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SECRET
DISSENT OF THE OFFICE OF INTELLIGENCE RESEARCH
DEPARTMENT OF STATE
The Intelligence organization of the Department of State cannot concur in the
subject report, particularly with respect to Sections I and II which analyze the
general economic situation in Spain and the position of the Franco regime. It is
our view that the economic outlook in Spain is not as unfavorable as the report implies
and that no political change is to be expected in the foreseeable future. There is
now a distinct trend toward the improvement of Spain's international position which
may well strengthen the Franco regime both economically and politically. On the
one hand, an increasing number of bilateral commercial agreements with Western
European and Latin American countries, together with the indirect aid derived from
ERP assistance to the Western European countries, should improve the economic po-
sition of Spain; on the other, the action of various Latin American countries in ac-
crediting Chiefs of Mission to Madrid will enable Franco to escape, at least in part,
the burdens of diplomatic isolation imposed on Spain by the UN General Assembly. In
view of the widening East-West split, Franco can expect to receive increasing support,
directly or indirectly, from the Western powers.
V
SECRET
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"ocrText": "SECRET\nDISSENT OF THE OFFICE OF INTELLIGENCE RESEARCH\nDEPARTMENT OF STATE\nThe Intelligence organization of the Department of State cannot concur in the\nsubject report, particularly with respect to Sections I and II which analyze the\ngeneral economic situation in Spain and the position of the Franco regime. It is\nour view that the economic outlook in Spain is not as unfavorable as the report implies\nand that no political change is to be expected in the foreseeable future. There is\nnow a distinct trend toward the improvement of Spain's international position which\nmay well strengthen the Franco regime both economically and politically. On the\none hand, an increasing number of bilateral commercial agreements with Western\nEuropean and Latin American countries, together with the indirect aid derived from\nERP assistance to the Western European countries, should improve the economic po-\nsition of Spain; on the other, the action of various Latin American countries in ac-\ncrediting Chiefs of Mission to Madrid will enable Franco to escape, at least in part,\nthe burdens of diplomatic isolation imposed on Spain by the UN General Assembly. In\nview of the widening East-West split, Franco can expect to receive increasing support,\ndirectly or indirectly, from the Western powers.\nV\nSECRET"
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