711.52/423: Telegram
The Ambassador in Spain (Hayes) to the Secretary of State
[Received April 22—10:45 a.m.]
1391. It seems to me, as it doubtless does also to the Department that a split between the United States and Britain on the subject of Spain should be avoided if there is still any possibility of agreeing with the Spaniards on a formula which would satisfy all of us.
The Spanish position in simple terms is that Spain made an agreement with Germany under which Germany has already supplied Spain with valuable materials for which Spain has not yet paid. Spain wishes for understandable reasons not to be obliged to tell the Germans [Page 395] that she declines to pay for materials already received under the agreement.
The British want a prompt agreement because they fear that if agreement is delayed large quantities of wolfram will go to Germany and they wish to insure for themselves continued supplies of iron ore and potash from Spain. They feel that if prompt agreement is not reached these supplies will be cut off probably through lack of funds with which to purchase them.
Our position seems to be that following your excellent address on foreign policy in which you made clear our position that neutrals should not unnecessarily prolong the war and add to Allied casualties by supplying strategic materials to Germany, you do not wish to make an agreement with Spain which will provide that Spain may ship specific quantities of wolfram to Germany.
Before final decision should be made for the United States to abandon its economic program in Spain and allow Britain to carry on trade with Spain without us, I believe that the following proposal should be given consideration in the light of the position of the three countries involved as set forth above.
On pages 1 and 2 of the minutes of the first meeting of the technical committee on wolfram transmitted with my despatch no. 2262 of March 315 there is recorded an exchange of views between Ackerman and members of the Committee regarding the possibility that petroleum shipments might be resumed during the life of the temporary wolfram embargo.
My proposal is this:
To tell the Spaniards frankly that we cannot now make any agreement with Spain involving the shipments to Germany of any amount of wolfram no matter how small.
To express understanding at the same time of Spain’s reluctance to tell Germany that no further shipments of wolfram to Germany can be made.
To agree with the Spaniards to resume shipments of petroleum products and to maintain them so long as the present embargo on wolfram exports is maintained.
To make clear to the Spaniards that what we have in mind is that the temporary embargo shall be maintained pending a definitive agreement, and that should any quantities of wolfram be allowed to go to Germany prior to the conclusion of such definitive agreement, petroleum shipments would again be stopped.
To insist that our other requests with which Spain has promised to comply upon the solution of the wolfram question will be carried out promptly.
There would be a delay of some 45 days after Spanish acceptance of [Page 396] such a proposal before petroleum could arrive in Spain. If Spain should accept the proposal the temporary embargo would then in fact have been extended an additional month and a half beyond date of acceptance which would carry it up to the middle of June at least. The first 6 months of 1944 which I have been given to understand are vital would therefore have substantially been covered.
It may be that the Spaniards would not accept this proposal but discussing it with them would have the advantage of further extending the temporary embargo with the probability that military operations in the meantime would make the Spaniards more anxious eventually to reach a definitive agreement on our terms.
I have not discussed foregoing proposal with British Ambassador. If it should meet your approval I suggest it be presented to London as your proposal.
I should be pleased to receive your reaction.
Repeated to London for Under Secretary and Matthews5a only.