File No. 763.72/11009
The Ambassador in Spain ( Willard) to the Secretary of State
[Received August 16, 9.40 a.m.]
1677. Minister of Foreign Affairs has just stated to me that he had instructed Spanish Ambassador in Berlin to inform German Foreign Office on 16th instant that for each Spanish boat thereafter [Page 1717] sunk by German submarines, Spain will take possession of a German merchant vessel refugeed in Spanish ports. Minister of Foreign Affairs will tomorrow morning likewise inform German Ambassador in Spain. … Minister of Foreign Affairs expressed some fear that Germany may break diplomatic relations with Spain but admitted that this would be preferable to the conditions under which Spain is now living and that Germany’s constant and unwarranted sinking of Spanish merchant ships practically constituted a state of war. He added that Spain could never accept German safe conducts for her ships. He concluded by saying that as his policy towards Germany had been supported by the Council of Ministers he would for the present remain Minister of State.