852.6363/55
The Ambassador in Spain (Hammond) to the Secretary of State
[Received September 14.]
Sir: With further reference to my confidential despatch No. 462, of August 15, 1927,12 and to previous communications, concerning the petroleum monopoly, I have the honor to acknowledge the receipt of the Department’s confidential telegraphic instruction No. 65, of August 13, 3 p.m., 1927, informing me that, after an examination of the Decree of June 30th [28th], while our Government regrets in principle the establishment of monopolies generally, the Department does not feel that it could appropriately or effectively object to the establishment of an oil monopoly in Spain.
I have carefully noted the Department’s observations contained in the telegram above mentioned and shall, therefore, limit myself to observing and reporting to the Department the development of the project.
As stated in my weekly report of August 20 last,12 at the Cabinet meeting held at Santander last week, consideration seems to have [Page 669] been given to the oil monopoly in spite of reiterated official denials, and, according to what I consider to be reliable reports, the project has thereby already sustained considerable modification in the direction of inviting the cooperation of competent private individuals in the institution of the monopoly and apparently of heeding legitimate objection which may be made in good faith thereto.
I still feel that, in view of the determined and apparently intelligently organized opposition in Spain to the monopoly, such as that reported in the Consul General’s despatch of April 17th last, as well as the observations made by the French Government reported in my telegram No. 78, of August 9, 10 a.m., 1927,13 there is a possibility of its ultimate abandonment.
I have [etc.]