On June 23, the German ambassador to Madrid, Eberhard von Stohrer, a career diplomat, telegraphed Joachim von Ribbentrop, the Nazi Foreign Minister that the Spanish Foreign Minister, Colonel Juan Beigbeder y Atienza, was inquiring on how to deal with the Duke who was on his way to Lisbon, with the possibility of detaining him.
Ribbentrop instructed von Stohrer the following day to forward the suggestion that the Duke and Duchess be detained for two weeks, but not let it appear that the suggestion came from him. Stohrer replied that Beigbeder would do as Ribbentrop asked. The Spanish Foreign Minister then wired Ribbentrop on July 2 that he met with the Duke and reported the Duke's alleged antagonism against the Royal Family due to the treatment meted to his wife, as well as criticising Winston Churchilland his wartime policies.
The Windsors then proceeded to Lisbon in early July. The British government got wind of the Duke's alleged indiscreet remarks with Beigbeder, and as a result Churchill sent the Duke a telegram, ordering him back to Britain. Churchill pointed out that the Duke was under military authority, and unless he obeyed, he would be subjected to a court-martial. (The Duke had the temporary rank of major general.) Then came another telegram designating him as Governor of the Bahamas, and ordered him to assume this post at once. Nevertheless, the Windsors stayed a month in the villa of Ricardo do Espirito Santo Silva, a banker said to have pro-Nazi sympathies.
The German minister to Lisbon reported this to Ribbentrop on July 11 and added the Duke "intends to postpone his departure as long as possible... in hope of a turn of events favourable to him," and basically reiterated what was reported by Minister Beigbeder.
Ribbentrop took this as an encouraging sign, and cabled the German embassy in Madrid to try to prevent the Duke from going to the Bahamas by being brought back to Spain — preferably by his Spanish friends — and be persuaded, even compelled to remain in Spanish territory. He further intimated that the "British Secret Service" was going "to do away" with the Duke as soon as he arrived in the Bahamas.
