File No. 652.119/817

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

[Telegram]

1298. Embassy’s 1293, May 3, 9 p.m., War Trade Board 44 from Chadbourne. Embassy cannot support recommendations therein contained. While terms of Spanish-American agreement of March 7, 1918, have been technically violated in delay and otherwise by Spanish Government, yet United States Government is securing and accepting practically all the agreement calls for. Therefore to notify Spanish Government that agreement is at end is serious step and one to be taken only after great consideration and consultation with French Government which is indirect party to contract. Moreover such action would bring about immediate withdrawal of French credit. This question also involves political policy and good faith. Embassy requests instructions.

Willard