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U. S. EMBASSY IN MADRID WASHINGTON, D. C, April 22 The new American embassy in Spain will be located at Madrid, rather than Burgos, which has been the seat of the government of General Francesco Franco, the state department revealed today. Following appointment by President Roosevelt of Alexander W. Wed-dell, U. S. envoy to Argentina, as the new ambassador to Spain, the state department today rushed plans for early completion of the embassy staff. Robert M. Scotten, of Detroit, who has been counsellor at Rio de Janeiro, has been assigned as counsellor of embassy at Madrid. .