852.51/469: Telegram

The Consul General at Barcelona (Bucknell) to the Secretary of State

73. Department’s 68, December 23, 1 p.m. While I have refrained from any discussion of the matter with the Spanish authorities since receiving your telegram, my impression is that while they would be interested in a loan or credits through a governmental agency if other means failed, they would prefer to obtain private loans and credits in the United States. In this connection, however, it is thought that, in view of the amount of American capital already “frozen” in Spain, the present treatment of American interests in this country and the multitude of existing barriers to free exchange and trade, that they might hesitate to initiate negotiations for the desired loan or credits through private banking channels in the United States, unless they had received some prior assurances of at least the indirect assistance and the tacit approval of the United States Government in this regard. It may also be possible that the Spanish authorities in making the present approach may have anticipated the necessity of including an effort to put government relations on a more satisfactory basis with any negotiations they may be able to undertake with American financial interests, private or governmental. In this connection see last paragraph my telegram No. 55, October 8, 11 a.m.19

Please instruct me by telegraph whether or not I am to bring the views set forth in your telegram to the attention of the Civil Governor.

Repeated to the Embassy.

Bucknell
  1. Not printed.