The Secretary of State to the Consul General at Barcelona (Bucknell)
68. Your 72, December 20, 4 p.m.18a It is not clear to us whether in making this approach the Spanish authorities are interested in obtaining private loans or credits in the United States or desire to obtain credits through American governmental agencies as in the case of the cotton credits made available through the Export-Import Bank last July.
If private loans or credits are desired no reason is perceived why negotiations to that end cannot be initiated by the Spanish authorities through private banking channels in the usual manner. The Department knows of no legal prohibitions or restrictions upon the extension of private American loans or credits to Spain. There is no requirement or customary procedure whereby the consent and approval of this Government must be asked.
It may be observed that the prospect of obtaining a loan or credits through agencies of this Government, if this is what the Spanish authorities have in mind, at least in anything like the amount mentioned, is believed to be slight, and is certainly not improved by the [Page 855] uncooperative attitude which those authorities have shown with respect to the treatment of American interests in Spain since the extension of the cotton credit.
Repeat to Embassy.
- Not printed.↩