811.20 Defense (M) Spain/1128: Telegram
The Secretary of State to the Ambassador in Spain ( Hayes )
2194. In amplification of our 2148 of October 9,68 in which we inquired whether the Spanish were interested in U.S. wheat since it [Page 644] probably would be available to them (although it is moving into a restricted supply position more rapidly than we anticipated), the Department wishes to present the following comments for your most serious consideration.
We have been informed by the Spanish here that 100,000 tons is the amount they would like to lift; and to this the Department has no objection. However, in the light of prevailing circumstances and the necessity of presenting the strongest possible case to the allocating authorities, the Department very strongly desires in exchange for this gesture a Spanish undertaking to stop all exports of wolfram to Germany.
If you are successful in securing a prohibition of wolfram exports to the Axis, the Department is confident that it can obtain the prompt concurrence of the other interested agencies in Washington. On the other hand, if you are unable to secure this concession in its entirety, it will be necessary for the Department to consult the other agencies concerned before any commitment can be made to the Spanish with respect to making American wheat available.
In this general connection we are extremely anxious to produce greater results in the field of economic warfare in Spain, and therefore for the continuing implementation of general policy toward Spain it will be necessary for you to extract from the Spaniards every possible concession in this field. The Department understands that your British colleague70 has recently talked with Jordana71 along this general line. Accordingly you may wish to discuss the matter with the British Ambassador. If you see no objections, the Department considers that it would be most desirable if you could also bring this point of view home to Jordana.