Office of the Historian

611.5231/1029: Telegram

The Ambassador in Spain (Bowers) to the Secretary of State

Madrid, September 20, 1935—10 a.m.
[Received 10:35 a.m.]

60. Your No. 57, September 13, 6 a.m. Saw Aguinaga yesterday and urged reconsideration requests mentioned your No. 51, August 8, 6 p.m.

I desire to add to points mentioned in my telegram 48, July 18, 2 p.m. the following considerations:

(1)
If treaty goes through, the Ford Company will undoubtedly bring in automobile parts under most-favored-nation treatment from the United States instead of from Canada. According to statement secretary local Ford Company, confirmed by recent Spanish import statistics, the parts of cars assembled in free zone containing a certain percentage domestic materials are not now charged against quota on automobiles when the finished cars enter Spanish customs territory. During 1934 Ford assembled 1997 passenger cars in free zone containing 60% or more Canadian parts. If these parts are imported from the United States on above basis it would in effect substantially increase market for American cars in Spain above quota offered us.
(2)
We now supply 75% of automobile trucks brought into Spain. If treaty does not go through we will lose this considerable business because of probable application first column duty rate and because of tariff and other concessions which will inevitably be granted to countries with which Spain makes commercial agreements.
(3)
If the treaty does not go through we will lose excellent market which we have had for years for many other products and once this market is in the hands of other foreign or domestic producers as a result of tariff agreements, special concessions measures that Spain may believe necessary in order to reduce present very unfavorable balance with the United States or to relieve its increasing exchange difficulties, et cetera, it will be most difficult to regain.
(4)
If treaty is concluded we will not only consolidate our present trade with Spain but will considerably increase it.

Bowers