711.52/203: Telegram
The Ambassador in Spain (Weddell) to the Secretary of State
[Received 11:10 p.m.]
879. My 873, October 1, 7 p.m. I called on the Chief of State this morning. He received me with the Minister for Foreign Affairs. The atmosphere was affable.
My remarks followed exactly the line of those contemplated in my 874, October 1, 8 p.m., as amended.
When I finished the Caudillo spoke at some length of Spain’s present difficulties in obtaining supplies easily available prior to the war referring specifically to wheat, cotton and gasoline as absolute necessities for his country.
He also mentioned Spain’s concurrent difficulties in securing the necessary exchange to pay for these. I interrupted here to again point out that my country had been hindered in its desire to purchase certain Spanish products of which there was an exportable surplus the acquisition of which would have provided foreign exchange, mentioning by way of illustration, zinc. To this the Caudillo seemed to have no reply. I added that the commodities he had mentioned were such as Spain could normally obtain in the United States but that if trade between our countries were to be on an equitable basis we must sell other products. I mentioned here to illustrate the exclusion of American typewriting and calculating machines and radios. Continuing I referred to the fact that over a full year no official statement concerning Spain’s economic needs had ever been made to me although with regard to gasoline I had of course learned of this from CAMPSA and through other informal channels.
The Caudillo remarked here that there were two channels open for communicating with my Government, my Embassy and his representative in Washington, and that the Department was informed through the latter. To this I could only reply that I was uninformed and added that it was to be regretted that having in mind this Embassy’s expressed [Page 929] desire to cooperate no use has been made by this Foreign Office of its service.
In discussing the general economic situation the Caudillo emphasized that if exporting countries such as the United States abandoned their usual export markets it would mean that in the long run substitutes would be found for many products and export outlets eventually closed forever. I answered that it was this sort of thing that made the contemplation of postwar peace problems so disturbing.
I then told the Caudillo I had another matter, one of some delicacy, to mention and that in this connection I was glad of the presence of the Minister for Foreign Affairs since it concerned an observation of his. I then recalled his statement of last Tuesday reported in my 873 of October 1, 7 p.m.,43 and made the statement proposed therein.
The Caudillo turned as if to answer me when the Minister stopped him with a deprecatory gesture and said that his remark was “not a threat but a reflection”; that the situation here resulting from the gasoline lack was extremely bad and was not alone provoking hostility but crippling transportation and that he thought my Government should be fully advised of this. I answered this by recalling my previous statements made to him on Tuesday and repeating those made at the beginning of the interview stressing especially that delays in supplying gasoline were due to administrative adjustments owing to restrictions on the exportation of gasoline for reasons of military defense.
In conclusion I asked the Caudillo if my assumption based on the informal statements and inquiries of his Minister of Industry and Commerce that the Spanish Government was interested in examining the possibility of improving commercial relations was correct to which he specifically answered in the affirmative. I then said that to give practical effect to this wish he would doubtless issue necessary instructions to the appropriate Ministry adding that since technical matters would have to be considered this would perhaps be the Ministry of Industry and Commerce. Replying, Franco said that instruction would go to the Foreign Ministry and be handled by its technicians.