611.5231/774

Memorandum by the Secretary of State

The Spanish Ambassador called and stated that before leaving for Spain he would be glad to have the latest and fullest statement I might be able to make as to when our Government would be able to take up with the Spanish Government conversations looking towards improved commercial relations and dealing with more or less discriminatory practices by each government against the other, including the matter with regard to Spanish grapes, etc. I stated to him that my government would be engaged in similar negotiations with other countries during the present year; that I personally felt his government and mine owed it to each other to endeavor to establish closer and more satisfactory relations; and that I had the highest regard for the people of Spain and was likewise personally desirous of seeing closer relations, in every possible way, between the two governments and the two peoples. I stated that extreme, high tariffs or embargo tariffs had become the practice here and throughout the world for the time being; that American sentiment and the American Congress were overwhelmingly favorable to any kind of extreme practices in this line; and that there would be real difficulty in securing the ratification of any commercial treaty that might embrace tariff reductions. I added that it would be useless to negotiate such treaties unless there was a chance for them to be ratified; that more education on the subject of trade barriers would be necessary before statesmen either at home or abroad would be very much disposed towards material reductions of trade barriers; and that, therefore, it would probably be important and wise to enter into reciprocity arrangements with respect to as many minor commodities, not too keenly competitive, as might be possible, and that after a reasonably short lapse of time it would be much more possible to extend these treaties by including more commodities and those of a competitive character. I concluded by expressing the hope that he would call at the State Department from month [Page 697] to month, and said I would frankly advise him as to our situation, so far as it related to the suggested negotiations between our governments.

C[ordell] H[ull]