811.20 (D) Regulations/5662: Telegram
The Ambassador in Spain (Weddell) to the Secretary of State
[Received January 10—4:45 p.m.]
37. Since November 21, (see my No. 977, November 22, midnight6) this Embassy has held no conversations with the Spanish authorities concerning details of the proposed program of economic cooperation in view of the Department’s desire expressed in its number 580, October 31, 5 p.m.,6 to conduct negotiations through the Spanish Embassy at Washington.
[Page 253]According to the Department’s telegram number 662, December 13, 7 p.m.,7 no conversations have been held with Cárdenas, except to request certain information from the Spanish Government concerning petroleum products, and I understand discussions of the broad program will not be initiated until the petroleum question has been settled. Meanwhile, so far as I can ascertain, since early in November our Government has suspended all permits for the exportation to Spain of petroleum products, and by reason of new restrictions against exports and the disruption of shipping services very few other products have been shipped to this country.
By this time the Department probably has been able to study the data contained in my despatch number 1342, December 23, 1941,8 and my comments thereon. By our airmail pouch, which left here December 31, there was transmitted a communication from the Foreign Office for Cárdenas, containing certification thereto. In the event this material is not sufficient to permit a decision to be taken, I would urge that the Department inform me just what is desired and I shall attempt to obtain and transmit it without further delay.
I feel certain that the Department has seen the hopelessness of securing quick action on communications, even the delayed material which might be obtained through that channel is unlikely to be wholly satisfactory. This condition will persist unless negotiations are transferred to Madrid, or until the Spanish Government sends properly authorized negotiators to Washington.
In response to its inquiry as to whether it may commence conversations with CEPAND [CEPSA?] and CAMPSA for the renewal of [apparent omission] for a navicert program covering the first quarter of 1942, the British Embassy here has been instructed by the Ministry of Economic Warfare to take no action until instructions have been received by this Embassy from the American Government to participate in such discussions.
Presumably this refers to supplies from Venezuela as well as from the United States although the British Government has granted navicerts for 3 cargoes of crude and 2 of fuel oil from Aruba. I have received no instructions from the Department in this connection.
The stock situation shown by the material submitted to the Department is extremely serious and if we are interested in preventing an even more chaotic condition from developing here we must give consideration to taking immediate steps. This would be in complete accord with the policy set forth in the Department’s 16, January 8, 4 p.m.9 As such conversations cannot be concluded in a few days, I [Page 254] consider it to be very desirable to begin them speedily for the purpose of establishing a factual basis which may be presented to the Department and to the British Government for consideration.
Meanwhile I would again urge the desirability of granting export permits for petroleum products for the tankers now at Port Arthur. Although in the above mentioned Department’s telegram number 662, it is stated there is no intention of placing an embargo against Spain, I understand that actually no permits have been authorized since early in November and that permits for gas oil have been refused for the Campilo and Campuzano which have been at Port Arthur since November 12. CAMPSA contends the need for gas oil is most pressing particularly because CEPSA has made available no supplies of this product since July and especially as the shortage has seriously interfered with fishing activities. For example, at Valencia there is now no gas oil. If, however, the Department considers it inadvisable to permit the export of the 12,000 tons requested, I suggest the advisability of immediate authorization of gas oil for the Campuzano and that I be authorized to suggest to CAMPS A some other product for the Campilo.
Will the Department please let me have its views.