NEW SPANISH CONSTITUTION

Taranaki Daily News, 12 December 1931, Page 7

NEW SPANISH CONSTITUTION

EFFECT ON FOREIGN BUSINESS. By Telegraph—Press Assn.-—Copyright Rec. 5.6 p.m. Madrid, Dae. 16k The anxiety of British and other foreign companies operating in Spain repossibilities under the power# of the new constitution has been increased by an announcement that the Government is introducing a Bill declaring void a contract with a company formed in 1924 !by royal decree in association with the American International Telegraph and Telephone Company to reorganise Spanish telephones. As the telephone are a national utility they are liable to expropriation, at though the Bill provides for discussion . of an indemnity. The Bill, which follows a propoasi to transfer the petrol monopoly to the State introduced yesterday and which the Government declares will bo accompanied by a safeguarding of private capital, suggests the rigour with which the Government proposes to apply the law even in cases concerning powerful interests of foreigners.