611.5231/346: Telegram
The Secretary of State to the Ambassador in Spain (Moore)
12. Your telegram no. 15 of April 3 concerning treaty. This Government is giving careful consideration to the subject of the importation of Spanish grapes. The New York fruit exchange has engaged Dr. M. D. Leonard to go to Spain and spend the season assisting growers to eradicate the infection. He will sail within ten days. Dr. Leonard was formerly acting entomologist of the State of New York and is a collaborator of the Department of Agriculture. Before harvest time the Department of Agriculture will reach a decision as to the danger from the importation of grapes.
It will not be possible, obviously, to conclude a treaty before the existing modus vivendi expires on May 5. Trade between the United States and Spain is already being adversely affected by the uncertain situation respecting the rate of duties which may become applicable to exports from this country to Spain. It is desirable, therefore, that arrangements for a further modus vivendi be promptly made so that each country may be assured of equality of treatment for exports to the other.
You are instructed, therefore, to take up this matter immediately with the Spanish Government and to ask whether, in view of considerations indicated above and of the fact that it is apparently impossible to reach a definite agreement regarding future commercial relations between the two countries, that Government is willing to give the benefit of minimum tariff rates for products from the United States in return for like treatment of Spanish products entering [Page 686] the United States. The extension provided in the modus vivendi should be for a period not shorter than six months. Reply by cable.
The American Government under the present arrangement may not as a matter of right claim advantages conceded to other countries by Spain in agreements entered into since the present arrangement was agreed upon last October.7 The Tariff Commission has informed the Department that Spain grants lower duties to certain Italian products which are not extended to American products. Crude sulphur is one of the items affected. When coming from the United States it pays a duty of 3 pesetas per 100 kilograms while sulphur from Italy pays 2.70 pesetas. The differential in duties affects a number of other items. These concessions to Italy are made under a commercial agreement between Italy and Spain which became effective December 10, 1923.
In view of these discriminations our Government would be justified under section 317 of the tariff act of 19228 in now resorting to retaliatory measures against Spanish goods. In continuing the modus vivendi the arrangement should extend treatment no less favorable to goods imported from the United States than that given to like articles imported from any other country.
It is provided in section 317 of the tariff act that 30 days’ notice be given before any increase in duties proclaimed by the President is brought into force. It is desirable, therefore, that our Government should learn as soon as practicable whether the Spanish Government is willing to enter into a modus vivendi so that if the action suggested above appears necessary there will be as little delay in issuing a proclamation as possible.
- By exchange of notes dated Oct. 6 and 22, 1923, Foreign Relations, 1923, vol. ii, p. 873.↩
- 42 Stat. 858.↩