It took some time, but I found an interesting article about the "Myth of Spanish neutrality" in WW2 http://artsci.drake.edu/dussj/stantonsean.pdf , which I think answers several questions raised initially in this thread. For example there are indications about the price Franco asked for entering the war:
The author also concludes:Spain requested 400,000 tons of gasoline and 200,000 tons of fuel oil, along with 600,000 tons of wheat, 200,000 tons of coal, and substantial quantities of other raw materials, including cotton, rubber, wood pulp, hemp, and jute.66 Spain mistakenly believed Germany to possess a large supply of such items, but in reality, Germany was experiencing shortages herself and could not oblige Spain’s
request.
I think we should reconsider if we do not allow the option that Spain joins the Axis if Britain is invaded by the Germans before the US enters the war. From my point of view it seems still a little weird that Spain will join the Axis if German/Italian units conquer North Africa, but will refrain from doing so, if Britain is captured. If Spain joins the Axis if Sealion is successful, we would perhaps not need the “moral penalty” Britain suffers if there are not enough British Units in Britain. I do not really like this new “penalty”, as you get the message every turn and the penalty can quickly be nullified with a few partisan units popping up in Britain. I also do not think that the penalty is very realistic. Of course British morale would suffer significantly after Sealion, but I think it would get better after the initial shock. The morale loss should be similar as the Soviet morale loss and the British units should regain effiency.Spain used its illusory neutrality to continue making gains before entering the war on the side of the Axis, which it planned on doing after the fall of Britain.
So I propose the following changes (if the developers agree):
1. The British do not suffer a permanent morale loss, but instead a morale loss similar to the Soviet morale loss when Barbarossa is launched in 1941.
2..
a) Spain joins the Axis for free if the Axis capture London and Liverpool before the US enters the war.
or
b). Spain joins the Axis if the Axis capture London and Liverpool for a sum of 100 PP (or another balanced sum).






