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Authors: Richard Bassett
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to Kiel. Lohmann opened him a generous line of credit from Deutsche Bank and the Spanish King was âinspiredâ to ask Echevarrieta to build torpedo boats for the Spanish navy. Echevarrieta, however, needed capital to do so. Zaharoff and other British interests had got wind of what was going on and had offered the distressed industrialist financial support if he would support British, or at least Vickersâ interests in Spain. This move, however, only strengthened Canaris and Lohmannâs hands in Berlin to secure yet more credits from Deutsche Bank, one of whose directors, the aptiy named (from Echevarrietaâs pointof view) Dr Luck, travelled to Madrid to draw up the financing agreements with the industrialist, ably assisted by Ullmann.
At a stroke, the stranglehold on Spanish military affairs exercised by the Bank of England and the Zaharoff-backed pro-British Constructora Naval, which had dominated Spanish arms procurement, was broken. Zaharoff, it appears, was distracted by events in the eastern Mediterranean. He may also have chosen to remain neutral partly out of respect for the King of Spain, whose goodwill he would need in order to continue his affair with the Kingâs cousin, the Duchess of Marchena. Another factor, of course, was that Zaharoffhimself, along with all other armament interests, could only eventually prosper from a resumption in Germanyâs armed capabilities. In particular, his interests in France could only be encouraged by a revival in German arms or at least the semblance of rearmament.
As was pointed out by Philip Noel Baker: âA ceaseless propaganda ⦠indoctrinated the French people with the view that Germany was being prepared for a war of revenge ⦠in this way a constant anxiety was maintained in France which ⦠facilitated the passage through the French Chamber of huge annual appropriations for the purchase of war material.â 9
For Spain, these developments heralded the beginnings of a new and significant financial orientation. With the neutralisation of Constructora Naval, Spanish society from the King downwards felt liberated from what might be described as the pressure of British capital. Canaris reported that the resentment at all levels of the Spanish navy towards the British-backed company was intense, as it was felt âthe company put its own interests ahead of those of Spain.â
The gratitude of the Spanish was, as always, immense. Lohmann was invited to Spain to demonstrate new German technology on board a German merchant ship; the high point of the demonstration being no less than a visit from the King himself, flying his standard from the German ship as he inspected a new propulsion system. As Lohmann was at painsto point out to his superiors in Berlin, this was the first time the King of Spain had flown his colours in a foreign merchantman.
More importantly, it was noted by Lohmann how Canaris, with his fluent Spanish, had the ear of everyone of importance in Spain. âOur cooperation with the Spanish navy owes much to the fact that he has the confidence of Echavarrieta, naval officers and members of the court and not least the King himself.â 10
This confidence was fully exploited by Canaris to lay the foundations of what would be a lasting cooperation with the important organs of the Spanish state. In 1928 he initiated a formal agreement with General Bazan, head of the secret police. Other connections were consolidated with the intelligence service and the counter-intelligence service of the Spanish navy. At the same time he made contact with the military intelligence chiefs in Spain and procured their approval for a training scheme for German air force pilots, who would join the Spanish air force and with them enjoy combat experience as Spain put down the Morrocan revolt. In this way, Canaris came to work with Colonel Alfredo Kindelan, a senior air force officer, and the colonial minister General Gomez Count Jordana.
At a stroke, the stranglehold on Spanish military affairs exercised by the Bank of England and the Zaharoff-backed pro-British Constructora Naval, which had dominated Spanish arms procurement, was broken. Zaharoff, it appears, was distracted by events in the eastern Mediterranean. He may also have chosen to remain neutral partly out of respect for the King of Spain, whose goodwill he would need in order to continue his affair with the Kingâs cousin, the Duchess of Marchena. Another factor, of course, was that Zaharoffhimself, along with all other armament interests, could only eventually prosper from a resumption in Germanyâs armed capabilities. In particular, his interests in France could only be encouraged by a revival in German arms or at least the semblance of rearmament.
As was pointed out by Philip Noel Baker: âA ceaseless propaganda ⦠indoctrinated the French people with the view that Germany was being prepared for a war of revenge ⦠in this way a constant anxiety was maintained in France which ⦠facilitated the passage through the French Chamber of huge annual appropriations for the purchase of war material.â 9
For Spain, these developments heralded the beginnings of a new and significant financial orientation. With the neutralisation of Constructora Naval, Spanish society from the King downwards felt liberated from what might be described as the pressure of British capital. Canaris reported that the resentment at all levels of the Spanish navy towards the British-backed company was intense, as it was felt âthe company put its own interests ahead of those of Spain.â
The gratitude of the Spanish was, as always, immense. Lohmann was invited to Spain to demonstrate new German technology on board a German merchant ship; the high point of the demonstration being no less than a visit from the King himself, flying his standard from the German ship as he inspected a new propulsion system. As Lohmann was at painsto point out to his superiors in Berlin, this was the first time the King of Spain had flown his colours in a foreign merchantman.
More importantly, it was noted by Lohmann how Canaris, with his fluent Spanish, had the ear of everyone of importance in Spain. âOur cooperation with the Spanish navy owes much to the fact that he has the confidence of Echavarrieta, naval officers and members of the court and not least the King himself.â 10
This confidence was fully exploited by Canaris to lay the foundations of what would be a lasting cooperation with the important organs of the Spanish state. In 1928 he initiated a formal agreement with General Bazan, head of the secret police. Other connections were consolidated with the intelligence service and the counter-intelligence service of the Spanish navy. At the same time he made contact with the military intelligence chiefs in Spain and procured their approval for a training scheme for German air force pilots, who would join the Spanish air force and with them enjoy combat experience as Spain put down the Morrocan revolt. In this way, Canaris came to work with Colonel Alfredo Kindelan, a senior air force officer, and the colonial minister General Gomez Count Jordana.
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