File No. 652.119/1267
The Ambassador in Spain ( Willard) to the Secretary of State
[Received August 1, 12.15 p.m.]
1608. For War Trade Board [from Smith]:
Your cable No. 1342 received by me here. [In order] to comply with request have visited Cadiz, Barcelona, Bilbao. After another visit to Bilbao [may have] available useful shipping data. Conditions in Spain are unlike other countries. Records are lacking and nothing is reliable. Our consuls without returns of imports for 1917, and another year may elapse before they are obtainable. Doing my best to secure data on imports, bearing in mind that representations with regard to country’s requirements may be exaggerated.
My suggestion, after consulting Ambassador, to proceed at early date to United States, was based on conviction that industrial conditions and very doubtful help given by Spain to our military forces and Allies required you should have full report before adopting definite policy. Will await arrival of Norman Davis.
Not having any definite instructions, I have limited my intercourse with Government Department to conversations. At last interview with Government representative in Madrid he repeated previous representations made to me of insufficiency of tonnage, and asserted that all available tonnage is in national and Allied use. Then be stated, unofficially, as follows:
If it should appear that, due to measures adopted by United States, Spain were to suffer privations and restrictions, the advantage United States might obtain over existing arrangement would be insignificant and be an infringement on Spain’s sovereignty and intrusion in Spanish affairs which would produce consequences disadvantageous to future political economy of United States and its relations with Spain.
Due to lack of proper Government organization and conflicting interests among shipowners, also influence of subsidized lines, also continued sinking Spanish vessels by enemy, and other factors, matters are complicated, and shipping situation chaotic.
Spanish tonnage in my opinion not judiciously employed, and no improvement appears possible unless Government and owners under expert and absolute control regulate such tonnage, thus materially increasing efficiency and showing whether or not [any] surplus is available for other than national requirements. It appears, however, to be to Spain’s advantage to continue indefinitely present regime, make the most of it, and getting while able all it can from United [Page 1692] States. Following propositions are submitted by me for your consideration.
- 1.
- Ask Spain outright for block of tonnage to be chartered through commercial agency to United States. Spain has practically answered that demand by statement made and quoted above, and will claim that, under agreement of March 7, [it is] unwarranted.
- 2.
- Ask Spain to allot substantial cargo space for Allied use and destination on all Spanish vessels carrying cargo from United States to Spain.
- 3.
- Ask Spain to privately permit owners to charter through commercial houses to United States suitable tonnage for our use. If owners permitted bids for charter, they would demand very high rates, alleging crews are only secured by paying enormous bonuses and claiming fair returns on enhanced tonnage values.
My conviction is Spanish tonnage is relatively so small and so rapidly being reduced, that any arrangements will be at best of no substantial benefit. Therefore I venture to express the thought that Spain be officially advised to the effect that hereafter as according to its declarations Spain sees no way of more efficiently using its tonnage to mutual advantage, all tonnage negotiations cease, and United States is free to apply bunker or other regulations.
Definite prompt adoption of policy seems desirable. Smith.