352.1153 St 2/7: Telegram

The Acting Secretary of State to the Chargé in Spain (Blair)

[Paraphrase]

104. Your telegram 142 of December 19, 4 p.m. The action of the Spanish Government in seizing properties of American oil companies in Spain without previous payment of proper indemnity as provided by article 349 of the Spanish Civil Code has created a very unfavorable impression in this country. In addition, the seizure of the Malaga properties without even previous notification to the company is causing this Government serious concern. What appears [Page 712] to be a suspension of the Spanish Civil Code and the arbitrary acts committed by the Spanish Government in the course of its operation of the monopoly cause a belief in this country that in Spain the law does not now protect property or property rights. It is unnecessary to point out that it would be unfortunate if this belief receives further corroboration.

The foregoing may be brought to the attention of the Spanish Government and you may refer once more to the views of this Government in the matter of compensation as indicated in the Department’s 100, of December 7, 5 p.m.

Olds