611.5231/1016: Telegram
The Ambassador in Spain (Bowers) to the Secretary of State
[Received 4 p.m.]
55. Department’s telegram No. 51, August 8, 6 a.m. Saw Sub-Minister yesterday on negotiations. Calderón to be instructed to concede a little more on automobiles and to ask such, relaxations of the regulations on Almerian grapes and Spanish sardines as to make their sale possible also further reduction on almond rate and “full, recognition of name of origin of sherry”.
I strongly urge that every possible consideration be given these apparently plausible requests which “competent official centers consider indispensable for conclusion of negotiations”. I am convinced that Spain has extended herself to the utmost in view of enormous balance against her. Even without additional concession on automobiles last Spanish offer would increase our trade by over 5,000,000 gold pesetas without reference to our other demands. In the absence of full information of our concessions no accurate estimate can be made of possible increase in Spanish exports resulting therefrom, but with such information as we have it seems certain that our demands will increase rather than diminish Spain’s unfavorable trade balance which manifestly is impossible of acceptance here. I am more convinced than ever of soundness of my telegram No. 48 of July 18, 1935, not only will failure of negotiations gravely endanger our 38-million-dollar trade, but I greatly fear lamentable political repercussions that would wipe out the gains made in friendly relations during the last 2 years.