811.51652/4: Telegram
The Secretary of State to the Third Secretary of Embassy in Spain (Wendelin)
123. Consul Barcelona reports by cable of September 10, 6 p.m.33 that Catalan Government has issued decree September 2 stating that “Firms can utilize former credit facilities at banks which cannot [Page 713] restrict, cancel or refuse to renew without special authority Commissar of Banking and empowers Commissar to order banks increase credit facilities by 50 percent. Furthermore, decree grants Commissar power to control all credit services and to force banks to carry out whatever operations he authorizes.”
Commissar advises Barcelona branch of the International Banking Corporation, which is entirely owned by the American corporation, that banks in Cataluna must observe decree and cannot refuse credit.
Inquire whether Catalan Government had authority under Spanish law to issue the decree, and whether it was regularly issued.
Protest strongly against enforcement of provisions of the decree on ground that such arbitrary interference with normal banking practices with respect to credit transactions would be tantamount to Spanish control and virtual confiscation of American property.34
Please advise Department of reply.