216. Telegram From the Department of State to the Embassy in Spain1

239577. Subject: Spanish Base Negotiations. Following based on uncleared memcon Secret/Noforn FYI only and subject to revision upon review:2

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Secretary, heading U.S. group of negotiators, met for three hours with Spanish group, led by Foreign Minister Castiella regarding renewal of Base Agreement scheduled to expire September 26. Foreign Minister termed our offer of hardware package of $100 million aid and $100 million official credits as extremely low but agreed to have the contents of the package discussed further with Pentagon officials tomorrow, September 17.3 Castiella also said that for the reduction of U.S. presence to be meaningful Torrejon rather than Moron should be deactivated but again agreed to have this matter further discussed between the Spanish military and Pentagon officials tomorrow.
Foreign Minister made his usual plea for an increased security commitment and Aguirre referred to the bilateral agreement between U.S. and Iran as an example. Secretary said he would look into the matter.
Finally, Spanish delegation, as on previous occasions, complained about the “discriminatory” inclusion of Spain in Schedule C of the President’s balance of payments program. No concrete example of “discrimination” was offered. Under Secretary Deming agreed that Treasury would meet with the Spanish economic members of the negotiating team September 17 to discuss this matter further.
When we mentioned the Technical Agreement negotiations presently being held in Madrid, Castiella displayed little interest and referred to them as marginal.
Secretary Rusk told the Foreign Minister he would be available for further discussions at any time during the week and the Foreign Minister said he would return after the discussions with the Pentagon and Treasury had been concluded.
The general impression is that the Spanish, after some haggling, will be ready to extend the Agreement for another five years.
  1. Source: National Archives and Records Administration, RG 59, Central Files 1967-69, DEF 15-4 SP-US. Secret; Immediate. Drafted by Landau and approved by Leddy. Repeated to USCINCEUR and CINCUSAFE.
  2. The memorandum of conversation is ibid., POL 7 SP.
  3. The memorandum of conversation is ibid.