File No. 652.119/477
The Ambassador in Spain ( Willard) to the Secretary of State
[Received January 29, 7.12 a.m.]
1023. Belmont and Huntington report following outline as so far agreed to and believe full text will be ready early part of week.
Permits to be issued at once good for purchases made for American Expeditionary Forces: 300,000 blankets, 4,000 tons onions, 2,000 tons raisins, 2,000 tons rice, 20,000 pounds castile soap, 20,000 gallons oil, 20,000 saddle blankets, 240,000 yards canvas. Impossible to secure lumber or ties. Railroads effectively oppose latter. Shortage of beans excludes them. Grease, insufficient surplus. Permission for exportation of mules refused owing to exhaustion of supplies by the Allies. [Export permitted,] without restriction as to destination or quantities, of lead, zinc, copper and other minerals, and manufactured wool. Following limited by home requirements: manufactured cotton, hemp, jute, hides, raw and manufactured, rice, raisins, onions, olive oil, rolling stock, and all conveyances used in transportation where American material enters into construction.
United States agrees to permit export of cotton and petroleum for home requirements only, to prevent accumulation of stocks. Cotton [Page 1661] export will begin March 1, 35,000 bales per month; petroleum products, May 1, 3,500 tons per month. Other purchases in the United States are not so far limited but all are dependent upon United States’ own requirements and those of co-belligerents.
First and most important, relief should be extended to railways, particularly motive power. Transportation already dangerously demoralized through deteriorating. This threatens exports of pyrites, lead and all products heretofore used by the United States and co-belligerents for war material, stoppage of which would be fatal and furthermore result in industrial chaos and revolution. Cannot urge too strongly immediate consideration of these subjects pending receipt of final draft, the consideration of which and prompt decision is necessary for the relief of these acute conditions. The policy of supporting the [efforts] of the French delegates to secure credits in Spain and agreements as to exports, and holding our ratification to synchronize with theirs, is being [pursued] in conformity with what is understood to be the policy of the Department. To what limit this should go, instructions are requested, as success on the part of the French is by no means certain and time before elections is growing short. After election [questions?] could [not?] escape submission to Cortes, nor is it likely Ministry would be as friendly. The case is therefore urgent. Tonnage questions developed too wide a range to permit consideration for agreement at this time, but Spanish Government would take up the question of entente on this subject after present contemplated agreement is disposed of. This our suggestion to delegates and agreed to. Expressions of mutual cooperation and reciprocal good will and intentions carefully [conveyed] to assist its favorable reception by Spanish public.
In pourparlers for concessions for lumbering in Spanish forest north of Pyrenees accessible to French rail transportation, as possible relief to lumber requirements, also for facilities at Spanish port in northern Spain. Will recommend investigation by American Expeditionary Force engineers [of] lines of communication.