178. Telegram From the Department of State to the Embassy in Spain1

2766. In farewell call by Ambassador Garrigues on Deputy Under Secretary Johnson March 4, both expressed gratification for successful outcome Section 620 FAA talks. Johnson said that, while this settled legal question of transportation by Spanish ships and aircraft, there remained policy question of trade, and referred to press despatches from Madrid in this regard. Ambassador stated that, from his talks with Franco and Foreign Minister, he absolutely certain Spain had no policy for large or long-term increases in trade with Cuba. Serious but hopefully short-term shortage obliged Spain purchase Cuban sugar, which would have to be paid for primarily in Spanish goods. Sugar shortage should be resolved within two years.

Johnson urged that to maximum possible extent such payments be made in “soft goods” and pointed out that Spain could expect US [Page 366] to be especially sensitive to sales of machinery, transportation items, spare parts and replacements. Garrigues repeated it was absolutely out of question that Spain would greatly increase trade with Cuba. He said Spain’s relations with Cuban exiles and Latin America obliged GOS to be moderate and discreet in its relations with Cuba. Garrigues said he would report conversation to Madrid.

Garrigues said that he was making trip through Latin America prior to return to Madrid and would report to Madrid sentiment in that area with respect to Cuba.

  1. Source: National Archives and Records Administration, RG 59, Central Files 1964-66, POL 17 SP-US. Confidential. Drafted and approved by U. Alexis Johnson.