Papers Relating to the Foreign Relations of the United States, 1918, Supplement 1, The World War, Volume II

File No. 652.119/771

The Ambassador in Spain ( Willard) to the Spanish Minister of State ( Alhucemas)²

Madrid, March 7, 1918.

Excellency: With a view to expanding the trade relations between the United States and Spain, and cementing close and friendly intercourse between the two nations, the Government of the United States of America and the Government of His Catholic Majesty hereby grant and accept the following mutual concessions, subject to the observance of the agreement made today between the Governments of France and Spain:

First. The Spanish Government agrees to permit the exportation without restriction as to destination or quantities:

1. Pyrites,

2. Lead, zinc, copper, and minerals of every kind,

3. Manufactured wool.

Second. The Spanish Government agrees to permit likewise the exportation of the products enumerated below, to the extent permitted by national requirements and by its international obligations, and with due consideration of the production:

1. Rice, raisins, onions, olive oil,

2. Manufactures of cotton, hemp, and jute,

3. Leather, hides, raw and manufactured,

4. Rolling stock, and all conveyances used in connection with transportation.

Third. The Spanish Government further agrees to issue permits for exportation, when applied for in the immediate future, for the following articles:

1. 300,000 blankets (in addition to the 200,000 already purchased),

2. 4,000 tons onions,

3. 2,000 tons raisins,

4. 2,000 tons rice,

5. 20,000 saddle blankets,

6. 240,000 yards canvass,

7. 20,000 pounds Castile soap,

8. 20,000 gallons olive oil,

9. 20,000 bridle leather backs,

10. 20,000 collar leather backs,

11. 100,000 pounds harness leather.

Fourth. Reciprocally the United States Government on its part agrees to permit the exportation from America to Spain of products required by the latter, but only to the extent that it can spare them, from its own needs, as well as those of its Allies, and in like manner only the quantities required to satisfy national needs of Spain, avoiding, in so far as they relate to cotton, the accumulation of unnecessary reserves.

In virtue of this agreement, the exportation of cotton will be allowed to the extent of 35,000 bales per month, commencing March first, and 4,000 tons of petroleum and its derivatives per month to commence May first. This shall not be construed to include the 8,000 tons of petroleum already agreed to be sent to Spain.

Fifth. The Government of the United States further agrees to permit the exportation of articles, the departure of which may be authorized under the conditions noted in article fourth, as specially enumerated below:

• Locomotives and railway material,
• Copper in plates, tubes and wire,
• Iron and steel in bars, tubes and wire,
• Chemical products including anilin oils,
• Machines and electric material in general,
• Material for telegraph and telephone,
• Sulphates of ammonia,
• Aluminium,
• Tobacco.

Sixth. In return for the immediate export authorization specified in article third, the United States on its part accords to Spain the authorization to export immediately from the United States:

• Orders of Spanish railways already placed in the United States,
• 2,000 barrels of paraffin,
• 12,000 barrels of oleonaptha and lubricants,
• 22,000 barrels of residue of petroleum.

The petroleum products thus ordered shall be considered as forming part of the total of petroleum and its products referred to in article fourth.

Seventh. The terms of this understanding being of a reciprocal nature, compliance therewith by each party shall be contingent upon the compliance therewith by the other.

Eighth. It is mutually agreed that the export taxes applicable to the above-mentioned articles shall not exceed in amount those agreed upon with France.

Ninth. Each nation will provide the transportation by water of their respective purchases, and at their own risk and peril.

Tenth. When through the operation of article fourth, the United States shall have satisfied its requirements as specified in article third, the embargo against the exportation of United States products to Spain, and Spanish products to the United States or to France for the needs of the United States in said country, will not further be enforced for the remainder of the period covered by this agreement, so long as all the provisions therein contained are strictly complied with, since the essence of this understanding is to mutually promote the commercial relations of both countries, provide for their necessities, and lighten in every way possible the burdens and embarrassments from which both nations are suffering through the general disturbances to the world’s commerce. This clause shall not, however, be construed to relieve exporters from the necessity of securing permits and conforming to the rules and regulations respecting them, prescribed by the United States Government and Spain, or the right to limit the exportation of any article which the needs of the respective countries or their international obligations towards neutral nations or the nations of the Entente may compel.

Eleventh. As to transportation by rail, the two countries will use their best efforts respectively to provide the best facilities possible by indicating to each other the points most suitable for loading and unloading.

Twelfth. Re-exportation of the articles and products covered by this agreement shall not be permitted to any other country than the one designated at the time of the granting of the export permit, without the consent of the United States or Spain, as may be necessary in each case.

Thirteenth. After the signature of the present agreement, negotiations will be begun with a view to concluding an agreement concerning transportation by sea between the United States and Spain, the object of this agreement being to serve the mutual interests of both countries by assuring to them the reciprocal benefits which will result through making the best possible use of Spanish and American ships touching respectively at ports of the two nations. Pending the establishment of this last mentioned agreement between the two countries, each shall endeavor to afford to the vessels of the other touching at their respective ports, such coaling facilities as they may find possible, the duration of such provisional arrangement not to exceed two months.

Fourteenth. The general purpose of this agreement is to remove as far as possible all restrictions on the mutual trade relations of the signatories now made necessary between them by the embarrassments surrounding the entire world’s commerce.

Fifteenth. When requested, export licenses for products to be manufactured will be issued, and will be usable for the export of such manufactured product when complete.

Sixteenth. This agreement is to remain in force until and including December 31, 1918.

I avail myself [etc.]

Joseph E. Willard

2. Received Apr. 25, 1918, as enclosure to the Ambassador’s despatch No. 1128, Mar. 8. An identic note of the same date was addressed by the Minister of State to the Ambassador.