811.20 Defense (M) Spain/1237: Telegram
The Ambassador in Spain ( Hayes ) to the Secretary of State
[Received January 27—2:22 a.m.]
241. Last evening the British Ambassador addressed a note to Foreign Minister, the substance of which is that in recent conversation regarding wolfram the latter had stated no decision had been reached by Spanish Government as to the allocation of the pesetas to be placed at disposal of the German Government and that wolfram would be one of the principal questions which the British Ambassador would discuss with General Franco during the expected interview on Friday next.24 While awaiting an answer to the British and American notes, the Ambassador learned to his consternation that a contract was to be signed today for the sale of the total of this year’s output of the Santa Comba mine, about 120 tons monthly, to the German Government. The Ambassador stated he felt certain that the Minister would agree that if such a contract were to be signed, any attempt the Ambassador might make to avoid a most serious crisis between Spain and Great Britain would be doomed to failure. See my 236, January 26, 1 p.m.25
The British Ambassador is to see the Foreign Minister this evening. I am seeing the Minister tomorrow.