No. 399

852.10/9–1351: Telegram

The Chargé in Spain ( Jones ) to the Secretary of State 1

secret   priority

256. This is joint Emb-ECA message for Dept, ECA Defense.

1. It has been our understanding that admin’s policy re econ aid to Spain as explained to Congress has been: (a) US prepared to extend limited econ assistance amt of which can only be determined with completion surveys and negots; (b) funds necessary can be allocated from mutual security appropriation; and (c) if this proves inadequate, special appropriation Spain wld be requested of Congress.

2. We have considered foregoing in light of fact severe reductions imminent in total aid funds appear to limit severely volume aid which might be made available to Spain and info reed by Sufrin in Paris that no provision is being made for Spain in illustrative country presentation being prepared by ECA for consideration joint House-Senate comite on authorization bill.

3. Is our judgment failure to have adequate funds on hand prior to Congressional adjournment to meet a Span econ program fiscal 52 wld both jeopardize success mil negots and act as boomerang on Span-US Govt and popular relations generally. In this connection it is important to keep in mind (a) that Span people assume from Congressional statements that they will, in fact, achieve some amelioration from present extremely poor standard of living, and (b) that Span Govt assumes that our decision to send mil and ECA study groups to Spain was made in light of Franco’s statement to Sherman linking Span econ assistance with US base requirements in Spain, and that we have, in fact, accepted this basic concept.

4. Although exact dimensions minimum econ aid to Spain fiscal 52 not ascertainable until completion work mil and econ survey groups, facts developed to date indicate probably that program set forth in document TFI D–14/1 of task force one of fon aid steering grp not excessive to secure minimum econ goals, even when mil or other aid not considered.

5. Supplementary joint tel will be sent at later date outlining potential usefulness US offshore auxiliary mil procurement in Spain and Span participation in EPU as devices to accelerate Span econ recovery as well as possibility of mil program permitting reduction of econ aid.

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6. It is hoped foregoing will be discussed with Amb Griffis scheduled to be in Wash today and tomorrow, with view to deciding on adequate course of action prior to mtg with House-Senate comite.

Jones
  1. Repeated to Paris for OSR.