File No. 652.119/1423
The Secretary of State to the Ambassador in Spain ( Willard)
[Telegram]
Washington,
August 24, 1918, 4 p.m.
1479. For Davis from Leffingwell:
Treasury 10. Your 9, 10, and 11, Embassy’s unnumbered August 16, 6 p.m., unnumbered August 17, noon, and 1691, August 18, 8 p.m.1
- 1.
- For the purposes set forth in our 9 approve your closing arrangement on lines you suggest by which we are afforded opportunity to avail of banking credits. Understand that this is merely an option to us and presume terms you state involving interest rate of 6⅗ [5⅗?] including commission and stamps are best obtainable. It is important that we do not commit ourselves to employ banking credits obtained to pay for our Army purchases in Spain so that we may if so determined carry out exchange operations (see our 9).
- 2.
- If exchange operations are undertaken it would be best to enlist cooperation of considerable number of banks here. It could probably be arranged that bills for first 75,000,000 pesetas be drawn by American banks having relations with Bank of Barcelona and Bank of Urquijo.
- 3.
- Impossible to make definite plans here until we receive information requested in our 9. Whether or not exchange operations plan is decided upon, much as we miss you here, advisable for you to remain for present in Spain or France or England where you can return to Spain when necessary. Crosby I understand has been ill and may need your assistance until permanent European arrangements made.
- 4.
- It seems to us that fair dealing required War Trade Board to carry out its agreement with Spain and licensing of cotton could not be longer delayed awaiting report from Chadbourne on plan suggested in War Trade Board’s 158.2 We cannot understand why Spanish Government does not control cotton importations fixing the price and allocation of allotments to Spain. In fact we had understood they were doing both. It would only add to confusion if any [Page 1707] outstanding licenses for cotton exports should be canceled. Have communicated to War Trade Board your cables and they will as to September and later allotments of cotton adopt method described in their 158 to Chadbourne which he has approved.
- 5.
- Note it is expected to postpone making new trade agreement.
- 6.
- While, with approval of Ambassador and War Department, we should aid in attempting to obtain laborers, financial arrangements necessary to enable us, through, exchange operations or otherwise, to obtain pesetas needed to pay for Army purchases made and in contemplation must not be dependent on agreement being reached to obtain laborers.
Lansing