 1910; Nouveau Recueil Général de Traités, 3d S., IV, 3, p. 680. Finance, and Si Abdallah el Fasi, Deputy in the ministry of foreign affairs of the Makhzen. The Government of the Republic and the Shereefian Government, having reached an agreement relative to the supplementary dispositions referred to in the provisional arrangements of Fez, have definitively agreed upon the following stipulations for the purpose of terminating the difficuties pending between France and Morocco: I. Agreement relative to Chaouya. ARTICLE 1. It is agreed that the army of occupation shall completely evacuate Chaouya when the Makhzen will have brought into this region a Moroccan force of 1,500 men, organized and trained, under the direction. of the French military mission in conditions analogous to those of the harbor police, and capable of maintaining in the province the safety of persons and of property, as well as of all commercial transactions. When this force is located in Chaouya, the troops shall then evacuate. the posts which they are occupying in the interior and be returned to their quarters at Casablanca. ARTICLE 2. His Shereefian Majesty has pledged himself to retain the present caïds of Chaouya in their respective positions as long as their conduct will be satisfactory. Also, he has promised to resort to no reprisals against private individuals because of their attitude. Written orders to this effect agreed upon between the French legation and the Makhzen shall be delivered to the native authorities of Chaouya immediately upon the arrival of His Shereefian Majesty at Rabat. ARTICLE 3. The Makhzen shall take possession of all installations created by the army of occupation in Chaouya and Casablanca such as telegraph, bridges, railways, and in general, all constructions erected during the period of occupation; these installations are to be maintained and exploited under the authority of the Makhzen. The Makhzen shall charge the engineer who directs the Shereefian administration of wireless telegraphy with the direction of wire telegraphy, and with their exploitation on the account of and under the authority of the Shereefian Government. The |