File No. 652.119/393a

The Secretary of State to the Ambassador in Spain ( Willard)

[Telegram]

812. Department’s views of the various phases of the Spanish situation are as follows:

1.
Purchases in Spain for the account of the American Expeditionary Force: With the approval of the Secretary of War, the Department has nominated as its representative on the Inter-Allied Board for Purchases in Spain, Colonel Dawes, or such appointee as he may designate. Department is perfectly satisfied to have Inter-Allied Board for Purchases in Spain organized in such manner as the members deem wise and if Dawes or his appointee believes negotiations for purchases for [Page 1229] American account should be carried on through Mauclère this Department has no objection whatever provided Mauclère keeps in close touch with Ambassador Willard.
2.
Financial arrangements incident to purchases in Spain for the account of the British, French and the United States: Department has been informed that Lord Cunliffe is proceeding to Spain in behalf of British Government. Inasmuch as Assistant Secretary of the Treasury Crosby is at present in Europe, Department believes that you should consult him and request that he or his appointee cooperate on financial side of any negotiations that may be entered into.
3.
Embargo operated by the War Trade Board for the purpose of assisting both first and second, supra: Department is not willing to permit this country to be represented in such negotiations by M. Mauclère or any other person not a citizen of this country. The negotiation of a comprehensive trade agreement between the War Trade Board and the Spanish Government providing for reciprocal exchanges of permits to export between this country and Spain is highly desirable and you are authorized to begin such negotiations at the earliest possible date, working in conjunction with persons representing this country under first and second, supra., War Trade Board will be glad to have any suggestions you may care to make as to persons either in Europe or in this country whom you desire to have help you in this matter.

First, second, and third, supra, are so closely related that negotiations with respect to all should be carried on simultaneously.

For your preliminary information, Department has been requested by the War Department to secure the assistance of the Spanish Government in expediting the purchasing and transporting from Spain to France during the next six months the following supplies and materials for the account of the American forces in France:

Blankets 300,000
Mules 20,000
Lumber and timber products feet 10,000,000
Beans tons 3,000
Onions do 4,000
Raisins do 2,000
Charcoal do 10,000
Rice do 2,000
Saddle blankets 20,000
Canvas yards 240,000
Castile soap pounds 20,000
Grease do 100,000
Oils gallons 20,000
Bridles, leather background 20,000
Collars ““ 20,000
Harness leather pounds 100,000

The War Department states that the foregoing is based on present information as to possibilities of Spanish market and on requirements of our own forces in France.

[Page 1230]

War Trade Board for past six weeks has issued no export licenses for cotton for Spain. Such cotton as you mention in your 965, December 31, noon,1 is exported under a 60–day license issued more than six weeks ago.

You are authorized discreetly to inform the Foreign Office verbally pursuant to suggestion made in your 960, December 29, 11 a.m., that on account of our growing needs and the needs of our co-belligerents and after January 1, 1918, the embargoes against the exportation of certain commodities as proclaimed by the President under date of July 9 and August 27, 1917, respectively,2 will be enforced and that no amendment or exceptions thereto will be made except in exchange for reciprocal permits to export those articles, the exportation of which is prohibited here.

War Trade Board is willing to grant licenses along lines suggested in your No. 960, December 29, 11 a.m.

In your negotiations with the Spanish Government under third, supra, you should bear in mind the desirability of securing from Spain charters of such Spanish tonnage as is not absolutely necessary to Spain. If a satisfactory commercial agreement can be entered into with Spain, there will, in all probability, be a considerable surplus after providing for all Spanish needs, of which surplus it should be our aim to secure a share in return for concessions we may make in issuing export licenses. Department believes that it will be very difficult to secure this tonnage for Allied needs from the Spanish, but wishes you to have this point in mind during your negotiations,

Lansing
  1. Not printed.
  2. See Ante, pp. 903 and 933, respectively.