611.5231/985
The Chargé in Spain (Johnson) to the Secretary of State
[Received June 28.]
Sir: I have the honor to report that I have kept in steady contact with the Foreign Office regarding our Commercial treaty negotiations and that I have based repeated conversations on the instructions contained in the Department’s cable No. 28 of May 17 (12 noon) and on the Department’s instruction No. 238 of May 25th.14
It is obvious that the Spanish Government placed a contingent on automobiles, not only as a measure against France, but as a weapon to be used in commercial treaty negotiations. It is doubtless for this reason that our suggestion as to an unallocated quota has been refused.
Spanish representatives left for Paris today to renew negotiations with France, and Spain is now negotiating with England, Italy, Turkey and Roumania as well. Negotiations with Brazil and Denmark are to commence in the near future.
It was stated at the Foreign Office this morning that the American negotiations were making progress and my informant was optimistic with regard to their outcome.
I have been reliably informed that Sr. Badía, a member of the Cortes Committee on Trade and Commerce, whom I quoted in the penultimate paragraph of my cable No. 37 of May 28 (11 a.m.), recently stated that our negotiations would prove successful but that the American insistence in the question of automobile contingents would delay the signing of the treaty until Spain had come to an agreement with the French and English as to this question.
The Embassy has received no instruction on this subject from the Department since that of May 25th, and would appreciate further information.
Respectfully yours,