852.75/11: Telegram
The Ambassador in Spain (Moore) to the Secretary of State
[Received 9:35 p.m.]
42. Department’s telegram 38, August 29, 7 p.m. Following are the salient points in royal decree granting telephone concession.
Concession will go into effect within 6 months and will run 20 years. Eighty percent of the personnel to be Spanish. Government will receive at least 10 percent of the net profits. Deposit of 5,000,000 pesetas. State lines to be taken over at once and others to be secured by special negotiations on termination of which previous concessions will lapse. Three Government officials representing Ministries of the Treasury, War, and Interior are to aid in administration and in case of war with another nation or serious internal disturbances the State may take over control. The contract is transferable with the consent of the State.
This concession is granted to Spanish company18 which has adopted American telephone system and is backed by American capital.
I am fully aware of our Government’s policy regarding monopolies.
- Compañía Telefónica Nacional de España.↩