/
(C 6938/30/41).
My Lord,
FOREIGN OFFICE, S.W.I.
29th May, 1940.
In my telegram No. 921 of the 28th May I informed
Your Lordship that His Majesty's Government v/ere
contemplating offering some economic assistance to Spain.
The immediate offer which His Majesty's Government have
in mind is to of fer the Spaniards 100,000 tons of wheat by
the end of June and to offer to facilitate the purchase by
Spain of Portuguese colonial produce such as live cattle,
oil seeds and maize.     The purchase of these goods will he
effected through the Anglo-Spanish Clearing out of the
normal proceeds of Spanish exports to the United Kingdom
and also out of the loan of £2,000,000 recently made by
His Majesty's Government to Spain.
2. Apart from her immediate needs it is estimated
that Spain will require some 400,000 tons of wheat "before
the harvest of 1941.     His Majesty's Government have it in
mind to offer to supply this v/heat v/hich is available in
Australia.     The main difficulty is likely to lie in the
provision of shipping.      It has been suggested that the
United States Government might be prepared to assist Y/ith
the supply of v/heat and maize and perhaps of other
foodstuffs to Spain on humanitarian grounds as they have
•been prepared to do in the case of cotton.
3. It is not my intention that any immediate
_gestion should be made to the United States Government,
but the proposal has recently been discussed between a
representative of the United States Embassy in London and
a representative of the Ministry of Economic Warfare.
His Excellency
The Most Honourable
The Marquess of Lothian,
etc.,      etc., etc.,
Washington.
he/
C.H.
J 7 fhv
The representative of the United States Embassy said that
he thought something might he made of this proposal and
he undertook to put it forward on a personal basis to the
United States Government.
I am, with great truth and respect,
My Lord Marquess,
Your Excellency's obedient oervant,
(For the Secretary of State)