352.1153 St 2/36: Telegram
The Secretary of State to the Ambassador in Great Britain (Houghton)
26. In connection with possible representations by the Department to the Spanish Government regarding valuation of American property now in the hands of the Spanish petroleum monopoly, ascertaining the British Government’s attitude thereto is important.
The Department is informed by Sir John Broderick of the British Embassy, which has no specific instructions, that he believes the seriousness of the situation which may develop is realized by the British Government, but that the latter will proceed as usual without protest unless specific cases affect adversely British interests which are clearly defined. Broderick points out that, since these British interests are chiefly connected with the Royal Dutch Shell, it is more difficult for the British to protest insufficient valuation which amounts to partial confiscation than were purely British interests involved. From outside sources the Department also learns that disapproval of Sir Henry Deterding’s behavior on his recent Madrid visit to the Spanish Government partly explains the British Embassy’s hesitation to protest concerning expropriation and valuation.
Mr. Blair is proceeding to London during the coming week to talk over with the Embassy this oil situation. Without further instructions you are not desired to make any inquiries at the British Foreign Office, but any suggestions which you care to make when you have discussed matters with Mr. Blair will be appreciated by the Department.