[Enclosure—Translation]
The Spanish Ministry of
State to the American
Embassy
No. 304
Note Verbale
With reference to the Note Verbale No. 407 of
December 23rd, from the Embassy of the United States of America, the
Ministry of State has the honor to inform the Embassy, as a first
impression and without prejudice to a more detailed answer,
reiterating what was stated in its note of the 21st of
December,3 in regard to the seizure by the Petroleum
Monopoly of a part of the installations of the Babel and Nervion
Company in Alicante, that the seizures of properties belonging to
American citizens, and, in general, to citizens of other countries
who have interests in the business of petroleum importation into
Spain, are being carried out in accordance with the Royal Decree-Law
of October 17th last4 and with the reserve, as
[Page 833]
provided for in Article 2 of this
Decree, of making pertinent indemnification.
It has not been possible previously to determine the amount of the
indemnification both with respect to the seizures already made as
well as to those which have not yet taken place, because it is
necessary to make the proper valuation in accordance with Article 10
of the Royal Decree-Law of June 28th last,5 which
fixes an as yet unexpired period for these valuations which are
being made by a jury designated for this purpose. This appraisal
cannot therefore be completed before the first of January, 1928,
upon which date the Monopoly must become effective.
Under these circumstances, the Ministry of State does not, therefore,
consider justified either the alarm or the unfavorable impression,
which, as it has been informed by the United States Embassy, the
abovementioned seizures have occasioned in the United States, the
more so as His Majesty’s Government has decided that expropriated
companies will receive legal interest on the finally determined
valuation from the date of seizure to the time when final payment is
made, and the Spanish Government will not in any way depart from
legal rules and equitable methods either in this matter or in any
other, as it is safeguarding its right to organize within legal
limits the services of the country.
The Ministry of State is, however, forwarding to the Ministry of
Finance the above referred to note of the United States Embassy in
order that the latter Ministry may take account thereof and may
recommend that the valuations in question may be carried forward
with the greatest activity possible.
Madrid, December 28,
1927.
