711.52/339: Telegram

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

389. My 377, February 3, 6 p.m. I suggest plan of Minister of Foreign Affairs, as modified below, be agreed to:

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Spanish Foreign Office will agree in advance that:

Italian warships will be released promptly.
All but two Italian merchant ships will be released promptly, Spain to have the use of the remaining two under terms to be agreed upon.
Licenses for export of wolfram to Germany will be withheld for at least one month pending outcome of negotiations for a wolfram embargo.
German Consulate in Tangier will be suppressed and German espionage and sabotage agents will be expelled from Tangier and Spanish Morocco. German espionage activities in Peninsula Spain will be energetically suppressed and agents engaged in such activities will be expelled.
All remaining Spanish soldiers will be withdrawn from Germany and German-occupied territory. After assurances are received from Foreign Minister that foregoing will be carried out, the Secretary will make a statement such as suggested by Jordana, possibly in reply to a question at a press conference, the statement later to be issued as a press release.

Petroleum shipments to Spain will be resumed. I shall make clear to the Foreign Minister that they are likely to be suspended again if the commitments are not satisfactorily carried out or if satisfactory agreement concerning wolfram is not reached and I shall warn him that if they are again suspended the resulting situation will be more serious than the present one.

British Embassy agrees.

Urgent reply requested.