852.6363/793: Telegram
The Secretary of State to the Ambassador in Spain (Hayes)
Washington, April 27,
1943—3 p.m.
958. Your 992, April 20, midnight; your 961, April 19, midnight; your 938, April 17; the Department’s 872, April 16, 3 p.m.; the Department’s 889, April 18, 10 a.m.; the Department’s 903, April 20, 1 p.m.18
- 1.
- With respect to the first paragraph of your 961, estimates prepared in the Department indicate estimated stocks of kerosene on May 1 at 3180 tons against 60 day inventory limit of 2200 tons and estimated stocks of lub oil on May 1 at 9621 tons against 90 day inventory limit of 9250 tons. Similar estimate of automotive gasoline stocks on May 1 is 25,628 tons. The Department has been using 25,000 tons as a stable inventory limit for this product, but is unable to find that employment of this figure instead of 35,000, which it is presumed the Embassy is using, has ever been communicated to the Embassy. On the assumption that it has not been so communicated, you are of course entirely correct in stating that the Department’s calculations were incorrect in so far as automotive gasoline is concerned.
- 2.
- The Department’s 889 of April 18 was dispatched in the midst of careful consideration by the Department and the Board of Economic Warfare of the wisdom of permitting at this particular time a substantial increase in the rate of receipt of petroleum importations into metropolitan Spain as compared to the rate of such receipts during the preceding 6 months. But the Department’s 889 was dispatched without reference to these general discussions going on here and on the basis that the estimates and inventory control figures used here required in any event a modification of the Spanish proposed nominations for the late April loading period.
- 3.
- The Department and Board of Economic Warfare have now decided that total importations of petroleum products into metropolitan Spain for the second quarter of 1943 should continue on the basis of approximately 100,000 tons per quarter, which has been the rate of importation in each of the past two quarters. Inherent in this decision is recognition that the importation of almost exactly 100,000 tons quarterly has enabled the Spanish Government during the past 6 months to maintain its domestic economy at a reasonable wartime level. As you have already pointed out in several despatches, including the Embassy’s despatch 655 of February 17,19 the operation of rail, truck and bus service has improved, motor car gasoline rations have been moderately increased and the internal food situation has been [Page 677] ameliorated. The proposal referred to above is being referred to the Joint Chiefs of Staff for consideration and the Department expects to be able within a few days to telegraph you the results of such consultations.
- 4.
- In as much as the loading schedule prepared by the Spaniards for the balance of the current quarter would result, if approved in toto, in receipts by metropolitan Spain of approximately 151,000 tons of petroleum products, it will be necessary to suggest to the Spaniards a revision in their proposed schedule of tanker sailings in the event that the Joint Chiefs of Staff concur in the Department’s and the Board of Economic Warfare’s decision referred to in the previous paragraph. By arrangement the Navy might limit the number of tankers loading in any loading period, thereby providing you with an explanation for the future rejection of specific nominations.
- 5.
- In view of the fact that a 541,000 ton annual figure or any other specific figure has never been revealed to the Spaniards, it is assumed here that there is no reason to believe that the Spanish authorities would interpret the contemplated restraint on their loadings as effecting any commitment on our part under the supply-purchase arrangements.
- 6.
- No change whatsoever in basic policy is involved or in contemplation. The rate of importation for the third quarter and subsequent periods will be considered in the light of the then existing situation. Review of and control over the supply of oil to Spain on virtually a day to day basis is the policy which the Department has been pursuing from the beginning of the program.
- 7.
- In view of the fact that the Remedios apparently sailed prior to your receipt of the Department’s 889, and in view of the further fact that you decided not to recall either the Campuzano or alternatively the Campana as requested in the Department’s 889, loading authorization for these tankers will be granted, in as much as their recall at this late date might, in the opinion of the Department, take on a mistaken significance in the Spaniards’ eyes. The Department wishes to point out, however, that in the event the Joint Chiefs of Staff concur in the proposed limitation of second quarter imports to 100,000 tons, a very extensive postponement of nominations for the late May and early June loading dates will be necessary as a consequence of the approval of the full schedule proposed by the Spanish for the early May period.
- 8.
- The British Embassy here, which has been kept informed of our discussions and decision, has not yet received final instructions in the matter from London. To date, however, they have expressed disagreement with any action which would reduce oil imports into [Page 678] metropolitan Spain during the second quarter to a figure lower than the 541,000 ton annual rate.
- 9.
- Your comments on this telegram together with any views which you may care to submit from Smith20 will be welcomed by the Department.
Hull