852.51/546
Memorandum of Conversation, by the Acting Secretary of State
The British Ambassador7 called to see me this afternoon.
The Ambassador gave me a message from the British Government on the question of the policy which might be pursued by the British and the American Governments regarding economic assistance to Spain which reads as follows:
“His Majesty’s Government are anxious to put forward more strongly than hitherto the case for joint Anglo-American (and perhaps Portuguese) help for Spain. They feel that in present state of Spanish affairs it is essential to strengthen their friends and isolate Minister for Foreign Affairs in every possible way and as soon as possible and they feel that everything practicable should be done to create an economic bloc in the Western Mediterranean independent of the German continental system.
His Majesty’s Government are about to conclude agreement to provide Spain with credit of £2½ million and this agreement will also make some £2¼ million available to Spain from Anglo-Spanish clearing. Taken together these two sums should enable Spain to buy all the requirements she needs from sterling area or can buy with sterling in other countries during the next three months. But to cover her urgent requirements of raw materials Spain will need at least £3⅓ million (plus £1¼ million for oil) to spend in the United States.
His Majesty’s Government feel that the most useful help the United States could give would be to facilitate the supply of raw materials such as cotton, to send out a number of American experts and businessmen to counteract German influence and hold out hopes of future economic cooperation, and to grant Spain a credit. His Majesty’s Government make the following suggestions as to the practical methods whereby the United States Government might implement such a policy:—
- (a)
- Make a public declaration that the United States Government are ready to join His Majesty’s Government in making food and raw materials available for Spain (it is hoped that Portugal would also make a similar declaration).
- (b)
- A credit to be offered confidentially to Minister of Industry and Commerce8 (not to Minister of Foreign Affairs) to finance purchases in United States.
- (c)
- 100,000 tons of wheat to be made available at once in United States ports.
- (d)
- Up to 200,000 tons of sulphate of ammonia to be made available for Spain.
- (e)
- United States experts and purchasers to visit Spain.
His Majesty’s Government have also various other suggestions to make, such as that Spain should be encouraged to trade with French North Africa (if a rationing agreement is made with that area) and everything is of course conditional on guarantee that Spain is not to re-export these supplies.”
I told the Ambassador that I would be glad to give consideration to this message which was along the lines of conversations which Ambassador Weddell had had with Sir Samuel Hoare9 in Madrid, and that I would be glad to let him know as soon as the Department of State had crystallized its opinion on this subject.