852.6363/68: Telegram
The Ambassador in Spain (Hammond) to the Secretary of State
[Received 1:45 p.m.]
105. Royal decree published Official Gazette, October 20, gives director general of stamp tax full powers to take any action necessary to assure supply, distribution, and sale of petroleum products until the monopoly company, which has been awarded to banking consortium by another decree of same date, is in normal operation.17 Director is instructed to take all needful measures to assure full supplies and avoid disturbance to consuming public. Minister of Finance is allowed to size immediately any or all petroleum producing or distributing organizations if he judges it in the public interest. When Minister of Finance judges it necessary he will place before the Council of Ministers proposals for all or any seizures of property, indemnification therefor being made later in accordance with article 10 of original petroleum monopoly decree of June 28. Stamp Tax Director can impose fines up to 25,000 pesetas on any interest obstructing the execution of above-mentioned provisions and in very grave cases criminal proceedings and higher fines may be inflicted by agreement of Cabinet.
Original decree June 28 prevents ordinary legal recourse to the courts for the protection of property and provides a special organization to determine indemnification, the interested company only being allowed to make representation to a committee which may decide arbitrarily on its value. Another telegram on the same subject follows.