The Ambassador in Spain (Moore) to the Secretary of State
[Received 8:25 p.m.]
75. Today, during conference with Minister of State, I again suggested modus vivendi as a means of stabilizing business pending a final decision on the treaty. He stated that the matter would be taken up by the Council of Ministers on Saturday, and that if the United States would consent to Spain’s proposal for an increase of tax or duty on tea, coffee, and sugar in Spanish Morocco21 it would greatly assist him with certain recalcitrant members. England, he said, had consented a month ago, and the few Americans in the zone were abusing exemption privileges by importing for other foreign merchants. Instructions regarding the matter have been sent to the Spanish Ambassador.
Hackworth remembers that before he left Washington Spain asked us to consent to an increase in certain taxes in Spanish Morocco and that we indicated we would if the taxes applied to all foreigners alike. If we give our consent now modus vivendi with most-favored-nation clause would be greatly facilitated. As government officials are leaving and cable service here is not rapid an immediate answer is important.