852.75 National Telephone Co./329: Telegram

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

36. Your 54, March 28, noon. Department concurs in your views and suggested procedure. You are authorized to request an interview with General Franco and to present to him the following statement in the form of an aide-mémoire which you should explain was cabled to you textually by me:

1.
Repeated assurances have been given by the Spanish Government during the past year that it intended to accord to American rights and interests in Spain just and equitable treatment in accordance with the principles of international law. Assurances to this effect were given by the Spanish Ambassador in Washington on July 28, 1939, acting upon specific instructions from his Government. Similar assurances were given in notes addressed to the American Ambassador in Madrid by the Minister for Foreign Affairs of the Spanish Government in January and February of this year, in which particular reference was had to the American interests in the National Telephone Company of Spain.
2.
Relying upon the foregoing assurances and upon the good faith of the Spanish Government the Government of the United States has expected that the management and control of its properties would be restored to the Telephone Company in accordance with the terms of the existing contract with the Spanish State. Up to the present, however, no action has been taken for the restoration of these properties to the management of the Company, despite continuous efforts over a period of several months on the part of the management to reach an amicable understanding with the appropriate Spanish authorities.
3.
Under these circumstances the Government of the United States feels that the time has come to request the Chief of the Spanish State to make effective the assurances which have been given in the past and to issue the necessary instructions to restore the management and control of its properties to the National Telephone Company of Spain without further delay.

In your discretion you may make it perfectly clear that until the Spanish Government makes evident its intention to respect American rights and interests in Spain by concrete acts, the relations between our two Governments can hardly be considered by this Government to be on a satisfactory basis with respect to our mutual interests and desires.

Hull