Created: 11/4/1943

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/^Offioiei^ Embassy Seal

rvl pain

X Hayes,tateSS


and Strictly Confidential

Dear General Donovan:

Madrid, November

1 of 9

may have thought me, during the past ten ora quite intransigent opponent of OSS in Spain. assure you that throughout all theave beennave retained the same basic belief in thepotential utility and the same desire towith itxpressedast talked withln Aprilhas been, through-

w *fi.tJesVast-months' not with the organization as suoh out with the Incompetence of local ohiefs and the lack of adequately trained personnel with which it has been afflioted in Spain up until now.

Bowi however, thanks to the recent visit of Colonel i Dd Spencer Phenix and to the attendant frank and amicableave had with them and with Mr. Gregoryew era appears to open. We have arrivedutual understanding which is embodied in prlnoiple in the enclosed memorandum and which shouldound basis for future cooperation in detail. rust that it will meet with your approval and that,irst step in implementing it, Mr. Thomas's position here will be promptly regularized through Joint aotion of yourself and the State department.

I am supplying the Departmentopy of theandike reoommondation under cover of my des-patoh9 of today's date.

With the highest personal regards.

Faithfully yours,

. Hayes, American Ambassador,


1/ Copy of memorandum, as stated.

General William J. Donovan,

Chief, Office of Strategic

Enclosureo despatch9 of Novemberrom American Embassy, Madrid.

Memorandum on Understanding between Embassy and OSS in Spain

(As Agreed Uponeries of Conferences, Oot.ov.mong the Ambassador, Colonel Gridley, Messrs. Phenlx, Thomas, Steele, Boaulao, Haering, and, in respeot of Seotionsndolonel Hohenthal and Commander Lusk)

I. Functions.

Seoret Intelligence (SI) will be conducted by OSS, and at the present time will bo directed primarily tomilitary information from enemy and enemy-oeoupiod territory. So far as direot intelligence from Spain is oonoerned, SI operations will oover only suoh intelligence as may be requested or agreod to by the Ambassador and the Military and Naval Attaches, or be required by the Joint Chiefs of Staff with the conourrenoe of the State Department.

In connection with any possible intelligence work within Spain, it should be borne in mind that the Ambassador has been authorized by Washington to give the most solemn assurances of the United States Government to the Spanish Foreign Minister that "none of our personnel in Spain are engaged in activities which are direoted against Spain".

_ ; Counter Espionage (CE) will be developed within Spain by OSS as soon as adequato trained personnel is

either Morale Operations (MO) nor Speoial Operations (SO) will be undertaken for the present.

A representative of the Researoh and Analysis Branchnd A) may be attaohed to the Madrid office of OSS for the purpose of proparing better-evaluated and morereports on SI material from this area.

6. OSS in Spain will not become involved in anyembarrassing to the Embassy. The decision as to what is or is not embarrassing rests with tte Ambassador, who should be kept ourrently informed of the nature of the activities in whioh OSS engages or plans to engage ln Spain.

II. Organization end Personnel.

1. OSS in Spainoordinate with the offices ofAttaohe and Naval Attache, and like themart of

a eoob of tnese ofrlces isador informed and to seek

S?^Jhl3instructions,heof the OSS in Spainike duty.

if'i.is recognized as Direotor of OSS Inunder him, Mr. Steele as Acting Branch Director of will be made for the bringingsatisfactory to theS ? vsves it is contemplatediellatfdwby !fr* Tnomasraooh director ofthai "fvSteele will then he named Fieldwill henceforth spend much of hie time co-

ivlties of

3. The number of American agents now in Spain will, for

inance Officer, three code recognizes/ stenographers, the need for whloh tha Embassy

i 1ranoh Director (under Mr. Thomas) and at the outset, one or two other spec-

ti' .Theso a" not aow available in Spain possiole!" broueh* from Washington or London aa soon as

rther OSS personnel should be brought intotrolcum Attaohes. Further additions orshould be made under the oover of Embassy Attaches or ^ISL-Tcitizons or possibly. In the oase of CE

* of Vice Consuls. Any suoh Vice Consuls, however, jould be regular members of oonsular staffs and subject to

dlsci*llne as otaer consular sub-

^aJoint Chiefs of Staff have agreed unequivocallylthdrewal of any agent causingto the Embassy. Hence in oases where the Ambassador

oartein Individual Is connected

OSS and that his activities In Spain are likely to oauie embarrassment to the Embassy, the Direotor of OSS In Spain the Ambassador's request, inform him whether or not the Individual in question Is ln fact oonneoted with OSS.

/fients of OSS have the usual responsibility to the principal oonsular officer of any consular districtich they may be residing or operating.

III. Socurltv.

I. The oonduot of OSS personnel in Spain will beto proper discipline and sanctions.

Petroleum Attaobes already innotwlthout the approval of thetho servioes of or remunerate any offloer or em-

projudioe or "Lie"t IP

et capacity

IV. Coordination.



tora oflD Sp8lD and th9Direo-

nartJnt^"sador has been authorized by the Statewitn the concurrence of OSS, to*ii

6. Full

6. Full facilities of the Embassy pouch aad oourior service will he afforded OSS ln Spain. To provide desirable addition to this, especially between Baroelona and Madrid, recommendation will be made to OSS and to the Statethat they Jointly arrange to supplement by one the present number of Madrid couriers.

?. To effeot proper coordination of SI of OSS with similar intelligence of our other agonoies in Spain, it is proposed that periodic meetings, preferably weekly, be heldoint Intelligence -oaaittee, consisting of theAttache, the Navel Attaohe, the Direotor of OSS and the Embassy Liaison Officer {representing theith tho senior mllitery or naval officer acting es chairman, for the purpose of discussing matters of mutual Interest.

S. To effeot proper coordination of projected CE of OSS with similar existing intelligence of our other agencies, it is proposed that as soon as CE of OSS is established in Spain periodic meetings be heldoint Counter Espionage Committee, then to be constituted of representatives of the several egencles interested in counter espionage aotivlties. It is contemplated further that the Director of OSS wouldandentral oard index of counter espionege material In the files of the several agencies, with theof these. Eaoh agenoy, however, would maintaincontact with its counterpart in the British set-up. For example, OSS would deal directly with the BritishControl Office in CE matters; the Economic Controlwould oontinue its Intimate contact with thesection of the British Embassy; the American Consulates would oontinue cooperation In passport and vise matters with the British and other friendly Consulates; the Military and Naval Attaohes would oontinue to deal directly with theand Naval Attaches of other countries. With eventual development of such organization and coordination, it would appeor unnaoessary to seek representation of FBI in Spain.


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