852.6363/822: Telegram
The Ambassador in Spain (Hayes) to the Secretary of State
[Received May 6—10:56 a.m.]
1174. 1. After lengthy discussion with the British Embassy, we are in agreement that it is of the utmost importance that decisions affecting the petroleum program should be based on the broadest considerations. I recommend that the British Ambassador’s telegram number 83530 should be carefully considered together with my various telegrams, particularly 1117, May 1.
2. In the economic field all of our forces are now being mustered to frustrate the attempts of the Axis to make up wolfram deficiencies by more extensive operations.31 During recent weeks we have been remarkably successful in our preemption and in obtaining export permits but to maintain this position we must utilize to the fullest all of our bargaining power and also our financial resources.
3. On the petroleum side measures of control which are in operation in Spain have effectively prevented leakage to the Axis. The only possible advantage from a reduction in supplies is the very indirect limitation which might be imposed on the contribution which Spanish economy could make to Germany by curtailing to the lowest levels economic life in Spain. This argument we consider to be unsound but in any event the damage which our position would suffer resulting from arbitrary limitations to a reasonable flow of supplies would be greater than any possible advantage which might be obtained.
4. As the program agreed to last December had the approval of the Combined Chiefs of Staff it is suggested that no modification of the program be made at least until the matter has been referred to the Combined Chiefs of Staff with a complete statement of the views submitted by the British Ambassador and myself.
[Page 685]The British Embassy is sending a parallel telegram to London which is being repeated to Washington as 118.32