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Volume #12 - 1259.

CHAPTER XII

RELATIONS WITH INDIVIDUAL COUNTRIES

PART 19

SPAIN

1259.

DEA/7570-40

Memorandum from Under-Secretary of State for External Affairs
to Prime Minister

Ottawa, February 28th, 1946

The Postmaster General came to see me this afternoon to report a con­versation he had had with Senor de Yturralde, the Spanish Chargé d'Affaires in Washington, who had asked him to ascertain, informally, if the Canadian Government would be willing to negotiate a commercial agreement with Spain. I told Mr. Bertrand that, under present arrangements, Spanish goods received m.f.n. treatment on importation into Canada, and that Spain could expect no better commercial treatment of its exports as a result of a trade agreement. As far as procurement of supplies was concerned, our market was now a pretty open one, in which Spain could buy what it could get for United states dollars. I therefore did not see what object Spain could have in seeking a commercial agreement except, possibly, an export credit.' Under present conditions, and having is mind particularly recent diplomatic developments, I did not think the Government would for one moment con­sider granting an export credit to General Franco.

I told Mr. Bertrand that some months ago we had been approached, informally, through the Spanish Embassy in London, about the possible exchange of diplomatic missions between Canada and Spain, and had replied that, under present conditions, we were not prepared to exchange legations.



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