811.51652/6: Telegram
The Third Secretary of Embassy in Spain (Wendelin) to the Secretary of State
[Received 10:20 p.m.]
X–145. Department’s telegram No. 115, September 10, 2 p.m.38 With regard to first point I am of the opinion, in which International Banking Corporation concurs, that Catalan Government has no legal right to require delivery of gold. Article No. 14 of Spanish Constitution provides “legislation and direct execution in connection with the following matters are in the exclusive competence of the Spanish State” and paragraph 12 of that article specifies “monetary systems, fiduciary issues and general banking regulations.” Same situation applies to Catalan decree of September 2 regulating extension of commercial [Page 717] credits by banks, to which Department’s telegram No. 123, September 12, 6 p.m., has reference.
I have addressed a note to the Ministry of State requesting to be informed whether the Catalan Government gold decree was regularly issued under authority of the Spanish Government and whether the decree permits safety deposit boxes to be opened without the consent or presence of their owners. Consul General at Barcelona will make full reply on all points regarding gold decree.
I have addressed note to Foreign Office in accordance with instructions Department’s telegram No. 123, September 12, 6 p.m., quoting pertinent articles of Catalan decree regulating extension commercial credits by banks, inquiring whether this decree was regularly issued by the Catalan Government under the authority of the Spanish Government and protesting strongly against the enforcement thereof on the ground that such arbitrary interference with normal banking practices with respect to credit transactions would be tantamount to Spanish control and virtual confiscation of American property. At the same time, I have pointed out that the Barcelona branch of the International Banking Corporation is entirely American-owned. I shall advise the Department of Spanish Government’s reply.
Copy of this telegram sent to Ambassador Bowers and Consul General, Barcelona.