611.5231/743: Telegram
The Ambassador in Spain (Laughlin) to the Secretary of State
[Received 8:42 p.m.]
81. Your telegram No. 93, October 14, 4 p.m.30 In the event of invoking section 338 the Spanish Government would probably retaliate by applying column 1 which would exclude the major part of American products save cotton.
American products manufactured abroad would probably continue to enter Spain in much the same volume as at present. The animus raised by trade reprisals would not help American enterprises in Spain, in particular the telephone company which is already in a vulnerable position.
The foregoing observations are of necessity conjectural. More tangible factors of the present situation are: repeated prognostications of Mr. Roosevelt’s election have appeared in the Spanish press and much publicity has been given to his recent interview to Le Matin on tariff policy with the apparent result of giving the Spanish Government the idea that whatever we may do now they might get better terms later. This, together with the possibility of modification of American prohibition laws, has somewhat increased Spanish interest in the American market.
The position of the officials within the Spanish Government has become deplorably weak. It has been confirmed to the Embassy that the Foreign Office has not dared take any energetic initiative in order to carry out proposals contained in their note of April 5th.
Calderon therefore suggests that Wiley meet Doussinague of the Department of Commerce. Latter is the key official for our negotiations and has hitherto been the stumbling block. It might be well for them to meet before final decision regarding section 338.
Foreign Office, already under fire, will be attacked either if de facto most-favored-nation treatment is granted us or if section 338 is invoked. In latter event, notwithstanding Calderon’s assurances in telegram 37 of May 9th and 58 of June 30, Foreign Office in self-defense will attempt to put blame on us for not having complied with request for amplified list (vide telegram 36 of May 6th). If I now repeat Wiley’s step, reported in telegram 58, Minister for Foreign Affairs may attempt to formulate an evasive reply.
Almeria has apparently convinced Government that a certain area has been entirely freed of the Mediterranean fly. Calderon privately [Page 558] states that chief obstacle to composing differences between the two countries is lack of confidence in Spain of good faith of application of American sanitary regulations.
Consul General Dawson has discreetly sounded Glidewell, president of the American Chamber of Commerce for Spain. Latter’s unqualified opinion is that if section 338 is applied it would be extremely unfortunate and ill-advised. Commercial Attaché also believes it inopportune. Glidewell promises for end of this week a comprehensive report on Spanish-American trade relations for the confidential information of the Embassy. Anything of interest will be telegraphed.
An important résumé of exhaustive discussion with Calderon goes in next pouch.31