ltiE ORANDUM F. R THE PRESIDE T SUBJECT: Your Meeting with Amba sador Wagner at 11:30 a. m., Vlednesday, June 26 n1.bassador \\lagner has just completed his consultations with Washington agencies and · s leaving for "' drid on July 1. Our relations with pain have cooled in recent months because of U.S. unwillingness to support Spanish efforts to reclaim Gibraltar and because of the B-52 crash at Palomares. The key issues in Spanish-American relations are: U.S. Bases -The Spanish wa t to revise the base agreement. They are asking .for increased military assistance, a limitation on movement of U. s. forces in Spain to Gibraltar, and a new status of forces agreement. We believe they will al o ask for a stronger U.S. security commitment to Spain. Spanish economic and military team have already been in Washington for preliminary negotiations. The Spanish Foreign Miniater is scheduled to e Secretary usk here on July 8. e hope to con.­ elude the negotiations before th ')resent agreement expires on September 26, 196 • --Gibraltar -'fie hav maintain d a osition of trict non-:involv n1ent in the Spani -UK di pute o er Gibraltar. -... Economic Ia ues -The Spani h ave attempted to link their equest for a mor favorable treatm nt under the U.S. b lance of pay ents program tot e base egoti tions. e have tur ed the do on this but have agr ed to hol regul r · g level con­sultations on ge eral economic robl ms. w. ostow