C 0 '\i7 iT1-::-· -.., -r-r: :b 
-s•-J.-. :;~_,-, -.Cl ... 
? ~,~e 2 , 	""-:i ,..., • ·: ,...,
~~ L'.,......,.\...4,.-__ .......i,.. 

-
3. USP2 figli:er squadrons 1·Tere pho.sed-ou'c in 1964; se\·en radar stations just turned over to GOS.; one of three c.ir'bases put on stand-by, two naval f uelin::; stat:.ons and on-2 r.~unitions 
..Ct • J_ •
dt:.:!;i p~t o!1 cc.reto.!(er status, 2.ll without J. ric v10n. ~-47 Re­flex operation ·.·rill te phased-out by l':.pr~l 1, 1965. T:itz.l US ar:::ed services personnel and cependents do~..·n fro:n peak abot.:t 30, 000 to e.bout 22, 000. 
4. N2.V2.l cooperat:.on developed excellently ~i::.th rc.'1::=~i2.l 
of s:-.ip loa:1s c.r.ld profitable US 2.ssist2nce in GOS nc.\·..::.3-con­Str,_;::f-:_ion ,..."' o··tr-..,..01 rl-h i'· 11 "G "l"e1 ~t:i·ons.'ni·) 

join.t GO.S-uS
---C.V U .J. , .' "-"•.. ,.,.•...,. ~.-.. --................ 'oJ '--~ •

0 
n2.vc.l ·ar.d la::i.di~i.g exercises i963 and 1964 , .rn-.t"'e~ uc c.r"'u p.:,....,....J ;~-..,.; ­
,.i;;.....: ~U'-"" ------..-. ­

r..snts for US ?~d en_henced rcl2.tions ,,·:i-Ch Spai:-1. 
US :·;a··a1 vicits to Spanis~-i ports totalled 745 ships ·,11t:... 
328,000 n~n on board. 


'"' d 	.-" .... 1 i ,_ . . . -... ,..., .!... .:! -~
n"o~or ,""l 1··., ec:..S 0 -a"(i, l ! 1•l V '('•"<,/ '\•. I V nu-
l.J---'-.. .l 	V .......'"""'"' ••_ _.__ -··-(..: ---_...._. 

shi:9 er.h3.:lced -by increas i!".3 GOS fro:.--.~ lJ .s. :!:his proce::;s ';T:J.S creatly 2.CCelerGtcd by t:ie Se~ter::be:­1963 base-ri~hts extension 


1·rhich ga\•e $50 :-:iillioi1 I:ili­tar~t Assist2.nce to the GOS over a p2riod of five :;e.J.rs c.._--' o~:er­ed <;\50 ;::illion more to match equivalen'c d~ll::.r purc~'lc.se of mili ­tary equi9ment by the GOS UQ to thac nr~ou.~t. 
. ..., , . 5 	t, t , ,I, 200 . 1 .. . .
ae.-e... oping a -year progr21n na may rc2c11 '? m:i..... .Lion in 
P,,.f"\Ch ..... ~e,... 
~ ••c..... .:> 	of military equip~ent fro:.. t::e U.s.,., 
C-130s; and 5 DEGs equipped 1·;ith T2rte:.~ r.'!issile::::i. 

co·-p-n-}-:f7'1-I •• $
~ • .4 -~ --~ -: ..!.. .!: --I 


,,.. 
o. 

oc:::: 


for Air Force persor~Lel, over rcnte.:. 



a:-id. ne~·r c ont;rr<ct siq~ed to coincide ~it~
...... 


.
case 

7. 	GOS (,~:;reed to seve::."'21 ne~·r inst2lla~io~s st.:ch 2.S ,... t,...I.. "' on 2."''"\ '"t·"'("\'"' "'Q ,)'f" o-""\ -ic

.....> Cl.U-•• J.•\..4 1 J. v.....;V~ J.•"""-...-c o::;;r~u::.i­

-... 


iT ... d 

and
•. or..:.. , such 

fo-:­

I 
I ' 

despite 3elgi&n forces, 


I 

I 

S 1"tC }1 ~~-::.. .,..._ . ~0 ,.. .....• ,::: ~-· ... _ .­
I 	the 
the Cuban Crisis, 2nd -• -·.., Y.1. "' ..L\..~ .l.· 'o 
I 
V

-'L,..~ -,-,..,., 
.~v-.1..c~.• 

in effo:."'~
i

I· . 
n..-~e 12. 
:. c . .:_, . ' I~;.;drid A-495 
10 . Eillbassy has attained c2refully balanced ,c~it~cal stance) maintaining cooperative relationships "T.·Iit!'J. regime authorities and supporters~ and sufficiently cordial re~atio~­shi:;s '"'ith in(te;)endent thir-kers a:1d non-terrorist oppos:i.tio~'1 so these elc·::~n~s all &ppe2r to acc---pt the balance bet:i2en US idcolo3ical positio~ and str~tesic nnd otner interes~s. Ferm~nt of political thought 2-i:!On?; younger suppo:-·ter3 of ~egir::e, in 't'ihich ltle ta.;(e interest, imp:::'ovement, without, ho1·rever, weakening controls of ~.-·e:;.ir.:e. 

"R....... anc o rer:·; r-10 rs incr·easirl.6 desire to irr:p~ovc

?-Io:.....eovcr, the ... J.. 0 ..J.J.~ ..-.._ its i.--r.ase for the ~·:estern 1<.rorld -encouras;ed b~i t;ood re:­l.::..t:!.cns ~·.rith our GoverrL':-"tent -has result~d in ::7:0re ;-i:ode~z.te treatr::ent of censo:r·Ghip, of spore.die labor u.""lres-c, of persoy:s 
th.e 

of pro­2.nd :. ..!..C ~
1~oc a1 _ a\;....,....·+-ho""-\_ 4-v _,,. c:: • 
••u,_'v:n 0:..... 2· ~... ::i'f-:i·•".Jn _-.~o~_ +-~.. '."'. f'o.,--... ""t ·· ·--11 o.&> -...,· O""'S
---~'-' -v -'= -..:...'; .• c-_._1...J .:.. ~-..Li 


n1~r~edo~·ll. o-.... Cl.u..... c so""..; r-.l-·i O"'••t:
in the windr to~a~d 
t:: ..L l..;....;..v..V-• 
ll. The Labo:' Att;ache r-:a:i:;}.tci.ins excelle:ltly bal2x:.c~d re~ationship \·Tith syndicate le2ders e:ic our:..2;i!10 1 ibe;..... :-:.1 ::z:::~::.·):1. without o:ffendir1g. 
12. Foreign Hinister c:..STT~L.I.J-:. ts long, :pe!"S istent ef:fo:-~s to obtain approval cf draft lc.:·r specifying .,..,; rrl1f:c:::._. ..........,..... • \ 7 "i-; e ..... ~s 
.... -o· -l;J----o"" 
. -' .
of non-Catholics encour2;;ed rn3.rked il~)rove:-:--.._.n ....; in "CO_e ... 2.~:.0:-1 C2.tholic hiercrchy has b2cor::~ grec.ter influence for socic-.1 r-:prover.1.e:Lt. 



. 
_rt1'.":I.~~ I• h, ""•' I " I
V-0#> '--.,.1.;......i .. -. .... ......... --'-1 

,,.. r~ r"":~-~ ""'
.e . . c ........ _ -...~ -435 

.. 
increased emphasis on soci8l improve1:1er;.~s 2.nd ,.;elfa~e of lo~:est income groups. I believe this has bee~-influer.ced in part by the er11pha.tic attention o.nd adr;;iratj.r."n v.re have consi.ste:itly 
our effort8 t.<' <.1.f_>f~cribe to Spani2~ds the efforts of the US 
iorn~ ..c-l•,.. -'>'"l.z...
. d.rnini$t::iat:Lc:·: to bri!13 about such pro;:;ress in US. S-o·._... "'c:... .. v 
st:rides i·~e:ie ri~ade in Span:!.sh edt:.catio:::1_, hol:r;in=.;, :r::sC.ical c2:ie, 
( e .~. polio v:as v5__--tu.o.1J y 1·1iped out with re:::> id, nc."t~!.or:.-·,.;:!.de use 

~ 
S3.bin vaccine), r.lini!:'lt.m'. i·1ages, collecti·~·e barr;ainir~z.: so~ial 
d~-.rr·1 or.""iP")"-iv ­
.._,..\_,_ -J·-~•-V) _ ... 
corr..rn'..L'1icatiotlS • .fcrce r.:oves annually out of agricu.lt urc (i.-:he:::--·e i·Jo::."ice1"s 2.~e u...""ld.e~­
·.;·i.. _11 ~-e"", -.., -::: 1 -"p f' '!::I.,... e
in all u ... _....... _ t...-_ --­
'11 -­
to --;...., us
shol.: that US is D~eOCCU:)iCd ~·:it!-1 this obJ~ect.iYc
. 
between national Ptomic Energy Co~~issic .s of US a~d Spa~~ is close a~cl nol..r poir/cs to-.;a:rd j o:'..nt ck. v~:cp!~~ent of ·ne~·; -.:::-c,_r::.­r:Jer L.,., h,..,....,._.
I • , r• r• ' ' 1·;ater po~1rer re2cto::-i fo:i 1:hich US i ••s.y 103.n 1:.e:.v·y
... ....v--....., J.,,. 
'"'' 
A ~peeial at;rt;ement ·,;as 





I 
25. US investw.ents a:-e 40% of c..11 ne·.-r foreign i::-;..reGt::-i.ents 
I 
in S?a~n, and inclu~e lc..rge a~ounts by GS Steel, Ch~ys~er, Electric; Chio Oil, S-'candc.::-d Oil of 

Gulf 


C~.,,, .,. i·. l 1 • ~'.) -...-'::! -:. ...... ~ 0
Oil, 
--0 --, .... --. ..._ c;....... .... ""'11 ~ 


I l 
' 
~ 
~ 
~ 

i ' 
I 
I 
oj 
i
•
ti 
' I 
' 
J I 

·
:-~'.'. · .1_oc~.1 C1 '"r".L~e;.1c;r i ·' ... -::. .. ~· ..., •• c:: te--1
~-P·
"-'-""' --\,,. ' ~ -V\f I; C,... -· C ---~l ... t~ a \,,,.."-in 
·! 
I ··rh-i Ci-, }1 -:; :-::
·~ ., --· -·\........,, lOr 
U
("1 
0.
~ ~o e.n l 
".:1CC o:---;---~nv · ...... (. J_, c. GOS ~-"\, ~ ~ ..
eco~cm~cal m2thcd of ' .. -v --' th2 C • ' 1 "'
1 "'"'""" ... .._:J~ _ ... 
...__~_v-......_
"'" -'-f 
' 
I 
j 28. Er.bassy Residence moved into sover:;!l':..'2nt-0':1_1ed 1 
I 
1 
-
l 
~ 

11 
l 
I 
I 

' 


... _,,, -~""!-'\ .!-.. ..... .: c::. ~-<t ..._ --.::. 
__.-­
.'4 ......-----­
-