651.5231/117: Telegram
The Ambassador in Spain (Bowers) to the Secretary of State
[Received 3:10 p.m.]
11. Serious crisis in Franco-Spanish negotiation. El Debate today, passed by censor, says France “requires advantages which constitute exclusive rights in her favor for sale of automobiles in Spain. The establishment in Barcelona for assembling of American automobiles would disappear, on the other hand in France there is offered only market for oranges, bananas and tomatoes. In addition France wishes to reserve the export licenses so that she would have administration of distributing quotas.” El Debate says “Spanish Government has believed such requirements cannot be admitted” partly because “would hurt other countries that send us automobiles” also that Spain’s rejection “of such pretentions” have led France to close frontiers to oranges tomorrow and Spain will retaliate by closing frontiers to French automobiles and French deluxe articles. Spanish Government will offer France formula on automobiles and if unacceptable, says El Debate “the French frontiers probably would be closed”. El Debate quotes informant that “pretentions of France unacceptable from all angles for they almost make us equal to a Colonial country”; that “France relies on threatening” and if she persists Spain will negotiate “with all rapidity with Germany, England and the United States for admission automobiles in exchange for oranges”.
From reliable governmental source I have just learned El Debate article presents true picture. He says France positively will not get what she wants on automobiles. Consider this information important Washington negotiations. A word to Calderón might stiffen Government here in contest.