File No. 652.119/1266a
The Acting Secretary of State to the Ambassador in Spain ( Willard)
1342. For Smith from War Trade Board:
We are strongly of the opinion that you should remain in Spain until you have secured comprehensive and detailed information on the Spanish ship situation and on Spanish minimum import requirements. Our negotiations with northern neutrals have shown that it is generally possible to scale down substantially the neutral’s alleged import needs and to point out more effective utilization of tonnage thus releasing tonnage for other than national service. We do not know that this situation exists in Spain but we believe that you should take the present opportunity to make a careful study of the situation even though considerable time is required. All information of this character will be of great value to us at the time when present commercial agreement expires and negotiations for a new agreement are instituted.
We also believe you should remain in Spain until arrival of Norman Davis of United States Treasury who is to undertake financial negotiations with the Spanish Government. It is possible that the Treasury Department may desire to avail [itself] of our bunker control to assist them to secure credits. We are also anxious that you should be in Spain while the Swiss negotiations for enemy ships are in progress. A number of matters may arise in this connection as to which it will be most important that the Ambassador have available your advice as a practical shipping man.
We seriously question the practicability of accomplishing anything by negotiations at Washington.