File No. 763.72/11097
The Ambassador in Spain ( Willard) to the Secretary of State
[Received August 26, 2.14 p.m.]
1725. Embassy’s 1708, August 22, 2 p.m. On 22d instant German Ambassador had second long conference with Minister for Foreign Affairs. On following day British Ambassador had conference with Minister for Foreign Affairs who informed him as follows: That German Ambassador when first informed of policy decided upon by Spanish Council of Ministers stated that Germany must consider such seizure of any German vessels as a hostile act and that war would follow. However, at second interview when German Ambassador recognized determined attitude of Spanish Government he suggested that when Spanish boats were sunk by German submarines negotiations should be at once instituted looking to monetary settlement. Minister for Foreign Affairs replied that Spain did not desire money in return for ships sunk but must have ships, that Spain could no longer permit the sinking of her ships and killing of her citizens engaged in legitimate commerce. German Ambassador then suggested that Germany by means of safe conducts would permit Spanish boats to engage in transporting to Spain those articles necessary for her economic life, but iron ore from Spain to England was contraband and was used eventually for killing German soldiers and that therefore Germany could not permit this commerce. Minister for Foreign Affairs replied that iron ore under discussion was given in exchange for coal and other commodities which were essential to Spain’s economic life and to the livelihood of her citizens and could be obtained in no other way, that Spain did not recognize Germany’s right to dictate what was contraband of war nor to designate what was a prohibited zone upon the high seas and that in conclusion he, the Minister for Foreign Affairs, could not permit his notification of Spain’s determined policy to be turned into the beginning of general negotiations concerning such policy.
Minister of Foreign Affairs stated to British Ambassador that his impression was growing that Germany would not break off diplomatic relations with Spain as he had at first thought. German Ambassador left San Sebastian for Santander morning of 23d instant for purpose of seeing President of Council of Ministers and His Majesty in the apparent hope of changing their determination concerning policy under discussion. Embassy is informed that both parties to whom reference is made will firmly support statements of Minister for Foreign Affairs, hence each will inform German [Page 1719] Ambassador that position taken by unanimous action of Council of Ministers cannot be changed.