5. He Traded with the Axis Powers
One of the most important things for any army during a war is a steady stream of supplies, and during World War II the resources needed for the war effort were scarce. The Japanese moved on the oil fields of Southeast Asia in order to keep up their war effect. Germany was relentless in it’s fight to get the oil-rich Stalingrad. But oil was not the only thing that was necessary to the war effort.
Tungsten and other metals were necessary to keep building weapons and food was needed to feed the soldiers as they marched through Europe. Spain had these in excess and were more than willing to trade them to the Axis powers throughout the war. The Allies were aware of these trades going on, but they were willing to look the other way in order to keep Spain from entering the war.
Spain even went as far as to allow two German banks to operate out of Spain. Trading with the Axis powers earned Franco $140 million in gold and another $95 million in German assets by the end of the war. Franco was perfectly content to continue this arrangement in order to benefit the war effort, until he saw the tide of war changing.
By 1944 the Allies were getting the upper hand in the war and they were less willing to look the other way with Spain’s trade deals. In January of 1944, the United States stated that they would no longer trade Petroleum with Spain if they continued their dealings with the Axis powers. By May 1944 it looked like the Axis powers were going to lose and Spain could not afford to lose the petroleum from the United States, so Franco ceased all trade with the Axis powers.