611.5231/292: Telegram

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

103. Your 68, October 20, 3 p.m. Minister of Foreign Affairs has just informed me that second paragraph of note is unacceptable as, should some small advantage be granted in future treaty, the United States would have freedom of action to raise its customs duties on all imports from Spain.

The Minister for Foreign Affairs read me cable from Ambassador Riaño stating in part as follows:

“I have been informed by official charged with negotiation of commercial treaty that the Government of the United States is wholly disposed to recommend to the Tariff Commission reductions in customs duties on articles specified by American Embassy Madrid to the Department in Washington, by virtue of section 315a of the [Page 869] tariff act. The United States Government will not insist on most-favored-nation clause for modus vivendi although it would do so for permanent treaty”.

Please cable me immediately as to whether Riano has been correctly informed as it is possible that Foreign Office would substitute statement that the Department will recommend reductions to Tariff Commission for proviso mentioned in my 100, October 17, 12 p.m. to the effect that the United States should not benefit by advantages established by future treaties.

If Riaño has been misinformed please correct him at once as negotiations delayed by his above-mentioned cable.