The Ambassador in Spain ( Laughlin ) to the Secretary of State
[Received 4:09 p.m.]
95. My No. 94, November 13, noon. I telegraph for your assistance in considering this question, translation [of] a memorandum handed me at the Foreign Office.
“By the commercial arrangement of August 1, 1906,13 there was conceded to the United States the enjoyment of the customs tariffs then established in our second column.
By the exchange of notes of December 20, 1906,14 this treatment was explained in the sense that reductions which might be conceded to a third power would be applied also to the United States.
By the exchange of notes of October 6 and 21 , 1923,15 there was conceded to the United States treatment provided by the agreement of August 1, 1906; but not the benefits which Spain in the future should grant to a third power, thus modifying in this sense the agreement of August 1, 1906 and the exchange of notes of December 20, 1906.
By the Royal Decree of May 25, 1927 the Government of Spain conceded (a unilateral measure) to the United States the treatment of greatest favor resulting from the application of the commercial treaties which at that time embodied consolidated tariffs and as long as those consolidations should prevail. This treatment was granted for a maximum period of 6 months.
By an order of the Ministry of State dated November 7, 192716 the Royal Decree of May 25, 1927 was extended provisionally.
Summary. Consequently as far as Spain is concerned the Royal Decree of May 25, 1927 continues in force. Should the decree of May 25, 1927 be annulled the commercial regime of both countries would again become that which was agreed upon by both parties in the exchange of notes of October 6 and 22, 1923.”
The summary should be read with the fact in mind that the consolidations were abolished by decree of December 30 , 1928.17