No. 401

752.5–MAP/11–2151

Memorandum by the Deputy Director of Mutual Defense Assistance, Department of State ( Ohly ), to the State Department Member of the Military Assistance Advisory Committee

top secret

Subject: Assistance to Spain in Fiscal Year 1952

$100 million has been appropriated by the Congress and specifically earmarked for use in providing assistance to Spain. There is no legal compulsion to use this fund since its employment is stipulated specifically to be “at the discretion of the President”. Nevertheless it is important to arrive at the earliest possible decision on [Page 854] this subject and, to the extent that any such aid is provided, to assure that it is used in such a way as to further to the maximum extent the attainment of United States objectives in Spain. It is also important, in view of the history of this provision, that the Executive Branch be in a position to demonstrate to the Congress (particularly in connection with the forthcoming request for an authorization and appropriations for foreign aid for FY 1953) that the use or non-use of the $100 million appropriated this year has been consistent with the attainment of these objectives.

The administration did not seek the appropriation of a specific amount or amounts for the provision of assistance to Spain. On the contrary, it took the following positions: first, in so far as economic aid was concerned, that it was impracticable, as of the time of the presentation, to determine whether, and if so in what amount and for what purposes, it would be desirable to furnish economic aid to Spain; that consequently no estimate of aid for Spain had been included in the economic aid estimates for Europe but that the legislation had been so drawn as to permit the use of funds included in such estimates to provide economic aid to Spain if required; and that, in the event that such aid became desirable, it would be necessary to decide whether, as then appeared unlikely, the amount thereof could be squeezed out of available economic funds, or whether a request for a special appropriation would be necessary; and, second, in so far as military aid was concerned, that no specific estimate for Spain had been included but that, in developing a stockpile program, the possibility of a need for such aid was one of the factors taken into account and that the legislation had been so framed as to make the delivery of military assistance to Spain legal. Such positions were necessitated by the then very early stage of our discussions with the Spanish Government and by the lack of reliable information with respect to Spanish requirements for either military or economic aid, both in absolute terms and in terms of particular military facilities or activities in which the United States might have an interest and which were to be sought in subsequent negotiations. Consequently, there still remains to be determined the question of whether, and if so in what forms and amounts, the provision of assistance to Spain will in fact further the attainment of our objectives.

The State Department is responsible for the conduct of our discussions with the government of Spain and will shortly undertake negotiations with the Spanish Government looking to the acquisition of certain rights and privileges. Since the question of aid is directly related to, if not an essential element in, the conduct of these negotiations, I request the State Department also to accept primary responsibility for developing a concrete course of action directed [Page 855] toward resolving at the earliest practicable date the questions of whether, and if so, in what general forms and amounts, for what purposes, and when, assistance should be provided to Spain. In developing this course of action, the Department of State should consult with the Department of Defense and the ECA.

I should appreciate receiving at your earliest convenience a status report on the issues involved and the prospects for the development of a definitive program. I also believe it would be desirable, if this is at all possible, to arrange an informal briefing by General Spry of the several individuals in the Department of State, ECA, OMA (Defense), and MSA who are directly concerned with the Spanish problem and who would benefit from a brief résumé of the information which General Spry derived during his survey.

I am sending copies of this memorandum to the ECA and Defense members of MAAC.1

  1. On November 21, Bell, the Assistant Director of the Mutual Defense Assistance Program, requested Bonbright to assume primary responsibility for the development of a definitive program of aid to Spain. (752.5–MAP/11–2151)