File No. 652.119/541c

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

[Telegram]

864. Your 1029, January 30, 10 a.m.1 Pending your consideration of the Department’s No. 858, February 1, 4 p.m., and the supplemental cables on finance and shipping and pending Department’s mature and detailed consideration of the tentative agreement you submit, the following provisional observations are made for your consideration:

1.
The agreement appears to grant to Spain for this year practically all she will desire and could obtain from us. This leaves us in a very weak position if shipping and financial matters are to be made the subject of subsequent and separate negotiations. It is suggested either that the present agreement should comprehend these matters or that the clause relative to the United States permitting exports of cotton and petroleum be limited in operation to one or two months, renewal thereof to be subject to the conclusion of a satisfactory agreement on shipping and financial matters.
2.
As you state, the agreement on its face is most advantageous to Spain and the United States would be justified in adopting it only if by reason thereof France secures important concessions otherwise unobtainable by it. Please inform us as to the French demands and the extent to which they will be met.
3.
It is felt that 35,000 bales of cotton per month is excessive if designed to meet Spain’s internal needs, which according to our information, should not exceed 25,000 bales per month. If, however, the 35,000 bales will in substantial part be reexported to France in the form of manufactured goods, the figure may be proper.
4.
The failure to secure authorization to export lumber to France is regarded as unfortunate unless it is definitely established that no suitable timber exists.

Lansing
  1. Not printed; it conveys the full text of the draft agreement summarized in telegram No. 1023, Jan. 27, ante, p. 1660. Except for slight revisions, correspondence concerning which is omitted, the draft is identical with the final text ratified Mar. 7, post, p. 1671.