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What is the Spanish Government position with respect to the bases? On this question, too, there is a basic difference of opinion. The Defense Department takes the position that there is no controversy with respect to the bases within Spain and that the new Spanish Government formed in October is eager to conclude an agreement with us, although admittedly it will seek a substantial quid pro quo. If this optimistic assumption is correct, the negotiations should have relatively smooth sailing subject only to our capability to produce an adequate quid pro quo. State is considerably less optimistic about the attitude of the Spanish Government (except for the Spanish military). When the Defense Agreement was signed in 1953, unquestionably the then Spanish Government was avid for the agreement, and set upon it a very high value. In 1953 Spain was isolated politically and on the brink of economic disaster. The base agreement with the United States rescued Spain from its penniless and friendless condition. Today Spain in increasingly prosperous and inter- nationally accepted, including membership on the Security Council of the United Nations. The bases have become something of an embarrassment, since the presence of foreign soldiers in Spain without the accompanying satisfaction of NATO membership or a treaty with the U.S. makes Spain appear as a satellite of the United States and decreases the flexibility and independence in foreign affairs to which Spain aspires. The principal Spanish foreign policy objective remains the quest for respectability

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