'A serious diplomatic crisis between the United States and Spain overshadowed all other internation: problems to-night and it was leat that the Secretary of State, Col: Henry L, Stimson, is prepared: to:
London, Dee. 6, The fact that, Mr, Do State, Jed Mx, Edward C. G. Cado-'Conservative' member of the, take "drastic action, even to the' vision of Middlesex, to extent of withdrawing Ambassador inquire' in the House of Commons Irwin Laughlin, i the Spanish Gov- to-day whether there was material ferment confiscates the properties significance in the altered design jof the International Telephone and tion, Telegraph.
"The Spanish Cortes is now con-ring a Government. bill. proing for the nationalization, of fall telephone and. telegraph communications. The bill, itis learned, doesn't. provide for' compensation {nthe event of confiscation.
'Mr. J, 1. Thomas, the Secretary, for the Dominions, replied that the ile "*Seneschal"'" had been use wee the Free State was establish: "d, Tt was the Trish translation for 'Governor-General, Mr. Buckley, it may be recalled,'
The company's property, according to State Department estimat Is worth $05,000,000 and the Uni States Government will demand the full amount in damages if the pro erty is taken over by the Republic, "The International 'Telephone. and Telegraph isan American Corpora tion with extensive investments. in Europe and South America, Its contract was signed with the King dom of Spain but the United States holds' that the contract. was entered Into" im "good, faith and. that "the company performed every obligation forthe entire satisfaction of the Spanish Government.
Tt was pointed out here that even under the Tepublle there is no claim that the company has not maintain= fed the most modern of service but the Cortes wants the system a the maintain of a, Nationalist come ions system.
fasistant Secretary of State nes MeNeill, who resigned fol considerable friction with Mr. de Valera and his Cal Reiter:
Text read from the printed page and cleaned; old type leaves the occasional error.