711.52/3–948: Telegram
The Secretary of State to the Embassy in Spain
171. Believe you should take opportunity to express casually to FonMin and others disappointment at entirely negative reaction reported Embtel 167 March 9. Say that Spain attitude is definitely not conducive to any change in (a) present US policy of refusing Govt credits; (b) disinclination of European countries to include Spain in their cooperative arrangements and (c) basic UN position on Spain and especially US initiative toward that end. Repeat that we have no thought of hasty political changes of nature which would endanger maintenance of public order and that nature and timing of such changes is up to them. You should make plain however that demonstration of intention to make substantial political and economic reforms would vastly aid improvement of relations with this country and integration of Spain in Western European arrangements which is manifestly in best interest of Spanish people.
Belgian Amb has asked us to support protests Belgian and UK reps Madrid have made to FonOff at arbitrary judicial action against Barcelona Traction Co. While US ownership this company understood to be small you could ask FonMin whether this is kind of treatment which foreign investments may expect iand suggest that it is contrary to Spain’s interest at a time when they are seeking financial assistance abroad. You could add that while we would be reluctant to have to bring this case to attention of American interests considering extending credits to Spain we would be derelict in our responsibilities to them if we did not do so.