740.00112 European War 1939/5792: Telegram

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

752. My 746, June 18, 6 p.m. British Minister now says he did not intend to convey the impression that Orgaz was pro-German but said that Halifax had been instructed to say to the Department that we should not be too sure of Orgaz. British Embassy appears to be opposed to separate conversations with Orgaz principally because (1) it understands political commitments are to be demanded from Orgaz, and (2) because it understands the plan envisages balancing trade between Spanish Morocco and the United States. The British say they cannot subscribe to the principle of balancing trade with Spanish Morocco because Britain is importing 3 million dollars of iron ore along [alone?] from there annually. They say they have opposed the principle when suggested to them by authorities in Morocco.

Repeated to Tangier.