811.20 (D) Regulations/5738: Telegram
The Secretary of State to the Ambassador in Spain (Weddell)
69. Your 108, January 24, 3 P.M. The Department believes that the response of the Spanish Government to the proposal stated in its No. 18 of January 8 offers a basis for further efforts toward the objectives therein stated. There still remains a considerable gap between the achievement of the objective, which was the actual movement of products of Spain to this country in return for movements from this side, and the present position, which is the agreement of the Spanish Government to accept the principles of the memorandum and the agreement to supply the materials mentioned. To bridge this gap requires the solution of many and important practical questions. It will take time and cooperative action of the Spanish Government to solve all of them. The Department does not propose to delay further movements from this side until all these matters are resolved, but it does take the position that there must be rough equality of performance on each side. It appreciates that Spain has shipped in the recent past iron pyrites and some cork but notes that no significant quantities of any of the products mentioned in our 18 have moved—for example, tungsten, olive oil.
In view of the cork shipments made and en route and upon the understanding that the Spanish Government will promptly arrange for the movement of the zinc and cork mentioned in your 108 this Government, subject to the security measures contemplated in the memorandum and referred to below, will release gas oil for Spain for the Zorroza from Aruba and the Campilo from Port Arthur. Before further movements of petroleum are permitted it is expected that the Spanish Government will have arranged the practical measures necessary for and have effectuated further movements of products listed. These measures will include (a) in the case of products which can be acquired by us through usual channels and by ordinary purchasing operations the removal of obstacles by the granting of licenses, etc., and assistance in arranging shipping and (b) in the case of other commodities for which we shall have to develop special purchasing arrangements, necessary assistance.
The security arrangements referred to above are those contemplated by the second paragraph of the memorandum and paragraphs numbered (2) and (3). In view of the state of war and the operation of enemy craft close to our shores we must insure that neither the petroleum obtained from this hemisphere nor any petroleum under Spanish control should find its way into enemy possession. This makes it essential (1) that we obtain from the Spanish Government most forthright and complete assurances contemplated by the memorandum [Page 267] that these petroleum products will be used wholly and solely by Spain and that the Spanish authorities will take all necessary measures of police or other character to guarantee this. There will be no objection of course to providing any of these products to the ships or agents of countries allied to us in this war. (2) That arrangements for American observation of the disposition of these products be effected immediately. For this purpose it may actually prove necessary to have an American observer accompany each of the foregoing cargoes to their ultimate destination and thereafter to have these observers working along with Spanish authorities to be kept completely informed of the use of these products.
At the same time, we would want to proceed with the development of the general scheme of report and observation that has been discussed in previous cables. These would require prompt and effective steps by the Spanish Government to furnish completely the information requested in our no. 18 of January 8 and to enable the observing by agents attached to the Embassy as described in the same cable.
In this connection, we have noted your report that the Economic Committee requests that only one such person be named by us. Obviously, this would fall far short of what in our judgment is required for the task and we will want to feel free to have as many agents as may be necessary.
We believe that it should be made clear to the Spanish Government that we are not prepared to release crude oil until we have complete assurance that gasoline produced therefrom will not go to Africa except as permitted under the regulatory procedure referred to in our no. 18 of January 8.
The Government is taking this step on the basis of the urgent plea of the Spanish Government and its great immediate need for these petroleum shipments and as a mark of its wish to make operative mutually useful trade. But if this is to be achieved, the Spanish Government will have to do anything necessary to make this a genuinely two-sided operation in which the return to the United States in the way of needed products from Spain has a real relationship to the usefulness to Spain of the products we may be supplying it.
Please telegraph at once whether Spanish Government has given the assurances and agreed to security measures referred to herein.