711.52/11–1748

The Chargé in Spain (Culbertson) to the Secretary of State

secret

No. 661

Sir: I have the honor to report that last evening I had one of my occasional longish, all-subject talks at the Foreign Office with José Sebastián de Erice, Director General of Foreign Policy, in which he asked, as he had done before, for suggestions in the field of economic liberalization in Spain. Spain, he said, wants and needs help but she wants it on a basis of a bilateral arrangement with the United States and not under Marshall Plan aid. If Spain could receive such aid as to give solidity to her economic structure, liberalizing action could and would be taken and Spain would be prepared to meet such reasonable conditions as we might be prepared to suggest. Furthermore, and I have never encouraged or left the door open to suggestions of a military character, Erice said that, could some understanding be reached between the two countries, we could, if we so desired, have bases in the Canary and Balearic Islands and facilities on the Spanish mainland. I did not follow up this last suggestion.

Respectfully yours,

Paul T. Culbertson