711.522/69: Telegram

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


42. Your 66, July 6, 4 p.m.

The Department is gratified to find the atmosphere friendly and to learn that the commission shows a readiness to accept such provisions as are not in opposition to Spanish law. The Department does not deem it desirable to separate the commercial from the general and other provisions of the treaty.
Before giving final answers to your questions the Department must make inquiries to which your telegram gives rise. Should we agree to schedules of articles which would give us unconditional most-favored-nation treatment, and, conversely, give to Spain most-favored-nation treatment for her list, would she be disposed to accept the treaty on that basis? Were we to go so far, would Spain assent to the procedure and not still demand specific reductions of us? Refer to your paragraph 7.
Referring to your paragraph 3, does the Spanish law require arrangement for (a) the admission of particular articles such as wines, and (b) a reduction of the tariff on any specific articles, for example, wines? The Department has noted Mr. Hackworth’s memorandum of June 13.16
Paragraph 4 of your telegram is not clear. Is the Spanish Government insisting upon the right to import into the United States quantities of wine, no matter how limited, for beverage or other purposes? This Government finds in the statutory law a definite obstacle against an agreement to that end.
Referring to paragraph 5 of your telegram, does the Spanish Government understand clearly that under our law we can not give so-called reductions? Does that Government understand as well that under section 317 of the tariff act the President will be obliged to impose discriminatory duties should we fail to obtain most-favored-nation treatment through some appropriate procedure?
Regardless of policy to be followed, the Department believes that there should be an immediate request made for a modus vivendi.
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