Evening star., 1953-09-27

nounced that United States eco
nomic and military assistance to
Spain would total. 1926 million
in the current fiscal year ending
June 80. This is all the money
that has been appropriated.
The administration, however,
will ask Congress for further
funds during the session. start
ing in January. The State De-
partment contemplated aid for
several years. although Congress
will have to appropriate the
funds.
Of the financial aid during
this fiscal year, $141 million will
be in military end items such as
aircraft. The United States also
promised to do what it could to
modernize Generalissimo Fran
cisco Frances land forces, now
reported to total 80 divisions.
Gen. Franco at first wanted
the United States to take on the
chore of completely equipping
his entire army, but the United
States baked. What equipment
the Spanish land forces receive
from the United States will be
subject to other priorities.
Spanish Currency Rises.
The United States. in the cur
rent fiscal year, will give Spain
$85 million in defense-support-
ing assistance. This could in
clude almost anything from
roadbuilding equipment and pro-
duction machinery, which Spain
Sorely needs, to cotton and other
surplus American commodities.
Spain will set aside an amount
0qual to 80 per cent of this "de-
fense-supporting" assistance as
Spain's contribution to enlarging
the bases that the United States
will use.
The outlook for this defense
spending caused the price of the
peseta, the Spanish unit of
money, to rise in Madrid, the
Associated Press reported.
AS part Of the economic ar
rangement, Spain promised to
help the United States obtain
Spanish products that Washing
ton might want for stockpiling
or other purposes. Spain said
that, within reason, it would
promote the production and sale
Of these products.
Spain also promised to give
full and continuing publicity to
the United States assistance in
Spain, and, "will grant to repre-
sentatives Of the United States
Press full freedom to observe
and report on the operation of
the economic and technical as
Sistance programs"
Reversal of Tension.
In the economic agreement,
the Spanish government, which
runs the country's foreign trade
and financial exchange with die
tatorial thoroughness, promised
that Spain will use it's best en-
deavors to stabilize it's currency,
maintain q valid rate of ex-
change on currency, and dis
courage monopolistic practices
and trade barriers which may
affect the Spanish-American
program.
This program for Franco
American cooperation contrast
ed with the tension of World
War II, when the allies feared
Spain would side with the Axis
dictators who helped Gen. Franco
win the Spanish Civil War.
In 1916. the United States
went along with the United Ma
tions General Assembly which
asked U. N. members to withdraw
their top diplomats from Mad
rid as ia protest against the
Franco dictatorship. U. N. re-
voked this recommendation in
1850. and the United States and
Spain have moved steadily
closer.
Great Britain and France
weren't enthusiastic about let
ting Spain into the North At
lantic Treaty Organization, so
Spain was left out. The Soviet
bloc and some Western states
still want to keep Spain out of
the u. N. American authorities
say the agreement signed yester-
day does not attempt to get
Spain into NATO or U. N.
through the back door, but sup
plements Americans commit
ments to NATO. ..
Stanton Grifhths, as the first
United States Ambassador to
Madrid after the U. N. call for
withdrawal of diplomats. and
Admiral Forrest T. Sherman
talked to Gen. Franco in the
spring and summer of 1851 about
possible American use of Span
ish bases. This start led to for
NAL negotiations beginning in
April of last year.
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