The Foreign Office and British Shipowners Regarding this, indeed, the
Foreign Office would appear to have displayed an ineptitude past defence. The condi- tions proposed by the Foreign Office were that the enquiry should be conducted by two naval officers, one British and one representing General Franco, with the possibility of a final decision by an umpire belonging to some neutral State ; that it should take place in territory held by the insurgents ; that the shipping companies should be able only to submit evidence in writing ; that evidence from persons in Spanish Government territory (where all the attacks take place) might be submitted, but might or might not be put forward ; that the shipowners themselves would not be legally repre- sented. Finally, and most important because it directly traverses a statement made by the Prime Minister in the House of Commons, it is explicitly stated that " there is no guarantee that compensation will. actually be paid by General Franco even in cases where both officers agree that the attack was deliberate, H.M. Government having proposed that such an enquiry should take place and that compensation should be paid in proper cases but General Franco having only accepted in principle ' and without referring to payment of compensation."
The Foreign Office proposals having been given publicity in the daily papers, it has been hastily explained that they were merely put forward provisionally as a basis for discussion. That does not substantially help matters. It is astonishing that conditions so plainly inadmissible should ever have been drafted, and the conflict between the Foreign Office letter and the Prime Minister's assurance regarding compensation is serious. It is of the first importance that the question whether General Franco has undertaken to pay in cases where deliberate attack was proved be cleared up.
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