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CHAPTER IV. THE POWERS AND NON-INTERVENTION: JULY 19-NOVEMBER 1,

Date and

Doc. No.

1937-Continued

Subject

Page

1937 Oct. 19 444

Oct. 19 445

Oct. 19 446

Oct. 20 447

Oct. 20 448

Oct. 20 449

Oct. 21 450

Oct. 21 451

Oct. 22 452

Oct. 23 453

Oct. 24 454

The Ambassador in Italy to the Foreign Ministry
Mussolini said that he had reluctantly dispatched another
division to Spain at Franco's request; he does not believe the
Spaniards understand modern warfare.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
Progress in the Non-Intervention Committee was blocked
by disagreement as to which of alternative plans for withdraw-
ing volunteers should be discussed; the unyielding Italian
attitude was tactically unwise.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
It is learned reliably that the British are not so much con-
cerned about territorial concessions by Franco to Italy as they
are about possible lease of bases or an alliance which would be
a strategic menace to England.

The Ambassador in Spain to the Foreign Ministry

The Franco Government has stated that in an extreme case it would consent to withdrawal of volunteers but only under certain conditions including full recognition as a belligerent. Minute by the Director of the Political Department

The Italian Ambassador said an Italian division had been transferred from the Aragón to the Asturias front, but he knew nothing about sending another division to Spain, as Hassell had reported.

Memorandum by the Foreign Minister

Neurath told Ambassador Attolico a more conciliatory line
by Italy on procedural matters in the London committee was
desirable; the Russians could be counted on to sabotage any
serious treatment of the volunteer question.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
Italy's more conciliatory line in the Non-Intervention Com-
mittee resulted in agreement to send a commission to Spain to
determine how and in what ratio volunteers could be with-
drawn.

The Foreign Minister to the Embassy in Great Britain

Russian participation in any plan for withdrawal of volun-
teers from Spain must be insisted upon.

The Chargé d'Affaires in Great Britain to the Foreign Ministry
Ambassador Maisky stated that Russia wished to continue in
the Non-Intervention Committee, would not object to a policy
of non-intervention pursued by other members, but would
assume no responsibility for it.

The Chargé d'Affaires in Great Britain to the Foreign Ministry

It has been agreed with the Italian and Portuguese representatives that the question of Russian participation rather than details of the withdrawal scheme should be made an issue in the Non-Intervention Committee.

The Ambassador in Spain to the Foreign Ministry

Assurances have been obtained that the consular agreement negotiated between England and Nationalist Spain was not accompanied by any new economic concessions.

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CHAPTER IV. THE POWERS AND NON-INTERVENTION: JULY 19-NOVEMBER 1,

1937-Continued

Date and

Doc. No.

1937 Oct. 25 455

Oct. 25 456

Oct. 26 457

Oct. 26 458

Oct. 27 459

Oct. 28 460

Oct. 30 461

Nov. 1 462

Subject

Memorandum by the Ambassador in Spain

Stohrer finds the military situation favorable but no prospects of an early Franco victory; factional divisions on the White side remain a danger; the German standing in Spanish opinion is good; steps should be taken to restore the German community in Spain and give freer play to its economic activities.

The Foreign Minister to the Embassy in Great Britain

No obstacles should be placed in the way of a symbolical
withdrawal of volunteers, since Germany does not desire an
early collapse of non-intervention; a further gain of time will
aid Franco.

The Minister Counselor of Embassy in Great Britain to the For-
eign Ministry

Woermann rejected Eden's plea that the other powers should
continue to work out a non-intervention policy even if Russia
withdrew.

The Foreign Minister to the Embassy in France

The attention of the French Government should be called to the fact that the renewed commitment to send no volunteers to Spain, which is under consideration in London, cannot be undertaken unless the expired French law banning volunteers is renewed.

The Ambassador in Great Britain to the Foreign Ministry

The Italian and German representatives having accepted the British control and volunteer-withdrawal plan of July 14, it remains to clarify the question of Russian participation; possibilities for technical delays remain open.

The Foreign Minister to the Embassy in Great Britain

It is not desired to bring about a collapse of non-intervention
over Russian non-participation; safeguards will have to be
provided if all powers except Russia grant Franco belligerent
rights.

The Ambassador in Great Britain to the Foreign Ministry
Ribbentrop recommends either that all discussion of the
British plan be dropped or that consent not be given to its ex-
ecution until the Russian attitude is clarified.

The Foreign Minister to the Embassy in Great Britain

No pressure which would isolate Germany in the London committee is to be undertaken in an attempt to clarify the Russian attitude; if they refuse to grant belligerent rights, they should at least be denied protection of the Nyon agree

ment.

Editors' Note

Adoption of the British control plan of July 14, 1937, in the
Non-Intervention Committee on November 4, 1937.

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CHAPTER V. GERMAN ECONOMIC PRESSURE ON FRANCO: NOVEMBER 4, 1937MARCH 10, 1938

Date and

Doc. No.

1937

Subject

Page

Nov. 4 463

Memorandum of the German Embassy in Spain

496

German mining interests have encountered difficulties with the Spanish authorities, who interpret the decree of October 9, 1937, as permitting only a minority interest by foreigners in such enterprises.

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Nov. 4 464

Nov. 8 465

Nov. 9 466

Nov. 13 467

Nov. 17 468

Nov. 17 469

Nov. 25 470

Nov. 27 471

Nov. 27 472

Memorandum of the German Embassy in Spain

The director of Hisma argues that every pressure must be brought to bear to overcome Spanish resistance to German acquisition of a permanent ownership interest in Spanish mines; only this result would justify the aid given to Franco.

Editors' Note

Hitler's views on the implications of the Spanish Civil War for German policy as stated on November 5, 1937.

The State Secretary to the Embassy in Spain

Franco is to be urged to respond affirmatively to the London
committee plan for withdrawal of volunteers but to impose
certain conditions.

The Foreign Ministry to Various German Diplomatic Missions
and the Consulate at Geneva

In a review of recent developments in the Non-Intervention
Committee for guidance in conversations, it is stated that Ger-
many has given full support to non-intervention despite Rus-
sian obstructionism.

The Chargé d'Affaires in Spain to the Foreign Ministry
Franco agreed to follow German advice in his reply to the
Non-Intervention Committee proposals; he does not attach
importance to the Soviet refusal to grant belligerent rights.
The Ambassador in Spain to the Foreign Ministry

Franco doubts whether the granting of belligerent rights will
bring him any advantages.

The Ambassador in Spain to the Foreign Ministry

Franco promised that German interests would be protected under the recent mining decree; its purpose had been to forestall a sell-out of mining rights by the Red Government.

Memorandum by the State Secretary

Göring, under the impression that Franco is granting rights
to the British and that German mining interests are en-
dangered, wishes to "hold a pistol to General Franco's breast";
a more moderate approach is to be urged on him.

Memorandum by the Deputy Director of the Economic Policy
Department

It was agreed with Göring's subordinates that the Ambassa-
dor in Spain should undertake a démarche in the interest of the
mining concessions and against Anglo-Spanish agreements det-
rimental to Germany.

The Foreign Ministry to the Embassy in Spain

To overcome skepticism concerning the general assurances given by Franco on mining rights, he is to be asked to give a binding pledge of protection for a list of concessions already held by Hisma.

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CHAPTER V. GERMAN ECONOMIC PRESSURE ON FRANCO: NOVEMBER 4, 1937MARCH 10, 1938-Continued

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1937 Nov. 27 473

Nov. 30 474

Nov. 30 475

Dec. 3 476

Dec. 3 477

Dec. 3 478

Dec. 3 479

Dec. 4 480

The Ambassador in Spain to the Foreign Ministry

The increasing number of recognitions extended to National-
ist Spain means that other countries are getting into the Spanish
market; Germany will have to decide shortly on a credit and
trade policy if she is not to lose ground.

Memorandum by the Director of the Economic Policy Department
Göring's special representative, whose task is to secure the
German economic position in Spain, should not be authorized
to negotiate with the Nationalist Government in matters which
are the concern of the Embassy.

The Foreign Minister to the Embassy in Spain

Franco's concessions to England appear to exceed those he has admitted; he is to be told that unless guaranties are given for certain vital economic interests Germany will reconsider her policy.

The Ambassador in Spain to the Foreign Ministry

Informal negotiations between the Spanish parties for ending the Civil War have broken down because of Franco's demand for unconditional surrender; they explain the delay in military operations.

The Ambassador in Spain to the Foreign Ministry

Conduct of Italians both at and behind the front has given the Spaniards "their fill of the entire Italian military aid"; the reputation of the Germans for soldierly conduct remains good. The State Secretary to the State Secretary in the Office of the Commissioner for the Four Year Plan

In response to the query of the German Ambassador, Franco has stated emphatically that all reports of economic concessions by him to England are "pure fabrications."

The State Secretary to the Ambassador in Spain

Mackensen gives Stohrer an account of Göring's suspicions of Franco's dealings with England which led to the instruction that Franco be asked to give assurances on German economic interests.

The Ambassador in Spain to the Foreign Ministry

Franco appeared entirely sincere in his denial that economic concessions had been made to England; he promised friendly consideration for the list of mining concessions demanded by Germany.

Dec. 10 481

Dec. 13 482

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The Ambassador in Spain to the Foreign Ministry
Despite the earlier failure, representatives of Red Spain have
continued to seek contacts for discussion of a negotiated peace.
The Foreign Ministry to the Embassy in Spain

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Dec. 16

483

Although mutual trust has been the rule followed hitherto,
Franco's delay in approving German mining rights justifies an
appeal to the specific obligations of the July 16 secret protocol.
Memorandum by the State Secretary (Excerpt)

527

The Italian Ambassador stated that concern was also felt in
Rome over Franco's dealings with England.

CHAPTER V. GERMAN ECONOMIC PRESSURE ON FRANCO: NOVEMBER 4, 1937MARCH 10, 1938-Continued

Date and

Doc. No.

1937 Dec. 16 484

Subject

Memorandum by the Ambassador in Spain

The demand for approval of 73 mining concessions listed by
Germany has continued to be met with delay on grounds of old
Spanish laws and the provisional character of the regime.

Page

527

Dec. 18 485

The Director of the Political Department to the Embassy in Italy
Germany would be prepared to withdraw 5,000 volunteers
from Spain at once provided Franco agreed.

529

Dec. 18 486

Dec. 19 487

Dec. 19 488

Dec. 20 489

The Ambassador in Spain to the Foreign Ministry

The Spanish attitude appears cooperative, but legal delays continue to interfere with granting of approval for German mining rights; no special pressure is recommended for the present.

The Ambassador in Spain to the Foreign Ministry

Spanish business interests have made known their desire for a freeing of German-Spanish trade from the Hisma monopoly; the alternative for Spanish enterprise would be to turn to other countries.

The Ambassador in Spain to the Foreign Ministry

The Duke of Alba, Spanish Nationalist representative in London, is working for closer ties with England and a lessening of German and Italian influence in Spain.

The Ambassador in Italy to the Foreign Ministry

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Ciano stated that Franco has been told that, if operations continued slow, troops would be withdrawn; under such conditions the 40,000 Italians there could not indefinitely serve a cause in which they had little interest.

Memorandum by the Ambassador in Spain

534

Dec. 21 490

In a discussion with representatives of the Hisma firm of the Spanish resistance to granting German mining rights, it was decided to clarify the legal situation and to make a direct appeal to Franco.

Undated Memorandum by the Ambassador in Spain

491

Dec. 22 492

Dec. 22 493

Dec. 29 494

Franco admitted annoyance at what he thought was the secret acquisition of mining rights by Hisma and insisted he was limited by Spanish law; he agreed to a conference of experts to examine the legal situation.

Memorandum of the Embassy in Spain

In summary, the Spanish position is that they do not deny
Germans the right to acquire ownership of mines, but they
object to these being bought up without consulting the au-
thorities and without conforming with the law.

Memorandum by an Official of the Economic Policy Department
A study of the Hisma monopoly and the conditions under
which German-Spanish trade operates shows that it is still too
early to restore private trade.

Memorandum by the State Secretary

Mussolini has informed Franco that Italian troops could remain in Spain for the present, but a military decision had to be sought at an early date and a unified command must be set up.

875667-50-VOL. III

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