852.6363/889: Telegram

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

1411. 1. The interested agencies of this Government approve the importation into Spain of limited quantities of aviation gasoline for civilian airline use, subject however to the following conditions:

A.
The octane rating is to be no higher than 87.
B.
This gasoline is to be used only by the Iberia Airline for civilian purposes, unless other uses are specifically approved by us.
C.
Imports are not to exceed the rate of 320 metric tons per month, and stocks of aviation gasoline in Spain shall not exceed 640 metric tons at any one time.
D.
Specific allocations are to be made monthly by the Aviation Petroleum Products Allocation Committee in Washington.
E.
Supplies are to originate in the Netherlands West Indies, are to be shipped in Spanish vessels and, if moved in containers, the latter are to be supplied by the Spaniards.
F.
The Petroleum Attaché must be furnished with detailed monthly reports on all arrivals from any source consumption and stocks. In addition, he must be given full facilities to check by personal inspection and otherwise:
(1)
distribution of the aviation gasoline admitted into Spain;
(2)
subsequent allocation of supplies;
(3)
stocks of aviation gasoline wherever situated in Spain, whether in the hands of CAMPSA, of the Iberia Airline, the armed forces or elsewhere.
G.
Foreign operations of the Iberia Airline shall not be extended to the Canary Islands, Rio de Oro or elsewhere without first obtaining the express approval of the United States and British authorities.
H.
The Iberia Airline will not go into or pass over enemy occupied or controlled territory without our consent.
I.
The supply of aviation gasoline will be reconsidered if the Germans or Italians are permitted to influence the operation of the line or in the event the German share holdings in the line are increased.

2. In giving their approval to the supply of aviation gasoline to Spain, the Joint Chiefs of Staff have emphasized that before agreeing [Page 700] to the supply of the gasoline, the foregoing nine conditions must be accepted by the Spaniards.

3. In addition, the Department and the Joint Chiefs of Staff feel that it would be highly desirable to impose a tenth condition; namely, that no enemy nationals will be carried by the Iberia Airline from metropolitan Spain to Tangier or Spanish Morocco without the express approval of the United States and British authorities. It is agreed, however, that, since the Spaniards may have serious objection to the last stated condition, we might be prepared not to make it an absolute condition to supplying aviation gasoline. You are nevertheless requested to seek to obtain agreement to this condition.

4. In addition to the conditions set forth above, the Department and the Joint Chiefs of Staff consider that it is highly desirable that we seek to obtain from the Spaniards the following two concessions:

A.
Assurances from the Spanish Government that it will make every effort to arrange for the establishment of a direct airline between Spain and Switzerland, to be controlled by Spanish or Swiss interests and to be free to carry passengers and freight of interest to Spain and Switzerland;
B.
Landing rights in Spain for American commercial airlines as outlined in Departments telegram 1017, May 6, 1943, 10 a.m.

5. The Joint Chiefs of Staff have stated that the establishment of the line between Spain and Switzerland, although desirable, is not of sufficient importance to warrant making it a condition to the supply of aviation gasoline. The Joint Chiefs of Staff have stated, however, that every effort should be made to obtain the second stated concession; namely, the landing rights in Spain, etc. Your 1505, June 7, 1943, 5 p.m.,52 indicates Spanish are prepared to give favorable consideration to our request without linking it to the supply of aviation gasoline. Nevertheless, the rights are considered of sufficient importance to utilize the aviation gasoline as a bargaining weapon if necessary. Department is currently preparing a detailed reply to your 1505 which should go out within the next day or two.

6. From your 1539 of June 9,53 the Department understands that the only lines which Iberia will operate as a result of the supply of aviation gasoline will be (1) the line from Madrid to Lisbon; (2) the line from Madrid to Seville to Tangier; and (3) the line from Madrid to Barcelona. In the event the Spaniards wish to operate additional lines, please telegraph the Department as, in such event, we should wish to reconsider its position.

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7. As you doubtless know, the British have been most active in pressing for the approval of an aviation gasoline program, and the above conditions and terms of the program have been worked out with the British Embassy here. We therefore feel that the matter should be presented to the Spaniards jointly by you and your British colleague. We assume that he will receive identical instructions to these. As soon as he does, you are authorized to join with him in discussing the matter with the Spaniards along the lines set forth above.

Hull
  1. Not printed; in it the Ambassador reported that the Spanish Foreign Minister had informed him that the Spanish Government agreed in principle to the operation of an American airline in Spain and invited the United States to apply for authorization to establish such an air service (852.6363/889).
  2. Not printed.