852.6363/1–2842

The Spanish Embassy to the Department of State

Memorandum

The Spanish Embassy in Washington has been instructed by the Spanish Government to lend its approval in principle to the Memorandum on Commercial Inter-exchange presented by the United States Embassy in Madrid. This without excluding the possibility of a further study on questions of detail until a formula acceptable to both sides is finally reached. The Spanish Government reaffirms at the same time the guarantees requested about the exclusive internal consumption of all imported products.

The Spanish Government is also keenly interested in the immediate departure of the ships Campilo and Campuzano with the object of solving the existing critical gas-oil problem. Otherwise it would be most difficult to proceed under normal conditions with the negotiations held in Madrid, on account of the pressure due to the urgent need of receiving the shipments in question. It must be pointed out that any other decision would appear to be contrary to the spirit that ought to guide all friendly negotiations.

The actual supply of gas-oil in Spain amounts approximately to the minimum monthly needs, and this on the basis of the almost total immobilization of all industrial activities as well as practically all motorized agricultural work, and the reduction in a 40% of fishing activities.

It must be borne in mind that as it will take 25 days for the ships of reference to reach Spanish ports, only by their sailing at once could the new supplies arrive before the existing ones are exhausted.

The conversations with the American Embassy in Madrid are already in progress and a spirit of cordiality prevails in them, making it possible to find a suitable, practical formula for a mutual understanding.