852.75 National Telephone Co./359: Telegram

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

113. Embassy’s 107, May 5, 2 p.m. Behn today had a long and spirited conversation with Suñer. From Suñer’s attitude throughout the conversation it seems quite evident that he intends to do everything to retain the largest possible measure of control of the company in his own hands while giving the appearance of returning the “control and possession” of the company to the American majority stockholders. Behn, on each occasion that an effort in this direction developed, firmly refused to be drawn [apparent omission] or to accept any proposals which would have weakened the controlling position of the American majority stockholders.

The conversation must as yet be considered inconclusive but at Suñer’s suggestion it will be resumed next Saturday88 at noon at which time it may be possible for Behn to discuss details such as the date for the general meeting; new nominations to the Company’s Board of Directors; and the entry into their functions of new American personnel. None of these were touched upon during today’s conference in other than a general way.

Since the final outcome of the matter still remains in doubt, I would renew previous recommendations that any question of credits to the Spanish Goverment be held in complete abeyance pending further developments.

Bucknell
  1. May 11.