352.1153 St 2/21: Telegram

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

7. Embassy’s telegram 1, January 5, 11 a.m. French Embassy has finally received note from Spanish Government replying to its protests. Text forwarded yesterday’s pouch.9 Note avoids issue of violation [Page 840] of constitutional law, pretends that there was no time to make valuations at the time of seizure as monopoly had to be effective by January 1st, and finally promises generous and equitable treatment as a kind of an act of grace. According to decree of October 17, adjudicating the monopoly valuation and compensation should have taken place before January 17.

[Paraphrase.] The Spanish Government, despite its fair promises, has violated its own royal decree; no immediate prospect of valuation or compensation is apparent. I beg respectfully to suggest that, in view of this violation of both constitutional law and royal decrees, the Department of State consider whether to place the issue squarely before the Government of Spain, as suggested in the telegram mentioned above. Continued protest is, I believe, the one method to avoid an endless delay and to obtain for the interests with arbitrarily and evasively expropriated property what is fair treatment.

Information has just reached me … that the Soviet Government demands in return for oil supplies by a long-term contract to the Spanish monopoly that Spain grant de jure recognition. A tentative arrangement with the Soviet has so far supplied the monopoly with a majority of its oil. A report was current a month ago that Primo de Rivera was flirting with the plan to recognize the Soviet, but the certain opposition of King Alfonso and the Roman Catholic Church did not allow serious notice being taken. The present régime, I am reliably informed, will not grant recognition. See Berlin’s No. 3050 of January 3 in this general connection.9a [End paraphrase.]

Blair
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