740.0011 European War 1939/11060: Telegram
The Ambassador in Spain (Weddell) to the Secretary of State
[Received May 18—4:47 p.m.]
421. As you are giving further consideration to Spanish problems arising from export control mentioned in your 220, May 6, 7 p.m., I venture to point out that our restrictions against exports of petroleum products are also causing grave concern here. This has been mentioned informally several times by the Ministry of Industry and Commerce. Under British navicert control stocks of lubricating oils have shrunk to less than a 3 months’ supply. CAMPSA21 stocks on March 31 amounting to less than 9,000 tons and the quota of imports for the April–June period is limited to 12,000 tons considered to represent actual consumption. Stock of cylinder and other high grade oils are reported negligible. Delays or reductions affecting this quantity it is feared will seriously impede the operation of transportation and industry.
At the suggestion of the Ministry of Industry and Commerce the head of CAMPSA has requested my intercession for reconsideration of an application for 900 tons cylinder oil for locomotives from Cities Service which has been denied; various pending applications from Texas Company for high viscosity index oils for blending purposes and 44 tons of red petrolatum from the latter company. These all are scheduled to be shipped on tankers due to arrive about May 20 to 25.
The Manager of Socony Vacuum informs me that export license has been refused his concern for 4,500 tons of high grade lubricating oils. This is the only American-owned company having its own lubricating oils distributing organization selling direct to consumers and controls about 35 percent of the total of high grade oils. It is the only American organization which has been able to secure import permits from the Spanish Government and by an arrangement with British and Spanish authorities whereby this quantity will be deducted from the 12,000-ton quota mentioned above it has been granted British navicerts. As high grade oils are indispensable the Department might wish to give consideration to the desirability of permitting Socony Vacuum to continue supplying Spain with this type of oil so as to permit it to maintain its selling organization and avoid this market from being diverted to other interests.
[Page 899]The Minister of Industry and Commerce has also requested my friendly intervention for expediting export permit requested through Ernest S. Kuhn, New York, for 5,000 tons sulphate of ammonia for shipment to Canary Islands.
- Compañía Arrendataria del Monopolio de Petróleos, Sociedad Anónima.↩