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CHAPTER II. GERMAN RECOGNITION OF THE FRANCO REGIME, AND ITS RESULTS; NOVEMBER 18, 1936-MARCH 20, 1937-Continued

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Subject

Page

Doc. No.

1937 Jan. 6 184

Note from the British Embassy

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Taking "the gravest view" of the continued flow of volunteers to Spain, the British Government requests an early reply to its note of December 26.

Memorandum by the Director of the Legal Department

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Gaus told the British Ambassador that the new British note
was a "superfluous reminder" and regrettable, since it gave
the appearance of British pressure on Germany.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
Eden pointed out that the Anglo-Italian pact did not mean
that England was any the less interested in stopping the flow of
volunteers to Spain, as was apparently inferred in Germany.
The Chargé d'Affaires in Spain to the Foreign Ministry

The military situation has improved with the arrival of
Italian troops and German instructors and arms; the moment
is favorable for pressing political and economic agreements
with Spain.

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The American ban on the export of arms to Spain has been ineffective.

The Chargé d'Affaires in the United States to the Foreign Minis-
try

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Jan. 7 189

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Memorandum by the Director of the Legal Department

Magistrati stated that Ciano frankly told the British Ambassador that Italian volunteers, who were going to Spain without pressure from the Government, would not be halted unless all countries took similar action.

Memorandum to the British Embassy

While questioning the motives of the British and French Governments and protesting against the pressure applied to Germany, the German Government consents to the ban on volunteers proposed in the note of December 26, provided effective guaranties are given.

The Ambassador in France to the Foreign Minister

Because of his long experience in Spain, Welczeck is accepted
by the French as an expert and can exercise a moderating in-
fluence in France, but he needs fuller information on German
activity in Spain.

The Chargé d'Affaires in Spain to the Foreign Ministry
There are no German troops in Spanish Morocco to justify
the French charge of violation of the French-Spanish conven-
tion of 1912.

The Ambassador in France to the Head of the Extra-European
Section of the Political Department
Secretary-General Léger of the Ministry of Foreign Affairs
complained of the unconciliatory tone of the German reply to
the proposal to ban volunteers; Welczeck replied that the note
was positive in spirit but that plain speaking was necessary.

Note from the British Embassy

England proposes that each power take measures to ban volunteering for Spain, in advance of the control measures to be elaborated in the London committee.

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CHAPTER II. GERMAN RECOGNITION OF THE FRANCO REGIME, AND ITS RESULTS; NOVEMBER 18, 1936-MARCH 20, 1937—Continued

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Doc. No.

1937

Subject

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Jan. 11 195

Memorandum by the Foreign Minister

218

Neurath acceded to the French Ambassador's wish to publish the Führer's statement to him that Germany had no designs on Spanish Morocco.

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Jan. 12 196

Jan. 12 197

Jan. 13 198

Jan. 13 199

Jan. 13 200

Jan. 14 201

Jan. 14 202

Jan. 15 203

Jan. 15 204

Jan. 15

205

The Chargé d'Affaires in Spain to the Foreign Ministry
Since, with the imminent commitment of large Italian units
in Spain, Italian political influence will tend to displace Ger-
many's, it would be well to speed the pending economic nego-
tiations.

The Foreign Minister to the Embassy in Italy

Germany will accept the British proposal that each power act separately to ban volunteers, provided that all states do so on the same terms and that there is no delay in the introduction of collective control measures.

The Ambassador in Italy to the Foreign Ministry

Ciano has told England that Italy would not take separate
measures to ban volunteers; he would like to reply to the
British note jointly with Germany but only after some delay,
as further large contingents will soon be shipped to Spain.
The Chargé d'Affaires in Spain to the Foreign Ministry

A large body of Italian troops with heavy equipment has
arrived in Cádiz and will be formed into a division under an
Italian general.

Memorandum by the Foreign Minister

Neurath told Attolico that Germany had agreed to the plan for controlling volunteers because she did not wish to send more troops to Spain and run the risk of a European war.

The Chargé d'Affaires in France to the Foreign Ministry

While it is the concern of French policy to show Germany that no more faits accomplis will be accepted, responsible men feel that the press threats over Spanish Morocco went too far.

The Foreign Minister to the Embassy in Italy

Franco's intention to reject a control system will compromise Germany and Italy; it would be better if he accepted in principle and then imposed delaying conditions.

Memorandum of the Dienststelle Ribbentrop

Weizsäcker is reported to have said that the Spanish enterprise will be abandoned, but an intimate of Göring reported that the latter in his Rome talks stated that Germany would not tolerate a Red Spain.

The Ambassador in Italy to the Foreign Ministry

It was agreed in Göring's Rome talks that a final effort to
aid Franco should be completed by January 31 and that dila-
tory tactics should be applied to the British control proposals
until then.

The Director of the Political Department to the Embassy in Spain
Information is requested as to the division of the output of
the Rio Tinto mines between Germany and England.

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CHAPTER II. GERMAN RECOGNITION OF THE FRANCO REGIME, AND ITS RESULTS; NOVEMBER 18, 1936-MARCH 20, 1937-Continued

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Doc. No.

1937

Subject

Page

Jan. 16 206

The Director of the Economic Policy Department to the Embassy
in Spain

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Jan. 18 207

Jan. 20 208

Jan. 25 209

Jan. 25 210

Jan. 26 211

Jan. 26 212

Jan. 26 213

Discussion of a political agreement with Spain is not desired
for the present, but the sending of an economic delegation will
be hastened.

The Chargé d'Affaires in Spain to the Foreign Ministry
About 20,000 Italians will go into action shortly and the
military outlook is improved; although Italy has spent 800
million lire, Germany has won more concessions.

The Chargé d'Affaires in Spain to the Foreign Ministry

The Nationalist Government rejected a British plan for division of Rio Tinto output and retains full freedom of action; Hisma has been promised 60 percent.

Editors' Note

The understanding on Spanish policy arranged in Göring's
conversations in Rome, January 23, 1937.

The Chargé d'Affaires in Spain to the Foreign Ministry
Franco has received the memorandum agreed on in Rome as
to the extent and duration of German and Italian assistance.

The Chargé d'Affaires in Spain to the Foreign Ministry

The Nationalist reply to the German-Italian memorandum presents a list of arms required, chiefly from Germany, which exceeds those promised in the memorandum.

The Chargé d'Affaires in Spain to the Foreign Ministry

The text of the Nationalist reply to the German-Italian mem-
orandum argues that a control system against aid sent to
Spain will work to the Nationalists' disadvantage and bring
the danger of incidents.

The Foreign Minister to the Embassy in Great Britain
Germany and Italy are prepared to agree in the London
committee to an effective control plan but do not wish it to
take effect before the middle of February.

Memorandum by an Official of Political Division I

A misunderstanding has arisen over the demand put to Franco by Bernhardt of Hisma that Spain apply all available foreign exchange to payment on the arms delivered by Ger

many.

Jan. 27 214

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The Chargé d'Affaires in Spain to the Foreign Ministry
Franco stated that the German and Italian experts had set
his supply requirements too low; he agreed to the plan for a
joint German-Italian general staff.

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The Foreign Minister to the Embassy in Spain

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Jan. 28 215

Jan. 30 216

Germany and Italy are in full agreement on supporting an effective control plan, though not within Spain; Franco's negative reply was a surprise after the advice Italy gave him.

The Chargé d'Affaires in Spain to the Foreign Ministry

The Nationalist Government denies that it rejected the control plan entirely; it is evident that its reply was framed in the knowledge that continuing arms aid would be necessary.

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CHAPTER II. GERMAN RECOGNITION OF THE FRANCO REGIME, AND ITS RESULTS; NOVEMBER 18, 1936-MARCH 20, 1937-Continued

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Doc. No.

1937 Feb. 2 217

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The Acting State Secretary to the Legation in Portugal
Portugal is to be informed that Germany, while not wishing
to bring any pressure, would like to see Portugal abandon its
objections to the British-proposed control measures.

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Feb. 4 218

Feb. 6 219

Feb. 8 220

Feb. 21 221

Feb. 23 222

Feb. 23 223

Feb. 27 224

Mar. 2 225

Mar. 4 226

Mar. 5 227

Memorandum by an Official of the Economic Policy Department
The British Embassy interceded for return of or compensa-
tion for quantities of copper seized by the Spanish Nationalist
Government from the British-owned Rio Tinto Company and
sold to Germany.

The Acting State Secretary to the Embassy in Great Britain

The German position in the London committee will be to insist on simultaneous implementation of control plans for land and sea traffic to Spain, since closing of the Pyrenees frontier is essential.

The Ambassador in Italy to the Foreign Ministry

Ciano is optimistic about the military prospects in Spain after the success at Málaga with only nine Italian battalions; Italy will support the control plans in London, but the earlier proposal for withdrawal of all non-Spaniards must be evaded.

The Ambassador in Spain to the Foreign Ministry

Franco reported an offer by France to take up commercial relations but said he had refused; Faupel urged that the return of Spanish gold now in France be made a condition in reply to any future overtures.

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The Ambassador in Spain to the Foreign Ministry

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Franco insisted on the necessity of all promised matériel arriving by March 6.

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Memorandum by an Official of the Economic Policy Department
In connection with the projected negotiation of a payments
agreement it will be necessary to decide whether the monopoly
position of the Rowak-Hisma firms is to be continued or Span-
ish trade opened to others.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
The Soviet reversal in withdrawing from naval patrol plans
is due to the fear that their forces are inadequate for the Biscay
zone and to the unwillingness of the powers to assign another

zone.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
Tactics for delaying the proposals in the London committee
for withdrawal of volunteers from Spain have been agreed
upon with the Italian representative.

The Foreign Minister to the Embassy in Great Britain

The Italian representative is to be allowed to take the lead in delaying plans for withdrawal of volunteers; also, practical difficulties will be relied on to prevent a "premature solution." The Ambassador in Italy to the Foreign Ministry

Ciano implied concern over the role of the German representative on the London committee and asked that he be instructed to sabotage the plans on volunteers; he said England's main concern was to get Italian troops out after the war ended.

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CHAPTER II. GERMAN RECOGNITION OF THE FRANCO REGIME, AND ITS RESULTS; NOVEMBER 18, 1936-MARCH 20, 1937-Continued

Date and

Subject

Page

Doc. No.

1937 Mar. 6 228

The Acting State Secretary to the Embassy in Great Britain
Franco states that the expected 2-week delay in applying
control measures will be a disadvantage to him; an early appli-
cation of controls should be sought.

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Mar. 10 229

The Ambassador in Italy to the Foreign Ministry

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Mar. 17 230

Mar. 17 231

Mar. 18 232

Mar. 20 233

Ciano expressed satisfaction with the military situation in
Spain, of which he is now in direct charge; but he reported that
Red resistance is stiffening and there have been some losses.
The Ambassador in Italy to the Foreign Ministry

Ciano showed concern over the strong Red resistance and the
Spanish failure at Guadalajara, though he believed there was
no cause for alarm; he mentioned the possibility that further
supplies might be needed.

Minute by the Director of the Economic Policy Department
It has been decided not to negotiate a general trade and
clearing agreement with Spain which would permit resumption
of the activity of private traders.

The Ambassador in Spain to the Foreign Ministry

Mussolini is quoted as saying that Italy would abide by a ban on volunteers but, if there were violations, would send 100 Italians for every man reaching the Red side.

Memorandum by the Foreign Minister

Neurath told the British Ambassador that Germany would proceed with the discussions on volunteers only if the Russians would agree to discuss the question of the Spanish gold.

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CHAPTER III. GERMAN-NATIONALIST TIES STRENGTHENED; THe March and JULY PROTOCOLS: MARCH 20-JULY 16, 1937

1937 Mar. 20 234

Mar. 25 235

Mar. 25 236

Mar. 27 237

Protocol Signed at Salamanca March 20, 1937

By secret agreement "guiding principles" are laid down for future German-Spanish relations: cooperation against Communism; no agreements with or aid to a third power directed against one of the parties; intensification of economic relations. The Ambassador in France to the Foreign Ministry

Delbos warned that France would not tolerate the flagrant Italian violations of the non-intervention agreement; Italy would not be allowed to determine the fate of Spain in disregard of France.

The Ambassador in Italy to the Foreign Ministry

Mussolini was greatly agitated over the Italian reverse at Guadalajara but insisted it was of no military consequence; he would send no more troops, and the Spaniards would have to do their share in the future.

The Ambassador in Italy to the Foreign Ministry

Grandi exceeded his instructions in the London committee in stating Italian volunteers would remain in Spain; Italy will not flatly oppose withdrawal but wants a delay until the setback at Guadalajara has been made good.

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