611.5231/932

Memorandum by the Assistant Chief of the Division of Western European Affairs (Hickerson)

The Spanish Ambassador was invited to come in to see Mr. Sayre today to continue the conversation of last week respecting the trade agreement negotiations. Mr. Sayre handed Señor Calderón the attached list showing twenty-three products,9 including most of the important Spanish exports to the United States on which the American Government is in a position to discuss real reductions in our present tariff rates, provided Spain is disposed to make real reductions to American products along the lines requested in our note of January 16 last. Mr. Sayre added that it was our earnest hope that the Spanish Government would cooperate with us in approaching these negotiations in a broad spirit designed to open up world trade and thus make possible an agreement of real consequence between the two countries.

Señor Calderón said that he would take up this matter with his Government and get in touch with us later. He indicated that it would be a week or ten days before he expected to be able to have his experts sit down with our experts to enter upon the actual negotiations. As regards the list which was handed him he commented that the omission of sardines and table wines might make things difficult for his Government. To this we replied that Spain was not a principal source of either product but that if we reached an agreement Spain would, of course, receive the benefit of any reductions we might make to other countries which occupy a more prominent position in this market. It was added that there might be other products which we could add to this list during the course of the negotiations and that it was not intended to be all-inclusive but merely an indication of the important products on which we are prepared to discuss real reductions. [Page 693] Mr. Sayre added that there were other products upon which Spain had asked concessions which we would have to reserve for bargaining material with other countries.

J[ohn] D. H[ickerson]
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