611.5231/1072b: Telegram

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

1. Your telegram No. 1, January 2, 4 p.m., last paragraph. Proposed agreement provides “that if either country shall establish or maintain, directly or indirectly, any form of control of foreign exchange, the commerce of the other country shall be accorded fair and equitable treatment. The Government of each country will give sympathetic consideration to any representations which the Government of the other country may make to the effect that it is not receiving fair and equitable treatment in the allotment of the available foreign exchange, and if, within 30 days after the receipt of such representations, a satisfactory adjustment has not been made or an agreement has not been reached with respect to such representations, the Government making them may, within 15 days after the expiration of the aforesaid period of 30 days, terminate this agreement in its entirety on 30 days’ written notice.”

Regret any embarrassment which may have been caused by not sending you text of proposed agreement before. In explanation it [Page 787] has not been our practice to send copies of proposed agreements to our missions in foreign countries in cases where negotiations are being conducted in Washington because of difficulty of keeping them currently informed of countless moves and countermoves. In this case, however, in response to your request full texts of general provisions and schedules of proposed agreement were sent to you on December 27.