811.20 Defense (M) Spain/1305: Telegram
The Ambassador in Spain (Hayes) to the Secretary of State
[Received April 26—6:50 a.m.]
1432. For the Secretary, Acheson and Culbertson.13 My 1431 April 25, 6 p.m. Beaulac14 had a long conversation this morning with the Under Secretary for Foreign Affairs in which the following points were brought out:
It is under Franco’s instructions that Jordana is insisting on token exports to Germany prior to June 30.
Franco is quite willing to go along with us in effect but he considers himself obligated under the Spanish-German agreement not to continue the total embargo. He therefore insists on purely token exports prior to June 30.
According to the Under Secretary, Franco feels that Spain has already contributed importantly to United Nations victory. Soon after the North African landing he twice rejected Germany’s insistent demand for passage of troops through Spain. While he of course recognizes this was in Spain’s interest he maintains that the risk to Spain was very great and above all that his refusal to give in to German demands was of great military value to the United [Page 401] Nations. He feels very strongly that Spain’s contribution was at least as important and very probably more important than that made by Britain’s ally Portugal in giving us facilities in the Azores at a much later date.
He believes he made another important contribution when he agreed early in January to place a temporary embargo on wolfram exports to Germany before any other neutral in Europe had taken comparable action. He contrasts our attitude in continuing economic sanctions against Spain despite the embargo which has been in effect nearly 3 months with our attitude toward other countries as for example Portugal which we have continued to supply with petroleum and other products in the face of continued shipments of Portuguese wolfram to Germany.
Despite Franco’s position in the matter no specific amounts of wolfram have been promised to the Germans either prior to or after June 30. The Germans insist on complete freedom to export. The Spanish Government has refused this and no compromise has been discussed.
From a highly confidential and completely reliable source Beaulac learns also that German Ambassador in his interview with Franco last week insisted very strongly on freedom to resume wolfram shipments to Germany. He offered in return in addition to armaments and other German products immediate delivery of petroleum products in limited yet nevertheless interesting quantities. Franco declined the offers and declined to agree to resumption of wolfram shipments, pointing out Spain’s economic dependence on the United Nations and its close relations with the Americas. The informant who had read the minutes of the conversation said that Franco used the very arguments we had used in our conversations with Spanish officials and that the German Ambassador was finally left empty-handed.
It is now evident to me that Spain continues to be willing to withstand German pressure for resumption of wolfram shipments in amounts of any importance if it can save its “honor” and if at the same time it can be freed of the economic sanctions we are now applying.
If Jordana again tells me that Spain declines to agree to proposal contained in Department’s 936 April 4, I intend to request an interview with Franco during which I shall endeavor to obtain his agreement to that proposal. It is probable that he will decline. It is possible that the conversation will lead to a proposal intermediate between our proposal and Jordana’s. In any event I should like authority to reach the best possible agreement within Jordana’s proposal and involving if necessary token shipments prior to June 30. George fully endorses foregoing. Please instruct as soon as possible.
[Page 402]Repeated to London for Under Secretary and Matthews only. Repeated to Lisbon for Ambassador only.