711.52/424: Telegram
The Ambassador in Spain (Hayes) to the Secretary of State
[Received April 26—2:30 a.m.]
1431. Following receipt your 1131, April 22, midnight. I called on Jordana last night and after referring to the so-called peace campaign in the Spanish press I pointed out that the longer an agreement on wolfram was delayed the greater was the opportunity for hostile elements to inflame public opinion in both countries and to multiply difficulties. I asked him therefore to seek as quickly as possible acceptance by Spanish Government of American proposal set forth in your 936, April 4, 8 p.m. I pointed out that this provided for [Page 399] exports of wolfram at the rate of 50 tons a month during entire year. It represented a considerable withdrawal on our part from our original position.
Jordana recalled that he had explained to me that Spain’s last offer, involving shipments of 600 tons during the year, including 60 tons between now and June 30, represented a real and important sacrifice by Spanish Government which therein had reached the limit of its concessions. At the end of last week he had received final and concrete orders to let the American Government know in writing that, [if] within a few days, the Spanish formula was not accepted, the Spanish Government would be compelled to lift the provisional embargo and permit the exportation of the amount provided for in the formula, that is, 15 tons in April and 20 tons in May. During that period Spain would continue negotiations with us for a definitive agreement but if these negotiations failed within a reasonable time Spain would have to fulfill completely her agreement with Germany. The implication was that Spain then would permit wolfram to go to Germany in unlimited quantities. He said that he had already written me a letter to the above effect and if I had not called on him yesterday he would have had to send it to me very shortly inasmuch as the Spanish Government must act within a very few days.
He said the American proposal which I had made 2 weeks ago and to which I had reverted had been definitely found unacceptable by the Spanish Government. However, he would transmit it to his Government once more although he had no hope that it would prove acceptable.
I said I sincerely regretted the attitude of his Government and that I would be remiss if I omitted to mention the very unfortunate results that would follow the exportation of even a kilo of wolfram to Germany this month or next without permitting our negotiations to go further and reach a mutually satisfactory outcome. I could not answer for the consequences of letting down the bars completely and allowing the Germans to take all the wolfram they wished from Spain. He must be well aware of what those consequences could be.
Jordana complained about our intransigence and said he feared a most unfortunate reaction of Spanish opinion as soon as it learned of our attitude which was thoroughly unfriendly towards Spain. Spain had been deprived of petroleum now for 3 months although [apparent omission] Government.
Jordana said he would resubmit our proposal and advise me of the outcome very shortly although he warned again that he had no hope it would be accepted.
I shall inform the British Ambassador of my conversation and urge him to support me. Meanwhile I shall do whatever else is [Page 400] practicable to influence the Spanish Government to accept our formula. In the event Jordana informs me shortly that the Spanish Government has again rejected the formula I shall thereupon request an interview with Franco and place the matter before him.
Meanwhile, however, I believe the Department should have very much in mind the possibility that the Spanish Government will not agree completely to withhold wolfram shipments between now and June 30. I believe the Department should have in mind also that through exhaustion of peseta resources we and the British will be obliged to suspend wolfram purchases within a few days and the Germans will be free thereafter to acquire very large amounts of wolfram which together with accumulated stocks of over 1200 tons in the absence of any definite agreement with us they may be able to export to Germany. Such a development would constitute a military setback to us and the risk that Allied lives would be lost as a result of German acquisitions of Spanish wolfram would be vastly increased.
Repeated to London and Lisbon.