852.75 National Telephone Company/35: Telegram

The Ambassador in Spain (Laughlin) to the Secretary of State

86. Bill of December 10, 1931 for annulation of telephone contract has been resuscitated. Company has been cited to appear before Communications Committee of Cortes this afternoon to show cause why “illegal” contract should not be abrogated. Interpellations directed against company are likewise expected. Azaña does not appear to be antagonistic but he has made it clear to Rock that position of Government is too delicate to enable him at present to afford much parliamentary protection. The outlook for the company is serious.