MaC-RANDUM
Chief, SI
PHOU : Stephen S. L. Penrose, Jr.
SUBJECT : Solution of Spanieh Imbroglio
Forave been thinkingay out of the Spanieh woods. Tho following recocmendations have boon crystallized out of talks with Scott Lockwood, particularly slneo the oeetlng with Ur. Butterworth. ubmit them as the obvious solution of our difficultie'e, bothiplomatic and financial point of view.
The recommendations are as follows:
(A) That Si/Spain bo completely withdrawn, including all personnel, installations,and good will.
(fi) That tbef the personnel and all of the funds be concentrated in Lisbon, from which pointase SI penetration of Spain may be carried on without possibility of interference on the part of the Madrid aobaosy. Since there will be no SI personnel in Spain, the Madrid agreement will no longer be in force.
That chains be established from Portugal Into Spain along lines already prepared, and that contacts should be maintained with agonta now operating for SI in Spain according to arrange-stente which will have been made clear to then before tha Spanish show ie entirely dismantled.
That personnel in Lisbon rendered excess by the importation of people from Spain ahould
bo returned ae quickly aa possible to the United States, together with those individuals fron Spain whoae services are no longer needed.
(K) That Mr. Lock wood be eent at the earliest opportunity to Lisbon and Spain to accomplish the take-down of the Spanish Mission and to explain ln detail the present altuatlon as regards plans, funds,s they apply to
Spain on the part of Argue who would here have to absorb the entirely new situation, with which Lockwood la already thoroughly familiar, and who would thereafter have to return to the Iberian Peninsula In order to pass on the explanation there and arrange the take-down of the Spaniah Mission. Since every day Is Important from the standpoint of budget, this recoanendatlon is considered to be of some Importance. The cost of Ur. Lockwood'e round trip ahould easily be saved in tho number of man days eliminated from the eervioe of excess personnel in the Peninsula. Furthermore, with his experience in the setting up and handling of chains, Mr. Lockwood'a assistance would be invaluable in getting the new Spanish operation underway.
(P) That ell funds assigned to Spain would be
added to those assigned to Portugal, making a
fairly respectable total for the operation froa
kb
that we will have more complete, and at the same time much more efficient SI operations in Spain than we can possibly have under present conditions.
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Original document.
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