Quote:
| Moreover, the Spanish did not appear to be unduly reliant upon seaborne trade nor have any significant empire to guard, which might have led the British into enforcing a blockade |
Spain still had significant interests worldwide.
Also Spain was a major importer of Grain and other foodstuffs. If Spain had joined the Axis then most of these imports would have been lost. Spain asked for such shortfalls to be made up by the Germans. The Germans couldn't and thus the discussions of this and other matters never progressed.