711.52/406: Telegram

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

1245. My 1218, April 8, 10 p.m. Jordana called me this afternoon to discuss wolfram. He said Spanish Government had been studying [Page 385] the matters we discussed last Saturday92 and was gratified at the good disposition of the American and British Governments. As he had anticipated, however, the Government perceived two principal difficulties. The first and more important was that of extending the present embargo until July. The Government could not agree to this. It was willing, however, to limit exports to Germany during the intervening period to 60 tons, that is 15 tons in April, 20 tons in May and 25 tons in June as Jordana had suggested to me.

The other difficulty was with reference to total amount which might be exported to Germany during this year. The Government felt that total should be 660 tons. Subtracting the 302 tons exported in January, the remainder to be exported during rest of the year should be 358 tons.

Spanish Government desired assistance to establish better political and economic relations with United States.

I said I regretted very much what he had said. I had hoped that my proposal of 480 tons total exports would be accepted. While I had stated my Government would as a last resort agree to more than that amount, it would have made a much better impression in Washington and the Spanish position would have been better if Spain had been willing to agree to the 480 tons. I had made clear in any event that my Government would not agree to total exports of more than 600 tons.

The situation now was that the Spanish Government was proposing not only exports of 60 tons between now and June 30 but adding those 60 tons to the total of 600 tons which was the limit to which my Government would agree for the present year.

I had to say very frankly that there was no chance whatsoever that my Government would accede. I was very dubious that it would accede to either suggestion. Both suggestions together could not possibly be agreed to.

Jordana then said that Spain was very desirous of a rapid solution and in order to arrive at it he was officially authorized to state that if a rapid agreement could be reached Spain would limit total exports during the year to 600 tons, of which 60 tons would leave during April, May and June at the rates already proposed and the remaining 240 tons to be exported during the last 6 months of the year at the rate of 40 tons a month. He said this was the last and maximum concession the Spanish Government could make.

He said he realized there were certain details to be discussed such as the prevention of smuggling and the continuation of home wolfram purchases by us for a temporary period. However these matters could be discussed with the committee of experts.

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Spain was prepared, if we accepted speedily, to cooperate fully in all details through the committee of experts as well as to satisfy us on the other pending matters referred to in our last conversation.

I told Jordana I would transmit his proposal to Washington immediately.

Repeated to Lisbon and London.

Hayes
  1. April 8.