611.526 Wines/18

Memorandum by the Secretary of State

The Spanish Ambassador called and said that some countries had received an improvement or increase in wine quotas, and Spain desired similar treatment. He said that his government heretofore had not practiced the quota policy but it was in a position to do so now. He also said that the United States Government was suggesting that should Spain purchase some 4 million pounds of tobacco from us, the United States would permit the purchase of 800,000 gallons of wine from Spain; that that proposal was now pending and he expected to hear from his government at any time. He stated in connection with the discussion that Spain bought three times as much from the United States as the United States bought from Spain and that therefore it was difficult for Spain to cooperate as fully and as satisfactorily in a commercial way with the quota system as otherwise she would be in a position to do. I replied that pending the decision of his government on the tobacco proposal there was little I could do to cooperate with him. He inquired when the President would seek authority from Congress to negotiate reciprocal commercial treaties, and he expressed the hope that this would be done so that his government would be in a better position to work out agreements with the United States which would embrace broader trade relations. I told him that I had not yet had a chance to confer with the President on this subject.

The Ambassador also inquired whether the United States quota policy relating to liquors, wines and cordials, would be continued through this year, or whether it would end in February or April. I stated that I thought the President had not yet passed upon this matter.

C[ordell] H[ull]