852.10/9–1351: Telegram
The Acting Secretary of State to the Embassy in Spain 1
214. From State and ECA. Regret Embtel 256 Sep 132 not received in time to coordinate views of three agencies for discussion with Amb. Gen question discussed briefly with him during Washington visit.3
Since econ and mil aid will be our chief bargaining weapons in negots with Spans, we are continuing our efforts to forestall any Cong action requiring such aid be given prior obtaining desired mil facilities (Deptel 909, Jun 23).4 Consequently mention Spain purposely omitted from draft Bill; for same reason we wld oppose inclusion Spain in ECA illustrative country figures re authorization bill.
Bill as written will permit extension mil and econ aid to Spain. Mil aid provided in stockpile arrangement re which Cong informed in Executive Session. Econ aid may be financed under provision permitting transfer within and between titles: 5% from mil to econ section within Title I and 10% from total of all other Titles. In present status authorization Bill this wld permit, if transfer provision were used to maximum possible extent, transfer within Title I of $250 million and approx $150 million from all other Titles. These totals will be available for use in all countries covered by Bill, but constitute source of econ aid to Spain, when necessary and appropriate.
Timing of development and initiation econ aid program for Spain, view its relation to mil negots, shld limit amount funds required during FY 1952. Re time schedule, which is at best only tentative estimate, we do not anticipate receiving definitive written info from JMST before first half Nov. This report must then be [Page 853] studied and agree reached here on nature and scope of negots and dimensions mil and econ aid we will be prepared to consider for Spain. View magnitude these preparations we anticipate approx two months will be required. Hence negots can probably not be expected begin with Span Govt at earliest before middle Jan. Negots themselves will likely take minimum two or three months. Thus econ aid program for Spain wld probably not be initiated before Spring. With only few months to run before end of FY 1952, econ aid for Spain shld require minimum of funds from FY 1952 aid appropriations. If inadequate funds available even for this limited period, consideration will then be required of request for supplemental appropriation.
View timing econ aid program for Spain, any consideration now of off-shore procurement in Spain highly premature. Span participation EPU wld require unanimous consent of participating countries which unlikely.
We appreciate problem mentioned para 3 Embtel 2565 may create difficulties in negots. Deptels 93, Aug 4 and 147 Aug 236 were specifically addressed to prospect that build-up of grandiose Span expectations of aid certain to lead to disappointment thereby affecting Span Govt’s position. We hope every effort is being made combat this tendency since we will not be able to make final determination of aid to Spain on basis of mistaken and exaggerated Span expectations of aid.
Foregoing considerations are FYI only.
- Drafted by Dunham and cleared by Williamson, Bell of International Security Affairs, Wolf of the Office of European Regional Affairs, and ECA and Defense.↩
- Supra.↩
- No record of discussions with Ambassador Griffis during his Washington visit has been found in Department of State files.↩
- Document 397.↩
- Supra.↩
- Neither printed.↩