852.6363/88

The Spanish Ministry of State to the American Embassy21

[Translation22]
No. 269

Note Verbale

With reference to the memorandum of the Embassy of the United States at Madrid dated the 10th instant, the Ministry of State has the honor to inform the Embassy that the Spanish Government is able to inform the Government of the United States that the petroleum monopoly will apply to the interests belonging to the citizens of the latter country the same treatment as that which it will apply not only to citizens of other states, but also as is applied to Spanish citizens in all matters that relate to the valuation of petroleum industry properties which the monopoly may find it necessary to expropriate.

In making this valuation, the intrinsic value of such properties will be equitably and objectively assessed, but the alleged damages or [Page 694] loss which may result to an industry which ceases to do business will not be taken into account, because this industry, like all others, is always subject to the sovereign decisions of the States concerned, which only have the obligation of protecting such industries so long and insofar as they allow them to do business and oblige them to pay taxes.

  1. Copy transmitted to the Department by the Ambassador in Spain as an enclosure to his despatch No. 638, Nov. 23, 1927; received December 5.
  2. File translation revised.