'More carrot than stick', British Economic Warfare and Spain, 1941-1944

During the Second World War, economic factors became a centralaspect of Spain's relations to both Britain and Nazi Germany.In 1940, when the Franco regime was on the brink of joiningthe war on the side of the Axis, Britain tried to use Spain’sdependence on imports from the west to convince Franco to retainhis country's neutrality. Although, at the time, British ‘economicappeasement’ was not a major factor in the failure ofGerman-Spanish negotiations, it contributed to Spain's verygradual detachment from Nazi Germany over subsequent years.Between1941 and 1944, the focus of British policy towards Spain movedfrom keeping the country out of the war to restricting the servicesSpain rendered to the German war economy. Franco's sympathiesfor the Nazi regime and the economic and financial benefitsof continuing trade with Germany made British and US economicwarfare activities however only a partial success.