611.5231/941a: Telegram
The Secretary of State to the Ambassador in Spain (Bowers)
14. In connection with my No. 13 of today’s date, I believe that the following background information will be helpful to you. In our conversations thus far with Calderón, we have emphasized our desire to proceed on a broad front in the trade agreement negotiations. Calderón has several times stated that it would be difficult for his Government to give us concessions extending beyond most favored [Page 699] nation treatment and we have definitely stated to him that in order to justify the reductions in the American tariff rates which we have had in mind, we should have reductions in the Spanish rates greater than the mere extension to us of reductions which have already been made to the products of other countries and heretofore withheld from American goods. Our last conversation with Calderón was on February 7 at which time he stated that he would cable Madrid to inquire whether the Spanish Government would commit itself to concessions to us more extensive than most favored nation treatment.
As you know we shall be criticized here for any reductions which we grant to Spanish products and we consider it indispensable that we obtain real concessions for American exports to counterbalance real concessions in our tariff rates. We are encountering at the moment severe opposition from domestic interests to reductions contemplated in our tariff in the Belgian negotiations.10 It may well be that domestic difficulties will compel us to narrow the front of our negotiations with Spain. The general attitude of the Spanish Government has led us to believe that perhaps they would prefer less comprehensive negotiations.