552.115/97: Telegram

The Third Secretary of Embassy in Spain (Wendelin) to the Secretary of State

X–166. Department’s telegram No. 133, September 19, 3 p.m. and Consulate General at Barcelona telegram to Department of September 21, 7 p.m.48 I am addressing note to Foreign Office along the lines of Department’s telegram No. 128, September 15, 7 p.m., stressing that maintenance of continued supply of American cotton can only be assured by recognition of application contracts, establishment of dollar credits in New York, and official assurance that prompt provision will be made for transfer of dollars to New York in payment for cotton now in Barcelona and Tarragona future shipments. If Government declines to make such provision for payment, I am requesting that permission be granted for the removal of cotton now in Spanish ports.

I seriously doubt whether the Madrid Government is in a position at this time to establish dollar credits in New York covering imports of American cotton into Spain and it is also extremely doubtful whether the Catalan Government would permit reexport of cotton from Catalan ports. The authority of the Madrid Government in Catalonia is negligible. However, as stated in last paragraph Consul General’s telegram of September 21, 7 p.m., Catalan Government appeared to be requiring deposit of peseta value of cotton before authorizing requisition and may maintain this policy.

Wendelin
  1. Neither printed.