For Koht personally the civil war in Spain came close to ending his cabinet career on several occasions. On 9 April 1937, following a series of incidents where Francoist warships intercepted Norwegian vessels sailing on Spanish ports and confiscated both cargoes and ships, and Norwegian protests failing to gain results, Koht made a formal proposal to dispatch the Norwegian minelayer "Olav Tryggvason" to Spain to protect Norwegian shipping. After the proposal met opposition in parliament and was set to fail, Koht offered to resign. Prime Minister Nygaardsvold refused to accept Koht's resignation, stating that he "would rather be shot than lose Koht". The case came close to causing the whole cabinet's fall in parliament, before it was agreed that it would be dropped. When Koht in 1938 attempted to establish a trade agreement with Franco, he was blocked by his own party and the Norwegian Confederation of Trade Unions. Again requesting to be allowed to resign, Koht stayed after months of debating ended with the party giving the cabinet free rein to do what it saw as best with regards to trade with Franco. By October 1938 Koht had negotiated a trade agreement with Franco. The formal Norwegian recognition of the Franco government as the representative of Spain followed on 31 March 1939, three days after the fall of Madrid to the nationalist forces.