711.52/402a: Telegram
The Secretary of State to the Ambassador in Spain (Hayes)
936. In response to the Prime Minister’s appeal86 we are now agreed to recede from our demand for a complete embargo on wolfram exports to Germany. We have agreed with the Embassy here that the instructions to you and to Sir Samuel Hoare should be identic. The instructions given below have been submitted to London for its approval. As soon as Sir Samuel Hoare has received his instructions from London we hope that you will have early opportunity for discussions with the Spaniards and that early agreement will be possible. The agreed upon instructions are as follows:
For the purpose of reaching an early agreement with the Spanish with regard to wolfram we are willing to accept a settlement which provides for (1) the continuation of the present temporary embargo until at least the end of June but preferably a longer period if possible; (2) a maximum export for the whole of the year 1944 to a figure not to exceed 600 tons which shall be inclusive of the 300 tons exported in January. The 300 tons thus remaining to be exported shall be limited to monthly installments over the second half of the year; (3) effective and comprehensive steps to prevent smuggling. Such steps might include measures for the reduction of production and the restriction of issue of “guias”. In the event of evidence that wolfram has been smuggled to the Axis such amounts thus smuggled shall be charged against legal licensed amounts.
We will undertake in return for such an agreement on the part of the Spanish to permit shipments of oil in so far as consumption is at rates comparable to imports. However, we are not prepared to enter into any commitments regarding purchases in Spain or increased supplies to Spain. Once a settlement has been reached we will [Page 378] be prepared to give consideration to such proposals as the Spanish may wish to present.
If spaced evenly over the 6 months’ period the proposed maximum total figure of 600 tons for 1944 less the 300 tons already exported would thus represent 50 tons per month. It is felt that the utmost pressure should be put on the Spanish to accept an agreement which will in fact continue the existing embargo at least through the month of June. Every effort to obtain Spanish agreement to a figure involving a total export for the present year substantially below 600 tons should of course be made. We attach particular importance to this point because whatever figure we accept from the Spanish will tend to become a yard stick by which the Portuguese will measure their exports to Germany.
The above paragraphs relate only to the problem of exports of wolfram. Any settlements involving resumption of oil shipments must, it will be clearly understood, include full compliance by the Spanish with our other demands and an undertaking on the part of the Spanish to make available to the United States and to the United Kingdom all necessary facilities for the purchase of Spanish materials.
In the concluding phases of these negotiations I feel that it will be helpful to you to have someone from the Department who has been actively participating in this end of the work. I am, therefore, sending W. Perry George, Assistant Chief of the Division of Western European Affairs, to Madrid at once. It is hoped that he can arrive by the end of the week. It will be appreciated if the Embassy can arrange appropriate hotel accommodations for Mr. George.
- Message 631, March 30, 1944, not printed.↩