652.116 Auto/2: Telegram

The Secretary of State to the Ambassador in Spain (Bowers)

13. Your 13, February 15, 4 a.m. This information is very disturbing to us. Because Spain has assessed higher import duties against American motor cars than those from other countries since November 11, 1931, any quota regime which bases allocations on any part of the period since that time would be unfair and unjust to the United States.

Passenger automobiles prior to the adoption of Spain’s discriminatory tariff rates were our most important export to Spain with the sole exception of raw cotton. The desire to improve the competitive position for American cars in Spain was one of the most important considerations which influenced us in opening trade agreement negotiations. We find it difficult to see how we could conclude any really beneficial trade agreement with Spain if the Spanish Government enforced quantitative limitations on motor cars which freeze American exports to Spain at the present low levels. Inform appropriate Spanish authorities orally in the sense of the foregoing as soon as possible.

Hull