With reference to the undertakings legally entered into by his
predecessors with foreign Powers and individuals, Mulai Hafid, in the opinion of the German Government, ought not to repudiate them ; but the Government points out that agreements with private persons, as well as debts, can only have a title to recognition where, in their origin, the provisions of the Act of Algeciras regarding contracts and public works, as well as those respecting the furnishing of money to the Moroccan Government, have been observed. The German Government agrees that the powers of the Commission set up at Casablanca to determine claims for compensation arising out of the bombardment of the town should be confirmed. Germany is prepared to join in requiring Mulai Hafid publicly to declare that his attitude towards foreign Powers will be in conformity with the provisions of international law, and that he will without delay secure the safety and freedom of traffic. The German Government only desires that, in regard to the particular measures to be taken to that end, a certain freedom of action should be left to him in order that a fresh outbreak of feeling among the Mussulman population may not be caused. The German Government does not dispute the right of France and Spain to ask for repayment of the expenditure incurred by the military measures, as well as to arrange with Morocco for compensation for the murder of their " nationals," but it trnsts that in this matter both the Powers will have regard to the financial position of Morocco.
