Hitler and Mussolini had helped Spain fight the Communists in the 1930's Spanish Civil War. But, as the Axis Powers could not convince Spain to join them, by 1940, the Spanish relied on US oil and grain to meet her needs. Also the British controlled Gibraltar and access to the Mediterranean. In effect, Spain, a Facist nation, was surrounded physically, and economically, by the Allied Powers.
While the Germans and Italians had supported Fascist Spain in the 1930's Civil War, the US officially remained nuetral while allowing Americans to form the Lincoln Brigade to fight on the Communist side against Franco and the Axis Powers. This later came back to haunt the American volunteers in the McCarthy era, when they were considered to be Communist sympathizers.
Twice, between 1940 and 1944 Franco met with Hitler. In 1940 he formed the Blue Brigade to help Hitler, but that Brigade was only to be used to fight Russia on the Eastern Front, not against any other Allied nation. The Spanish could hardy refuse, because they owed the Germans $212 million from the Spanish Civil War, and simply didn't have the funds to pay it back.
The US then scaled back their support, guaranteeing only a 10 week supply as long as Franco was helping Hitler on the Eastern Front. When America and Britain won North Africa in 1942 Franco switched back to complete neutrality, and our full economic support returned.
In return, Franco agreed to keep a fortified border in the Pyrenees and Iberian Mountains to deter the Nazis from entering Spain, which was now bounded on all 4 sides, by the Atlantic to the West, the mountains to the East and Britain and the U.S. to the North and South at Gibraltar, the gateway to the Atantic as well as the entrance to the Mediterranean.
In 1944 when Franco was approached again by Hitler, the US again imposed an embargo and cut aid. By that time the Axis powers could not provide Spain with the needed goods and so those talks went nowhere, forcing the Spanish to stay neutral.
Spain was not the only neutral country in the Second World War. The Chinese supplied Germany with tungsten for steel, and in turn, Germany provided China with money and arms to fight the Japanese, at the same time as the the US was conducting the Flying Tiger ops against Japan. Essentially China profited from both sides. It was the only time that the US and Germany were on the same side during the War.
The Portuguese provided Hitler with the tungsten steel needed. They also provided tungsten to the Germans from their colony of Brazil in South America. The rest of South America followed Mexico against the Nazis after Germany sank 2 Mexican oil tankers. Brazil and Argentina were the only exceptions. After the war Argentina was the country to which the Nazis fled to avoid prosecution for War Crimes.
It was a diplomatic mess, which also kept Ireland from entering the war against Germany, even while sending workers to Britain to work in the war plants for much needed employment. Hatred of Britain due to the Bloody Sunday incidents before and between both WW1 and WW2 also played a major role in this decision by Ireland to take this stand.
The Swedish, who could not rely on Britain to protect them from Russia or Germany, led to their nuetrality even as they provided Germany a safe haven for her finances. At the same time, they played this exact financial and humanitarian role for the US. and its Allies with the Geneva Convention. In addition, Germany, by now fighting Russia, provided the Swedish with protection from that end.
All of these factors make the 2nd World War a complex study. In literature and film, all of these facts are portayed in books such as Hemingway's "For Whom the Bells Toll", and films such as "Casablanca", and even the post war classic "Gilda." All of which first piqued my interest in the subject of nuetrality.
General Sherman said "War is Hell", but it sure creates some great literature.....
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