Foreign Relations of the United States: Diplomatic Papers, 1944, Europe, Volume IV

811.20 Defense (M) Spain/1275: Telegram

The Secretary of State to the Ambassador in Spain (Hayes)

Washington, March 24, 1944—midnight.

815. 1. Since despatch of our 764 of March 18, the British Embassy has left with the Department an aide-mémoire⁷⁹ to the following effect:

(a) The British Government has been ready to support fully our request for a total wolfram embargo so long as it did not prejudice essential British requirements in Spain and we did not run the risk of finally losing or indefinitely postponing the obtaining of satisfaction on our other demands;

(b) If the present impasse continues we may risk losing satisfaction of those demands and, in addition, the Germans may possibly obtain 700 tons of wolfram now on the frontier and British purchases of iron ore, potash, etc. may be threatened because of lack of funds which are dependent upon the goodwill of the Spanish and exports to Spain;

(c) The British Government does not believe that a prolongation of oil embargo or even the imposition of additional sanctions will gain us an effective long-term wolfram embargo, and consequently a short-term agreement should be sought, covering the next few months, after which we could review the situation in the light of the then existing political and military situations;

(d) As the cause of the impasse is the Spaniards’ promise of 209 tons more of wolfram to the Germans, the basis of the agreement would be to hold up deliveries until later in the year, regarding the 300 tons already delivered as covering the first half year and we agreeing that, if the Spanish Government gives assurances that no further deliveries will be made until July or August, we will resume petroleum shipments.

2. The British proposal is of course a variation of our previous position which would have permitted a resumption of loadings in return for a minimum 6–month embargo. The proposal also envisages the possibility of agreeing to the shipment of 100 tons in the next few months and although it does not specifically say so, possibly being forced to condone shipping the balance of 209 tons later in the year. The Department appreciates the British need for iron ore, potash, etc. and is therefore willing to consent to a variation of the original proposal, but only upon certain express conditions. Without such conditions and without making our ultimate position entirely clear, the Spaniards might be led to doubt our intention to maintain a strong line in the future. This is particularly so in light of the fact that we would seem to be giving in to Spanish counter-pressure, for the offer would be made at a time when the Spaniards have refused us export permits for cotton textiles and are apparently making it difficult for the British to obtain the necessary exchange for supply purchases.

3. The British Embassy is telegraphing our views to London. If your British colleague receives similar instructions, you are authorized to join with him in approaching the Spaniards along the lines of the following paragraphs 4 and 5.

4. Subject to supply considerations, we will authorize the resumption of petroleum shipments at the previous program rate, provided

(a) the Spanish Government assures us that it will, and in fact does, take effective steps to prevent wolfram in any form or manner, whether by smuggling or otherwise, from going to the enemy at least until after July 31;

(b) the Spanish authorities promptly and effectively meet us on our other demands, such as the withdrawal of the Blue Division and other Spanish troops opposing United Nations forces, the closing of the Tangier Consulate and the expulsion of German agents, the suppression of German espionage and sabotage, and the release of the Italian ships;

(c) the Spanish Government assures us that it will make available the necessary facilities to enable us to purchase in Spain and to export materials of the types we have been purchasing in the past;

(d) there are no further breaches of existing export restrictions or prohibitions, such as the recently reported shipment to Hungary of woolen textiles containing 12 per cent cotton;

(e) Consumption of petroleum products by the Spaniards shall be at rates comparable to imports;

(f) it is clearly understood by the Spaniards that we are making no commitment concerning petroleum shipments subsequent to July 31.

5. During the period ending July 31, we are prepared to discuss with the Spaniards an enlarged trade program which would be mutually beneficial. Pending negotiation of such a program, however, the Spaniards should be cautioned against making any commitments to the Germans as such commitments would doubtless have a most serious effect upon the results of the negotiations and our general attitude.

6. FEA places wolfram at the very top of the list of important German raw material shortages and it is our view that every effort should be continued to prevent even small quantities going to Germany. For this reason and to prevent a very serious possible incident, we consider it particularly important that the German stocks be removed to safety, as pointed out in our 730 of March 16. For your information and for such use as you in your discretion care to make of it, it is the Department’s intention to suspend petroleum and probably other shipments if the Spaniards permit any wolfram to go to Germany even after July 31. We can foresee no occasion for agreeing to a solution which would permit the 209 tons going to the enemy. In this connection, we can find no record of Jordana’s previous advice, as reported in your 792 of March 7, that Spain had agreed last August to supply Germany with as much wolfram as the status of the Spanish-German clearing would permit, and we doubt very much that any such commitment was made. In fact Jordana’s recent advice to you to the effect that the use of German funds was subject to Foreign Office consent would seem to negative any such preexisting commitment.

7. With respect to point (d) of your 938 of March 16,⁸⁰ we will not make up for suspended petroleum loadings. Spain’s point that she should not be penalized by reduced petroleum imports when she has maintained an embargo is frankly not very impressive, particularly in face of the fact that considerable shipments of wolfram have gone to Germany since our demand last fall for a complete embargo.

8. Prior to receipt of the British aide-mémoire, the Department had prepared the instruction referred to in its 764 of March 18 for the purpose of suggesting a possible new approach which might break the present deadlock. The British representatives here argued against making the approach suggested in that instruction at the present time, saying they felt it in fact offered nothing sufficiently beneficial to the Spaniards to obtain their agreement and they therefore feared that the Spaniards would cease trying to reach an immediate agreement and might permit the wolfram on the frontier to go to the enemy. We do not agree with the British view, but because of their strongly expressed supply interest, we agreed to the proposal set forth in paragraph 4 of this telegram. However you may consider that this proposal will be undesirable or unacceptable and therefore we are sending for your consideration and comments by following telegram a somewhat modified form of the instruction we had originally prepared.

9. As stated in your 938, the U.S. and U.K. must act in full accord on this matter. Dependent upon your British colleague’s instructions, you are authorized to approach the Spaniards either (a) in accord with the proposal set forth in this telegram, or (b) along the lines of our following telegram, or (c) by combining the two approaches and pointing out that the proposal in our following telegram indicates the general framework within which we would expect ultimately to negotiate.

Repeated to London as Department’s no. 2270.

Hull

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