Spain and the United States TheThe QuestQuest forfor MutualMutual RediscoveryRediscovery William Chislett Spain and the United States: The Quest for Mutual Rediscovery William Chislett Real Instituto Elcano de Estudios Internacionales y Estratégicos Published by the Real Instituto Elcano de Estudios Internacionales y Estratégicos Copyright: William Chislett The information contained herein has been compiled from sources believed to be reliable but, while all reasonable care has been taken to ensure that the information is not untrue or misleading at the time of publication, the Real Instituto Elcano de Estudios Internacionales y Estratégicos makes no representation that it is accurate or complete and it should not be relied upon as such. All opinions and any mistakes are solely those of the author. www.realinstitutoelcano.org Design and layout: Quinteral Servicios Gráficos, S.L. Printed by: Quinteral Servicios Gráficos, S.L. Legal number: M - 44417 -2005 Free copy. No sales allowed For John Brademas, James Fernández, John Healey and all the staff of the King Juan Carlos I of Spain Centre, New York University, and my polymathic friend, Felipe Fernández-Armesto “There are no permanent alliances, only permanent interests.” LORD PALMERSTON, British Foreign Secretary, 1849 ACKNOWLEDGEMENTS This is the third book I have written for the Elcano Royal Institute. It aims to cover the investment, trade, defence, political and cultural aspects of the relationship between Spain and the United States. The first chapter, unlike that of the previous two books, sets the scene by recounting more than 500 years of history between the two nations. I believe the reader needs this historical perspective, albeit in a condensed form, to fully appreciate the many complexities of the relationship and what is happening today. This book also exists in Spanish, published by Ariel. I would like to thank Emilio Lamo de Espinosa, Elcano’s former director, for commissioning the book, and Gustavo Suárez Pertierra, the new president, and Gil Carlos Rodríguez Iglesias, the new director, for continuing the project. I would also like to acknowledge the assistance from the following people: Carlos Alberdi, Gayle Allard, Glynis Andrews, José María de Areilza Carvajal, Alfonso Armada, Mario Armero, Miguel de Avendaño, Whitney Baird, Rafael Bardají, Eva Barrionuevo, Fabia Buenaventura, Álvaro Calleja Crespo, Óscar Calvo-González, Manuel de la Cámara, Emilio Cassinello, Peter Cheek, Leslie Crawford, Reginald Dale, Thomas Dauterman, for copiously editing the manuscript, Guillermo de la Dehesa, Lorenzo Delgado, Francis and Patricia Dobbs, Juan Manuel Egea, Carlos Fernández-Lerga, Humberto Figarola, Richard Figueroa, Manuel Flecha, Emilio García, Jacinto García- Díez, Eduardo Garrigues, Richard Gillespie, Carmen González López-Briones, Sarah and Diana Graizbord, Fernando Gutiérrez Junquera, Inmaculada de Habsburgo, Lloyd Hand, Gonzalo de las Heras, Santiago Íñiguez, Silvia Iranzo, Gabriel Jackson, Harold James, John Law, Florencio López Navarro, Carlos Malamud, Edward Malefakis, Jaime Malet, José María Marín Quemada, Ángel Martín Acebes, Jesús de Miguel, José Morales, Edward Mortimer, Antonio Muñoz Molina, Alberto Nadal, James Nealon, Robin Niblett, Andrés Ortega, Jaime Otero, María Jesús Pablos, Rafael Pampillón, Rosa Pardo, Sofía Pérez, Mary Jean Riley, Laura Rohan, Sebastián Royo, 6 SPAIN AND THE UNITED STATES Xavier Ruiz, Aitana Sánchez Gijón, Ignacio Santillana, Raúl Santoro, Fidel Sendagorta, Eduardo Subirats, Julio Tascón, Gabriel Tortella, Carolina Turba, Laura Turégano, José Luis del Valle, Fernando Vallespín, Tunku Varadarajan, Jim Wilson, Stephen Wright and Juan Antonio Yáñez-Barnuevo. My youngest son, Benjamin, helped to prepare one of the appendices, and his brother, Tomás, came to the rescue when I got myself into a muddle on the computer. I would like to thank Antonio Garrigues for inviting me to speak at the 10th anniversary meeting of the Spain-US Council in Seville. I would also like to acknowledge the generous assistance provided by the King Juan Carlos I of Spain Centre at New York University, which invited me to the Centre so that I could conduct some research in the United States. Lastly, the following people read all or parts of the book and made comments: Javier Rupérez, Spain’s ambassador to the United States (2000-2004) under the second government of the Popular Party; Carlos Westendorp, the current ambassador to the United States under the Socialist government; Tom Burns; Jaime Carvajal; Mauro Guillén; Paul Isbell, Elcano’s Senior Analyst, International Economy; Manuel Moreno; Charles Powell, Elcano’s Assistant Director of Research and Analysis; Lidia del Pozo and Luis de Velasco. Last, but not least, it was a pleasure to work again with Pilar Tena, Elcano’s Assistant Director for Institutional Relations. WILLIAM CHISLETT, Madrid, Buendía and New York, October 2005 [email protected] CONTENTS Preface ................................................................................................................................................................................................................................................ CHAPTER 1. Overview ............................................................................................................................................................................................... 1. From out in the cold to a place in the sun ........................................................................................................... 2. The 1953 bases agreement: a marriage of convenience ................................................................. 3. The impact of US aid on the economy in the 1950s ........................................................................... 4. The advent of US-style business schools in Spain ................................................................................. 5. US investment in Spain, 1950-70 ..................................................................................................................................... 6. The Fulbright Programme ............................................................................................................................................................ 7. The US role during Spain’s transition to democracy, 1970-82 ........................................... 8. The watershed 1988 bases agreement ........................................................................................................................ 9. Relations with the United States, 1988-96 ......................................................................................................... 10. From faithful ally to preferential friend, 1996-2004 ........................................................................... 11. A new phase in US-Spain relations ............................................................................................................................... CHAPTER 2. The US Players in Spain ......................................................................................................................................... Some US companies in Spain ................................................................................................................................................ CHAPTER 3. The Spanish Players in the United States .............................................................................. 1. Some of the main Spanish companies in the United States ..................................................... 2. Spanish banks in the United States ................................................................................................................................ 3. Spanish patents registered in the United States .......................................................................................... CHAPTER 4. Foreign Trade .............................................................................................................................................................................. 1. The Spanish language, an exportable asset ....................................................................................................... 2. Brand image ....................................................................................................................................................................................................... 3. Imports from the United States ............................................................................................................................................ CHAPTER 5. The Hispanic Community in the United States ........................................................... 8 SPAIN AND THE UNITED STATES CHAPTER 6. Cultural Relations, Image and Anti-Americanism ............................................... Image and anti-Americanism .................................................................................................................................................. CHAPTER 7. Looking Ahead ........................................................................................................................................................................... APPENDICES APPENDIX 1. Classification of US Companies in Spain, by Sector ...................................... APPENDIX 2. Classification of Spanish Companies in the US, by Sector................... APPENDIX 3. Net Foreign Direct Investment in Spain, by Selected Countries, 1993-2004 ............................................................................................................................................................................................................................