352.115/293

The Counselor of Embassy in Spain (Thurston) to the Secretary of State

No. X–157

Sir: In no instance of which I am aware has an injury to American interests in Spain during the present civil war been redressed—despite representations made to the local or national authorities by American consular or diplomatic representatives. This is presumed to be due to some extent to the customary influences of war upon [Page 522] government and to a much greater degree to the impotence of government before the power of the anarcho-syndicalist and socialist labor organizations responsible for most of the injuries in question. As the civil war progresses the authority of the agencies of government seems to be increasing while the power of the proletarian forces tends to diminish.

It does not appear that the difficulties of American interests have been greater than those of other foreign interests, or that our representations have been less availing than those of other powers. The London Times of June 26, for example, contains an item concerning the affairs of the Barcelona Traction, Light and Power Company which is enlightening in this respect, and from which the following excerpts are transcribed:

“The seizure effected by the Workers’ Committee in Barcelona covers all the properties, funds, and banking accounts of the enterprise.

Representations made through the British Foreign Office against the usurpation of the interests of the enterprise, and protests from time to time by the British Consul-General in Barcelona to the Catalonian Government, have produced no satisfactory results. The funds and cash have been removed from the banking accounts of the enterprise and appropriated by the Workers’ Committee.

Prior to the outbreak of the revolution exchange control was in form and remittances from Spain were very restricted (in fact, no funds have been remitted from Spain since June 30, 1936), with the result that at the time the Workers’ Committee assumed control the liquid funds in Barcelona amounted to over 43,000,000 pesetas.”

Respectfully yours,

Walter C. Thurston