File No. 652.119/1308

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

[Telegram]

1631. For War Trade Board [from Smith]:

Please refer to my cipher telegram of July 30 [31], No. 168 [1608]. Have now completed Bilbao investigation. Have privately [conferred] with representative shipowners. Believe that in own interests proposition number 2, but more likely number 3, mentioned in my cipher telegram [acceptable] to them. Believe that Government would privately consent to private charter to United States through approved commercial agency. Basis of charter full capacity of ship on agreed rates [per ton] cargo weight or measurement according to destination American ports to French Atlantic, French Mediterranean, or Italian ports. Owners are now studying whether suitable tonnage is available and not needed for Spanish requirements, also considering charter rates. I would appreciate your views in order to guide me in further conferences; also advise minimum block tonnage you would consider. Smith.

Willard