811.20 Defense (M) Spain/412a: Telegram

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

1482. Your 1964 of December 4.1

The Department approves in principle the continuation of economic exchanges between French North Africa and the Peninsula and agrees that such exchanges should be related to our supply-purchase programs with the Peninsula.
The principal objectives to be sought from such exchanges are:
The removal from the Peninsula for consumption in North Africa of materials which might go to the enemy.
The removal from the Peninsula to French North Africa for transshipment to the US or UK of materials purchased by the US or UK or for their account and which cannot otherwise be lifted.
To cause goods manufactured in the Peninsula to be shipped to North Africa in an effort to relieve as much as possible demands on shipping from United Nations sources.
To employ our control over French North African produce to the best advantage in bargaining with Spain and Portugal in connection with the supply-purchase programs.
Although definite plans for accomplishing the above objectives have not been developed here as yet, it would seem definitely desirable that no separate negotiations be carried on either by Spain or Portugal with French authorities. Any such negotiations should preferably be with the US and UK representatives, following the pattern of the supply-purchase negotiations. Please telegraph your views on this point but do not discuss the matter with the Spanish or Portuguese authorities.
With respect to materials to go to the Peninsula, we are presently considering possibility of the US and UK undertaking to purchase entire exportable surplus of French North African produce. In such event, resales could be made to Spain and Portugal of such quantities of materials as the Combined Boards would allocate to [Page 3] them, subject of course to clearance with BEW2 and MEW3 on Economic Warfare grounds. If it is decided not to undertake the purchase of the exportable surpluses, it might possibly be arranged for either US or UK representatives to act as purchasing agents for the Spaniards and Portuguese. Please telegraph your views on this point, but do not discuss with the Spanish or Portuguese authorities.
In any event, the amounts of materials to go to the Peninsula would be subject to approval by the interested agencies here. So that the matter may be considered more fully, please telegraph us the following information:
What commodities the Spaniards have been obtaining from North Africa and in what quantities.
What commodities they wish to obtain in increased volume, and amounts.
What commodities and amounts Spain can supply to North Africa.
You will doubtless need to consult Spanish authorities to obtain certain of this information. Please do so, but do not make any commitments.
Reply to your queries on such items as rock phosphates, cereals and other products will be postponed until we receive a reply to this telegram. Please discuss this telegram with your British colleagues so that in your reply you can express your joint views and recommendations.
Please repeat this telegram and your 1964 to Lisbon, requesting Legation to take corresponding action and telegraph its views. Please also repeat to Murphy4 asking that he telegraph his comments.

Repeated to London from here.

  1. Not printed.
  2. Board of Economic Warfare.
  3. British Ministry of Economic Warfare.
  4. Robert D. Murphy, Chief Civil Affairs Officer at Algiers; United States Political Adviser on staff of Supreme Allied Commander, Mediterranean Theater; Personal Representative of President Roosevelt in North Africa.