Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

711.56352/1–2453: Telegram

No. 879
The Secretary of State to the Embassy in Spain¹

secret

Washington, February 17, 1953—7:23 p.m.

627. USNEG. With following comments, agree to course of action recommended urtels 562, 563,² and 572³ (repeated Paris 118, 119, and 121):

1. Following telegram⁴ contains redrafted text of “Military Facilities Agreement” together with our comments on changes made. You are instructed to present this text to Spanish Government, unless you should perceive some overriding objectives or questions re our redraft. (Our position regarding signature such document, if agreement reached on these terms, remains as indicated in Deptel 454.⁵)

2. Note to Foreign Minister⁶ with which you propose transmit foregoing text approved with following changes:

a) View changes we have made in agreement, last sentence second paragraph of note should be appropriately modified;

b) First part of paragraph five should read “I might point out, however, that the mentioned statement is an honorable and sincere expression of intent by the United States which sets forth the basis of our plans for continued aid to Spain over a period of years. It is already being carried out by the appropriations which Congress has already made for assistance to Spain. Also, on the assumption mentioned in my communication to you of October 7 that mutually satisfactory agreements would be concluded in time, the President’s 1954 budget message, which was presented to the Congress on January 9, 1953, by the prior administration, contained an estimate for foreign aid which took into account potential requirements for aid to Spain.”

3. Referring to foregoing, you should advise Foreign Minister separately by personal letter⁷ or by informal memo, in substance as follows:

Provision for potential requirements for aid to Spain, in foreign aid estimate contained in Federal budget of January 9 submitted by prior administration, was based on assumptions mentioned in October 7 [6]⁸ memo that mutually satisfactory agreements would be concluded in time to permit suitable provision for such assistance to Spain in FY 1954 budget. This also assumed, of course, there would be time to permit obligation of funds previously appropriated for implementation of mutually agreed assistance programs. However, if, owing to time factor, it becomes impossible to obligate in FY 1953 some or all of these funds for mutually agreed assistance programs, inevitable result is to increase amount of funds to be carried over into FY 1954 with resulting probability that new funds which would be required and could be justified to Congress for aid to Spain in FY 1954 would be correspondingly reduced. Consequently, as time passes without completion three agreements it proves increasingly difficult to provide for aid in next fiscal year. Federal budget and detailed justification for estimates it presently contains now under active study by new administration and will be presented soon to President for his approval before it is submitted to Congress. Time factor is thus of the essence, as October 7 memo indicated.

4. We fully support proposal⁹ to transfer to military aid $8 to $12 million of $88 million, presently earmarked for economic aid. In fact would be pleased to firm up division with $50 million for military aid, $75 million for economic aid. Suggest you do whatever you can in your discretion to encourage Spaniards along this line.

5. FYI only, we are not, however, in a position to tell Spaniards anything re budgetary provision for aid to Spain in FY 1954, beyond statement in your draft note mentioned paragraph 2 above. Entire budget now in early stages of review by new administration and impossible to judge at this time what revisions may be made which will affect Spain. Your recommendation this regard will be considered when these circumstances permit.

Dulles

1. Drafted by Dunham and cleared with Rogers, Bonbright, Byington, and Matthews of the Department of State, Arth of DMS, DePaul of MSA, Nelson of the Bureau of the Budget, and Admiral Smith of the Department of Defense. Repeated to Paris.
2. See Document 876.
3. Document 877.
4. Telegram 628 to Madrid, Feb. 17, contained a draft base agreement designed to overcome the difficulties presented by the Spanish insistence in the Dec. 23 counter-draft (see Document 876) on the “parallel development” and “prior consultations” provisions. (711.56352/2–1753)
5. Dated Dec. 22, 1952, telegram 454 authorized the American negotiators to sign the military aid and economic aid agreements prior to the completion of the base agreement, provided that the “basic minimum essentials of our military requirements” had been met in the provisions of the base agreement. (711.56352/12–652)
6. In telegram 563 (see Document 876), MacVeagh presented a proposed draft reply to the letter handed Kissner by Vigon on Jan. 14; see Document 885, for the text of this reply as finally delivered.
7. Document 885.
8. See the enclosure to Document 871.
9. See Document 877.