852.75 National Telephone Company/6: Telegram

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

108. I was received by the President this morning at 11 o’clock by appointment and presented the telephone company case to him precisely as outlined in the Department’s telegraphic instruction No. 70. He remarked that he understood representations had already been made and I replied in the affirmative. He said that there was no government at the present time but as soon as one was formed he would bring the case immediately to their attention. In reply to my further enquiries he said that the Parliament would have to examine the manner in which the contract to the telephone company had been granted and if any illegalities were found the law would have to take its course. I pointed out to him the cases cited by the Department of the German-controlled Trans-Radio and the Italian cable concessions and he remarked that the case of the telephone contract would be judged without prejudice. He said that the Cortes would give its opinion but that the Government would be consulted before final action was taken. I called his attention to the large amount of American and Spanish money invested in the telephone enterprise and the serious interest which my Government took in the protection of the American company. On taking leave he again assured me that he would present the matter to the Government as soon as it was formed.

Further developments will be immediately reported to the Department.