711.52/405: Telegram

The Ambassador in Spain (Hayes) to the Secretary of State

1218. Your 979, April 7. I saw Jordana this noon. He denied Alba was authorized to make any proposal. He assumed as I did that Alba was referring to the proposal of Spanish Committee that further exports during this year be limited to 450 tons.

[Page 380]

I then reviewed our negotiations and said my Government, with British concurrence, was now prepared, as a great concession, to agree to a limitation of total exports during this year to 480 tons of which the 300 exported in January would cover the quota during first 7 months or until August 1 while remaining 180 tons might go out in equal installments during the succeeding 5 months or, if he insisted, during succeeding 3 months.

Jordana said he appreciated counter proposal but said he was not authorized to approve or propose anything except what the Committee had proposed. My proposal would serve as a basis for further discussion within the Government but he feared there were two features that would present insurmountable difficulties:

  • First, the reduction from 750 tons proposed by committee to 480 tons proposed by me was too drastic;
  • Second, he thought it would be impossible to maintain temporary embargo until end of June or July.

He then asked if my Government would agree to a limitation of 600 tons. I finally said it would provided the 300 tons shipped in January be considered the quota for first 6 months and remainder be shipped in equal monthly installments. Your 936, April 4.

Jordana said he thought this marked a notable advance toward a settlement. He wished to emphasize however the need of allowing small shipments during April, May and June.

I said I had no authority to agree to any shipment before July and reminded him my Government was most anxious to keep wolfram from Germany during coming critical months.

When I asked him what he meant by small shipments in May, June and July he suggested, in an entirely personal manner making clear he was not authorized to make the proposal officially, that shipments be 15 tons in April, 20 in May and 25 in June, a total of 60 tons up to June 30 while remaining 240 tons might go out between July 1 and end of year in 6 equal installments of 40 tons each.

I said I was not authorized to treat on exports prior to July 1 and that my Government was obviously disposed to object to any such proposal.

Minister expressed pleasure that we were at long last in sight of agreement, said he would discuss matter with Cabinet and hoped to be able to speak to me with authority Monday87 or Tuesday.

I stated that when agreement reached on figures of limitation of [Page 381] wolfram exports there would be a resumption of petroleum shipments if I had definite assurance from the Minister that:

1.
Spanish Government would interpret limitation to apply not only to Germany but to German occupied or German controlled countries;
2.
It would undertake to prevent any and all smuggling of wolfram;
3.
It would promptly give effect to assurances already given concerning: (a) suppression of German Consulate in Tangier and expulsion of German agents from Morocco and peninsular Spain (b) withdrawal of all Spanish armed forces from participation in the war on the side of our enemy; (c) release of all Italian merchant ships except two; (d) submission of Italian warships matter to arbitration and,
4.
Spanish Government would continue to make available to United States and Britain all necessary facilities for purchase of Spanish materials.

Minister said all foregoing definitely understood. With reference to smuggling he said he was glad the Committee had gone into that pretty thoroughly and said he believed it could work out, in harmony with American and British Commercial Attachés, ways and means of effective control and prevention of smuggling.

When I told Hoare of my conversation he expressed great satisfaction and said he would telegraph London and Halifax immediately urging them to agree to Jordana’s personal proposal if he obtained Cabinet support for it.

I believe we should agree to the export of 60 tons between now and June 30 but in that event I believe we should try to obtain a reduction in total exports during year from 600 tons to say 540 or 510. However whatever figure Department willing to agree to should also be accepted by London.

Repeated to Lisbon and London.

Hayes
  1. April 10.