Gibraltar's Finest Hour: Franco's Gamble and the Demise of Operation Felix

Spain began the war as an avowed non-belligerent, and only in October 1943, did it formally declare neutrality.

Force H was soon in action. Following the armistice with Germany, the French Fleet, then the second-largest force of capital ships after the Royal Navy, came under the control of the pro-German Vichy Government. On July the 3rd 1940, Force H opened fire on the French fleet anchored at Mers el-Kebir; there could be no possibility of the French fleet falling into German hands. Naturally, the French were a little put out and the Vichy controlled French Air Force launched the first aerial attack against Gibraltar.

The sinking of the French Fleet helped persuade Hitler that any large-scale actions in the Mediterranean would be hazardous whilst Britain held Gibraltar. By the 12th of July 1940, the initial planning document for the invasion of Gibraltar, had been prepared and on the 22nd of July a reconnaissance mission set off in civilian clothes with false passports to Madrid. There were several problems to solve before an invasion could take place, not least obtaining an agreement from Franco that German forces could travel across Spain.

Emerging from a devastating civil war, Franco craved neutrality. Yet, he was acutely aware of Germany's growing power and the potential benefits of an alliance. Franco's problem was that much of the food and essential materials for Spain had to be imported from former colonies in South America. It was imperative that Spanish merchant ships and neutrals trading with Spain continue to travel safely across the Atlantic. Franco understood that, if he allowed German forces to use Spanish territory to attack Gibraltar his Atlantic lifeline would be cut.

He was probably also aware that if German forces entered Spain, Britain planned to capture, occupy, and defend a large part of southwestern Spain to prevent long-range bombardment by German train carried artillery that had ranges up to thirty kilometres.

Franco saw an opportunity to exploit the situation, playing both sides against the middle. He demanded vast quantities of supplies, grain, fuel, and other materials, from Germany in exchange for his cooperation. On the 23rd of July 1940, Admiral Canaris, the leader of the covert mission to Madrid, met Franco and asked for Spanish help to prepare a map of the defences of Gibraltar in preparation for the proposed attack. Franco was not entirely happy with the scheme but allowed Canaris and his men to travel to Algeciras and set up reconnaissance points.

Meanwhile, "Spy Row", the coast road between Algeciras and La Linea, bustled with activity as German intelligence officers set up camp in the villas Leon, San Luis, Isabel, and Haus Kellerall to observe the formidable defences of the Rock. Allied intelligence officers meticulously observed the German activities. In the town of La Linea, the Spanish commander's office was used to observe the northern defences, and the western face of the Rock was watched from the Punta Carnero lighthouse.

Furthermore, Franco, sensing the difficulty of the operation and the potential costs, remained elusive. His commitment to Hitler's plan wavered, and his demands for German aid continued to escalate.

The reconnaissance group put together a detailed plan to take Gibraltar. The minimum requirement to ensure the success of a land invasion was a force consisting of two infantry regiments, one of which should be a mountain unit, one engineer construction battalion, two combat engineering battalions, a special company of mine experts and twelve regiments of artillery with 167 guns. On August the 14th 1940, Hitler gave his approval for the Gibraltar operation and gave it the codename Operation Felix.

By late September 1940, Hitler had postponed his invasion of Britain and had to provide Franco with more incentive.

Hitler was very conscious that Franco was providing Germany with invaluable resources to such an extent that, losing those resources would lose him the war. Following the Nazi rise to power in 1933, Germany sought to strengthen its economic foothold in Spain. This push was driven by the need for resources crucial to waging total war. Spain, rich in essential minerals and foodstuffs, became a target for German economic influence.

Two major German banks operated in Spain: The Banco Aleman Transatlantico (Spanish branch of Deutsche Uberseeische Bank) and Banco Germanico de la America del Sur (established by Deutsche-Sudamerikanische Bank). Additionally, at least ten German insurance companies held a presence in the Spanish market. The German chemical giant, I.G. Farben, extended its reach into the Spanish chemical and pharmaceutical sectors. It directly controlled several Spanish firms through Unicolor S.A. and held a controlling interest in Sociedad Electro-Quimica de Flix. Another German firm, Lipperheide and Guzman S.A., established a significant footprint, owning or having close ties to ten Spanish mineral and chemical companies, along with mines, smelters, and transportation facilities. Germany also made inroads into the Spanish machinery and electrical equipment industry. Soc. Financiera Industrial Ltda (SOFINDUS), the official German trading company in Spain (controlled by Rowark GmbH), gained considerable influence in Spanish agriculture.

Despite Allied efforts to counter German influence, Spain continued to supply essential metals like tungsten, iron ore, zinc, lead, and mercury to Germany until August 1944. Payment for these materials was offset against Spain's debt incurred during the Spanish Civil War.

While economic ties were a key focus, Spain's support for the Axis extended beyond resource provision. They serviced Axis planes, allowed Axis agents to operate in Madrid, and sent a military unit, the Blue Division, to fight alongside Germany against the Soviet Union. Early in the war, Spain also permitted German U-boats to refuel and resupply covertly at Cadiz and Vigo, although this concession was withdrawn under pressure from the Allies.

Despite the failed Hendaye Summit, reconnaissance of Gibraltar continued. The invasion plans were refined and a possible date during mid-December was put forward for the attack. Duplicates of the Rock's defences were built in the Jura Mountains in the Besancon area and the 1st Mountain Division started training. On the 12th of November 1940, Fuhrer Directive Number 18 included his intentions for Operation Felix.

As winter approached in late 1940, events conspired against Hitler's plan. Mussolini's disastrous invasion of Greece forced Germany to divert resources to bail out its faltering ally. Hitler's attention also began to shift eastward, towards a fateful invasion of the Soviet Union. The logistical nightmare of Felix, coupled with Franco's reluctance, became less appealing.

A last attempt was made to persuade Franco to allow a German incursion into Spain to take place on the 10th of January 1941 and an assault on Gibraltar commencing on February 4th or 5th. Admiral Canaris, in Madrid, failed to get the agreement he wanted even though he promised that the supplies Franco demanded would start to flow into Spain as soon as the first German soldier crossed the border. Franco again declared he would only enter the war when Britain's collapse was imminent.

This final decision effectively brought an end to Felix. Towards the end of 1940, the allies were starting to flex their muscles in Libya, East Africa, and Greece. Admiral Raeder pointed out that the only way Britain could continue those movements was if they retained bases in the Mediterranean. In his opinion, the only response should be the capture of Gibraltar., an opinion ignored by Hitler.

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