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Gros did
(7) I should add that the matter of the bombing has been treated purely as a cover for these discussions. not raise it himself and, when I did, said that the Government did not propose to ask for any official compensation but that if we cared to give some by direct arrangements with the sufferers it would be appreciated. I suggest that the Consul might do this, perhaps basing the amount for killed and injured on Workmen's Compensation Ordinance figures. There was only one house destroyed.
There
I think it will be clear from what I have said that it is more to our advantage to give the French at Jibuti such concessions as we can without helping Italy, rather than to antagonise them. It is clear from what Gros and Grey have independently told me that the French much prefer to be friends with us than to be under Italian surveillance. is a distinct desire to co-operate clandestinely with us against rivals, as indicated by their attitude over petrol, coal, cable etc. and it is to our advantage to encourage this rather than to treat them as quasi enemies by, for example, enforcing Trading with the Enemy Act in full vigour. Gros has shown an instant comprehension of our point of view in the matter in which we have fears that the Italians might obtain an advantage. The attitude of the French authorities in Jibuti is that while they are pro-Vichy and against de Gaulle they favour us and even hope that the possibility of co-operation in the future may arise.
While we do not hold any hope in the foreseeable? future of inducing Jibuti to adhere to Free French Movement we feel that this financial outlay above is more likely to achieve results you require in your telegram No.500 than a tightening up of conditions which is directed against French rather than Italians. It follows a middle course designed to avoid the two extremes you quote in paragraph 2 and it must be remembered that even if it were possible to encourage Free French Hovement more at the present moment the result would be alternative (b) and we should not be able to support them. I think you will see clearly from general trend of the report above that French in Jibuti do clearly recognise their dependence on our goodwill and that furthermore they are ready to co-operate in so far as they can safely do so without incurring undue Italian reprisals. Their policy is directed by the necessity of the appeasement of Italy whose presence in Jibuti as overlords is very unpopular and is driving them to what they are already inclined closer relations with us.
To summarise we feel that they are doing their best to co-operate as far as they can without rendering themselves liable to undue Italian interference and therefore propose (1) that question of the 4 battalions be reconsidered by His Majesty's Government, (2) that meanwhile an immediate agreement be arranged providing on our part for the continuance of supplies on a modest basis, release of the ESPERANCE for repatriation at ladagascar of the sick and, if possible, the demobilised and on their part, for retention
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