I am forwarding the above referred to note in haste by today’s pouch and
shall discuss it at further length in a subsequent despatch when I
receive the Department’s reply to my telegram above referred to.
[Enclosure—Translation]
The President of the Spanish Council of
Ministers (Estella) to the American
Ambassador (Hammond)
Madrid, April 26, 1929.
No. 83
Excellency: The preoccupation which for
some time has been felt by the Government of His Majesty with regard
to the state of commercial relations between Spain and the United
States is a fact which undoubtedly has not escaped Your Excellency.
The obstacles to Spanish export trade arising from provisions, some
of a customs nature and others which, without being specified, have
restricted our imports into the United States, have been repeatedly
pointed out to the Washington Government by His Majesty’s Ambassador
without, unfortunately, the action of Senor Padilla having produced
the results that might legitimately have been expected; and, at one
time grapes, at others garlic, onions, almonds, dried fruits, canned
peppers, revolvers and recently cork products have been subjected to
treatment other than that which in the opinion of His Majesty’s
Government they deserve.
It is not necessary to recall at this time the antecedents and
circumstances of the legal status of customs relations between the
two countries. The most-favored-nation regime is the basis thereof,
and the fact of the embargo formerly existing in North America
against the importation of Argentine grapes having been raised,
without similar treatment being accorded to grapes of Spanish origin
notwithstanding reasons of an alleged sanitary nature therefor,
shows that the favorable attitude which the Spanish authorities have
always shown does not meet with equitable requital on the other side
of the Atlantic.
The situation indicated would be, therefore, considerably aggravated
should information coming from the United States be confirmed
concerning the proposed customs tariff revision, a matter of great
importance and one directed toward the increase of duties in
classifications which principally interest Spain—a purpose which,
should it be confirmed, would increase the notable difference of the
trade balance in the exchange of products between the two countries
which, in 1927, was 254 million pesetas, gold, in favor of the
United States.
The export value of Spanish products to North America in the matter
of cork manufactures shows an extraordinary difference as compared
with other products, being 84,600,000 pesetas; followed by almonds,
16,000,000; olives, 15,500,000; olive oil in large containers,
[Page 791]
12,000,000; chamois skins,
10,600,000; sheet cork, 10,400,000; besides copper ore, goat skins,
mercury, rags, onions, filberts, peppers, olive oil in small
containers, and canned vegetables and fish in smaller quantities
although they exceed a million pesetas in value.
Your Excellency will understand the great importance that the
Government of His Majesty must ascribe to an increase of duties and
the application of hindrances (I refer to the impost on cork
stoppers) to an article which is of such signal importance in the
list of Spanish exports to the United States, namely cork
manufactures—a product genuinely Spanish, the manufacture of which
in Spain has so legitimate a right to protection. The interest felt
in the United States in the moving picture industry which, according
to the recent note of Your Excellency,26 the
Washington Government considers for the sole reason of its important
development and progress in the country, should be regarded with
consideration by other nations, cannot fundamentally be compared
with the cork industry derived as it is from a national product of
Spain.
The desire of His Majesty’s Government is ever to follow,
unswervingly, in its relations with the United States, the policy of
cordial friendship and approximation between the two nations. No
action whatsoever taken by the Government over which I preside could
be considered as a contradiction to this purpose. We want to
continue in that purpose, but precisely for that reason I must
recommend to Your Excellency that the attention of your Government
be called to the problem as stated; since, in view of a trade
balance so unfavorable for Spain, as I have just pointed out, and
aggravated by the series of restrictive measures and impediments to
which I have also alluded, it would be so difficult for His
Majesty’s Government to fail to take into consideration the
importunities it is receiving not only from specially interested
quarters but from Spanish public opinion in general, that it would
find itself obliged to proceed to the denouncement of the existing
modus vivendi.
I avail myself [etc.]
