611.6231/274: Telegram

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

63. Your 89, October 3, 10 a.m.

You are instructed to address a note to the Spanish Government referring to the proposal stated in your telegram and reply thereto textually as follows:

“I communicated your proposal to my Government and am instructed to reply thereto as follows:

Spanish wines for lawful purposes are now being imported into the United States on an equal footing with wines from other countries. My Government, while not averse to mentioning wines in a treaty, could not incorporate in the treaty any provision which would give them more favorable treatment than they now enjoy.
The conditions under which Spanish vessels might bring without penalty liquors into American ports as cargoes or ships’ stores not destined for delivery or consumption in United States were set forth in a proposed treaty on the subject which my Government submitted to the Spanish Government in June last and to which no response has been received. My Government would have no objection to incorporating in a commercial treaty the essentials of that proposal.
Section 315 of the Tariff Act of the United States was intended as a means of equalizing the cost of production in the United States and the principal competing countries in cases where it may appear that an American industry is afforded excessive protection under the Tariff Act. While the President has authority under this Section to reduce duties if an investigation by the Tariff Commission should find such action justifiable, the Tariff Act does not associate these reductions with treaty negotiations, and my Government would not care to incorporate in a treaty a provision dealing with matters so essentially of a domestic character which would be inconsistent with the Act.
My Government desires me to remind the Spanish Government of the fact that less than a month remains during which the present commercial relationship between the two countries is to continue, and to say that it would appreciate an early indication by the Spanish Government of the treatment to be accorded American imports into Spain after November 5 in order that it may be governed accordingly.”

Your telegram does not indicate in what manner the Spanish proposal was made. If by note forward text thereof. If orally, you should take occasion to suggest that any further proposals or statements be submitted in writing in order that they may be of record and more carefully studied.
For your information and discreet use: The Tariff Commission is now making the necessary study under Section 317 of the Tariff [Page 866] Act preliminary to invoking the retaliatory provisions of the Act in the event of discrimination against American goods imported into Spain.