Foreign Relations of the United States, 1951, Europe: Political and Economic Developments, Volume IV, Part 1

No. 403

852.10/12–851: Telegram

The Acting Secretary of State to the Embassy in Spain ¹

secret

Washington, December 12, 1951—2:37 p.m.

463. Dept passing Embtel 592, Dec 8² to Ex-Im Bank for reply specifically re recommendations (1) and (2) and expects Emb will have their answer shortly. Meanwhile Dept has fol comments reftel:

1. While Dept recognizes some problems may be created by absence public explanation in Spain re disposition funds included MSA, sure Emb appreciates reasons why this is necessary (Deptels 428 Nov 30, 291 Oct 17, and previous).³ Preliminary consideration has been given subj of econ program for Spain 1952 order have it on hand before beginning mil negots. Determination re specific program however must be made in light decisions to be reached re precise mil requirements. As indicated Deptel 428, JCS now considering those requirements.

2. View these unavoidable difficulties re timing Dept hopes that, if there shld be any considerable interval between completion ECA survey and discussion with Span Gov re MSA funds, Emb can successfully minimize any adverse effect US position in Spain by such actions as prevention build-up of exaggerated Span expectations US aid (Deptel 285 Oct 15 and previous).⁴

3. Suggest material contained Deptel 378 Nov 9 outlining total credits extended to that date, Deptel 439 Dec 5 announcing 2 mil dols for UNESA, and Deptel 424 Nov 29⁵ re 600 thous dols for Puertollano may be helpful in counteracting any impression nothing has happened in providing dol aid to Spain.

4. Publicity about arrival US goods under this credit, such as front page photo in Arriba Dec 5 of US tractors being unloaded Barcelona, and similar publicity Pueblo and Informaciones Dec 4 should also be useful in offsetting criticism by Span Gov, press and business people re slowness extension Ex-Im Bank credits.

5. Re Spain’s dol position, Dept anxious make precise estimate Span balance payments and hopes it may be possible obtain requisite info from Span Govt. (Deptel 260 Oct 5.)⁴

Webb

1. Drafted by Millar and Dunham, cleared by Jack C. Corbett of the Office of Financial and Development Policy, Tirana of the Export-Import Bank, Green of ECA, and Bonbright.
2. Supra.
3. Neither printed.
4. Not printed.
5. None printed.
4. None printed