339.115 General Motors Export Co./55: Telegram

The Secretary of State to the Minister in the Dominican Republic (Schoenfeld)

17. Your 29, April 24, 1 p.m. Address formal note to the Dominican Government stating that despite the assurances given you by the Minister for Foreign Affairs that no action prejudicial to the interests of the Penn Tobacco Company in the Dominican Tobacco Corporation will be taken and denying that any action detrimental to the latter company had been taken, the Chairman of the Penn Tobacco Company and other American stockholders in the Dominican Tobacco Corporation have today informed the Department that the attitude of the Dominican authorities has been such as to prevent the handling by dealers in the Dominican Republic of cigarettes manufactured by the Dominican Tobacco Corporation, thus compelling the factory to suspend operations and causing losses to the American interests involved.

State that this Government is now advised that American interests actually own 55 per cent of the stock of the Dominican Tobacco Corporation. Request immediate investigation into the charge hereinabove mentioned that the Dominican authorities are preventing the operation in the Dominican Republic of this American owned company, and request that if facts are as charged effective remedial action be promptly taken in order that legitimate interests of the Company may no longer be prejudiced. Add that this Government reserves the right to present a claim on behalf of these American interests [Page 486] for any loss they may have suffered to date or may suffer in the future as a result of any undue interference with their legal rights.