Papers relating to the foreign relations of the United States, 1928, Volume III

352.1153 St 2/65

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

Madrid, March 14, 1928.
[Received March 28.]

No. 839

Sir: I have the honor to refer to the Embassy’s telegram No. 37 of March 9th, 5 p.m., and the Department’s telegraphic instruction No. 25 of March 10th, 5 p.m., having to do with the new rules laid down by General Primo de Rivera for the governance of the Valuation Commission, in regard to the determination of the value of the expropriated petroleum companies in Spain.

Upon receipt of the Department’s telegraphic instruction above referred to, I wrote a letter of acknowledgement to General Primo de Rivera, and I am enclosing herewith copies of the text of this letter.

It was not possible for me to arrange to send in the replies of the American, British and French Embassies at one time, in accordance with the Department’s suggestion, as the French Ambassador left for Morocco on Friday, March 9th, and had already replied before I received the Department’s instruction. I am enclosing herewith the Spanish text and the Embassy’s translation thereof of the French Ambassador’s reply,²⁹ which is entirely non-committal. I am advised that the French reply is based on the idea that it is now necessary to see how the Valuation Commission will interpret its new instructions, and that it is not opportune to go into further details at this time.

The British Ambassador has simply acknowledged General Primo de Rivera’s letter of March 6th, and has made no comment whatsoever on the amended rules.

In the last two weeks, there has been a kind of a lull in the developments, and apparently the Government hopes to let the storm of adverse foreign press comment subside before proceeding further in the matter. A current rumor, which seems to be fairly well founded is to the effect that no serious work by the Valuation Commission is to be anticipated before the Easter Holidays, and in view of the fact that none of the companies have been summoned to appear before the Commission, it seems probable that the Government wishes to gain time, and let the public believe that all is now proceeding satisfactorily. Naturally the Spanish Government has no interest in expediting the valuations as its Monopoly is now enjoying full possession and use of the expropriated companies, and the legal interest which has been promised on any amounts finally awarded will be more than compensated for by the profits realized from the expropriated business.

I have [etc.]

Ogden H. Hammond

[Enclosure]

The American Ambassador (Hammond) to the President of the Spanish Council of Ministers (Estella)

Madrid, March 13, 1928.

My Dear Mr. President and Friend: I take pleasure in acknowledging your letter of March 6th,³⁰ in which you refer to the new instructions which have been given to the Valuation Jury, and with which you enclosed me a copy of these instructions. I have brought the information which you have given me to the attention of my Government, and I have now been requested to inform you that due note has been taken of the nature of the instructions which have been given to the Valuation Commission.

In taking note of these instructions, together with the assurances which you have given me in your letter above referred to, my Government requests me to express the hope that a prompt and satisfactory valuation of the properties will now be made, with the understanding that such a valuation will be on a basis which will entail full and fair compensation for the losses to which the expropriated companies, largely owned by American interests, have been subjected.

I avail myself [etc.]

Ogden H. Hammond

29. Not printed.
30. Ante, p. 858.