352.1153 St 2/39: Telegram
The Chargé in Spain ( Blair ) to the Secretary of State
[Received February 13—2:50 p.m.]
25. Embassy’s telegram 16, February 2, 10 a.m. American, British, and French owned petroleum companies have filed protest with Minister of Finance against methods of central Valuation Commission and have refused to attend further valuation meetings because the Government officials on Commission refuse to act in judicial capacity provided for in decree of June 28th and simply assess an arbitrary valuation without taking account of figures submitted by local Valuation Commissions and refusing to allow the companies to justify their claims. Finance Minister’s reply to companies cites them to appear before each session of the Commission stating that final recourse to the Council of Ministers always remains. He states that failing companies’ participation Government representatives will decide on valuation without further reference to companies, which procedure in fact now obtains as Government representatives refuse to discuss companies’ claims. [Paraphrase.] The French Ambassador approves of the companies’ decision to withdraw their representatives from the central Valuation Commission and has the intention of protesting further. He has despatched the commercial attaché to Paris to urge the French Government to take reprisals.
It is my belief that the position of the companies is justified and that it would be opportune to enter a vigorous protest against the treatment accorded to American interests. [End paraphrase.]