711.00111 Lic. Martin Company, Glenn L./52/2
Memorandum by the Assistant Chief of the Office of Arms and Munitions Control (Yost)
Mr. Hartson, of The Glenn L. Martin Company, telephoned this morning to inquire as to the attitude of this Department toward the [Page 475] sale of eight bombing planes to the Spanish Government. Mr. Hart-son said that an agreement for the sale of these planes had been negotiated with the Spanish Government last February and that the planes had gone into production at that time. The sale later fell through, however, when the Spanish Government refused to make payment in dollars in New York.
Mr. Hartson said that he had this morning received a wire from the Air Ministry at Madrid saying that they were now ready to pay cash in New York and requesting immediate delivery of the planes. Mr. Hartson said it would be impossible to complete the planes and make delivery before November at the earliest, but that he wished to ascertain the attitude of this Department before replying to the Spaniards. I replied that I did not know whether the Department would wish to express an opinion in the matter but that I would consult my superiors and inform him.
Mr. Hartson telephoned again in the afternoon and I told him that he would receive our reply in the morning. He expressed the opinion that, though this Government might have the authority to prohibit the export of these planes to Spain, it could not prevent him from signing a contract with the Spanish Government for their manufacture. He said that he expected to demand fifty percent down payment in cash and fifty percent in an irrevocable letter of credit on New York. He hoped that, by November, the situation in Spain would have quieted down and there would be no possible objection to the export. He added that he expected to come to Washington tomorrow to consult the Department and to see Major Franco41 at the Spanish Embassy.
- Major Ramón Franco-Bahamonde, Air Attaché of the Spanish Embassy at Washington.↩