republicans, socialists, communists, and Basque and Catalan separatists will resort to rioting   
and forceful revolution. In any event the policy which we are now pursuing in Spain, particularly   
our economic policy, can be counted upon to ensure us wide popular support in Spain and to render   
any future government here a satellite of ours rather than of the Axis. With our oil and cotton   
and other commodities, as with our propaganda, we are pointing and paving the way.
 
     
 
 
Meanwhile, Jordana is coooerating splendidly with us.  He is permitting the unofficial   
representatives of the French North African regime to function in Madrid almost as if they were   
accredited diplomats; and he has finally gotten the backing of the Caudillo for the release and   
evacuation of refugees. Two hundred Poles (of military age) have already departed for Portugal   
whence they are being taken by boat to North Africa, and today a thousand Frenchmen are en route   
to the Portuguese frontier. The Germans are making a terrible fuss about it, but Jordana refuses   
to be shaken by their clamors and assures me that as soon as we can make thsnecessary   
arrangements he will authorize the departure of the rest of the French refugees (now estimated   
to number some fourteen thousand.)
 
     
 
 
Our Embassy staff has greatly increased its size and functions since you were last in Madrid.   
Our press and propaganda section is now installed in a handsome "Casa Americana," and in three   
additional apartments which we have recently acquired I have installed our refugee and relief   
section, our oil-control section, and the consulate. And thanks to your efforts in our behalf,   
Mrs. Hayes and I have been enabled by the increased "representation allowance," to extend our   
hospitality commensurate with the increased need and opportunity.
 
     
 
 
I suspect that the importance of the Iberian peninsula will wax, rather than wane, in   
months to come. It should be a convenient depot for certain kinds of commodities useful to our   
armed forces in North Africa and later in France, italy, or the Balkans. It might also play a   
highly useful role in expediting post-war reconstruction, especially in France and Italy.
 
    
 
 
With the kindest personal regards, in which Mrs. Hayes shares,
 
 
 
Faithfully yours,
 
 
 
(Sd) CARLTON J. H. HAYES.