611.5231/813

The Spanish Embassy to the Department of State

[Translation]

The Ministry of State has learned with satisfaction of the favorable attitude of the Department of State towards proceeding, as soon as possible, to set on foot the conversations tending to agreement upon a commercial convention between the two Parties and in its turn expresses, with due reciprocity, its cordial desires in the same sense and regarding the same purpose.

The two American proposals having been examined with much interest and sympathy, it regrets in the first place that it cannot accept the first one of them relative to customs concessions, since such concessions are by their very nature appropriate to be discussed during the negotiation, and, if accepted, to appear in the text of the Treaty.

As for the second proposal, with reference to the régime of quotas in force in Spain, the Ministry of State, desiring to give a proof to the Department of State of the goodwill which inspires it, is disposed to postpone, as much as possible, the establishment of quotas especially affecting the United States with the purpose of preventing difficulties to its commerce in Spain.

Although such postponement could not be extended indefinitely it could nevertheless be maintained until the 30th of November next, since during the month of December following it will be essential to proceed to the preparation and distribution of another large number of quotas which Spain sees herself obliged to establish from the first of January, 1935, as a consequence of the commercial policy developed in other countries,—a commercial policy which has had such serious repercussions on her national economy.

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In view of the goodwill existing on the part of Spain and the United States there is no doubt that the projected Commercial Convention will be rapidly concluded and that thus without delaying the establishment of the quotas contemplated the contractual obligations contracted by Spain with other countries can be harmonized and brought in line without prejudice to the United States.