611.526 Wines/4: Telegram

The Acting Secretary of State to the Ambassador in Spain (Bowers)

59. Your 81, December 21, 11 a.m. shows a complete misunderstanding by the Spanish of our present quota policy with regard to wines. For the present, importations of alcoholic beverages, except beer and other fermented malt beverages, are subject to a license system which is administered by a special governmental committee. Licenses are issued to American importers. Immediate imports from any particular country are limited to one-third of the average annual import trade based on figures for the years 1910–1914. These temporary quotas may be increased if any particular country wishes, through bargaining, to offer a satisfactory quid pro quo preferably benefiting American agricultural exports.

You will see from the foregoing that there has been no discrimination against Spanish wines, nor is it fair to characterize its quota of 394,874 gallons as insignificant either in itself or by comparison with that of other [Page 698] countries; furthermore that it is open to Spain at any time to make a bargaining suggestion for a larger quota. This Government has not invited such bargaining, but has been approached by a number of countries and is at present engaged in negotiations. The Spanish Embassy in Washington is one of the few missions which has not indicated interest in obtaining additional quota although wide publicity has been given as to our quota policy.

You may, of course, use this information in any way you feel would produce the best results.

Phillips