852.01/36: Telegram The Ambassador in Spain (Laughlin) to the Secretary of State MADRID, April 22, 1931—1 p. m. [Received April 22-11:30 a. m.] 28. Your number 12, April 21, 4 p. m. British colleague took action 12:30 today. Minister of Foreign Affairs will receive me at 4:30 this afternoon for delivery of note authorized by you. LAUGHLIN 852.01/41: Telegram The Ambassador in Spain (Laughlin) to the Secretary of State MADRID, April 22, 1931-5 p. m. [Received April 22-4:55 p. m.] 30. Have just come from interview with Ministry of State where I carried out exactly instructions in your telegram No. 12, April 21, 4 p. m. He asked me to convey deeply appreciative thanks. LAUGHLIN EFFORTS TO REMOVE SPANISH TARIFF DISCRIMINATIONS 651.5231/57: Telegram The Ambassador in Spain (Laughlin) to the Secretary of State MADRID, November 10, 1931-8 p. m. [Received 8:50 p. m.] 92. Reference my No. 89, October 24, 2 p. m., Franco-Spanish commercial agreement 10 went into effect today. Article 5 declares a reduction in the tariff rates established last July with regard to certain articles. Government decided at noon today that reduction in rates accorded France by the agreement in respect of automobiles, tires, and tubes, films, motorcycles and artificial silk, et cetera, are not to be applied to the United States basing this stand on the provisions of the Royal Order of May 25, 1927,11 which, while continuing in force, they contend does not give these privileges to us because of the subsequent abolition of the consolidated rates then existing. Calderon, chief of the Commercial Bureau of the Foreign Office in charge of this matter, states quite frankly that his Government is willing to reconsider plac "Not printed. "Text printed in Journal Officiel de la République Française (Lols et Dé crets), November 10, 1931, p. 11672. "Le., Royal Decree No. 958, Foreign Relations, 1927, vol. 116, p. 720 ing us in most-favored-nation position if we give them something in return. He said that they did not expect tariff reductions from us but a simplification of the administrative regulations affecting entrance of the preserves, grapes and oranges, short firearms and garlic. He also mentioned in strict confidence that not all countries would benefit by the tariff reductions accorded France and that a bargaining proposition had been offered Italy which she must accept tonight in order to enjoy them. Pending your considered instructions I intend to see Lerroux himself tomorrow in an attempt to modify the Spanish stand. LAUGHLIN 611.5231/603 : Telegram The Ambassador in Spain (Laughlin) to the Secretary of State MADRID, November 11, 1931-6 p. m. [Received November 11-5: 14 p. m.] 93. My telegram No. 92, November 10, 8 p. m., regarding FrancoSpanish commercial arrangement. I saw Lerroux this morning to urge reconsideration of Spanish decision not to give us reduction of rates accorded France by new arrangement. In the course of the conversation he reflected Calderon's attitude about "concessions" on our part and the staggering balance of trade against Spain in the United States which he said they must find some means to correct. When it became clear to me that the Spanish Government is bent on bargaining I asked for a suspension of their decision to give you time to consider my reports and possibly make concrete propositions. I think some concessions in the administrative regulations mentioned in my No. 92 would go a long way toward a satisfactory settlement. I urged that the delay I asked for would be in the interests of Spain as much as ourselves since it would leave you free from any outery of exporters which might force your hand and oblige the President to use his retaliatory powers. I made it quite clear that such retaliation was possible. Lerroux seemed impressed by my argument especially when I stated that the Minister of National Economy had promised the Commercial Attaché that the new rates would automatically become applicable to us. In the end he said he could not give me an immediate answer to my request for delay since he would have to take advice on that point; but he promised to send me his answer this afternoon. Since it has not reached me up to this hour I despatched this telegram without waiting longer and shall include it in a later message. LAUGHLIN 611.5231/606 : Telegram The Ambassador in Spain (Laughlin) to the Secretary of State [Paraphrase] MADRID, November 13, 1931-noon. [Received 3:55 p. m.] 94. Embassy's 93, 11th of November, 6 p. m. Lerroux leaves tonight for a meeting of the League of Nations in Paris. I have learned from him, however, that the Spanish Government cannot give us the postponement which we requested. His argument was based on the points already presented by himself and Calderon. Within the past 24 hours, he added, his Government had opened negotiations with other Governments with the object of granting them the same tariff reductions as France. He went on to say that if these countries expected to receive the advantages accorded France they must offer something in return. The United States was not to be excepted from this rule. Upon reviewing this matter you may conclude that we cannot make any concessions. In that case you may be ready to resort to the extreme of retaliatory measures. If not, my opinion is that any protest by the United States would only result in a protracted exchange of notes over the legal features of the problem. I have Calderon's promise that he will let me know today just what his Government wants from the United States. This information I shall include in a later communication. LAUGHLIN 611.5231/605 Memorandum by the Under Secretary of State [WASHINGTON,] November 13, 1931. The Spanish Chargé d'Affaires came in to see me with a memorandum as to the attitude of his Government toward the commercial modus vivendi with this country 12 in its relation to the newly signed commercial agreement with France. He said that his Government showed its generosity and friendly feeling toward the United States in offering to give us the benefit of the second column of tariffs and to give us the benefit of the French figures on condition that we made certain administrative arrangements which, as I suspected, was to admit arms and grapes. I told him that I could not see either any generosity or particular friendliness on the part of Spain in refusing to live up to the modus vivendi under which the two nations gave each "For previous correspondence concerning the commercial modus vivendi, see Foreign Relations, 1927, vol. I, pp. 729 ff. other most-favored-nation treatment, and to give us the benefit of the second column was obviously not in accord with the signed agreement. I told him also that it was very unusual to demand such so-called administrative changes as a reason why Spain should live up to its agreement. I said, further, that the whole matter was being carefully studied by the experts, and sent him to the Western European Division. 611.5231/601: Telegram W[ILLIAM] R. C[astle, Jr.] The Ambassador in Spain (Laughlin) to the Secretary of State MADRID, November 13, 1931-3 p. m. [Received 4:09 p. m.] 95. My No. 94, November 13, noon. I telegraph for your assistance in considering this question, translation [of] a memorandum handed me at the Foreign Office. "By the commercial arrangement of August 1, 1906,13 there was conceded to the United States the enjoyment of the customs tariffs then established in our second column. By the exchange of notes of December 20, 1906,14 this treatment was explained in the sense that reductions which might be conceded to a third power would be applied also to the United States. By the exchange of notes of October 6 and 21 [22], 1923,15 there was conceded to the United States treatment provided by the agreement of August 1, 1906; but not the benefits which Spain in the future should grant to a third power, thus modifying in this sense the agreement of August 1, 1906 and the exchange of notes of December 20, 1906. By the Royal Decree of May 25, 1927 the Government of Spain conceded (a unilateral measure) to the United States the treatment of greatest favor resulting from the application of the commercial treaties which at that time embodied consolidated tariffs and as long as those consolidations should prevail. This treatment was granted for a maximum period of 6 months. 16 By an order of the Ministry of State dated November 7, 1927 15 the Royal Decree of May 25, 1927 was extended provisionally. SUMMARY. Consequently as far as Spain is concerned the Royal Decree of May 25, 1927 continues in force. Should the decree of May 25, 1927 be annulled the commercial regime of both countries would again become that which was agreed upon by both parties in the exchange of notes of October 6 and 22, 1923." The summary should be read with the fact in mind that the consolidations were abolished by decree of December 30 [28], 1928." LAUGHLIN "Foreign Relations, 1906, pt. 2, p. 1342. "Malloy, Treaties, Conventions, etc., 1776–1909, vol. II, p. 1719. "Foreign Relations, 1923, vol. II, p. 873. 10 Ibid., 1927, vol. I, p. 733. " Gaceta de Madrid, vol. IV, p. 2073. 652.113 Auto/35: Telegram The Secretary of State to the Ambassador in Spain (Laughlin) WASHINGTON, November 14, 1931-noon. 63. Your telegrams 92 to 95 inclusive. The Spanish Chargé d'Affaires called Friday to leave a memorandum 18 stating in substance that the tariff concessions granted to France do not contravene the modus vivendi, as contained in Royal Decree No. 958 and the note from the Spanish Minister of State of November 7, 1927,19 and offering to bargain for the extension to us of the French rates, on the basis outlined in the last sentence of paragraph 1 of your telegram No. 92. The Department expressed no opinion on the relation of the Spanish action to the modus vivendi, but informed the Chargé d'Affaires that you were reporting on the entire situation and that any negotiations would continue to be handled between you and the Spanish Foreign Office. The Department is gratified by your comprehensive reports and approves of your representations to date. In view of Spain's definite refusal at present to grant us the reduced rates, as stated in your telegram No. 94, I agree that there would appear to be no current advantage in your presenting a formal protest; certainly not before we have come to a decision as to whether or not there has been a contravention of the modus vivendi. The matter is being carefully studied and you will receive specific instructions as soon as possible. Please comment as to your opinion of the validity of the Spanish contention that their action does not contravene the modus vivendi, and inform me when the Department may expect to receive the text of the Franco-Spanish Agreement. Unless very lengthy I think it would also be desirable to cable a translation of the provisions of the agreement granting the preferential rates (but not the tables of rates themselves). The Department will be pleased to receive and will sympathetically consider any statement of Spanish desires which the Government may wish to submit (reference, last paragraph of your telegram No. 94). I do not believe, however, that discussions on your part with the Foreign Office regarding the "simplification of American administrative regulations" should give the impression of being on instructions from your Government, for the reason that any modifications would appear extremely remote if not out of the question. The following is for your information only: With respect to Almeria grapes and oranges, the Department of Agriculture states that it cannot reconsider its deci 18 Not printed. 19 Foreign Relations, 1927, vol. I, p. 732. |
