352.1153 St 2/2: Telegram
The Chargé in Spain (Blair) to the Secretary of State
[Received December 7—3 p.m.]
135. Referring to the Embassy’s telegram number 133 of December 6, noon. On December 5th the Standard Oil made a formal claim for valuation and indemnity for its entire petroleum properties,26 the demand being based on article 10 of the Constitution, article 349 of the Civil Code, and article 10 of the Royal Decree of June 28th.27 Also the Standard’s Spanish subsidiary holds a charter from the Spanish Government dated 1918 and valid for 99 years. The communication from the company to the Minister of Finance is an able exposition of the whole situation; copies are being forwarded by mail. It is my belief that the moderate claims put forward by the Standard Oil Company in this letter will be regarded favorably by the Department and that they might well be given support in future representations.
I have received information that Primo de Rivera told the Duke of Alba yesterday that he had already been involved in absurd and endless difficulties by the petroleum monopoly and that he was disgusted with the business. However, it appeared, he said, that the Government had proceeded too far now to retreat and that the monopoly would have to take its course until it should collapse of its own weight or become involved in an open scandal which would enable him to eliminate it on patriotic grounds. Primo stated that he had been troubled by the representations made by ambassadors of foreign powers, which were difficult to counter and that he had given instructions to the oil monopoly that generous treatment should be given to foreign interests. It is difficult to reconcile this latter statement with the attitude of the monopoly to date.