352.1153 St 2/30: Telegram
The Chargé in Spain (Blair) to the Secretary of State
[Received 3:35 p.m.]
16. Embassy’s telegram 15, February 1, noon.15 In accordance with instructions from Paris Foreign Office, French Embassy sent to Spanish Government strong note, dated January 30, reiterating demand for protection and fair treatment of French property seized by the petroleum monopoly. Note states that Valuation Commissions have flagrantly violated Primo’s promises in regard to fair and equitable compensation for seized property and demands that immediate orders be given to the Finance Ministry authorities on the Evaluation Commission in accordance with written undertakings given by Primo in the last note to the French Embassy.
The Note observes that the Spanish Government has never replied satisfactorily to the French request for explanations regarding measures of protection which property should enjoy in Spain, and further states that it does not wish to conclude that the silence of the Spanish Government means that the latter’s intention is to acquiesce in a systematic despoliation of French interests, although the present procedure of the Treasury gives every ground to suppose this. Babel and Nervion appeared before the Valuation Commission on January 30th which considered physical valuation of certain plants carried on company’s books at 3,700,000 pesetas. Government engineer in preliminary survey had placed valuation of 3,200,000 pesetas on these installations. Valuation Commission representing Treasury offered only 2,000,000 for the property and refused to explain arbitrary method of reaching this figure.
[Paraphrase.] The French Ambassador feels that the new company created to run the monopoly in the Spanish Government’s interest is obviously profiting by these proceedings which are simply a systematic despoilment and that at this time another American protest in line with the French note already mentioned (a copy is being sent by pouch)15 would be most useful. I agree.
The French Cabinet, I am told, yesterday examined reprisal methods and as a first step contemplated most strictly interpreting French regulations in regard to imports of Spanish fruit. Shipments of Spanish products would be automatically held up for two weeks by such an interpretation and would likely be spoiled thereby. Unless the Spanish Government alters its attitude, other French reprisals also are under consideration. [End paraphrase.]