The Secretary of State to the Ambassador in Spain (Moore)
47. Your 75, July 26, 6 p.m.
On July 19th Spanish Ambassador here was informed that United States understood that Spanish authorities in Morocco had reimbursed the American citizens and protégés who had heretofore paid consumption tax; that this Government was informed that a shipment of Holland gin consigned to Semsar Cohen, an American citizen, at Larache was held by Spanish authorities for payment of tax, [Page 864]and that provided shipment of gin was released without tax the United States no longer perceives any reason for withholding consent to imposition of consumption taxes on sugar, tea and coffee. American Agency at Tangier on the same day was informed of action taken as indicated above, and was directed to inform American citizens and protégés that neither the Agency nor the Department would in the future support refusal to pay consumption tax. Agency also directed to inform Spanish Agency.22
It is hoped that information herein communicated will enable the Spanish Minister of State immediately to arrange modus vivendi.