852.75 National Telephone Co./8–2544: Telegram

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

2921. Vice Presidency of the Spanish Government through Government delegates to the CTNE, yesterday notified the company that in accordance with provisions of article 92 of the regulations for carrying out the concession contract it must take necessary steps to assure that a majority of its voting shares are in possession of Spanish nationals (en poder de Españoles) by August 29. The company is now preparing an answer.

I have today submitted a note to Foreign Minister, copy of which is going forward by tomorrow’s air pouch,58 strongly protesting against the discourtesy shown the American Government by failure of Ministry of Foreign Affairs to answer the several communications I have addressed to it on this matter and I informed the Spanish Government that the United States Government reserves the right to take such action as may be necessary to ensure proper protection for American [Page 431] shareholders in the CTNE. I expect to discuss matter fully with the Foreign Minister at San Sebastian59 on Saturday60 or Monday.

Hayes
  1. Despatch 2962, August 26, and enclosed note not printed.
  2. Summer capital of the Spanish Government.
  3. August 26.