711.52/428a: Telegram
The Secretary of State to the Ambassador in Spain (Hayes)16
1153. Since sending you our 1131, April 22, midnight, a further message has been received by the President from the Prime Minister again presenting strongly the British position with regard to the Spanish situation and stating that he would assume the whole responsibility for settlement himself. This would involve British sponsorship of shipments of oil to Spain. It is obvious that should this procedure eventuate it would be necessary for me to release to the press a statement which would of necessity indicate clearly a break in the Anglo-American united front which is so essential in the conduct of the general war effort. Such a result would be regrettable. I am, therefore, reluctantly prepared to authorize you to go along with the British Ambassador in reaching a settlement with the Spanish Government. It is my understanding that such a settlement will involve shipments of wolfram to Germany beginning in May and not to exceed 280 tons (paragraph 3 of your 1375, April 20) for the remaining part of the year; 20 tons a month would be exported in May and in June and the balance in 6 equal monthly installments of 40 tons beginning in July. I understand that there will be immediate fulfillment on the part of the Spanish Government of its promises in respect of all the other items on which we asked satisfaction. In addition to this the Spanish Government will enforce stringent and effective measures which will in fact prohibit the further smuggling of wolfram to Germany. If, in spite of these measures, wolfram is smuggled into Germany the quantities thus smuggled will be deducted from the agreed upon quotas. The Spanish Government should undertake to facilitate the necessary operations in Spain of the USCC and UKCC, including the continuance of making available pesetas as requested. As indicated in our telegram of April 2417 American military authorities are now insistent that Spain remove all Axis agencies from Tangier. This would of course include the Japanese. It is essential, therefore, that this be made a part of the final agreement. If such an agreement is [Page 403] arrived at, you are authorized to approve the nomination of tankers for the first loading date possible.
At the time you issue this authorization please make it clear to the Spanish that the continued flow of petroleum is dependent upon the active support and participation of the Spanish Government in enforcing the export limitations.