852.6363/59
The Ambassador in Spain (Hammond) to the Secretary of State
[Received September 19.]
Sir: Referring to my despatch No. 476, of August 26, 1927, and to previous correspondence on the subject of the institution of a petroleum monopoly, I have the honor to transmit herewith for the Department’s information a translation of an article from El Pueblo Vasco of September 2, 1927,14 listing sir organizations which presented bids on September 1st for the monopoly and describing the program envisaged by each.
As the Department will perceive from a perusal of the translation above mentioned, the monopoly is now receiving the interested support and attention of many of the most prominent financial institutions in Spain.
It is indicated that a decision of the board designated by the Government for the consideration of petroleum monopoly bids will be made within two weeks, after which it will be referred to the Council of State and subsequently to the Government for final settlement. The above-mentioned board is composed of representatives of the Supreme Treasury Board, the National Fuel Board, the Tax and Customs Bureaus, and the Ministries of State, War, Navy, Fomento and Labor.
It was hinted yesterday by the Counsellor of the French Embassy to a member of my staff that the Resignation of Mr. Nervion of the firm of Babel & Nervion, a subsidiary of the Standard Oil Company of New Jersey, may have some connection with a possible desire on [Page 670] the part of Mr. Nervion to be considered as director of the petroleum monopoly.
I have [etc.]
- Not printed.↩