352.1153 St 2/9

The Chargé in Spain (Blair) to the Secretary of State

No. 679

Sir: I have the honor to refer to the Department’s telegraphic instructions No. 100 of December 7th last, 5 p.m., and No. 101 of December 9th last, 6 p.m.,32 in which the Embassy was instructed to make further representations to the Spanish Government in regard to the treatment which the Department expected would be accorded to American interests in Spain, to be taken over by the Petroleum Monopoly. I am enclosing herewith the text of the Embassy’s Note to the Spanish Minister of State under date of December 12th, 1927, which I believe conforms to the spirit of the Department’s instruction.

In my telegram No. 136 of December 8th last, 1 p.m.,33 I reported [Page 704] that the British Ambassador had been instructed to make further representations on the above subject to the Spanish Government and I am enclosing herewith the text of the British Note.33

In my telegram No. 136 of December 8th last, 1 p.m., I informed the Department that the French Ambassador had been instructed to make strong representations to the Spanish Government, such representations to be based on the apparent violation of the Treaty rights of French corporations and citizens by the Monopoly decrees, and the procedure which the Monopoly has adopted up to date. The French Ambassador informed me that his instructions left him considerable discretion in regard to the points he should raise in his Note, always provided that he based his representations on the above referred to principles. I am now enclosing herewith copies of the French text of the French Ambassador’s note to the Spanish Minister of State, together with the Embassy’s English translation thereof.33

In the Department’s telegraphic instruction No. 101, of December 9th last, 6 p.m., I note the Department’s desire to have the representations made quite separately from those which might be made by the French Government, and when I informed the Department in a previous telegram that I had been advised that a French Note was in course of preparation, I had no idea of associating in any way this Embassy’s representations with those to be made on behalf of the French Government. The French Ambassador had, in the course of a conversation, told me in a general way of the points which he intended to raise, and I believed that the Department might possibly desire to know the trend of the French representations before again calling attention to the points raised by this Embassy with the Spanish Foreign Office.

In my telegram No. 139 of December 13th last, 1 p.m.,34 the principal points raised in the French Note under reference are briefly reported, and it seems to me that the French have made a strong and able exposition of their case. In a subsequent despatch I am reporting on other developments which have taken place during the past week in connection with the Petroleum Monopoly.

I have [etc.]

Percy Blair
[Enclosure]

The American Chargé (Blair) to the Spanish Minister of State for Foreign Affairs (Estella)

No. 397

Excellency: I have the honor to refer to the Ambassador’s Note No. 389, of December 1st last, in which Your Excellency’s attention was drawn to the fact that the Alicante Petroleum plant of the [Page 705] Babel and Nervion Company, largely owned by American interests, had been seized by the Petroleum Monopoly before appraisal and without compensation to the interests affected. The Ambassador further informed Your Excellency therein that the American Government had been apprised of this action.

I now have the honor to inform Your Excellency that my Government is concerned by reports of the seizure by the Petroleum Monopoly of properties used for the importation and distribution of petroleum products, without any previous estimation of their value, or any arrangement providing for compensation for the value of the property from the time of such seizure. In the Embassy’s Memorandum No. 379, left with Your Excellency on November 10th last, the Ambassador outlined briefly the point of view of the American Government regarding payment for property belonging to American interests which the Monopoly might take over, as well as other property thereby prejudiced.

In view of the seizures which have taken place since this date, my Government now instructs me to reiterate to Your Excellency that it looks to the Spanish Government for full and fair compensation for all American interests concerned, and that it expects that measures will be promptly taken for the evaluation and compensation, not only for property which has been seized up to the present time, but for the remaining property of the interests involved, which very naturally and reasonably may be considered to have suffered damages by reason of the seizures, and which is indeed gravely prejudiced from the point of view of conducting the Companies’ normal business.

I am likewise instructed to inform Your Excellency that my Government expects that the Companies affected will be adequately indemnified for the use of any plant taken over by the Monopoly, for the period covered from the time of seizure to the time that appraisal and compensation are made for the property affected.

I avail myself [etc.]

Percy Blair
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