711.56352/1–2453: Telegram

No. 877
The Ambassador in Spain (MacVeagh) to the Department of State1

secret
priority

572. Limited distribution. USNEGNoforn. My telegrams 562, 563,2 January 21, repeated Paris 118 and 119. Following additional comments submitted for consideration re your action reference telegrams.

[Page 1905]
1.
We feel it most important that reference telegrams not be interpreted as suggesting impasse. All indications point to only obstacles to successful conclusion being matters of phraseology and emphasis. From various sources, we understand Spanish proposal for parallel assistance (see paragraph 2a reference telegram 562), which principal matter involved, stems from feeling of service ministers, especially Army Minister, that publishable part of agreement as drafted by us does not sufficiently assure them of definite intention our part to furnish equipment specifically for military services. Steady if slow progress of negotiations, culminating recently in widespread reports of early conclusion, has raised optimistic expectations in personnel these services throughout entire country, and service ministers feel that if no phraseology appears in published part of agreement capable satisfying these expectations at least in part, it might create reaction dangerous their position. It must be remembered that armed services and army in particular, constitute fundamental support of Spanish Government and therefore must be reasonably satisfied with any agreements affecting them.
2.
It must also be remembered that, in accordance instructions received,3 we have been unable inform Spanish of any specific military assistance planned by US beyond 37 million fiscal 53. In such situation, service ministers themselves are experiencing re our draft same feeling of disappointment they fear see aroused in their men. To overcome this in some degree, Franco has now authorized Economic Minister, Arburua, who is most anxious to see agreement concluded soonest, to mediate with Army Minister and Vigon and suggest that between 8 and 12 million of the $88 million presently earmarked for economic aid be transferred to military assistance. We feel this may have some good effect in changing attitude of service ministers toward agreement as a whole, and consequently recommend we be authorized to consent to it if formally presented. But we also recommend that in addition to informing Foreign Minister formally that provision has been included in proposed federal budget fiscal year 54 for military and economic aid to Spain (see section 4 of my reference telegram 563), Kissner be authorized without delay to advise his contacts on the technical level informally of the scope of such provision.
3.
In summary, we believe best tactics now not only redrafting of covering defense agreement in accordance our suggestions reference telegram 563, and presenting redraft to Foreign Minister, but also apprising Spanish military authorities specific nature our intentions their regard. If Kissner authorized as recommended above, [Page 1906] we believe can convince them that even should Congress trim proposed fiscal year 54 budget to some degree, US military assistance available to Spain for fiscal years 1953 and 1954 will total not only substantially more than they now realize, but fully as much as they can possibly absorb during a 2-year period without so increasing their own defense costs as to create serious fiscal and economic and consequently political and social, problems for themselves.
MacVeagh
  1. Repeated to Paris.
  2. For the content of these telegrams, see the editorial note, supra.
  3. See Document 865.