711.52/360: Telegram
The Ambassador in Spain (Hayes) to the Secretary of State
[Received February 23—2:50 a.m.]
625. My 573 February 18, 10 p.m. Hoare states he has been informed by London that the three proposals made to him by Jordana are acceptable. Hoare plans to send a note to Foreign Office accepting proposal concerning Italian merchant ships namely that all except 2 will be released as soon as they are ready to sail and that the 2 will be held by Spain for its use under charter pending decision of their ownership through subsequent negotiation or arbitration.
I myself believe that we should hold out for release of the warships. While I cannot tell Jordana so without revealing the source of my information, I am familiar with the opinion of the legal advisers of the Foreign Office in sense that the warships should be released. The only compromise would be willing to recommend would be with reference to the timing of the release which I think might well be delayed for a month or so.
British Government considers that only problem remaining to be settled is that of wolfram. London informs Hoare that Prime Minister Churchill and President Roosevelt have been in communication with each other and that British are disposed to support our request for a total embargo. However what they really want is to stop further wolfram shipments to Germany for next 6 months regardless of whether or not stoppage is called an embargo and London tells Hoare it is making further representations to Washington in the matter.
My 601 February 21, 8 p.m. Hoare considers my conversation with Jordana yesterday marks a considerable advance in negotiations and that Jordana’s suggestion may be the basis of an agreement. I assume he will so report to his Government.