811.20 (D) Regulations/5692: Telegram

The Ambassador in Spain (Weddell) to the Secretary of State

65. Department’s 32, January 12, 8 p.m. Memorandum delivered to Under Secretary last night. It is hoped discussion will begin next week. Ackerman13 is on his way to Tangier to discuss petroleum stocks in northern Africa with dealers. Upon his return I hope to make specific recommendations.

Reference last paragraph your telegram. Spanish Government does not own any tungsten, is not authorized to sell tungsten, and therefore the suggestion with reference to tungsten is not practicable. Furthermore, I should prefer not to mention cork in this connection at least until after the departure of the Motomar now scheduled to sail for the United States from Seville on January 17 with 250 tons of cork. As an alternative we might propose immediate shipment of 6000 tons zinc and 10,000 tons [pyrites?]. In this event, however, the Spanish’ would be justified in inquiring what return cargoes these vessels could [transport;?] they are particularly interested in fertilizers, light tractors and sulphate of copper. Please instruct me whether these commodities can be made available and if not what other commodities.

With reference to the three methods suggested by the Department for obtaining Spanish materials for the United States, I offer the following alternative suggestion which has the merit of requiring a minimum expansion in our present staff and of utilizing to the greatest possible degree the extensive facilities of the British Embassy and of the United Kingdom Corporation: to require a commitment by the [Page 258] Spanish Government that it would eliminate all obstacles in the way of the exportation of materials to the United States and would take such affirmative action as might be necessary to facilitate the imperative strategic materials to the United States. Zinc concentrates, cork, olive oil and olives will continue to be acquired through existing trade channels. The various herbaceous roots can be acquired through existing channels, our Government undertaking to stimulate demand by ordinary purchasers in the United States. The United Kingdom Corporation might purchase for Great Britain or for the United States to be shipped directly or to be shipped via Great Britain, tungsten [garbled groups] mercury and possibly lead. Our Government would assign to this Embassy a competent business man familiar with trade methods in Spain to help to coordinate the work of this Embassy, the British Embassy and the United Kingdom Corporation and to stimulate production and sale of the various commodities in Spain. If the Department agrees with the plan I am prepared to recommend a person for this work.

In my discussion with the Spanish Government I intend to make clear that we expect there will be no decrease in current exports to the United States of Spanish products other than those mentioned in the Department’s 18, January 8, such as essential oils provided of course guarantee [of] such products continues.

One immediate difficulty in the way of carrying out the contemplated program is the shipping situation. I am informed in confidence by Under Secretary for Foreign Affairs that the German reply to Spain’s request that its vessels be allowed to trade with the [apparent omission] without molestation was equivocal and unsatisfactory and that the Spanish Government has asked for a satisfactory clarification. There is of course grave doubt that Germany will consent to permit Spanish vessels freely to carry contraband and I assume that the Department is considering what steps our Government would be prepared to take if such consent is not forthcoming.

Weddell
  1. Ralph H. Ackerman, Commercial Attaché.