Office of the Historian

811.20 Defense (M) Spain/1186: Telegram

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

Madrid, November 18, 1943—7 p.m.
[Received November 19—4:50 a.m.]

3398. Following is text of memorandum presented to Minister of Foreign Affairs today, mentioned in my 3399, November 18, 8 p.m.89

“In the course of a conversation between the Minister of Foreign Affairs and the Ambassador of the United States concerning the desire of the United States Government that the Spanish Government prohibit the export of wolfram to any destination, the Minister requested the Ambassador to submit a memorandum on the subject. The Ambassador now submits the following observations:

(1)
Under the economic program which governs current trade between Spain and the United States the Spanish Government agreed to sell to the United States exportable surpluses of Spanish commodities, and to transport certain of these commodities to the United States. The United States in turn agreed to make available quantities of certain specified American goods and other commodities controlled by the United States, notwithstanding the fact that many such commodities are urgently needed for domestic economy or for the direct war effort.
(2)
The total resources of the United States are directed to the primary objective of winning the war within the shortest time possible. [Page 657] Economic programs with neutral nations must contribute to that objective and the United States Government must examine such programs periodically to determine what modifications may be necessary in order to accomplish this end.
(3)
One of the principal commodities which the United States has purchased from Spain has been wolfram. The sums of dollars expended in the purchase of this commodity have attained such figures that the United States finds it necessary carefully to weigh whether it can also permit the entry into the United States of those other Spanish commodities which enter into traditional commerce, none of which are essential to the present wartime economy of the United States. So long as the volume of this traditional commerce was small, it did not seriously interfere with the program of wolfram purchasing especially as a part of the cost of such purchases was recovered from overprices charged on some of the commodities supplied by the United States.
Within recent months there has occurred a substantial increase in the volume of Spain’s shipments to the United States on non-essential commodities. The United States has hesitated to make effective wartime controls against the importation of these non-essential commodities. Imposition of such controls would adversely affect several branches of Spanish economy.
(4)
Were the United States to limit imports of traditional commodities from Spain so as to direct its primary attention to the purchase of wolfram, a sudden cessation of these wolfram purchases at a latter date would have a serious effect on Spanish economy. It should be borne in mind that Spanish wolfram is not required by the United States for its domestic economy or for the production of war materials. Therefore purchases of wolfram may be terminated at any time.
(5)
Foregoing considerations have prompted my Government to request that the Spanish Government prohibit exports of wolfram to all countries.
(6)
An immediate prohibition of exports of wolfram would make it unnecessary to restrict imports into the United States from Spain of non-essential products.
(7)
As such prohibition might otherwise diminish Spain’s purchasing power, the United States would be disposed (a) to study with the appropriate authorities of the Spanish Government the possibility of augmenting purchases of Spanish commodities which enter into traditional commerce between the two countries or of commodities which may be made available by Spain for the relief of [or] reconstruction of liberated areas and (b) to consider the removal of overpricing on petroleum products and other commodities of United States origin which are now being supplied through the U.S. Commercial Company.
(8)
The United States would be disposed also (a) to maintain present supplies to Spain and (b) to reexamine the possibility of increasing the quantities and types of materials which may be made available to Spain.”

Hayes
  1. Infra.↩