852.6363/72
Memorandum by the Chief of the Division of Western European Affairs (Marriner)
Mr. Campbell and Mr. Johnston of the Standard Oil Company of New Jersey called to inquire about the Spanish oil monopoly and what, if anything, the Government could do to assist the American companies interested. I told them that until there was evidence of some denial of justice in the working out of the scheme for indemnification which the decree set up there was no action which this Government might properly take except to have the Ambassador state, as has already been done, that it is to be hoped that the enforcement of the decree will result in adequate compensation for property seized. I likewise told them that should there be any evidence of discrimination in favor of the interests of the nationals of other foreign nations we would be justified in protesting on that account. They seemed to understand these limitations perfectly and told me that they had reports [Page 675] from Madrid that the Ambassador and the entire staff had been very helpful and cooperative during the whole matter.
They also stated that as their company did not approve of the monopoly system of distribution, they intended to refuse to supply the Spanish monopoly and thought that this would be the attitude likewise of the Shell and Royal Dutch Companies but that they would ascertain this point and let me know. They likewise stated that on the whole they preferred their plants to be abandoned and lie idle than to have them seized by the Government and naturally would not interpose any objections to such an act. I inquired whether they had consulted their lawyers in Spain on the subject and they replied that they had done so but that no comments could be made at present as there were no cases as yet under the decree. They seemed to think that the Spanish had embarked on a tremendous enterprise which they would never be able to carry out as they apparently plan to provide ships to carry petroleum and even hint at the possibility of embarking in the development of Venezuelan land to supply their monopoly. This, without the aid of foreign loans, seemed to them impossible.