811.20 (D) Regulations/6014a: Telegram
The Acting Secretary of State to the Chargé in Spain (Beaulac)
122. The following memorandum will be given to the Spanish Ambassador in Washington in the immediate future. You may informally communicate its contents to the Spanish Government, emphasizing that this export of petroleum from the United States at the present time is a recognition of essential Spanish need and indicative of our wish for responding to it; for, as the Spanish authorities will understand, any movement of petroleum from the United States which [Page 280] by any form of accident or change in military circumstance could be of assistance to our enemies is a matter of utmost moment to us.
We hope to make headway with our program of purchase of Spanish products useful to our own defense effort and also in consideration of other Spanish needs.
“The Department refers to the communications between this Government and the Spanish Government setting forth the basis of the understanding reached as regards interchange of products, particularly the proposals set forth in the Department’s Aide-Mémoire of January 13, 1942,30 and the reply of the Spanish Government in the memorandum of the Spanish Embassy dated January 28, 1942.
It is understood that both Governments are ready to proceed with the arrangements contemplated. The United States Government, through its Embassy in Madrid and through the special representatives that will be sent to Spain for that purpose, will shortly begin discussions with the Spanish Government with the aim of acquiring desired Spanish products the movement of which to the United States the Spanish Government has promised to facilitate.
The United States Government has given further consideration to the movements of petroleum products to Spain during the 3-months’ period from February through April 1942—which may be regarded as a 3-months’ trial operating period. It proposes to make available to Spain the following quantities of petroleum products:
| Gasoline | 25,000 metric tons |
| Kerosene | 1,000 metric tons |
| Gas oil | 20,000 metric tons |
| Fuel oil | 14,000 metric tons |
| Lubricating oil | 3,000 metric tons |
As a first step in the execution of the understanding, cargoes of gas oil to a total of 12,400 tons were furnished to the tankers Campilo and Campuzano, and these quantities are included in the above totals.
The release of each shipment of the petroleum products above enumerated will be made through the existing export license procedure and will be spread over the period according to requirements as indicated by information which the Spanish Government has agreed to make available to the representatives of this Government (as specified in paragraphs 3, 4, 5 and 6 of the Aide-Mémoire of January 13, 1942) and other pertinent considerations contained in the memoranda that nave been exchanged.
It is essential for the execution of the program that all information required by this Government to possess a full understanding of the Spanish petroleum, position at all times and places will be provided, and that the Spanish authorities will make that information available.
It is, also, understood that the Spanish Government undertakes that no petroleum products will be exported from continental Spain or other Spanish territory except to another destination in continental Spain or other Spanish territory, or made available, directly or indirectly, or in any form, for the use of shipping, aviation, or other [Page 281] activities of any other country—except as requests might be made by American or British interests. To this end it is expected that the Spanish Government will enforce all police and other measures that may be necessary to prevent any possible use to the contrary.
The program of supply summarized above for the period February through April does not contemplate the movement of any crude inasmuch as this Government does not deem itself in possession of satisfactory information regarding the type of product produced in the refinery of Tenerife, the quantities of products held by that refinery, and the disposition of the products in that refinery during the past several months. It furthermore is of the opinion that the information furnished up to the present regarding the supply situation in Spanish Africa is incomplete and inadequate. In accordance with this decision, the Government has replied to inquiries regarding Spanish tankers now in Colombia that there is no present prospect of release of cargoes of crude oil for these tankers, and there would therefore seem to be no point for these tankers to remain in Colombia; it has further suggested that in view of the fact that under the program being developed the necessary cargoes for Spain would be shipped from American Gulf ports, that these tankers might advisedly be ordered to proceed to Galveston. The Tropical Oil Company and the Standard Oil Company of New Jersey have been requested to provide, if Asked, sufficient bankers at Coveñas and Cartagena to enable these tankers to proceed to Galveston.
For the effective execution of the program, it is requested that the Spanish Government submit to this Government a schedule of tanker movements which would be designed to provide the necessary transportation of the products above scheduled at appropriate dates to permit arrangements to be made for the issuance of export licenses in a manner to minimize delays. It will be understood, however, that the provision of cargo for each tanker operation will continue to require a separate release on the part of this Government.
This Government trusts that the undertakings, of which this memorandum is a part, will operate satisfactorily and work for the mutual benefit of both Spain and the United States.”
Further immediate attention is being given to the establishment of a wholly adequate system of observation in Spain and Spanish possessions of the use and movement of petroleum products and when these organization plans have been worked out the Spanish Government will be Asked to give consent and assistance to them.