352.1153 St 2/45: Telegram

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

[Paraphrase]

18. Reference your 27, February 18, 5 p.m. Since the oil companies appear to have ceased definitely taking part in the Valuation Commission’s proceedings, the Department’s assumption now is that their next step will be preparing appeals to be submitted to the Spanish Council of Ministers regarding the Valuation Commission’s decisions in cases which have been actually passed upon. This would be in accordance with the June 28, 1927, decree’s provisions.

The only American company up to the present to have its case passed upon by the Valuation Commission, so the Department understands, is Babel and Nervion.

In conversations here with representatives of Standard Oil it has been informally suggested that, if you could communicate the substance of the terms of Babel and Nervion’s appeal before it is actually filed, then the Department would presumably be able to send you instructions very specifically stating this Government’s position which you would present as soon as Babel and Nervion files its appeal and before the Council of Ministers can formulate their decision on it. By following such a course, the Council of Ministers might be able to give this Government’s point of view its full consideration, without derogation to the Council’s judicial capacity (established by the June 28, 1927, decree) and also without exposing the Council to being charged with yielding to foreign pressure. You are invited to make comments and suggestions on this point.

(2)
Reference to your 27’s subhead (3). The advisability at this time of suing in the Spanish courts is questioned by attorneys of Standard Oil, but they see a chance of such action later if the Council of Ministers renders an unfavorable decision.
(3)
The substance of your 27 has been given the French Embassy which reports a better chance of English support and says instructions are being sent the French Ambassador in Spain to demand from the Spanish Government an unequivocal and definite reply. This French protest, the Embassy explains, will be based principally on Spain’s alleged violation of the 1862 Franco-Spanish treaty, article 7.24
Kellogg
  1. British and Foreign State Papers, vol. iii, p. 142.