652.116/23
The Chargé in Spain (Flack) to the Secretary of State
[Received May 27.]
Sir: Adverting to my telegram of May 13, 12 noon (1933),23 I have the honor to enclose in quintuplicate the Spanish text with translation of the Decree, dated May 9, and published in the Gaceta de Madrid of May 11 on this subject.24 The translation was kindly furnished by the office of the Commercial Attaché.
The two Articles of the short Decree are prefaced with an explanation of the reasons for its issuance, which assert its temporary nature. According to Article 1, Section (a), the “benefits” (retornos) are to be determined on the statistical results of completed quarters.
On the morning of May 13, I called to see Señor Doussinague, Political and Commercial Director in the Ministry of State, to seek such additional information as he might care to give me about the Decree, and telephoned him later for a further interpretation. A copy of the Memorandum of the conversations is enclosed.23
It should be noted in Section (b) of Article 1, that the amount of the benefit to be obtained is not fixed but may not exceed 35%. The amount is undoubtedly intentionally undefined to provide an additional bargaining point in the special agreements which I was informed would be essential to claiming the benefits.
I shall report promptly any additional information concerning the Decree and its application as it becomes available.
Respectfully yours,